,-(5'±,QWHUQDWLRQDO-RXUQDORI(QYLURQPHQWDODQG5XUDO'HYHORSPHQW  

5HVHDUFKDUWLFOHᶃᶐᶂ/RFDO$FFHSWDELOLW\RQ2UJDQLF)DUPLQJLQ.DPSRQJ&KDP3URYLQFH&DPERGLD
623+($7,0,QVWLWXWHRI(QYLURQPHQW5HKDELOLWDWLRQDQG&RQVHUYDWLRQ&DPERGLD%UDQFK3KQRP3HQK&DPERGLD(PDLOVRSKHDBDWP#\DKRRFRP
%817+$11*2
5R\DO8QLYHUVLW\RI$JULFXOWXUH3KQRP3HQK&DPERGLD
/$/,7$6,5,:$77$1$121
$VVRFLDWLRQRI(QYLURQPHQWDODQG5XUDO'HYHORSPHQW7KDLODQG
0$&+,720,+$5$
)DFXOW\RI5HJLRQDO(QYLURQPHQW6FLHQFH7RN\R8QLYHUVLW\RI$JULFXOWXUH-DSDQ5HFHLYHG'HFHPEHU

$FFHSWHG)HEUXDU\$EVWUDFW 5HFHQWO\ LQ .DPSRQJ&KDP 3URYLQFHRI&DPERGLD VXEVLVWHQFH DJULFXOWXUH LV
EHLQJ FRQYHUWHG WR FRPPHUFLDO PRQRFXOWXUH DQG WKH DPRXQWV RI DJULFXOWXUDO FKHPLFDOVDSSOLHG WR IDUPODQGV DUH LQFUHDVLQJ HYHU\ \HDU 7KHUH VHHP WR EH PDQ\ FDVHV LQ ZKLFKSHRSOHDSSO\DJULFXOWXUDOFKHPLFDOVZLWKRXWXQGHUVWDQGLQJWKHLPSDFWRQKHDOWKDQGIRRG
VDIHW\ ,W LV QHFHVVDU\ WR SURPRWH DQG HQKDQFH XQGHUVWDQGLQJ RI VXVWDLQDEOH DJULFXOWXUHDPRQJ ORFDO SHRSOH LQFOXGLQJ IDUPHUV 6R WKLV VWXG\ GHDOW ZLWK WKH HYDOXDWLRQ RI ORFDOIDUPHUV¶ DFFHSWDELOLW\ RQ RUJDQLF DJULFXOWXUH EDVHG RQ WKH SDUWLFLSDWRU\ OHYHO 7KHH[WHQVLRQDFWLYLWLHVVXFKDVSURPRWLQJVXVWDLQDEOHDJULFXOWXUHWKURXJKGHPRQVWUDWLQJKRZ
WR PDNH FRPSRVW ER[ DQG FRPSRVW OHDGHU WUDLQLQJ IRU WKHLU GHHSHU SHUFHSWLRQ RQ
VXVWDLQDEOH DJULFXOWXUH DQG FRQGXFWLQJ ZRUNVKRSV RQ VXVWDLQDEOH DJULFXOWXUH WKURXJKFRPSRVWLQJ ZHUH LPSOHPHQWHG LQ  ,Q WKH LQLWLDO VWDJH RI WKH H[WHQVLRQ DFWLYLWLHVIDUPHUV¶ SDUWLFLSDWLRQ ZDV HYDOXDWHG DV /HYHO  SDUWLFLSDWLRQ E\ FRQVXOWDWLRQ DV WKHIDUPHUV SDUWLFLSDWHG E\ DQVZHULQJ WKH TXHVWLRQV $OVR LQ  IROORZLQJ DFWLYLWLHV ZHUH
LPSOHPHQWHG LQWURGXFLQJ WKH IDUPHUV KRZ WR PDNH SHOOHW FRPSRVW LQLWLDWLQJ  PRGHORUJDQLF IDUPV OHDGHU WUDLQLQJ RQ PDNLQJ ELRSHVWLFLGH DQG FRQGXFWLQJ ZRUNVKRSV RQ
VXVWDLQDEOH DJULFXOWXUH WKURXJK DSSO\LQJ SHOOHW FRPSRVW ,Q DGGLWLRQ WR WKH H[WHQVLRQDFWLYLWLHV WKH VXUYH\V E\ LQWHUYLHZ DQG TXHVWLRQQDLUH IRU HYDOXDWLQJ ORFDO IDUPHUV¶DFFHSWDELOLW\ RQ RUJDQLF DJULFXOWXUH ZHUH LPSOHPHQWHG RFFDVLRQDOO\ 7KURXJK D VHULHV RI
WKH H[WHQVLRQ DFWLYLWLHV WKH IDUPHUV¶ SDUWLFLSDWLRQ ZDV HYDOXDWHG DV /HYHO  IXQFWLRQDOSDUWLFLSDWLRQDVWKHIDUPHUVSDUWLFLSDWHGE\IRUPLQJWKHJURXSVWRPHHWWKHSUHGHWHUPLQHG
REMHFWLYHV RI WKH H[WHQVLRQ SURMHFW $FFRUGLQJ WR WKH UHVXOWV RI HYDOXDWLQJ ORFDO IDUPHUV¶DFFHSWDELOLW\RQRUJDQLFDJULFXOWXUHEDVHGRQWKHSDUWLFLSDWRU\OHYHOLWZDVFRQVLGHUHGWKDWEXLOGLQJORFDOIDUPHUV¶FRQILGHQWWKURXJKYDULRXVH[WHQVLRQDFWLYLWLHVLVWKHPRVWLPSRUWDQWNH\WRLQFUHDVHORFDODFFHSWDELOLW\.H\ZRUGVRUJDQLFIDUPLQJDFFHSWDELOLW\ORFDOIDUPHUVH[WHQVLRQ&DPERGLD

,1752'8&7,21
.DPSRQJ&KDPSURYLQFHRQHRIWKHSURYLQFHVDQGWRZQRI&DPERGLDLVORFDWHGLQWKHFHQWUDOUHJLRQRI&DPERGLDDQGJHWVHIIHFWIURP0HNRQJ5LYHUEDVLQ7KHPDLQDFWLYLW\RIWKHSHRSOHLQ
WKLV DUHD LV DJULFXOWXUH PDLQO\ FXOWLYDWLQJ ULFH DQG YHJHWDEOH DQG UDLVLQJ DQLPDOV $JULFXOWXUDODFWLYLWLHVRIWKHDUHDWHQGWRFKDQJHIURPVXEVLVWHQFHWRFRPPHUFLDOPRQRFXOWXUHDQGWKHDPRXQWV,6(5',-(5'±,QWHUQDWLRQDO-RXUQDORI(QYLURQPHQWDODQG5XUDO'HYHORSPHQW  

RIDJULFXOWXUDOFKHPLFDOVDSSOLHGWRIDUPODQGVDUHLQFUHDVLQJHYHU\\HDU7KHDSSOLHGFKHPLFDOVLQIDUPODQGV FDXVH VHULRXV HQYLURQPHQWDO SUREOHPV LQ GRZQVWUHDP VXFK DV HXWURSKLFDWLRQ XQXVXDOJURZWKRIDTXDWLFSODQWVGHFUHDVHLQGLVVROYHGR[\JHQDQGDFFXPXODWLRQRIERWWRPVHGLPHQWVLQ
WKH ZDWHU UHVRXUFHV 0LKDUD DQG )XMLPRWR   $OVR WKHUH VHHP WR EH PDQ\ FDVHV LQ ZKLFKSHRSOH DSSO\ DJULFXOWXUDO FKHPLFDOV ZLWKRXW XQGHUVWDQGLQJ WKH LPSDFW RQ KHDOWK DQG IRRG VDIHW\$FFRUGLQJ WR 1JR   PRUH WKDQ  RI IDUPHUV LQ 3UH\ &KKRU GLVWULFW .DPSRQJ &KDP
SURYLQFHKDGDSSOLHGDJULFXOWXUDOFKHPLFDOVZLWKRXWXQGHUVWDQGLQJWKHLPSDFW,Q RUGHU WR FRQWULEXWH WR VROYLQJ WKH SUREOHPV XQGHUVWDQGLQJ RI VXVWDLQDEOH DJULFXOWXUHQDPHO\RUJDQLFDJULFXOWXUDOSUDFWLFHVZHUHSURPRWHGDQGHQKDQFHGDPRQJORFDOSHRSOHLQFOXGLQJIDUPHUV6RWKHREMHFWLYHRIWKLVVWXG\ZDVWRGLVFXVVDQGHYDOXDWHWKHORFDOIDUPHUV¶DFFHSWDELOLW\
RQRUJDQLFDJULFXOWXUHEDVHGRQWKHSDUWLFLSDWRU\OHYHO
678'<6,7($1'0(7+2'6
7KHVWXG\ZDVFRQGXFWHGLQ:DW&KDVYLOODJH%DUD\FRPPXQH3UH\&KKRUGLVWULFWLQ.DPSRQJ&KDP SURYLQFH DURXQG  NLORPHWHUV IURP 3KQRP 3HQK FLW\ )LJ   ,Q :DW &KDV YLOODJH WKHIDUPHUVPDLQO\JURZULFHDQGVKRUWWHUPYHJHWDEOHFURSV7KHELJDPRXQWVRIFKHPLFDOIHUWLOL]HUVDQGSHVWLFLGHVKDYHEHHQDSSOLHGLQWKHLUIDUPODQGVWKURXJKDOOFXOWLYDWLQJVHDVRQV7KHLPSDFWRIVXFK DSSOLHG FKHPLFDO VXEVWDQFHV RQ VRLO IHUWLOLWLHV IDUPHUV¶ KHDOWK DQG HQYLURQPHQW WHQG WR EH
VHYHUHUEXWWKHIDUPHUVGLGQRWXQGHUVWDQGWKHVHSUREOHPV
7KH VWXG\ ZDV FRQVWLWXWHG ZLWK WKH H[WHQVLRQ DFWLYLWLHV VXFK DV KROGLQJ ZRUNVKRSV ZLWKEURFKXUHGLVWULEXWLRQTXHVWLRQQDLUHVXUYH\PDNLQJGHPRQVWUDWLRQPRGHOVDQGPDNLQJILHOGVWXG\
WRXUIRUWKHIDUPHUV,QWKHSDUWLFLSDWRU\OHDUQLQJZRUNVKRSVZHUHKHOGLQWKHYLOODJHZLWK
PDLQ IDUPHUV 7KH PDLQ FRQWHQWV RI WKH ZRUNVKRSV LQFOXGHG L  WKH LQWURGXFWLRQ WR RUJDQLF DQGVXVWDLQDEOH DJULFXOWXUH SUDFWLFHV LL  WKH H[SODQDWLRQ RI WKH SULQFLSOH RI FRPSRVWLQJ DQG  LLL  WKHGHPRQVWUDWLRQRIPDNLQJFRPSRVWER[DQGFRPSRVW7KHIDUPHUVZHUHGLYLGHGLQWRJURXSVDQG
DFRQFUHWHFRPSRVWER[ZDVVHWXSWRHDFKJURXSFRQVWLWXWHGZLWKPHPEHUVIRUPDNLQJWKHLUFRPSRVW)XUWKHUJXLGDQFHH[SODQDWLRQVDQGPRQLWRULQJZHUHFRQGXFWHGUHJXODUO\LQWKHSURFHVVRI
WKH H[WHQVLRQ DFWLYLWLHV $W ODWHU VWDJH RI  IROORZLQJ DFWLYLWLHV ZHUH LPSOHPHQWHG L  WKHZRUNVKRS RQ LQWURGXFLQJ WKH IDUPHUV WR PDNH SHOOHW FRPSRVW LL  WKH HVWDEOLVKPHQW RI  PRGHORUJDQLF IDUPV DQG LLL  WKH OHDGHU WUDLQLQJ RQ PDNLQJ ELRSHVWLFLGH DQG DSSURSULDWH ZD\ RI LWVDSSOLFDWLRQLQWKHPRGHOIDUPV$ TXHVWLRQQDLUH VXUYH\ IRU HYDOXDWLRQ ZDV FRQGXFWHG ZLWK  IDUPHUV  RI WKH YLOODJHKRXVHKROGV  LQ0DUFK  7KH PDLQ TXHVWLRQV RI WKH VXUYH\ ZHUH IRFXVHG RQ L  WKHLU DFFHSWHG
SHUFHSWLRQRQ RUJDQLF IDUPLQJ SUDFWLFHV LL KRZ FKDQJH LQWKH DPRXQW RI FKHPLFDO IHUWLOL]HU DQGSHVWLFLGHWKDWIDUPHUVKDYHDSSOLHGDQGLLL KRZGLIIHUHQFHLQIDUPLQJSUDFWLFHVEHIRUHDQGDIWHUWKH
H[WHQVLRQDFWLYLWLHV$OVRVRPHTXHVWLRQVFRQFHUQLQJWKHOHYHORIWKHIDUPHUV¶SDUWLFLSDWLRQLQWKH
RUJDQLFIDUPLQJSUDFWLFHVZHUHLQFOXGHGLQWKHTXHVWLRQQDLUHVKHHW





:DW&KDV
9LOODJH

3UH\7RWHQJ.DPSRQJ&KDP
)LJ/RFDWLRQRI:DW&KDVYLOODJHLQ.DPSRQJ&KDPSURYLQFH
,6(5',-(5'±,QWHUQDWLRQDO-RXUQDORI(QYLURQPHQWDODQG5XUDO'HYHORSPHQW  

7KH ZD\V RI IDUPHUV¶ SDUWLFLSDWLRQ ZHUH HYDOXDWHG RQ WKH EDVLV RI WKH ILHOG REVHUYDWLRQ WKHFRQWHQWRIGLVFXVVLRQDQGWKHTXHVWLRQQDLUHVXUYH\7KHFRQFOXVLRQRIWKHOHYHORUGHJUHHRIWKHLUSDUWLFLSDWLRQZDVGUDZQRQWKHEDVLVRIWKHSDUWLFLSDWRU\OHYHOGHYHORSHGE\3UHWW\  FLWHGLQ0LKDUD DQG <DPDML   ZKLFK WKHUH DUH VHYHQ W\SHV RI SHRSOH SDUWLFLSDWLRQ 0DQLSXODWLYH
3DUWLFLSDWLRQ 3DVVLYH 3DUWLFLSDWLRQ 3DUWLFLSDWLRQ E\ &RQVXOWDWLRQ 3DUWLFLSDWLRQ IRU 0DWHULDO,QFHQWLYHV)XQFWLRQDO3DUWLFLSDWLRQ,QWHUDFWLYH3DUWLFLSDWLRQDQG6HOI0RELOL]DWLRQ 7DEOH 

7DEOH$W\SRORJ\RISDUWLFLSDWLRQ
7\SRORJ\0DQLSXODWLYH3DUWLFLSDWLRQ3DVVLYH3DUWLFLSDWLRQ3DUWLFLSDWLRQE\&RQVXOWDWLRQ3DUWLFLSDWLRQIRU0DWHULDO,QFHQWLYHV)XQFWLRQDO3DUWLFLSDWLRQ,QWHUDFWLYH3DUWLFLSDWLRQ6HOI0RELOL]DWLRQ&KDUDFWHULVWLFVRIHDFKW\SH
3DUWLFLSDWLRQ LV VLPSO\ D SUHWHQFH ZLWK µSHRSOH¶V¶ UHSUHVHQWDWLYHV
RQRIILFLDOERDUGVEXWZKRDUHXQHOHFWHGDQGKDYHQRSRZHU
3HRSOH SDUWLFLSDWH E\ EHLQJ WROG ZKDW KDV EHHQ GHFLGHG RU KDVDOUHDG\ KDSSHQHG ,W LQYROYHV XQLODWHUDO DQQRXQFHPHQWV E\ DQ
DGPLQLVWUDWLRQ RU SURMHFW PDQDJHPHQW ZLWKRXW DQ\ OLVWHQLQJ WRSHRSOH¶VUHVSRQVHV
3HRSOH SDUWLFLSDWH E\ EHLQJ FRQVXOWHG RU E\ DQVZHULQJ TXHVWLRQV([WHUQDO DJHQWV GHILQH SUREOHPV DQG LQIRUPDWLRQ JDWKHULQJ
SURFHVVHVDQGVRFRQWURODQDO\VLV
3HRSOHSDUWLFLSDWHE\FRQWULEXWLQJUHVRXUFHV7KH\PD\SURYLGHWKH
ILHOGVDQGODERUEXWDUHLQYROYHGLQQHLWKHUH[SHULPHQWDWLRQQRUWKH
SURFHVVRIOHDUQLQJ3DUWLFLSDWLRQ VHHQ E\ H[WHUQDO DJHQFLHV DV D PHDQV WR DFKLHYH
SURMHFW JRDOV HVSHFLDOO\ UHGXFHG FRVWV 3HRSOH PD\ SDUWLFLSDWH E\
IRUPLQJ JURXSV WR PHHW SUHGHWHUPLQHG REMHFWLYHV UHODWHG WR WKHSURMHFW
3HRSOH SDUWLFLSDWH LQ MRLQW DQDO\VLV GHYHORSPHQW RI DFWLRQ SODQVDQGIRUPDWLRQRUVWUHQJWKHQLQJRIORFDOLQVWLWXWLRQV3DUWLFLSDWLRQLV
VHHQDVDULJKWQRWMXVWWKHPHDQVWRDFKLHYHSURMHFWJRDOV3HRSOH SDUWLFLSDWH E\ WDNLQJ LQLWLDWLYHV LQGHSHQGHQWO\ RI H[WHUQDOLQVWLWXWLRQVWRFKDQJHV\VWHPV

6RXUFH3UHWW\  FLWHGLQ0LKDUDDQG<DPDML  

5(68/76$1'',6&866,21
/RFDOIDUPHUV¶DFFHSWDELOLW\RQFRPSRVWDQGSHOOHWFRPSRVWPDNLQJ$ ZRUNVKRS RQ KRZ WR PDNH FRPSRVW ER[ DQG D IHZ RWKHU ZRUNVKRSV RQ PDNLQJ FRPSRVW DQGFRPSRVWLQJ ZHUH FRQGXFWHG IRU WKH YLOODJHUV LQ  )LJ   7KH FRQWHQWV RI KRZ WR EXLOG WKHFRPSRVW ER[ PDNLQJ FRPSRVW XVLQJ ORFDO PDWHULDOV FRPSRVW DSSOLFDWLRQ DQG LWV EHQHILWV ZHUH
H[SODLQHGDQGGHPRQVWUDWHGLQWKHVHZRUNVKRSV$URXQG  WR  IDUPHUV SDUWLFLSDWHG LQ HDFK ZRUNVKRS $OO SDUWLFLSDQWV KDYH IRXQG WKHZRUNVKRSV YHU\ LPSRUWDQW DQG PRVW RI WKHP KDYH XQGHUVWRRG ZHOO DERXW WKH PHDQLQJ RI WKHZRUNVKRSVDQGUHVSRQGHGWKDWWKH\ZDQWWRSDUWLFLSDWHLQQH[WZRUNVKRSVWRR$FFRUGLQJWRWKHUHVXOWVRIWKHTXHVWLRQQDLUHVXUYH\RIWKHIDUPHUVZKRKDGSDUWLFLSDWHGLQWKHZRUNVKRSVRQFRPSRVWLQJWRRNWKHFRPSRVWWHFKQRORJ\LQWRSUDFWLFHVDQGDSSOLHGLWLQWKHLUIDUPODQGVDQGKDYH
VHHQKRZHIIHFWLYHWKHFRPSRVWLVWRWKHLUJURZLQJFURSV )LJ +RZHYHUDPRQJWKHRIWKH
SDUWLFLSDQWVZKRGLGQRWSUDFWLFHPDNLQJFRPSRVWDIWHUWKHZRUNVKRSVVRPHUHVSRQGHGLQUHDVRQWKDWWKH\FDQQRWDIIRUGWRPDNHWKHFRPSRVWER[HVDQGWKHRWKHUVVDLGWREHEXV\ZLWKRWKHUZRUNV$OVRWKLVVXUYH\UHVXOWVVKRZHGWKDWDURXQGRURIRWKHUYLOODJHUVZKRGLGQRWSDUWLFLSDWHLQ
WKH ZRUNVKRSV KDV OHDUQHG DQG PDGH FRPSRVW DQG DSSOLHG LW LQ WKHLU IDUPODQGV WR LQFUHDVH VRLOIHUWLOLW\7KLVLQGLFDWHGWKDWWKHNQRZOHGJHOHDUQHGLQWKHZRUNVKRSVKDVEHHQWUDQVIHUUHGWRRWKHUYLOODJHUV ZKR FRXOG QRW SDUWLFLSDWH GLUHFWO\ LQ WKH H[WHQVLRQ ZRUNVKRSV $SSO\LQJ FRPSRVW WKHIDUPHUVLQ:DW&KDVYLOODJHUHGXFHGWKHDPRXQWRIDSSOLHGFKHPLFDOIHUWLOL]HUVDURXQGIURP

,6(5',-(5'±,QWHUQDWLRQDO-RXUQDORI(QYLURQPHQWDODQG5XUDO'HYHORSPHQW  

NJWRNJSHU\HDU )LJ DQGFDQVDYHVRPHPRQH\DVWKHPDWHULDOVIRUPDNLQJFRPSRVWDUHDYDLODEOHLQRUQHDUWKHYLOODJHZLWKRXWDQ\FKDUJH












)LJ)DUPHUVDWWHQGLQJZRUNVKRSRIFRPSRVWLQJ












)LJ:RUNVKRSRQSHOOHWFRPSRVWPDNLQJZLWKIDUPHUV
7KH ZRUNVKRS RI WUDQVIHUULQJ WKH SHOOHW FRPSRVW WHFKQRORJ\ ZDV FRQGXFWHG LQ  3HOOHWFRPSRVWKDVKLJKHUUHVLVWDQWIURPZDVKLQJRXWE\VXUIDFHUXQRII0RUHQXWULHQWVFDQEHVXSSOLHGWRFURSV DQG NHSW LQ VRLOV IRU ORQJ WHUP FRPSDULQJ WR FRQYHQWLRQDO FRPSRVW 6LULZDWWDQDQRQ DQG0LKDUD   7KH UHDVRQV ZK\ WKH SHOOHW FRPSRVW ZDV GHYHORSHG ZHUH H[SODLQHG DQG KRZ WR
PDNH WKH SHOOHW FRPSRVW ZDV GHPRQVWUDWHG ZLWK D VPDOOVFDOH PLQFLQJ PDFKLQH GHOLYHUHG WR WKHIDUPHUV7KHSDUWLFLSDQWVVXUHO\DJUHHGWKDWWKHSHOOHWFRPSRVWLVDQRWKHUNLQGRIRUJDQLFIHUWLOL]HUZKLFKLVQRWVRFRPSOLFDWHGWRSURGXFHPRUHFRPIRUWDEOHWRXVHHDV\WRNHHSDQGUHGXFHQXWULHQW
ORVV E\ KHDY\ UDLQIDOO RU VXUIDFH UXQRII +RZHYHU PDNLQJ SHOOHW FRPSRVW UHTXLUHV WKH PLQFLQJPDFKLQH DQG LW LV WKH SUREOHP IRU WKH ORFDO IDUPHUV DV WKH\ FDQQRW DIIRUG $FFRUGLQJ WR WKHTXHVWLRQQDLUHVXUYH\RQO\RIWKHZRUNVKRSSDUWLFLSDQWVKDYHPDGHSHOOHWFRPSRVWDQGDSSOLHG
LWRQWKHLUFURSVEXWWKHRWKHUYLOODJHUVKDYHQHYHUSURGXFHGSHOOHWFRPSRVW )LJ 7KHIDUPHUVUHVSRQGHG WKDW WKH GRQDWHG PLQFLQJ PDFKLQH LV WRR VPDOO FRPSDULQJ WR WKH DPRXQWV RI SHOOHWFRPSRVW WKH\ QHHG WR DSSO\ LQ WKHLU IDUPODQGV VR WKH\ MXVW DSSOLHG WKH FRQYHQWLRQDO FRPSRVWGLUHFWO\7KLVVXUYH\DOVRVKRZHGWKDWWKHUHDUHKLJKSRVVLELOLW\WREHZLGHO\DGYDQFHGLQPDNLQJDQGDSSO\LQJSHOOHWFRPSRVWLIDELJJHUPLQFLQJSHOOHWPDFKLQHFRXOGEHVHWXS
1RZ WKHVH ORFDO IDUPHUV KDYH XQGHUVWRRG ZHOO DERXW WKH EHQHILWV RI FRPSRVW DQG SHOOHWFRPSRVWPDNLQJDQGLWVDSSOLFDWLRQDQGPRVWRIWKHPDUHDEOHWRH[SODLQWKLVWHFKQRORJ\WRRWKHUORFDOSHRSOHRXWVLGHWKHYLOODJH
/RFDODFFHSWDELOLW\RQELRSHVWLFLGH%LRSHVWLFLGH LV D JRRG DOWHUQDWLYH WR FKHPLFDO LQVHFWLFLGH WKH IDUPHUV XVHG WR DSSO\ FRQFHUQLQJDERXWWKHIDUPHUV¶KHDOWKIRRGVDIHW\DQGZDWHUFRQVHUYDWLRQ7RWUDQVIHUWKHNQRZOHGJHRIXVLQJELRSHVWLFLGHWRWKHORFDOIDUPHUVWZRZRUNVKRSVZHUHFRQGXFWHGDQGPRGHORUJDQLFIDUPVZHUHSURPRWHGLQ:DW&KDVYLOODJHLQ )LJ 
,6(5',-(5'±,QWHUQDWLRQDO-RXUQDORI(QYLURQPHQWDODQG5XUDO'HYHORSPHQW  












)LJ)DUPHUVPDNLQJELRSHVWLFLGHLQWKHZRUNVKRS OHIW DQG
RQHRIWKHIRXUPRGHORUJDQLFIDUPRIWKHIDUPHUV ULJKW 









)LJ5HGXFHGDPRXQWRIFKHPLFDOIHUWLOL]HUVDQGSHVWLFLGHVXVHLQKRXVHKROGSHU\HDU










$YHUDJHRIIDUPHUV  )LJ3HUFHQWDJHRIIDUPHUVDFFHSWDELOLW\
RQRUJDQLFIDUPLQJSUDFWLFHV)LJ&KDQJHLQDSSOLFDWLRQZLWKRUJDQLFIDUPLQJRIIDUPHUVEHIRUHDQG
DIWHUWKHH[WHQVLRQDFWLYLWLHV
7KH IDUPHUV ZHUH WDXJKW DERXW PDNLQJ DQG DSSO\LQJ ELRSHVWLFLGH XVLQJ WKH DYDLODEOH
PDWHULDOV LQ WKH YLOODJH $OVR WKH LPSDFW RI DSSOLHG FKHPLFDO LQVHFWLFLGHV RQ KHDOWK DJULFXOWXUDOSURGXFWVDQGZDWHUUHVRXUFHVZDVVKRZQDQGH[SODLQHGLQWKHZRUNVKRSV$EXFNHWZDVGHOLYHUHGWRHDFKRZQHURIWKHPRGHORUJDQLFIDUPIRUPDNLQJELRSHVWLFLGH$IWHUDSSO\LQJWKHIDUPHUVVDZWKDWELRSHVWLFLGHZDVDOVRHIIHFWLYHLQFKDVLQJRUNLOOLQJWKHLQVHFWVEXWLWUHTXLUHGWKHIDUPHUVWRVSUD\ LW PRUH RIWHQ  WLPHV SHU ZHHN 0DQ\ IDUPHUV LQ WKH YLOODJH KDYH OHDUQHG DERXW WKHHIIHFWLYHRIELRSHVWLFLGHDQGNQRZQKRZWRPDNHLWXVLQJORFDOPDWHULDOV'XHWRWKHUHVXOWVRIWKH
VXUYH\  RIIDUPHUV ZKR SDUWLFLSDWHG LQWKH ZRUNVKRSV KDYH PDGH DQG DSSOLHG ELRSHVWLFLGH
EXW DOO RI WKHP VWLOO VRPHWLPHV DSSOLHGFKHPLFDO LQVHFWLFLGH7KH SHRSOH DQVZHUHG WKDWWKH\ PD\VWLOO DSSO\ FKHPLFDO SHVWLFLGH EHFDXVH PDNLQJ DQG DSSO\LQJ ELRSHVWLFLGH QHHG WLPHV DQG UHTXLUHWKHP WR VSUD\ PRUH RIWHQ HYHQ FKHPLFDO LQVHFWLFLGH LV PXFK PRUH H[SHQVLYH 6R VRPHHQFRXUDJLQJ DFWLYLWLHV RI XVLQJ ELRSHVWLFLGHV VXFK DV SURYLGLQJ VRPH UHZDUGV IRU IDUPHUV ZKRDSSO\ ELRSHVWLFLGH RU VRPH NLQGV RI SURPRWLQJ WKH PDUNHWV IRU RUJDQLF SURGXFWV VKRXOG EH
FRQVLGHUHG

,6(5',-(5'±,QWHUQDWLRQDO-RXUQDORI(QYLURQPHQWDODQG5XUDO'HYHORSPHQW  (YDOXDWLRQRIIDUPHUV¶SDUWLFLSDWLRQ
7KHUH DUH YDULRXV OHYHOV RU GHJUHHV RI IDUPHUV¶ SDUWLFLSDWLRQ 7KH HYDOXDWLRQ RI WKH IDUPHUV¶DFFHSWDELOLW\RQRUJDQLFIDUPLQJRIWKLVVWXG\ZDVGLVFXVVHGRQWKHEDVLVRIWKHSDUWLFLSDWLRQOHYHOVGHYHORSHGE\3UHWW\  ZKLFKKDVOHYHOVDVVKRZQLQ7DEOH,QWKHLQLWLDOVWDJHRIWKHH[WHQVLRQDFWLYLWLHVIDUPHUV¶SDUWLFLSDWLRQZDVHYDOXDWHGDV/HYHOSDUWLFLSDWLRQE\FRQVXOWDWLRQDVWKHIDUPHUVSDUWLFLSDWHGE\DQVZHULQJWKHTXHVWLRQV$OVRLQ
IROORZLQJ DFWLYLWLHV ZHUH LPSOHPHQWHG LQWURGXFLQJ WKH IDUPHUV KRZ WR PDNH SHOOHW FRPSRVWLQLWLDWLQJ  PRGHO RUJDQLF IDUPV OHDGHU WUDLQLQJ RQ PDNLQJ ELRSHVWLFLGH DQG FRQGXFWLQJZRUNVKRSVRQVXVWDLQDEOHDJULFXOWXUHWKURXJKDSSO\LQJSHOOHWFRPSRVW,QDGGLWLRQWRWKHH[WHQVLRQDFWLYLWLHV VXUYH\V E\ LQWHUYLHZ RU TXHVWLRQQDLUH IRU HYDOXDWLQJ ORFDO IDUPHUV¶ DFFHSWDELOLW\ RQ
RUJDQLFDJULFXOWXUH ZHUH LPSOHPHQWHG RFFDVLRQDOO\ $FFRUGLQJ WRWKHUHVXOWVRI WKHTXHVWLRQQDLUHVXUYH\WKHIDUPHUV¶SDUWLFLSDWLRQZDVHYDOXDWHGDV/HYHOIXQFWLRQDOSDUWLFLSDWLRQDVWKHIDUPHUVSDUWLFLSDWHGE\IRUPLQJWKHJURXSVWRPHHWWKHSUHGHWHUPLQHGREMHFWLYHVRIWKHH[WHQVLRQSURMHFW
7KLVUHVXOWZDVVLPLODUWRWKHVWXG\RI6LULZDWWDQDQRQDQG0LKDUD  FRQGXFWHGLQ.KRQ.DHQ
RI1RUWKHUQ7KDLODQGDQG1JRDQG6LULZDWWDQDQRQ  ZKLFKVKRZHGWKDWLQWKHVWZRUNVKRSIDUPHUVSDUWLFLSDWLRQZDVYHU\ORZDW/HYHORUEXWWKLVEHFDPHYHU\KLJKDW/HYHOLQWKHUGZRUNVKRS DIWHU WKH IDUPHUV XQGHUVWRRG ZHOO DERXW WKH EHQHILWV RI WKH FRPSRVW 7KXV LW ZDVFRQVLGHUHG WKDW EXLOGLQJ ORFDO IDUPHUV¶FRQILGHQW WKURXJK YDULRXVH[WHQVLRQ DFWLYLWLHVLV WKH PRVWLPSRUWDQWNH\WRLQFUHDVHORFDODFFHSWDELOLW\&21&/86,21
$FFRUGLQJWRWKHUHVXOWVDQGGLVFXVVLRQVGRQHLQWKLVVWXG\LWFDQEHFRQFOXGHGWKDWWKHH[WHQVLRQDFWLYLWLHVIRUHQKDQFLQJVXVWDLQDEOHDJULFXOWXUHWKURXJKFRQGXFWLQJZRUNVKRSVDQGPRGHORUJDQLF
IDUP GHPRQVWUDWLRQV KDYH IDYRUDEOH HIIHFW RQ FKDQJH LQ DPRXQW RI FKHPLFDO IHUWLOL]HUV DQGLQVHFWLFLGHVXVHGE\WKHORFDOIDUPHUV7KHFRPSRVWWHFKQRORJ\ZDVKLJKO\DFFHSWHGE\WKHORFDOIDUPHUV EXW WKH SHOOHW FRPSRVW WHFKQRORJ\ ZDV QRW ZLGHO\ DGDSWHG ZLWK WKH UHDVRQV WKDW WKHPLQFLQJ PDFKLQH ZDV WRR VPDOO 7KH ORFDO SHRSOH IRXQG ELRSHVWLFLGH LV UHDOO\ JRRG IRU WKHIDUPHUV¶ KHDOWK IRRG VDIHW\ DQG HQYLURQPHQW EXW WKH\ VWLOO FRQWLQXH DSSO\LQJ FKHPLFDO
LQVHFWLFLGHVVRPHWLPHVDVDSSO\LQJELRSHVWLFLGHVUHTXLUHGPRUHWLPHV6RVRPHPRUHHQFRXUDJLQJDFWLYLWLHVRQPDNLQJDQGDSSO\LQJELRSHVWLFLGHVXFKDVSURYLGLQJVRPHUHZDUGVIRUIDUPHUVZKRDSSO\ ELRSHVWLFLGH RU VRPH NLQGV RI SURPRWLQJ WKH PDUNHWV IRU RUJDQLF SURGXFWV VKRXOG EH
FRQVLGHUHG ,W ZDV FRQFOXGHG WKDW EXLOGLQJ ORFDO IDUPHUV¶ FRQILGHQW WKURXJK YDULRXV H[WHQVLRQDFWLYLWLHVLVWKHPRVWLPSRUWDQWNH\WRLQFUHDVHORFDODFFHSWDELOLW\
5()(5(1&(6(5(&21   (5(&21 DQQXDO UHSRUW  ,QVWLWXWH RI (QYLURQPHQW 5HKDELOLWDWLRQ DQG&RQVHUYDWLRQ-DSDQ0LKDUD0DQG)XMLPRWR$  6XVWDLQDEOHIDUPLQJSUDFWLFHVIRUHQYLURQPHQWDOFRQVHUYDWLRQ,QVWLWXWH
RI(QYLURQPHQW5HKDELOLWDWLRQDQG&RQVHUYDWLRQDQG7RN\R8QLYHUVLW\RI$JULFXOWXUH-DSDQ0LKDUD 0 DQG <DPDML (   3DUWLFLSDWRU\ VWUDWHJ\ IRU VRLO DQG ZDWHU FRQVHUYDWLRQ ,QVWLWXWH RI
(QYLURQPHQW5HKDELOLWDWLRQDQG&RQVHUYDWLRQ-DSDQ
1JR % DQG 6LULZDWWDQDQRQ /   6XLWDEOH WLPLQJ RI DSSOLFDWLRQ RI SHOOHWL]HG FRPSRVW DQG IDUPHUV¶DFFHSWDQFHLQ&DPERGLD-,66$$6
6LULZDWWDQDQRQ/DQG0LKDUD0  'HYHORSPHQWRIJUDQXODUFRPSRVWIRUUHGXFLQJQLWURJHQORVVHVDQG
LOOXPLQDWLQJ FDPSDLJQ WKURXJK IDUPHUV¶ SDUWLFLSDWLRQ 3DUWLFLSDWRU\ 6WUDWHJ\ IRU 6RLO DQG :DWHU
&RQVHUYDWLRQ,QVWLWXWHRI(QYLURQPHQW5HKDELOLWDWLRQDQG&RQVHUYDWLRQ-DSDQ
6LULZDWWDQDQRQ/DQG0LKDUD0  *UDQXODUFRPSRVWGHYHORSPHQWDQGIDUPHUV¶DGDSWDELOLW\LQ.KRQ.DHQ1RUWKHDVW7KDLODQG-RXUQDORI$ULG/DQG6WXGLHV

,6(5'