Starnes 53

Managing Risk in Business through an Investigation of Orientalism

An Honors Thesis Presented to theUniversity of Alabama Honors Collegeand theFaculty of The University of AlabamaIn Partial Fulfilmentof the Requirements for University Honors and International Honors Diploma Designationsfor the Degrees:Bachelor of Science in Commerce and Business Administration, Financeand Bachelor of Arts in Foreign Language and Literature, French byNicholas StarnesMay 2015

Supervisory Faculty:Dr. Eleanor Finnegan

Approved by:

AcknowledgmentsI would like to take this opportunity to thank my family for their dedication, love, and support, which have allowed me to successfully complete an undergraduate education at The University of Alabama. My mother, Sharron Starnes, my father, James Starnes, my two brothers, Michael Starnes and Seth Starnes, and my two sisters, Christy Tarassoli and Dana Goggans, have all helped me to become the first generation scholar that I am through their monumental sacrifices. Next, I thank Amanda Brown and Aaron Paul Brown. With their guidance and determination I have been inspired to not only go to The University of Alabama, but to thrive here. I also thank my supporting colleges at The University of Alabama. Thanks to the Honors College, with their programs that foster creativity and a faculty who has been with me every step of the way, from freshman to senior, I have gained an education, not just a degree. Culverhouse College of Commerce has given me the inspiration to pursue a field that profoundly interests me, and that has inspired this paper. Lastly, the College of Arts and Sciences I thank for their unique and diversified education experience, which has truly inspired me to learn without boundaries.The most important thanks that I am left with is for my thesis advisor, Dr. Eleanor Finnegan. With her help, I have been able to grow as a writer, a researcher, and a student of the world, not just my university.

AbstractThis paper analyzes current risk management approaches found in the fields of global and domestic business which are influenced by an idea known as Orientalism. U.S. companies, as well as federal and local governments, are examined under the lens of scrutiny for Orientalist markers in order to determine how this unconscious bias incorrectly evaluates risks relating to various business decisions. False identities constructs, which are the result of Orientalism, influence these business activities, and thus risk management can be altered due to an increased inclination to misrepresent information at hand. The methodology of this investigation of Orientalism is unique in the fact that it takes into account academic sources on the topics of identity construction, bias, and Orientalism; next, two categories are formed to evaluate: Orientalism in policy that influences business and Orientalism in risk management for general business operations. These topics provide two case studies each to total four case studies in all whereby Orientalism is a major component of risk management and decision making. All cases also deal with major points of concern for Orientalism in topics of terrorism, Islam, and the Middle East. Through the projection of false identity constructs in regards to the Middle East, as an attempt of the West to protect global business integrity, any risk present that is a legitimate threat to the firms operations, is actually compounded as a result of mistranslated danger

Managing Risk in Business through an Investigation of OrientalismThesis Statement: Through the projection of Orientalist identity constructs in regards to the Middle East, as an attempt of the West to protect global business integrity, any risk present that is a legitimate threat to the firms operations, is actually compounded as a result of mistranslated danger. I. Introduction and Statement of the ProblemA. Bias B. Construction of IdentityC. OrientalismII. Justifications for Present AnalysisA. Global BusinessB. The Effects of GlobalizationC. Risk Management in the International Business CommunityD. Modern ThreatsIII. MethodologyA. ApproachB. Literature Review: Orientalism C. ProcedureIV. Case StudiesA. TSAB. SEPTAC. McDonaldsD. Bloomberg L.P.V. Findings and ApplicationsA. FindingsB. BenefitsC. Future ApplicationsVI. Conclusion A. Closing Statement

Introduction and Statement of the ProblemBias is a fundamental aspect of decision making, and as such, intrinsically affects decisions which are also related to trade. The most well-known manifestation of trade, takes the form of business and the end result of decisions in this realm are to add profitability to the firm. However this field can be subjective seeing how risks that are perceived by each firm can fluctuate according to the biases which is present in that specific company or managing individual.[footnoteRef:1] One of the most [1: ALTI, AYDOAN, and PAUL C. TETLOCK. "Biased Beliefs, Asset Prices, and Investment: A Structural Approach." Journal Of Finance 69, no. 1 (February 2014): 325-361. Business Source Complete, EBSCOhost (accessed May 1, 2015), 13.]

prevalent forms of bias in businesses today is one that is lesser known, yet very prevalent: Orientalism. This paper examines Orientalist bias as it relates to the Middle East since this form of identity construct is most common in news, pop culture, media, etc. Thus the effects of Orientalism have expanded to even greater numbers of the population and have an even larger role in business decisions that are being made in modern times. The increasing trend is addressed by this paper as an attempt to make the case that an unbridled increase in Orientalist influence, especially in business, can become dangerous to the overall health of a firm or even an economy. Knowing that one may be subject to bias is one thing; being able to correct it is another.[footnoteRef:2] [2: Elster, Jon. Explaining Social Behavior: More Nuts and Bolts for the Social Sciences. Philosophiques 37, no. 2 (September 1, 2010): 509-526. Philosopher's Index, EBSCOhost (accessed February 15, 2015).]

Bias is found in every aspect of a society and many times at the subconscious level of individuals, where these people have no clue that their predispositions towards or against a specific topic could be classified as bias to begin with. However, in a more modern society, one that is characterized as being further enlightened by such concepts as: access to open source information via the internet, increased globalization, and interconnectivity through advancements in communication, it can be easy to forget just how impactful biases really are; additionally, as a direct result of todays technology being able to connect billions of people around the world, the average person receives an infinite exposure to a multitude of different classes, beliefs, and peoples, on a daily basis.[footnoteRef:3] Modernity thus forces these people to confront their own biases more now than ever before. [3: Ibid]

However, the question still remains: what exactly is a bias?The American Heritage Dictionary defines bias as being, An unfair act or policy stemming from prejudice.[footnoteRef:4] This definition, though very accurate in its own description of the term discussed, [4: The American Heritage College Dictionary, 138.]

still omits the fact of how exactly bias works its way into the decision processes of an average person. Unfortunately, before that methodology is analyzed, it needs to be understood that bias is not always fully a negative nor a positive influencing factor, rather, it can be best classified actually as an adaptation. Dr. Martie G. Haselton of UCLA describes bias as being part of a much larger and essential part of human psychological evolution. In her book, The Evolution of Accuracy and Bias in Social Judgment, she explains:Humans are an intensely social species and therefore it is essential for our interpersonal judgments to be valid enough to help us to avoid enemies, form useful alliances and find suitable mates; flawed judgments can literally be fatal. An evolutionary perspective implies that humans ought to have developed sufficient skills at solving problems of interpersonal judgment, including gauging the personalities of others, to be useful for the basic tasks of survival and reproduction. Yet, the view to be derived from the large and influential bias-and-error literature of social psychology is decidedly differentthe social mind seems riddled with fundamental design flaws.[footnoteRef:5] [5: Haselton, Martie G., and David C. Funder. 2006. The Evolution of Accuracy and Bias in Social Judgment. (accessed February 18, 2015), 24.]

Restated, bias thus can be explained as an adaptive tool that humans have been able to utilize in order to better increase survival in their surroundings. For example, peoples of the past began to rationalize: if an area had poor food or water resources-then this area would be considered bad, if a mushroom caused sickness-then it should not be eaten, if a method of building shelter is more effective-it is the preferred way. Biases such as these have guarded generations of humanity against all sorts of threats and thus have been adopted, not only on an individual basis, but by entire groups as well. The issue of group bias will be covered later on this analysis, however the formation of individual bias is important to see how group bias works as well.[footnoteRef:6] These influences [6: Haselton, Martie G., and David C. Funder. 2006. The Evolution of Accuracy and Bias in Social Judgment. (accessed February 18, 2015), 24.]

on decisions can be depicted in an analysis of even the most meaningless encounters that individuals face on a daily basis, but trade, being highly interactive and thus subject to biases, is the basis for this papers scope of analysis via the medium of business. For example, bias can infiltrate business decisions by a boss preferring supplies to be bought from Publix versus Walmart, someone choosing the younger electronics department employee versus the older one to help them with purchasing a video game, or even a person refuses to buy a taco from a lunch truck, though it may be the more convenient option, are all examples of bias affecting decision making. To expound further on this, deciding which movie to go to on a Friday night, can also show just how preferences are formed and then later guide decision making. This can be shown with a pretend scenario of an individual that may have had a negative experience at a horror movie where the storyline was too scary and thus made the viewer feel uncomfortable; the experience would hint to the viewer next time that horror movies in general, are something they may dislike. This person may now feel as if they dislike all horror movies since this first time experience was terrible and their reasoning suggests that the next horror movie would have a higher likelihood of also being terrible with the data they have. Next, take the same viewer, who also makes it a point to view every movie with a particular actor that they admire. This individual chooses to go to the movies a second time even after their previous, bad experience with the horror genre (where they either subconsciously or consciously formed a bias to tell them never to see a similar movie since they disliked it one time in the past). They notice that their favorite actor is in a new movie that is showing, however they also note that the title of the movie and the advertisement reminds them that this movie is a horror movie. The moment after this realization is when the individual calls upon past experiences to help them rationalize what to do next, and thus the concept of bias comes to be of influence in order to aid them. Despite the fact that their previous bias may have been to see any movie with this certain actor because they always have enjoyed the experience, their new rationalization about movie genres may trump their old reasoning and convince them to see a different movie instead. This is an example of how bias was formed and then uncontrollably exercised to control a specific outcome from happening again. Of course the decisions discussed so far, which are influenced by biases, are seemingly harmless and pose no great threat to a consumer or a business in general. It can also be demonstrated that the scenarios presented thus far form justified responses to the actions which have taken place. This concept needs to be noted and understood to be a supporting factor of the analysis at hand since such small, everyday tasks are the places where the later explained topic of Orientalism can be readily exemplified and how it affects much larger choices later on. Biases intrinsically form the cornerstone of decision making, and so having bias present is essential.[footnoteRef:7] This [7: Haselton, Martie G., and David C. Funder. 2006. "The Evolution of Accuracy and Bias in Social Judgment." In Evolution and social psychology, 15-37. Madison, CT, US: Psychosocial Press, 2006. PsycINFO, EBSCOhost (accessed February 18, 2015).]

paper does not try to change the presence of bias in the processes that govern choice; it simply reveals an unconscious flaw that can develop from bias and potentially cause a misallocation of resources or even harm later on which is also improperly categorized and forms a continuous, ripple effect of misinterpreted risk. With all of this stated as the foundation for the analysis at hand, the concept of identity construction can be easily understood as a phenomenon sparked by biases. The false identity constructs referred to in the initial thesis statement are a part of a concept which is known as Orientalism.[footnoteRef:8] This term was significantly redefined by Palestinian-American scholar Edward [8: Said, Edward W. Orientalism, 5.]

Said, in 1978 with his highly controversial, yet insightful book, Orientalism. Simply put: Said argued about a pervasive tradition which belonged to the West, of a prejudiced and biased interpretation by which these Westerners defined the East through various mediums of literature, art, and even academic accounts. These biases, which can be better described as constructions of identity for the East, were significantly shaped during the 18th and 19th centuries through a period of Imperialism that the West enforced throughout North Africa and Asia (The Americas and various other parts of the world were also heavily influenced by this Western Imperialism, however for the scope of this paper specifically, we will just focus on Imperialism that influenced Orientalism in the Middle East). Imperialism can be defined as:1. The extension of a nation's authority by territorial acquisition or by the establishment of economic and political dominance over other nations. [footnoteRef:9] [9: The American Heritage College Dictionary. Fourth ed. 695.]

2. A political doctrine or system promoting such extension of authority.[footnoteRef:10] [10: Ibid, 695.]

Quoted from Orientalism, Said describes the concept of imperialism as it relates with the evolution of the orientalist:Related to this academic tradition, whose fortunes, transmigrations, specializations, and transmissions are in part the subject of this study, is a more general meaning for Orientalism. Orientalism is a style of thought based upon ontological and epistemological distinction made between "the Orient" and (most of the time) "the Occident." Thus a very large mass of writers, among who are poet, novelists, philosophers, political theorists, economists, and imperial administrators, have accepted the basic distinction between East and West as the starting point for elaborate accounts concerning the Orient, its people, customs, "mind," destiny, and so on. [footnoteRef:11] [11: Said, Edward W. Orientalism, (1,3).]

Justifications for the Present AnalysisWith the Orientalism properly defined, keep in mind that this papers scope looks at a form of identity construction and how it relates to the Middle East. Now, the methodology used to pinpoint Orientalism in US global as well as domestic business (both in exporting/importing and assets abroad) will be discussed to show the relevance of proper risk management techniques through an understanding of how risk and decision making are influenced by Orientalism. The main argument for this analysis is that Orientalism does exist in financial markets and can wreak a negative impact on businesses as it actually is a risk on many different levels. Global business is examined also since Orientalism is most prominent and very visible in the interaction of cultures and people across nations boarders and as it relates intrinsically to domestic trade. Many people who would consider the importance of this analysis may think, Even if business is conducted abroad, what implications for that fact are relevant also in business domestically? So, heres the undeniable truth: in 2011, the seasonally adjusted US Gross Domestic Product was estimated to be $15.5 trillion by the United States Bureau of Economic Analysis as well as by the Federal Reserve Bank of St. Louis (also referred to as FRED). However the formula that derives this number includes a variable X which represents export revenue in terms of US dollars that were sold abroad that year. [footnoteRef:12] This formula, which can be [12: Mankiw, N. Gregory. Macroeconomics. 8th ed. New York, NY: Worth, 2013, 27.]

extrapolated to astronomical levels in order to account for even the most unthinkable nuances that would affect the GDP figures for the US economy, can actually be depicted in the simplest of forms as:

GDP = C + I + G + (X - M)

Whereby the variables are defined such that: C represents Consumption These consumption expenditures by households. They are typically subdivided to produce the categories of: durable goods, non-durable goods, and services.

I represent Investment - This is private investment for goods that are meant to have a use in the future; fixed investments of businesses, changes in inventories of businesses, and residential fixed investment are the categories that compose this variable.

G represents Government - This category includes government spending by federal, state, and local forms of government on certain items. These goods must be consumed in the current period, such as gasoline, for one example; capital goods are equally counted by this variable and these goods would include infrastructure (bridges and roads) or defense items (tanks, missiles, military personnel). Transfer payments (such as benefit payments of subsidies) are not included in GDP, as they are not part of current production.[footnoteRef:13] [13: Gross Domestic Product. Investopedia. November 19, 2003. Accessed March 06, 2015. http://www.investopedia.com/terms/g/gdp.asp.]

X represents Exports This category includes goods and services produced domestically and sold to governments or firms abroad.

M represents Imports This category includes goods and services produced abroad and sold domestically.

The (X-M) portion of the equation denotes Net Exports Simply Exports minus Imports, which can be a negative number and so often it is with the US GDP calculations. A notable account is Net exports for the U.S. were reported at being minus $555.6 billion during Q4 of 2014. (as per Bureau of Economic Analysis, U.S. Department of Commerce June 29, 2005 press release).[footnoteRef:14] [14: Gross Domestic Product. Investopedia. November 19, 2003. Accessed March 06, 2015. http://www.investopedia.com/terms/g/gdp.asp.]

With a knowledge of elementary mathematics, anyone can see that from the alignment of exports or imports in the equation, signals that these numbers directly affect the amount of GDP calculated each year. Thus as exports or imports rise or fall, so does GDP. This monitoring of GDP is extremely important for policymakers since the Gross Domestic Product of a country can signal recessions or inflation that may be looming on the horizon and thus banks and laws can help to regulate any negative effects of these economic phenomena before they become threats.[footnoteRef:15] [15: Mankiw, N. Gregory. Macroeconomics. 8th ed., 31.]

Furthermore, GDP acts as an indicator of what exactly is going on in the economy in response to current policies or restraints that may have been just implemented; the number derived can be compared with projections to see if policies help or hurt the overall economy of a nation. Needless to say, exports/imports are a crucial part of this analysis. Currently, a significant change has occurred for US exports, so consider this number for the next portion of the analysis since risk management procedures would be more heavily weighted on this variable due to the changes. Exports were reported as being $2.1 trillion in 2011 which, with a GDP of $15.5 trillion for that year, equates to exporting being responsible for nearly 14% of the Gross Domestic Product for that year (This year being chosen for the fact that all figures are more accurately accounted for being 4 years out from the initial figures).[footnoteRef:16] Additionally, Imports plus Exports [16: US Gross Domestic Product. Federal Reserve Bank of St. Louis (FRED).]

account for 30% of US GDP in 2011.[footnoteRef:17] However in reference to the percentage of exports that [17: Ibid.]

determine GDP, this number has seen a sharp increase as of late partially from the positive valuation of the US dollar (making it more attractive to foreign investors who want to own US goods at a cheaper price).[footnoteRef:18] Just a few percentages taken of GDP increase compared to Net [18: Treasury Reporting Rates of Exchange. US Bureau of the Fiscal Service. ]

Exports that was calculated from data on the US Bureau of Economic Analysis, Net Exports have seen a 24% rise since just this summer while GDP has only risen 0.8%. So, to summarize all of data to make a point for the significance of considering the foreign markets in terms of risk management: exports and imports are even more of an issue today than when this paper was started; specifically for the US, if the government improperly hedges risk in foreign markets because it mistakenly constructs identities of cultures, people, ideas, or even business practices of these markets, via influences of Orientalism that was discussed earlier, it is not only creating a simple political misstep, but the US government could be putting the economy at risk on an exponential scale and never even know it. Moreover, this danger would not be so easy to see on the surface, but it would more likely manifest slowly and inconspicuously. Generations of Americans would unnoticeably fall victim to being brought up with Orientalists views that eventually hinder opportunity costs, inflame unnecessary conflict or worry, and more importantly, put a subconscious, useless kink in the system that is global trade. So, how exactly is Orientalism a significant aspect to consider in valuation of business endeavors abroad? From the previous discussion of GDP, this analysis will further delve into economic concepts that relate to foreign business with a look at how Gross National Product (GNP) is calculated. [footnoteRef:19] Simply put, GNP is GDP that was just calculated, plus, Net Income [19: Mankiw, N. Gregory. Macroeconomics, 32.]

inflow from Assets Abroad. Mankiw gives this formula to represent the GNP:GNP = GDP + NRThus, an expanded version of this same formula would be written:GNP = [C + I + G + (X - M)] + NR

This number thus includes all the product of every US national, even those abroad. Meaning that this valuation isnt just determined from the strength of the economy domestically (though both GNP and GDP are derived from exports, GNP just also accounts for foreign product as well).[footnoteRef:20] So, examining companies that influence exports and those companies who have assets [20: Stancheva-Gigov, Iskra. The Impact of Foreign Trade on Economic Growth. Journal of Sustainable Development (accessed April 13, 2015).]

abroad, it can be concluded that these categories would be significantly affected by risk management for foreign business.Since the macro level of the economy has been shown to rely heavily on international trade due to an increasingly globalized environment for business, it is important now to examine specific companies who have interests abroad and who also cannot help but be subjected to Orientalist viewpoints. The Wall Street Journal was able to show several companies who relied on global business to provide a large portion of their revenues and who also had large amounts of assets held internationally. The graph of data shown below was mentioned in a Wall Street Journal article entitled, Obama Proposes One-Time 14% Tax on Overseas Earnings, by Nick Timiraos and John D. McKinnon.[footnoteRef:21] [21: Timiraos, Nick, and John D. McKinnon. Obama Proposes One-Time 14% Tax on Overseas Earnings. The Wall Street Journal. February 2, 2015. Accessed April 5, 2015. http://www.wsj.com/articles/obama-proposes-one-time-14-tax-on-overseas-earnings-1422802103.]

In this article, the tax on overseas earnings is taken into account as a source of potential revenue for the US government. This tax is significant because it would be a newly implemented method for the government to raise a one-time amount of capital that would be used for infrastructure projects in the US. However, taxation on foreign assets is for the most part, a rarity; this fact alone is why so many major companies decide to leave their assets overseas and not transfer this money to US banks domestically. The transfer of funds from international holdings to domestic ones would trigger a tax on all profits, thus the companies receive more benefits by allowing them to remain abroad. The one-time tax is argued to be a more advantageous option to both the firms and the government since both would be benefiting from the exchange.[footnoteRef:22] The companies would know that the tax rate they received was fixed and only [22: Timiraos, Nick, and John D. McKinnon. Obama Proposes One-Time 14% Tax on Overseas Earnings. The Wall Street Journal. February 2, 2015. Accessed April 5, 2015. http://www.wsj.com/articles/obama-proposes-one-time-14-tax-on-overseas-earnings-1422802103.]

occurring once, so that they would have no fear of a similar tax in the future. The government obviously would gain to profit from the tax and receive a source of income that was previously inaccessible.[footnoteRef:23] [23: Ibid.]

From the data below, in Figure 1.1, a real sense of the immensity related to companies holdings abroad really takes form when just viewing the top three firms. GE, Microsoft, and Pfizer are shown to have a combined total of $255.4 billion alone. With figures such as these, it can be easier to see just how any mistakes in hedging risk with these funds could be catastrophic. For example, if a decision was made in each of these firms to close business in a region of the world due to the threat of terrorism, a fear of Islamic extremists, or a perceived danger to the area of any kind that could be misled due to Orientalism, these numbers would fluctuate. Also, assume that the loss in business with these three firms would cause just a -0.33% fluctuation in each companys foreign assets listed below. Though seemingly insignificant on the grand scale, it should not be ignored that a total of $2.56 billion would be potentially lost from a disruption such as these. With dollar amounts that high, it should be noted that all analyses and data derived to determine this action and actions such as these, be free of any biases that would skew information. This faulty data would then influence a misguided decision to pull out funds or close a region of business and a needless loss of funds can be a realistic threat. Needless to say, sometimes losses need to occur for business to survive, however it should be understood that only necessary losses can be justified to company management or even investors. If there could be one possible reason that a firm be advised to be patient or hold their current position, it should be examined and considered. Furthermore, if there is a possibility that bias and Orientalism have negatively influenced data to support a decision, then the act of risk management that this activity was supposed to originally accomplish, actually does quite the opposite of its original intent. Risk management in this case can thus be inserting risk in business decisions and increasing asymmetric information rather than eliminating these dangers.

Figure 1.1Lastly, the issue of policy was considered as a very important of this analysis as well. Policy can affect both the prior mentioned categories of government activities as well as business transactions. The topic of policy, as discussed in this section, can refer to either public policy and procedure as well as businesses policy to react in certain situations. Nonetheless, policy affects revenues of all types since these are rules for conducting business or restrictions in activities that would normally be able to occur naturally. One of the best examples of how policy can be affected by Orientalism and lose the ability to protect against risk is with TSA case study mentioned later in this analysis. Simply put, policies imposed by TSA can greatly affect the revenues of airlines and the entire outlook of an industry, the airline industry.[footnoteRef:24] [24: Pollack, Julien, and Daniel Adler. "THE RELATIONSHIP BETWEEN PROJECT MANAGEMENT AND SMALL TO MEDIUM ENTERPRISE PROFITABILITY." Global Conference On Business & Finance Proceedings 10, no. 1 (January 2015): 344-354. Business Source Complete, EBSCOhost (accessed May 1, 2015).]

MethodologyWhen determining how to conduct an analysis on Orientalism, major areas of interest were considered: terrorism, Islam, and the Middle East. Though these categories each carry a significant amount of importance for todays society, it goes without saying that each topic is very charged and thus very subjected to the fallacies of bias. These topics were also chosen for their controversial nature and their ability to readily generate all sorts of biases in multiple areas, especially in business and policy. Before continuing further, it needs to be noted that the goal of this paper and the analysis which was constructed in order to show Orientalism as a major component to consider for risk management on a global and domestic business scale, is not meant to change readers political opinions at all. Religion, politics, morals, identity, etc., these things are only tools that allow for humans to understand the world around them and to better aid them with integrating as a group or living individually in this same world. Orientalism comes to play a major role in this already intrinsic interaction to help explain the various identity constructions of the same categories. Reworded for clarification, this paper is thus an instrument to identify two points: Orientalism, though seemingly undetectable, is important to decisions that humans make, and since many biases are constructed through the aid of Orientalism in an attempt to protect self and others from harm, Orientalism can be held responsible for mistranslation of danger. From this understanding, the paper focuses its lens of observation on aspects of risk and construction of identity through Orientalism to the specific platform of global and domestic business and trade. These topics are considered since misallocation of risk would then translate to loss of value, opportunity, or even profits, and thus a more objective effect of Orientalism can take hold. Of course, additional studies with the same two premises of Orientalism being important and also a key factor in mistranslated danger can be studied in a multitude of different applications. This paper uses business and misallocation of risk to show the mainstream that Orientalism is prevalent even in fields that are considered far from topics of philosophy, religious studies, or cultural analysis. Now, with these aspects of the approach of this paper understood, a groundwork for determining how to find Orientalism in business should be considered. This foundational knowledge of the topic was mostly forged thanks to one of the 20th centuries most influential academics on the study of Orientalism, Edward Said. As mentioned previously in defining this papers understanding of Orientalism, Saids work on this subject proved to be revolutionary for his time and thus an essential component to the understanding how to identify Orientalism in the first place.So in going right to this first literary source, Said shows an excellent example of the problems with identity construction for the East right on the cover of his book, Orientalism. On the cover of this book, there is a copy of a famous painting done by the famous French impressionist, Jean-Leon Gerome (1824-1904). This painting is entitled, The Snake Charmer, and was probably chosen by Said to represent his work on Orientalism since this graphic proves Saids point exactly:The Orient that appears in Orientalism, then, is a system of representations framed by a whole set of forces that brought the Orient into Western learning, Western consciousness, and later, Western empire. The Orient is the stage on which the whole East is confined. On this stage will appear the figures whose role it is to represent the larger whole from which they emanate. The Orient then seems to be, not an unlimited extension beyond the familiar European world, but rather a closed field, a theatrical stage affixed to Europe.[footnoteRef:25] [25: Said, Edward W. Orientalism. New York: Vintage Books, 1979, preface.]

Said argues in his work, Orientalism, that the identity of the East, constructed by the West, is a flawed representation in which Western ideals can firmly be represented against the stark contrast. From this source, the reader gets an image of what ideas essentially then fall under this category of Orientalist. Often Orientalism can be identified visually, such as in the painting of Jean-Leon Germome by looking for these indicators:1. Placeless2. Element of danger3. Barren 4. Violence 5. Savagery 6. Lack of civilization indicators as understood by the West7. Lacking modern technology 8. Strict adherence to tradition9. Vast riches (gold, jewels, precious stones and metals)10. Mystical/Magical demeanor

Image 1.1Thus with this shortlist of Orientalist identifiers, an analysis can be constructed to interpret Orientalism found in the painting above, which also adorns Saids book. The Snake Charmer, then is a perfect example of Orientalism since the work seems to have every element of the list from above.[footnoteRef:26] Shock is seen from the very first moment with the placement of a nude [26: Said, Edward W. Orientalism. New York: Vintage Books, 1979, 65.]

figure holding a snake around his bare body. The figure seems to be that of a boy, which is also strange since a child is coming into contact with such danger, all for the purpose of entertainment. All of the other people are by contrast, completely covered from head to toe in multicolored garments, and everyone is sitting in the floor, not in chairs as would be expected by Westerners. The element of the snake represents the theme of danger, as does the large sword placed on one of the mens laps on the front row. The choice of garments and seating put the viewer in a world that is not in the West, but rather, in a placeless location somewhere in the East. Lastly, the decorated walls suggest the Middle East as a further hint at location since the writing and general style fall in line with the region. However, the exact country, people, or culture is hidden. Nonetheless, the people sitting in the floor may be wealthy seeing how they can afford such a nice location to experience entertainment such as this.[footnoteRef:27] [27: Ibid, 33.]

All of these ideas that describe the painting are essentially Orientalist in nature seeing how they assume a variety of ideas about the construction of the identity which is the East. These indicators, as described by Said, can also be noted in various other sources regarding the Orient. The Thief of Bagdad, by Douglas Fairbanks, has its front cover shown below in the image labeled Image 1.2. [footnoteRef:28] [28: The Thief of Bagdad Movie Poster #2. Internet Movie Poster Awards Gallery. March 2015. Accessed April 30, 2015. http://www.impawards.com/1924/thief_of_bagdad_ver2.html.]

Image 1.2The first thing that is noticeably Orientalist is the fact that a very nice rug seems to possess magical powers and thus transports two people via flight.[footnoteRef:29] The element of magic and [29: Said, Edward W. Orientalism. New York: Vintage Books, 1979, 65.]

mysticism, coupled with a notable architectural design that hints to the Middle East, and a placeless, barren terrain, thus indicate Orientalism as explained by Said. However, Orientalism does not stop there. Despite the fact that ideas about the Wests understanding of the East may be visibly present in literature and art, the theme of Orientalism is not confined to just these spheres. In business, Orientalism manifests itself in many different forms, such as the theme of this paper tries to introduce the idea that Orientalist thought can affect risk management in business. The element of business would seem to contradict earlier presented sources that just signify the topic of Orientalism in the arts, however Orientalism can also be seen in business with a trained eye. Most notably, this flawed interpretation of the East can be readily seen in advertisements, such as with Image 1.3, that shows a graphic for a cigar.[footnoteRef:30] [30: Quality Omar Cigars. Allposters. March 5, 2015. Accessed April 30, 2015. http://www.allposters.com/-sp/Quality-Omar-Cigars-Posters_i7861484_.htm.]

A low tech method of transportation is seen with the utilization of camels and a barren desert on the left, contrasts with the vegetated oasis-like setting visible on the right, and a bearded man, dressed in draped garments and a turban sits on a fine rug with an intricate pattern occupies the center. Again, no landmarks or indicators show the audience where this man is, other than in an obscure location that is hints to be in the Middle East. His clothes appear to be nicely made and suggest he is affluent, while the appearance of nice scrolls, pottery, and tapestries also support this idea.[footnoteRef:31] [31: Ibid.]

Image 1.3 These factors come together to appeal to customers interested in buying cigars. Omar, brands its image as being this Orientalist representation possibly as an attempt to gain authenticity with its product while appealing to subconscious Orientalist biases that are suspected as existing in the majority of the population. This further supports Saids argument that Orientalism does in fact occur on the subconscious level most times and is so deeply engrained, that many individuals cannot separate this fallacy with any true representations of the East at all. If this were not true, the cigar company that backs this brand image would have chosen a different approach in depicting their product. It can be concluded that an Orientalist image of a bearded, affluent man, between placeless desert and oasis-like bounty best represents the tobacco product they wish to sell.[footnoteRef:32] [32: Islam, Nazrul. New age orientalism: Ayurvedic. Health Sociology Review 21, no. 2 (June 2012): 220-231. Academic Search Premier, EBSCOhost (accessed May 1, 2015).]

Thus in conclusion of Saids work, Orientalism, there exists many cues to what Orientalism is. The examples presented in this paper so far deal with imagery, however, this is so that the reader may gain a visual understanding of what makes a piece deemed as containing Orientalist inspired depictions. In the case studies presented later on, the same themes that were shown in images for this sections explanation of the scholarly foundation for the identification of Orientalism, will be predominately exemplified through actions. These acts of Orientalism may not have their biased nature so visible, however this is just fine. So far, the argument for identification of Orientalism has been presented in the simplest forms possible to better attune readers attentions to Orientalist influences at hand in different scenarios. With these images and indicators taken into perspective, this paper then utilizes these tools in identifying Orientalism in other aspects which will now predominately focus on business. In doing so, two major categories concerning Orientalism were taken into consideration and examples to support each category were examined:1. Orientalism in policy that influences business 2. Orientalism in risk management for general business operations Thus two case studies were conducted for each category mentioned above. Each case is unique and presents a different side of risk management and how it relates to business, and each case is examined by using the outline to identify Orientalism as defined by Said. Lastly, these cases are further scrutinized to indicate the impact that false identity construction may present. Note that the paper now moves out to the more abstract functionality of Orientalism in business via an analysis of interactions and reactions of events. As discussed earlier, bias is not necessarily a negative adaption, rather a natural response to situations in order to better prepare, protect, understand consequences, etc. With keeping this in mind throughout the duration of this analysis, the reader should be able to ascertain that biases do manifest in the form of Orientalism and individuals need to construct identities to understand complex social interactions. The major benefit of this analysis is showing that Orientalism is present and does influence decisions on a large, and mostly unconscious scale.

Case StudiesTransportation Security Administration (TSA)The First look at Orientalisms role in affecting risk management for businesses is found in an analysis of the policies and procedures imposed by the Transportation Security Administration, or more commonly known, TSA. This example is important to investigated since government policies that are motivated by Orientalist fallacies can actually affect entire markets. As discussed earlier in the matter of how interconnected the global economy is with various industries and sectors, it can be easy to see just how a trickledown effect of Orientalism can yield a trickle up case of unnecessary fear, misallocation of resources, and misinformation. With that stated, now the purpose of the TSA should be taken into consideration for this first case study. Directly from this organizations website:TSA was created to strengthen the security of the nations transportation systems and ensure the freedom of movement for people and commerce. TSA uses a risk-based strategy and works closely with transportation, law enforcement and intelligence communities to set the standard for excellence in transportation security.[footnoteRef:33] [33: TSA Information. Transportation Security Administration. April 2015. Accessed April 14, 2015. http://www.tsa.gov/about-tsa.]

This quote describes the reasons that the TSA exists and hints at a mission based in protection and assurance of safety for civilians. However, there is another side of this story that is not mentioned though is equally important: the TSA also insures the confidence of people in the airline industry. This is because the TSA is the gateway from the outside into the terminals and anyone who works, rides, or operates an aircraft is made to pass by some sort of checkpoint that is controlled by this organization. Needless to say, any policy or checkpoint that TSA stands behind has a direct effect on what goes on inside airport terminals, which also is the place of business for a variety of companies.With this as the case, it should be noted that the TSA has a huge interest in risk management techniques, and the organization often interacts with a variety of cultures, people, religions, and customs from all over the world. Risk management implemented by this organization can directly affect safety and even revenues of the airlines that it is sworn to protect. This can be seen by simply searching for TSA online and then refining the search to show news only. The results yield a majority of news articles about TSA that deal with failures and rarely on a job that was commended. The initial reaction of anyone performing this same exercise may be that TSA is a point of infuriated businesses and customers of the airline industry. One prominent example from 2010 shows this controversy regarding the TSA is found on CNN with an article entitled, Muslim-American Group Criticizes TSA Plan as Profiling.[footnoteRef:34] [34: Ahlers, Mike, and Jeanne Meserve. Muslim-American Group Criticizes TSA Plan as Profiling. CNN. January 04, 2010. Accessed April 14, 2015. http://www.cnn.com/2010/CRIME/01/04/tsa.measures.muslims/.]

In this example, Middle Eastern nations are points of interest for screening with the TSA. Any person will be subjected to extra screening and profiling if they are flying from: Cuba, Sudan, Syria, Iran, Afghanistan, Algeria, Iraq, Lebanon, Libya, Nigeria, Pakistan, Saudi Arabia, Somalia and Yemen. The article continues to explain that these nations are targeted because of the fact that they represent Muslim majority populations. From this logic the reader automatically assumes that the topic of Islam, when combined with travel to and from the Middle East holds a high probability of danger. This assumption, though never explicitly agreed upon by the articles authors or interviewees for the new regulation shows a fundamental example of Orientalism that exists in the workings of an organization tasked with risk management. The discussion of Orientalism here can be seen with the inherent danger that the Middle East can represent. Even though the article never mentions specificities of attacks that could be pending by any one of the countries listed, the article does mention that TSA officials choose this policy as an effective one based off of intelligence that was gathered by the State Department and other intelligence sources, The State Department compiles the annual Patterns of Global Terrorism report, which details terrorism trends in countries around the world. With the methodology for this analysis in mind, it is important to note that Orientalist viewpoints can be visible in the actions of the TSA. There is a direct assumption of aggressive nature that is assumed for an entire region, rather than a specific type of person or trait. Though security is a main concern and it can be easier to just screen everyone, the undeniable fact is that this danger is misaligned with the facts of the matter, which are also voiced by the article in the first place. The trends discussed here also allow for the reader to assume that data supports the worrisome policy of the US government and the objectivity of the information should be held above the fact that it could potentially offend airline customers and tarnish the image of the airline industry in the USA. Edward Said explains that the West sees the Middle East as an area of primitive habit and violence, in his defining of the term Orientalism. Violence, danger, and cruelty are shown in this article to represent 13 Middle Eastern countries and one island country that has no correlation to this paper.[footnoteRef:35] With this as the case, it can easily be determined exactly [35: Ahlers, Mike, and Jeanne Meserve. Muslim-American Group Criticizes TSA Plan as Profiling. CNN. January 04, 2010. Accessed April 14, 2015. http://www.cnn.com/2010/CRIME/01/04/tsa.measures.muslims/.]

which area is the focus for the policies of the TSA in 2010 compared to the rest of the world. Ironically, the article also shows insight into what areas of the world present a greater threat of danger and thus should have similar screening procedures for passengers that are traveling into the USA from these locations: The tougher measures followed a botched bombing attempt on Christmas Day by a Nigerian man who boarded a U.S.-bound flight in Amsterdam, Netherlands. The suspect, Umar Farouk Abdul Mutallab, originated his trip in Nigeria and changed planes in Amsterdam to a Northwest Airlines flight headed for Detroit, Michigan.[footnoteRef:36] [36: Ahlers, Mike, and Jeanne Meserve. Muslim-American Group Criticizes TSA Plan as Profiling. CNN. January 04, 2010. Accessed April 14, 2015. http://www.cnn.com/2010/CRIME/01/04/tsa.measures.muslims/.]

The man mentioned in this bombing attempt is a real example of danger that these

organizations try to defend against. Coincidentally, the country from which he is departing to

travel to the USA, is European and very far from the list of 13 countries that were mentioned

earlier. In the same article, the reader is provided with information that suggests the new

regulations for profiling passengers is faulty at best. According to the article further, the author,

as well as several activist organizations, suspect that Muslim extremism is the reason that the

TSA is heightening their security protocol, though the Nigerian man mentioned earlier hinted no

connection to Islam.[footnoteRef:37] This fact coupled with the statement released by the TSA informing the [37: Ibid]

public that they wish to crackdown on 13 Middle Eastern countries after this instance that took

place in Europe, hints at a correlation between the construction of identity between the Middle

East and Islam that is created by the TSAs hierarchy. The TSA assumes that there is a

dangerous aspect to Islam, as it motivated the Nigerian man to conduct his terrorist attack on the

airlines in Europe; this is seen in greater detail later on in the article by activists groups in that

claim the TSA is religiously profiling as part of their new policies.[footnoteRef:38] The correlation between [38: Ibid]

Islam and the Middle East comes into play as a result of the TSA changing their policy to include

a majority of Middle Eastern countries and no European ones, though the attack happened no

where near the Middle East. The Nigerian terrorist was from Africa, yet Nigeria is often

excluded as a Middle Eastern country.

Charles Kurzman, a professor in the department of Sociology at the University of North

Carolina, comments on events like these in his study entitled, Terrorism Cases Involving

Muslim-Americans.[footnoteRef:39] Kurzman discusses that the number of real threats attributed to any type of [39: Kurzman, Charles. Terrorism Cases Involving Muslim-Americans, 2014, February 9, 2015. Accessed April 28, 2015. http://sites.duke.edu/tcths/files/2013/06/Kurzman_Terrorism_Cases_Involving_Muslim-Americans_2014.pdf.]

Muslim extremism is actually quite low in comparison to other dangers in the US:Twenty Muslim-Americans have carried out attacks on targets in the United States since 9/11 nine involving firearms, seven involving explosives, two involving knives or hatchets, one each involving a car or small aircraft. In 2014, four terrorism-related incidents involving Muslim-Americans two using firearms, one a knife, and one a hatchet -- killed seven people in 2014, bringing the total number of fatalities in the United States from terrorism by Muslim-Americans since 9/11 to 50.1 Meanwhile, the United States suffered approximately 14,000 murders in 2014 and more than 200,000 murders since 9/11.2 While the murder rate has declined in recent years, mass shootings and active shooter incidents have increased.3 In 2014, there were 30 mass shootings with four or more fatalities in the United States, killing 136 people,4 more than twice as many victims as from Muslim-American terrorism in the United States in more than 13 years since 9/11.[footnoteRef:40] [40: Ibid, 3.]

Thus there seems to be a trend in Kurzmans data that aligns with this TSA example as well. The immediate association between Islam as a dangerous influencer for terrorism is striking, however, Kurzmans data paints a better picture of how exactly Orientalism can influence concerns regarding Islam in a quantitative fashion. Both examples show that there is a discrepancy present in the numbers, and Kurzman also shows that there is a point at which Orientalist viewpoints began to spike: after 9-11.[footnoteRef:41] This date is essential to understanding why [41: Ibid. 6.]

Islam is often associated with the Orientalist viewpoints regarding tradition and danger (these two points are taken from the shortlist of Orientalist indicators mentioned in the Methodology section of this paper). In the TSA example here, Islam is such a concern that it changes policy; even activist groups that wish to protect religious freedoms are involved in this same article seeing how they view the new policies as a threat to their religious practices as airline passengers. The group to which I refer in this article calls itself the Council on American-Islamic

Relations. The main focus of the article is to not only point out that these countries are receiving

extra precaution when there is no reason, but it is also to meant to voice concerns that the

Council on American-Islamic Relations may have regarding TSA policies as well. This aspect

brings a personal quality to the accusations of unfairness with the new policy. Now customers of

airlines, who may also be Muslim, feel as if the procedures for security overstep certain

boundaries on another level. This is the level that breeches an individuals right to their own

religion. Nihad Awad, of the council, clarifies the organizations argument:

Under these new guidelines, almost every American Muslim who travels to see family or friends or goes on pilgrimage to Mecca will automatically be singled out for special security checks -- that's profiling.[footnoteRef:42] [42: Ahlers, Mike, and Jeanne Meserve. Muslim-American Group Criticizes TSA Plan as Profiling. CNN. January 04, 2010. Accessed April 14, 2015. http://www.cnn.com/2010/CRIME/01/04/tsa.measures.muslims/.]

Nonetheless, various media sources critique the TSAs over screening and discriminatory

policies as wasteful and harmful for the revenues of the airline industry as a whole. Stephen

Dinan of the Washington Post covers the issue by reporting on a similar topic of over screening

as seen by the TSA profiling training program, It costs about $200 million a year to maintain

the program.[footnoteRef:43] With strict programs such as these, there is no doubt that further heightening of [43: Dinan, Stephen. "TSA Wasting Money by Profiling Passengers Behavior, Investigators Say." Washington Times. The Washington Times, Nov. 2013. Web. 20 Apr. 2015. .]

security when it can be shown to have a flawed, Orientalist approach is just wasteful.

Southeastern Pennsylvania Transportation Authority (SEPTA)Though policy was seen with the TSA case to heighten security by providing further restrictions to consider in screening passengers, the Southeastern Pennsylvania Transportation Authority (otherwise known as SEPTA) presents a different side of government policy altogether. SEPA is a public transportation system that is a large source of revenue for the counties of: Bucks, Chester, Delaware, Montgomery, and Philadelphia, in Pennsylvania.[footnoteRef:44] [44: "SEPTA | About SEPTA." Southeastern Pennsylvania Transportation Authority. January 2015. Accessed April 20, 2015. http://www.septa.org/about/.]

However, this bus system is not the brunt of restriction and heightened scrutiny that often accompanies the image of policy in action, rather SEPTA is a unique example of unrestrained permission. At first, this does not seem to be a problem at all, and to many Americans, the general case that the SEPTA presents seems to uphold is the right to free speech. However, antisemetic and anti-Muslim advertisements that are present on many of SEPTAs busses tell a different story: one of hate instead of an unrepressed right to speak. NBC covers this story of the controversy which surrounds SEPTA as of March 31, 2015, entitled, On Eve of Anti-Muslim Ads' Appearance, Philly Faith Leaders Urge Dialogue.[footnoteRef:45] This [45: Allyn, Bobby. Faith Leaders Speak on Anti-Muslim Ads on SEPTA. NBC 10 Philadelphia. March 31, 2015. Accessed April 20, 2015. http://www.nbcphiladelphia.com/news/local/WHYY-On-Eve-of-Anti-Muslim-Ads-Appearance-Philly-Faith-Leaders-Urge-Dialogue-298228021.html.]

article, written by Bobby Allyn, tells the story of a transportation system that advertises hostility towards peoples from the Middle East and Muslims, as shown in the image below.[footnoteRef:46] [46: Lesley, Alison. Judge Rules Philadelphia Public Transit Must Run Anti-Islam Hitler Ad - World Religion News. World Religion News. March 12, 2015. Accessed April 30, 2015. http://www.worldreligionnews.com/issues/judge-rules-philadelphia-public-transit-must-run-anti-islam-hitler-ad.]

Image 2.1Image 2.1 is an advertisement seen on busses owned by SEPTA, and protected by the local government as the right to freedom of speech and expression. Rue Landau, a representative for the city of Philadelphias Commission of Human Relations speaks out against this sort of advertisement by telling NBC, "The ads on the buses, as hateful as they seem, is an opportunity for Philadelphians to get to know their neighbors, to get to know someone different from them, to have these conversations.[footnoteRef:47] [47: Allyn, Bobby. Faith Leaders Speak on Anti-Muslim Ads on SEPTA. NBC 10 Philadelphia. March 31, 2015. Accessed April 20, 2015. http://www.nbcphiladelphia.com/news/local/WHYY-On-Eve-of-Anti-Muslim-Ads-Appearance-Philly-Faith-Leaders-Urge-Dialogue-298228021.html]

However, in the face of the controversy, this paper is compelled to analyze the facts that bring it into the investigation of Saids Orientalist biases. The first point of interest in this regard is that the banner does refer to Islam and the Middle East. With the scope of the advertisement taken into consideration, it should also be noted that the overall theme of the message is clearly pointing to general Islamic Countries, which most likely hints to the Middle East. These countries are then described as a source of religiously based violence that is on par with one of the most devastating and bloody events in all of recorded history, the Holocaust. Needless to say, this type of speech is very infuriating for Muslims and proves to be a misstep in the act of decreasing the risk of violence, like the banner argues to want. If anything, frustrated and charged people have a higher chance of reacting strongly against such speech rather than just letting it go, however Mikal Shibazz, an Imam in the city of Philladelphia speaks out to Muslims against taking part in such a reaction, It's the antithesis of Islam to go berserk and cause destruction, violence and vandalism against SEPTA. Don't do that.[footnoteRef:48] [48: Allyn, Bobby. Faith Leaders Speak on Anti-Muslim Ads on SEPTA. NBC 10 Philadelphia. March 31, 2015. Accessed April 20, 2015. http://www.nbcphiladelphia.com/news/local/WHYY-On-Eve-of-Anti-Muslim-Ads-Appearance-Philly-Faith-Leaders-Urge-Dialogue-298228021.html]

Thus it can be shown that in terms of risk management, this case does poorly in trying to handle any kind of dangers that may be present and that the freedom of speech can call attention to in its protected state. Cases such as these show an abuse to certain policies and end up having to have further funds be allocated to investigating the issues, defending such rights in court cases, or even having the scope of these policies examined altogether. All of this work is shown to eat up tax dollars that would be better spent on addressing real crime rates in the city that are very pertinent or even anti-terrorist measures that the advertisement seems to be interested in anyway. According to the methodology for determining Orientalism in this case, the SEPTA advertisements show that those who are behind these banners believe Islam is a fundamentally dangerous religion. This is also Orientalist in the fact that the term Islamic countries is a term used to hint to the Middle East, being that the phrase is placeless in nature. True, the Middle East has a high percentage of Islamic people, however it should also be noted that many of these numbers are merely culturally Islamic, and those who do practice the faith do so in a manner that abhors such dangers as recreating the holocaust. Lastly, the sheer violence that is present in the nature of these advertisements suggests to all who see them that the Islam is the religion of savage, inhumane people. This is just simple not the case, as far as what Islamic teachings suggest, thus hysteria is a negative byproduct of such speech. In conclusion, this case produces needless reviewing and defense of speech laws by the local governments while also creating an air of controversy regarding public transportation for SEPTA. Many citizens are choosing to boycott the bus system altogether as a form of protest against the advertisements, which will translate to fewer profits earned by SEPTA in the long-run. Various organizations have begun launching counter-campaigns to battle these hateful messages, which further pumps funds into a cause that would better be eliminated in the first place; the element of terror and justice that these advertisements seem to promote end up creating the danger of backlash by disenfranchised people sympathetic with the harassed Muslims or frustrated Muslims themselves. In the end, Orientalism seems to be behind the need to promote propaganda and the false idea that this sort of speech is sacred. The situation presented wastes funds, and would benefit from people understanding the misconstruction of identity that is at play. McDonalds Now, the analysis takes a turn and focuses on the second category of cases which reference Orientalism: those that deal with risk management in business operations. McDonalds is the third case to be examined under the scrutiny of Orientalism, and it is the first case to be investigated under this category which was mentioned in the methodologies section of this paper; the McDonalds case is one whereby a companys product can be examined along with its image and choice of release. In this example, an analysis shows that McDonalds may subconsciously harbor Orientalist viewpoints which are visible through their advertising and certain menu choices. Seen below in Image 3.1, the McArabia sandwich was introduced in 2002 to select countries in the Middle East. This was an attempt to protect the company from a sharp decline in revenues seen as a result of American involvement in the Middle East after September 11, 2001.[footnoteRef:49] [49: Alkhereiji, Mohammed. McDonald's Launches McArabia. McDonald's Launches McArabia. March 05, 2003. Accessed May 01, 2015. http://www.arabnews.com/node/228843.]

However, at first glance, the choice of McDonalds to offer such a sandwich which attempts to cater to local tastes, is not unique in this instance. As a matter of fact, the idea of serving a McArabia sandwich in the Middle East is seen to be a smart business choice since the company is being adaptive to a target area. This paper recognizes the practicality in such an endeavor, however the point of interest is the motivation for the sandwichs release. The fact that McDonalds used this menu item as a method for hedging against the risk of profit losses caused by the US military involvement in the Middle East, shows that this action falls under the scope of business decisions discussed by this papers initial thesis argument. With this fact in mind, it can be argued that McDonalds would benefit from an analysis of risk management on a global scale since the McArabia is a visible attempt for the company to protect its brand abroad. [footnoteRef:50] The fact that this sandwich was targeted to the Middle East and its [50: Product_nutrition_details | McDonald's UAE. Product_nutrition_details | McDonald's UAE. April 30, 2015. Accessed April 30, 2015. http://www.mcdonaldsarabia.com/uae/en/product_nutrition_details.A%20la%20Carte.12.html.]

people as a market also indicates that this sandwich correctly fits the initial criteria to be examined under a critical, Orientalist lens. Thus the analysis for this case study and this menu item can begin by understanding what Orientalist themes may be present at first glance.

Image 3.1Seen here in Image 3.1, the McArabia advertisement itself shows certain indicators from the methodology section of this paper; these signals were discussed in identifying Orientalism as dictated by Said, and prove to have relevance here as well. Like in the pictures referenced earlier, such as Images 1.1, 1.2, and 1.3, this advertisement shows similarities with the landscape behind the sandwich. A desert setting shows no signals of place or region other than the terrain is seen to be flat and somewhat lifeless. Though not as vivid as other examples of Orientalist ideals, this indicator is subtle and shows the subconscious narrative of the Middle East which is painted by the West. However, after the turmoil of 2001, McDonalds release of this sandwich was not a failure, and the menu item is still seen today in many countries throughout the Middle East and even into Europe. Overall, this menu item has been a great success and so many managers and other businesses would overlook the McArabia in an analysis of risk management for business; the sandwich was able to alleviate declining sales for the Middle East marketing region for McDonalds. Two patties of grilled chicken or grilled kofta are wrapped in Arabic pita bread with lettuce, tomatoes, onion and garlic mayonnaise, seem to be a hit no matter the fallacies of bias and identity construction that exist behind them.[footnoteRef:51] So at what point does Orientalism [51: Product_nutrition_details | McDonald's UAE. Product_nutrition_details | McDonald's UAE. April 30, 2015. Accessed April 30, 2015. http://www.mcdonaldsarabia.com/uae/en/product_nutrition_details.A%20la%20Carte.12.html.]

become a negative component to increase risk in decision making if it so far has been overlooked with a positive business venture?This question is answered with the idea behind second sandwich that McDonalds created for the same purpose as the McArabia: to rebrand the companys image in the Middle East and to encourage food sales to keep revenues at profitable levels for the company. McDonalds focus on making its food adapt to a particular region or culture is normally a positive aspect of the company, however knowledge of how Orientalist ideals could put its brand and public image at risk was obviously not considered. This would have saved the company large sums of money in 2002 with the release of the McAfrica (Image 3.2).[footnoteRef:52] The difference between the releases of the [52: Ibid]

two sandwiches was actually an Orientalist misstep in understanding priorities, not even the advertising (which though was distasteful, did not affect sales of the McArabia overall, arguably since they were more subtle than the SEPTA case that was examined previously).

Image 3.2

How Stuff Works, explains the faux pas that McDonalds conducted with the timing of the McAfricas release: This one was released in Norway in 2002 and called the McAfrica. It consisted of beef and veggies in pita bread. It wasn't that it tasted bad -- but it was in bad taste, according to critics. That's because McDonald's happened to release this sandwich at a time when massive famine was occurring in Africa. The irony was too glaring for people to ignore. After being attacked as insensitive, the company agreed to roll back on its plans for the sandwich and kept donation boxes for hunger-relief charities at the restaurants that did offer it.[footnoteRef:53] [53: McGrath, Jane. "5 Failed McDonald's Menu Items - HowStuffWorks." HowStuffWorks. 2015. Accessed April 21, 2015. http://money.howstuffworks.com/5-failed-mcdonalds-menu-items5.htm.]

Thus McDonalds ignored priorities and concerns that were important to the region from which they were claiming to gain inspiration. Though the sandwich was not intended to appeal to an African market, rather a European one, the sandwich release does show the persistent problem McDonalds has exhibited time and time again: Orientalism. The Orientalist basis of understanding for Africa and the Middle East can arguably be to blame for the misalignment of African representation that this sandwich boasts. Even the description of the sauce as being, an exotic African sauce, screams Orientalist when compared to the shortlist of Orientalist indicators mentioned in the methodology section of this paper.[footnoteRef:54] The exotic description follows the pre- [54: Product_nutrition_details | McDonald's UAE. Product_nutrition_details | McDonald's UAE. April 30, 2015. Accessed April 30, 2015. http://www.mcdonaldsarabia.com/uae/en/product_nutrition_details.A%20la%20Carte.12.html.]

constructed narrative that North Africa and the Middle East are these exotic and strange places

that resemble little of the West, despite the fact American fast-food like McDonalds is rampant.[footnoteRef:55] [55: Said, Edward W. Covering Islam: How the Media and the Experts Determine How We See the Rest of the World, 98.]

This time, like with the McArabia, McDonalds is seen to have a minor hint of Orientalist thought that somehow surfaces in an important rebranding project for the company. This rebranding, with the intent to hedge against the risk of soiling the companys name during American conflict with the Middle East, ultimately fails in this instance. However, the strategy that the company chose earlier was successful. So how can McDonalds turn a 50% succession rate into a higher percentage? It should be recognized that Orientalists views were partially responsible for creating a falsified image of Africa and the Middle East. These identity constructs are visible in the advertisements of the company, however they can turn dangerous in the representation of products releases that go beyond making an image. This is what happened with the McAfrica. McDonalds released the sandwich during a time that was tasteless to do so. The interests of the company were to use the image of Africa that it had created, just like the image of the Middle East that was interpreted, to sell a product. The issue here was basically that false image of the Middle East risky enough, however the McAfrica went too far since this false identity construct proved offensive on more levels than advertising. It was the blatant disconnect with the region that McDonalds claimed to represent that forced the company to hold back on the sandwich and instead, refocus its priorities and brand to not be a shining beacon of imperialism. Bloomberg L.P.The second category of concern this paper examines, Orientalism in risk management for general business operations, continues on with this fourth case in total, but second to have this same category of analysis. Bloomberg L.P. has a company overview which is detailed by Privco and not by Bloomberg itself. A majority of this companys information is actually not public knowledge; the main reason for that fact is that this company is privately held and not a publically traded company which has to have private information concerning its operations, financials, accounting, etc., available to the public. Thus, Bloomberg L.P. is described by Privco: Bloomberg L.P. is a privately-held company primarily owned by three-term New York City Mayor Michael Bloomberg. Bloomberg L.P. is a financial information giant, selling primarily to corporate and other institutional clients via its Bloomberg Terminals, which cost nearly $20,000/year each. Bloomberg L.P. has also built a consumer-oriented business news operation, and has put all news operations underneath one umbrella called the Bloomberg Media Group. Bloomberg Media Group also houses BusinessWeek magazine, now called Bloomberg BusinessWeek, which Bloomberg L.P. acquired from McGraw-Hill in late 2009. Bloomberg Media Group also includes the monthly Bloomberg Markets magazine, Bloomberg Television and Bloomberg Radio, Bloomberg Government, and Bloomberg.com. As of 2011, more than 85% of Bloomberg L.P.'s revenue comes from its Bloomberg terminal.[footnoteRef:56] [56: Bloomberg L.P. Bloomberg L.P. April 18, 2015. Accessed April 21, 2015. http://www.privco.com/private-company/bloomberg-lp.]

So, how is this company possibly affected by Orientalism in its risk management strategies? The answer to this so far is: It is impossible to really tell since the majority of information concerning its activities are not available. However, this papers analysis does not need to focus in on Bloomberg L.P. specifically as a case study, rather, what the companys services provide businesses: the Bloomberg terminal.It goes without saying that information is invaluable in the world of business. Asymmetric information is the name of the game for every firm since knowledge of strategy or weaknesses by a competing firm can easily make or stifle profits. With that understood, information sources are very important to any government or business to know what they are dealing with. One of the most notable places that businesses, specifically investment firms, gain insight in to what the markets are like, is through a Bloomberg Terminal. Analysts use these terminals with their sophisticated algorithms and software to track all kinds of significant market events such as: news and press releases, share prices, company information, financial reports, and even analysts interpretations of the same raw market data mentioned previously.[footnoteRef:57] However, [57: Ibid.]

with this technology also comes the fallibility of the user. An analysts can choose the way they customize their own screen settings to display what aspects of news, company data, or statistics is shown in real time. With the simple configuration of a filter, analysts using a Bloomberg Terminal can search for all kinds of key words that appear in current news releases about companies and markets available in Bloomberg News. Thus, this methodology that firms can gain insight through the work of analysts, leaves them open to the Orientalist views of these analysts by the utilization of this technology. Image 4.1 shows a Bloomberg terminal.[footnoteRef:58] [58: Bloomberg Terminal. New York Times. February 1, 2015. Accessed April 30, 2015. http://graphics8.nytimes.com/images/2013/05/13/business/sub-jp-bloomberg/sub-jp-bloomberg-superJumbo.jpg.]

Image 4.1Based on the biases of authors who mean to just convey information to businesses, or the biases of the analysts who sift through the data on their own, Orientalism can be shown to have a huge part in this process of discovery. After all, the biases of the individual who uses Bloomberg Terminals can choose to comb through data as they please; thus, an awareness of such topics as Orientalism and how it affects perception of identity could come in handy with understanding various narratives that could be at play in this information. However, this paper now will look at the Orientalism that is present as a result of the news supplied by a Bloomberg terminal, rather than specific analyst and their biases as they use Bloomberg. The approach of mentioning the bias that can be present in the individual analysts is primarily meant to show that the possibility of Orientalism being present still exists even if the news and data shown by Bloomberg are 100% objective and free of Orientalist narratives. Below is Image 4.2, which shows a simple search filter for the Bloomberg software in the News category. The filter word is Middle East, within the first 20 words, to derive specific information as it relates to that region. Image 4.2 shows the results of this query below.[footnoteRef:59] [59: Screen Shot of Middle East Filter for Bloomberg News Screen. 30 April 2015. Via Bloomberg LP. Accessed 30 April 2015.]

Image 4.2

Initially, even titles show possible Orientalist articles yet to be read, which add to the fact that topics of war, the black market, and the Islamic State pop up in the first 21 results. The results that are intrinsically associated to the Middle East, via the concept of Orientalism, are even shown here in this objective search for business news concerning the area. The search for news about the Middle East that is currently important to Bloomberg shows the third most relevant result as being Egypts dilemma with the black market. These ideas follow Orientalist agendas being that they portray the Middle East immediately as dangerous, mentioning crime, war, and conflict throughout the articles that are derived from one keyword search. Furthermore, the concept of the Middle East being tied in with Islam and Islamic extremism, as if it were all one large clump of religion, also follows Orientalist cues since this method of thought assumes one absolute religion over an entire region that is loosely defined (and this religion is seen to be a source of danger and savagery).[footnoteRef:60] [60: Said, Edward W. Covering Islam: How the Media and the Experts Determine How We See the Rest of the World. New York: Pantheon Books, 1981.]

However, it should be remembered that this algorithm is a component of software and thus nothing more than a tool, free of Orientalist beliefs. The concern is not for the machine that is used as a tool for the analysts at this point, yet the tool shows Orientalist inclinations due to another reason: the people who supply the news have Orientalist biases. This is the only explanation of how an objective search can yield subjective data, for this case. Thus with that understood, an analysis of specific articles should be conducted to further prove Orientalist bias by authors of the media in circulation for the Bloomberg terminal and software. Where Are The World's Safest Banks in 2013?, is an article that was selected due to the information that was left out and the data that was not analyzed.[footnoteRef:61] The Orientalist hints present in [61: Where are the Worlds Safest Banks in 2013? November 1, 2014, via Bloomberg LP, accessed April 19, 2015.]

this piece are not with the inclusion of tainted data, but the exclusion of data representing any part of the Middle East as a viable option for banking safety at all. This falls in line with the methodology presented earlier for determining what is Orientalist and what is not with the fact that the article suggests the Middle East as too dangerous of a location to harbor a safe bank at all.[footnoteRef:62] Despite this, several other banks were listed such as HSBC, which is currently under [62: Enders, Walter, and Todd Sandler.The Political Economy of Terrorism. Second ed. Cambridge: Cambridge University Press, 2006, 46.]

investigation for mishandling depositors funds, tax evasion and poor adherence to standard banking practices.[footnoteRef:63] Lastly, areas of promise for development and growth in the banking sector [63: Letzing, John. HSBC Hit by Fresh Details of Tax Evasion Claims. WSJ. February 9, 2015. Accessed April 21, 2015. http://www.wsj.com/articles/hsbc-hit-by-fresh-details-of-tax-evasion-claims-1423482612.]

were listed as being in Eastern Europe and Russia. This is a peculiar focus seeing that this Russia, in particular, has recently been discounted by Standard and Poors credit valuation to be junk grade as of 2015 due to the countrys defaulting of debts this year.[footnoteRef:64] [64: Albanese, Chiara, and Maria Armental. S&P Downgrades Russia Foreign Currency Rating to Junk. The Wall Street Journal. January 26, 2015. Accessed April 21, 2015. http://www.wsj.com/articles/s-p-downgrades-russia-foreign-currency-rating-to-junk-1422297409.]

The narrative that is suggested by this article is then one whereby strong banks in the Middle East are exempt from receiving safe designations, though the reason why is never directly mentioned. However the fallacies of Orientalism do not stop there with the news that is released by the Bloomberg Terminal and its filter settings to comb through news. Various other articles that contained the key words mentioned earlier were shown to present a falsified identity construct of the East and its people. Many articles also mentioned ISIS, Al-Qaeda, and the Taliban alongside the term Islam, which was purposefully left out of the filter seeing that it shows up in these articles anyway without being filtered for it specifically. Another example of this Orientalist news is with one of the top trending stories that was filtered with the key word: Middle East. Iran Nuclear Negotiators Style and Intent Create a Mystery, is the name of the article that was examined. This article showed much more blatant uses of Orientalist views in just the first few paragraphs:To some, his flawless English and soft manner offer the picture of a pragmatist eager to bring his country back into the world community, trying to drag along a reluctant leadership at home. To others, his Western credentials are a mask and he is indistinguishable from hardliners he needs to keep satisfied.[footnoteRef:65] [65: Iran Nuclear Negotiators Style and Intent Create a Mystery. 18 March 2015. Via Bloomberg LP. Accessed 18 March 2015. ]

At first glance, this comment made by the author in reference to Mohamad Javad Zarif, Irans foreign minister and chief nuclear negotiator to the West, suggests a strong basis in Western values. Firstly, his flawless English, directly assumes that Mr. Zarifs distance from his native language as a positive indicator of his intent to make peace. It further suggests that his English studies are indicative of an educated man that is wanting to cooperate, and those negotiators who would have to use a translator are obviously not making the attempt to come to a solution. Also, the comment about Mr. Zarif wanting to move Irans status back into the world community is frankly suggesting an argument be made that the world is the West. Anything outide of this western narrative is thus not included in the parts of the world that would be oriented with safety of nuclear arms and energy. Lastly, a direct comment is made about Zarifs Western credentials in the last part of the quote that further solidifies this authors concern with the West as being the standard to follow.[footnoteRef:66] This is not only an example of an Orientalist based [66: Ibid]

thought process by the author, also an example of imperialist narrative of the West in general. These comments seem to degrade Zarifs position in his country and uphold western ideals and imperialism though the article is disguised as an informative piece to tell businesses about the political air of a country. The Orientalist viewpoints actually augment the story at hand and suggest an entirely different image be constructed in the readers minds, thus defeating the purpose of risk management in this case. Any business that would use articles like this derived from Bloomberg News to make decisions about their own business strategy would be doing a disservice to themselves since the information seen here can often be tainted. The end result is that businesses think they are receiving objective data, though they can actually be reading an Orientalist soaked narrative that falsifies the identity of the East. These two examples, however are just the tip of the iceberg in terms of showing how Orientalist can permeate even the most trusted of sources and shape decisions of those who are exposed.

Findings and ApplicationsIn conclusion, Orientalism can be seen everywhere in Western culture, which unconsciously affects the ways that Western Companies conduct business or choose to take on projects for expansion and mitigate risk. Even when calculating systemic risk for publicly traded securities, overstatements of risk involved in a companys shares (such as select Russian securities that are still considered excellent emergent economy opportunities, despite the fact that Standard and Poors rating of Russia is classified as a junk rating since January 2015) can be potential catastrophes down the line.[footnoteRef:67] Also, consider the risk to investors who believed an article [67: Albanese, Chiara, and Maria Armental. S&P Downgrades Russia Foreign Currency Rating to Junk. The Wall Street Journal. January 26, 2015. Accessed April 21, 2015. http://www.wsj.com/articles/s-p-downgrades-russia-foreign-currency-rating-to-junk-1422297409.]

by Forbes released in 2013 and the multitude of information like it. Where are the Worlds Safest Banks in 2013? It lists such institutions such as HSBC as very safe and trustworthy despite the fact that today this same bank and others like it in Europe are under several investigations claiming that these institutions fixed commodities prices and improperly managed leverage ratios (further increasing the chance for bank runs and thus loss of depositors money).[footnoteRef:68] This article [68: Where are the Worlds Safest Banks in 2013? November 1, 2014, via Bloomberg LP, accessed April 19, 2015.]

goes on to state that the major safe banking locations in the world during this time were located everywhere except for the Middle East, which really leaves a high degree of asymmetric information in the markets.Today, trusted applications available through such mediums as Bloomberg terminals, allow for businesses to create filtering programs that track key words in a constant flow of market data; information is released every second in hopes of steering decisions about portfolios, management of funds, or even company valuations. For this side of the industry, these seemingly minor biases that pop up as a result of deep seeded, unconscious interpretation of data can be nightmares for investors who trust that their assets are safe in knowledgeable, professional hands. Furthermore, businesses in general can reap the same negative effects by letting Orientalist identify constructions rule their decisions and logic. The third case study presented in this paper considers issues with branding and image problems faced by McDonalds with an attempt to decrease risk of volatile markets due to U.S. conflict. It can be shown that an unconscious existence of Orientalist based identity constructs may have hurt the company much more on their second attempt at increasing their revenues (with a release of a new sandwich, the McAfrica). Again, Orientalism can be identified as a key player in the companys misconstruction of identity that dealt with the Middle East and Africa. The first and second case studies, which examined the TSA and SEPTA respectively, showed how policy directed by falsified panic of terrorism threats waste millions of hours every year pursuing empty threats when crimes that are much more probable to occur in certain areas are not properly assessed. How many tax dollars are wasted then that could have gone to infrastructure or schools? Furthermore, how much money do Airlines lose every year from increased restrictions that TSA hierarchy admittedly states is more of a preventative scare than actual functional necessity? The same line of questioning also goes for SEPTA and their attempts to respect free speech which is actually viewed by many as hateful and uncouth. Orientalism in both cases can be seen as a factor which heightened risk of danger rather than decreasing it.[footnoteRef:69] [69: Lesley, Alison. Judge Rules Philadelphia Public Transit Must Run Anti-Islam Hitler Ad - World Religion News. World Religion News. March 12, 2015. Accessed April 30, 2015. http://www.worldreligionnews.com/issues/judge-rules-philadelphia-public-transit-must-run-anti-islam-hitler-ad.]

It should be thus noted that these points of discover then are only the beginning of a much larger journey at hand. The job of introducing various other explanations as to why markets behave a certain way or why businesses make the choices that they do can begin here. With greater study on the topic of false identity constructs that are present in business, firms can benefit by knowing a more accurate picture of dangers which could affect revenues, growth, safety, or even image.[footnoteRef:70] [70: ]

However the application this line of study does not stop their either. With this approach at understanding risk and more technical fields, liberal arts education can better integrate unique skills to be essential members of teams