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Managing Risk in Business through an Investigation of Orientalism

An Honors Thesis Presented to the


University of Alabama Honors College
and the
Faculty of The University of Alabama
In Partial Fulfilment
of the Requirements for University Honors and International Honors Diploma Designations
for the Degrees:
Bachelor of Science in Commerce and Business Administration, Finance
and
Bachelor of Arts in Foreign Language and Literature, French
by
Nicholas Starnes
May 2015

Supervisory Faculty:
Dr. Eleanor Finnegan

Approved by:
X

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Acknowledgments
I 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.

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Abstract
This 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

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Managing Risk in Business through an Investigation of Orientalism


Thesis 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 Problem


A.
B.
C.

II.

Justifications for Present Analysis


A.
B.
C.
D.

III.

V.

Global Business
The Effects of Globalization
Risk Management in the International Business Community
Modern Threats

Methodology
A.
B.
C.

IV.

Bias
Construction of Identity
Orientalism

Approach
Literature Review: Orientalism
Procedure

Case Studies
A.
B.
C.
D.

TSA
SEPTA
McDonalds
Bloomberg L.P.

A.
B.
C.

Findings
Benefits
Future Applications

Findings and Applications

VI. Conclusion
A.

Closing Statement

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Introduction and Statement of the Problem
Bias 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.1 One of the most
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.2
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
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.
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).

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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.3 Modernity thus forces these people to confront their own biases more now than ever
before.
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.4 This definition, though very accurate in its own description of the term
discussed,
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 biasand-error literature of social psychology is decidedly differentthe social mind seems
riddled with fundamental design flaws.5
Restated, bias thus can be explained as an adaptive tool that humans have been able to
3 Ibid
4 The American Heritage College Dictionary, 138.

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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.6 These influences
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
5 Haselton, Martie G., and David C. Funder. 2006. The Evolution of Accuracy and Bias in Social

Judgment. (accessed February 18, 2015), 24.


6 Haselton, Martie G., and David C. Funder. 2006. The Evolution of Accuracy and Bias in Social

Judgment. (accessed February 18, 2015), 24.

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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. 7
This
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
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).

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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.8 This term was significantly redefined by Palestinian-American scholar Edward
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. 9
2. A political doctrine or system promoting such extension of authority.10
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. 11
Justifications for the Present Analysis
8 Said, Edward W. Orientalism, 5.
9 The American Heritage College Dictionary. Fourth ed. 695.
10 Ibid, 695.
11 Said, Edward W. Orientalism, (1,3).

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With 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. 12 This formula, which can be
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.

12 Mankiw, N. Gregory. Macroeconomics. 8th ed. New York, NY: Worth, 2013, 27.

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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.13

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).14

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.15
13 Gross Domestic Product. Investopedia. November 19, 2003. Accessed March 06, 2015.

http://www.investopedia.com/terms/g/gdp.asp.
14 Gross Domestic Product. Investopedia. November 19, 2003. Accessed March 06, 2015.

http://www.investopedia.com/terms/g/gdp.asp.
15 Mankiw, N. Gregory. Macroeconomics. 8th ed., 31.

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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).16 Additionally, Imports plus Exports
account for 30% of US GDP in 2011.17 However in reference to the percentage of exports that
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).18 Just a few percentages taken of GDP increase compared to Net
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
16 US Gross Domestic Product. Federal Reserve Bank of St. Louis (FRED).
17 Ibid.
18 Treasury Reporting Rates of Exchange. US Bureau of the Fiscal Service.

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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. 19 Simply put, GNP is GDP that was just calculated, plus, Net Income
inflow from Assets Abroad. Mankiw gives this formula to represent the GNP:
GNP = GDP + NR
Thus, 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).20 So, examining companies that influence exports and those companies who have assets
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
19

Mankiw, N. Gregory. Macroeconomics, 32.

20 Stancheva-Gigov, Iskra. The Impact of Foreign Trade on Economic Growth. Journal of

Sustainable Development (accessed April 13, 2015).

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Timiraos and John D. McKinnon.21
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.22 The companies would know that the tax rate they received was fixed and only
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.23
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
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-earnings1422802103.
21

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-earnings1422802103.
23 Ibid.

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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.

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Figure 1.1

Lastly, 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

Starnes 17
revenues of airlines and the entire outlook of an industry, the airline industry.24

Methodology
When 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
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).

Starnes 18
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.25
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.

Placeless

25 Said, Edward W. Orientalism. New York: Vintage Books, 1979, preface.

Starnes 19
2.
3.
4.
5.
6.
7.
8.
9.
10.

Element of danger
Barren
Violence
Savagery
Lack of civilization indicators as understood by the West
Lacking modern technology
Strict adherence to tradition
Vast riches (gold, jewels, precious stones and metals)
Mystical/Magical demeanor

Image 1.1

Thus 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.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.

Starnes 20
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.27
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.

28

27 Ibid, 33.
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.

Starnes 21

Image 1.2

The 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.29 The
element of magic and
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.

29 Said, Edward W. Orientalism. New York: Vintage Books, 1979, 65.

Starnes 22
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.30
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.31

30 Quality Omar Cigars. Allposters. March 5, 2015. Accessed April 30, 2015.

http://www.allposters.com/-sp/Quality-Omar-Cigars-Posters_i7861484_.htm.
31 Ibid.

Starnes 23

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.32
Thus in conclusion of Saids work, Orientalism, there exists many cues to what
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).

Starnes 24
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.

Starnes 25

Case Studies
Transportation 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.33
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.
33 TSA Information. Transportation Security Administration. April 2015. Accessed April 14,

2015. http://www.tsa.gov/about-tsa.

Starnes 26
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.34
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
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/.
34

Starnes 27
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.35 With this as the case, it can easily be determined exactly
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.36

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

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/.
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/.
36

Starnes 28
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.37 This fact coupled with the statement released by the
TSA informing the

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

37 Ibid

Starnes 29
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.38 The
correlation between

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
38 Ibid

Starnes 30

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


Cases Involving

Muslim-Americans.39 Kurzman discusses that the number of real threats


attributed to any type of

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 MuslimAmerican terrorism in the United States in more than 13 years since
9/11.40
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
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.
40 Ibid, 3.

Starnes 31
discrepancy present in the numbers, and Kurzman also shows that there is a
point at which
Orientalist viewpoints began to spike: after 9-11.41 This date is essential to
understanding why
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
41

Ibid. 6.

Starnes 32

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.42

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.43 With strict programs such as these, there is no doubt that
further heightening of
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/.
42

Starnes 33

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.44
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.
43 Dinan, Stephen. "TSA Wasting Money by Profiling Passengers Behavior, Investigators Say."

Washington Times. The Washington Times, Nov. 2013. Web. 20 Apr. 2015.
<http://www.washingtontimes.com/news/2013/nov/13/tsa-wastes-money-profile-passengerbehavior-report/?page=all>.
44 "SEPTA | About SEPTA." Southeastern Pennsylvania Transportation

Authority. January 2015. Accessed April 20, 2015.


http://www.septa.org/about/.

Starnes 34
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.45 This
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.46

Image 2.1

Image 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
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-AdsAppearance-Philly-Faith-Leaders-Urge-Dialogue-298228021.html.
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/judgerules-philadelphia-public-transit-must-run-anti-islam-hitler-ad.

Starnes 35
for Philadelphians to get to know their neighbors, to get to know someone
different from them,
to have these conversations.47
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. 48

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-AdsAppearance-Philly-Faith-Leaders-Urge-Dialogue-298228021.html

Starnes 36
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

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-AdsAppearance-Philly-Faith-Leaders-Urge-Dialogue-298228021.html

Starnes 37
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 longrun. 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

Starnes 38
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,
2001.49
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
49 Alkhereiji, Mohammed. McDonald's Launches McArabia. McDonald's

Launches McArabia. March 05, 2003. Accessed May 01, 2015.


http://www.arabnews.com/node/228843.

Starnes 39
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. 50 The fact that this sandwich was targeted to the
Middle East and its
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 3.1

Seen here in Image 3.1, the McArabia advertisement itself shows certain
indicators from
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.

Starnes 40
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.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.

Starnes 41
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).52 The difference between
the releases of the
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).

52 Ibid

Starnes 42

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 hungerrelief charities at the restaurants that did offer it.53
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
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.

Starnes 43
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. 54 The exotic description
follows the preconstructed 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.55
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

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.
55 Said, Edward W. Covering Islam: How the Media and the Experts Determine How We See

the Rest of the World, 98.

Starnes 44
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:

Starnes 45
Bloomberg L.P. is a privately-held company primarily owned by threeterm 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.56
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.57 However,
56 Bloomberg L.P. Bloomberg L.P. April 18, 2015. Accessed April 21, 2015.

http://www.privco.com/private-company/bloomberg-lp.
57 Ibid.

Starnes 46
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.58

Image 4.1

Based 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
Bloomberg Terminal. New York Times. February 1, 2015. Accessed April 30,
2015. http://graphics8.nytimes.com/images/2013/05/13/business/sub-jpbloomberg/sub-jp-bloomberg-superJumbo.jpg.
58

Starnes 47
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.59

Image 4.2

Initially, even titles show possible Orientalist articles yet to be read, which add to the fact
59Screen

Shot of Middle East Filter for Bloomberg News Screen. 30 April 2015. Via Bloomberg
LP. Accessed 30 April 2015.

Starnes 48
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).60
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.61 The Orientalist hints present in
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
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.


61Where are the Worlds Safest Banks in 2013? November 1, 2014, via

Bloomberg LP, accessed April 19, 2015.

Starnes 49
all.62 Despite this, several other banks were listed such as HSBC, which is currently under
investigation for mishandling depositors funds, tax evasion and poor adherence to standard
banking practices.63 Lastly, areas of promise for development and growth in the banking sector
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.64
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:
62 Enders, Walter, and Todd Sandler. The Political Economy of Terrorism. Second ed.

Cambridge: Cambridge University Press, 2006, 46.


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/hsbchit-by-fresh-details-of-tax-evasion-claims-1423482612.


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-ratingto-junk1422297409.
64

Starnes 50
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.65
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.66 This is not only an example of an
Orientalist based
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
65 Iran Nuclear Negotiators Style and Intent Create a Mystery. 18 March 2015. Via Bloomberg

LP. Accessed 18 March 2015.


66 Ibid

Starnes 51
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 Applications


In 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.67 Also, consider the risk to investors who believed an article
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
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-ratingto-junk1422297409.
67

Starnes 52
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).68 This article
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
68 Where are the Worlds Safest Banks in 2013? November 1, 2014, via

Bloomberg LP, accessed April 19, 2015.

Starnes 53
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.69
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.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 across disciplines. The interdisciplinary approach to
solving problems would then help there be a connective collaboration amongst multiple skill
sets, industries, fields of studies, etc. This teamwork could also provide additional fields of study
and expertise that is yet to be discovered, and complicated narratives can be better addressed
with this creative, new approach to understanding them. Lastly, more open-mindedness about
cross-discipline collaboration and study, can translate into a better employment statistics due to a
larger percentage of qualified, college graduates being added to the labor force. Nonetheless, it
all begins with asking questions about information that is already out there and overlooked
everyday. Curiosity and a thirst to understand the complexities which make up society, were
what motivated Said to criticize the narrative of the East that he saw; these factors can still help
to free scholars today from what is seen and allow them to dig deeper into the actions that are
overlooked by the majority. Said, on this same subject talks about the benefits of learning to
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/judgerules-philadelphia-public-transit-must-run-anti-islam-hitler-ad.
70

Starnes 54
criticize:
I take criticism so seriously as to believe that, even in the midst of a battle in which one is
unmistakably on one side against another, there should be criticism, because there must
be critical consciousness if there are to be issues, problems, values, even lives to be
fought for... Criticism must think of itself as life-enhancing and constitutively opposed to
every form of tyranny, domination, and abuse; its social goals are non-coercive
knowledge produced in the interests of human freedom.71
Thus, as mentioned at the beginning of this paper, biases will continue to persist in the
minds of all humans; this should not be attacked seeing how it was shown that bias is an
evolutionary adaptation to protect oneself. However, the quality of bias is what is under scrutiny
with this paper. As humankind evolves, so does the amount of information that can be used to
make educated decisions and assumptions about the world. The prevalence of Orientalism is
frankly not that. The narratives that Orientalism assumes are much more destructive than they are
protective, and this is the real goal of this analysis: to show that. Biases such as Orientalism
cannot
just disappear in one day, rather, they take countless people who are concerned with moving
forward as a society and as a way of life.72 With every identity that can be correctly interpreted,
businesses, governments, and people can be much safer from all manner of threats that may
plague
them. Withthe intent of this paper, business is examined to show that the benefits regarding this
topic affect many people indirectly as a result of a globalized economy and trade.
Conclusion
Let it be noted that this research asks questions not because someones feelings are at
stake or it seems right in some cases. This line of thinking is for businesses with interest to
protect international holdings or governments who wish to curb unnecessary spending as debt
soars every day to a higher number. All that can accomplish with the analysis from this paper so
far is to say that yes, this problem does exist. Orientalism affects not just those people who want
a more inclusive environment because they think it feels right. Forget that approach and accept
71 Said, Edward W. Orientalism. New York: Vintage Books, 1979
72 Halliday, Fred. 100 Myths about the Middle East. Berkeley: University of California Press,

2005.

Starnes 55
that Orientalism and false identity constructs misplace risk altogether. Being aware that this line
of thinking is prevalent in news, data on financial markets, and even in the actions of
management or employees, can greatly balance the scales of risk that is at play from these errors.
Greater research can be conducted on this topic to further show just how and why this
misinformation can cause losses through unnecessary panic or misplaced fears. Said says:
the phenomenon of Orientalism as I study it here deals principally, not with a
correspondence between Orientalism and Orient, but with the internal consistency
of Orientalism and its ideas about the Orient . . despite or beyond any
correspondence, or lack thereof, with a "real" Orient.73

This paper implores you to consider these words today in answering a very fundamental
question about risk management. When mistaken projections of identity consumes resources that
are in place for proper hedging against risk, what is being defended against is just that: a
construction: no real threat. Which leaves us with one question regarding this method of
safety: when individuals falsely construct an enemy in the form of a biased identity, from what
are they actually being protected?

73 Ibid.

Starnes 56

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