ethical conduct policy: guidelines on business conduct of bp

7/29/2019 Ethical Conduct Policy: Guidelines on Business Conduct of BP

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TABLE OF CONTENTS

Introduction

1. Ethical Conduct Policy: Guidelines on Business Conduct of BP

2. Nike Business Ethics

References

Introduction

The international business is much more complex, than domestic business as the countries in manyrespects differ. The countries have various political, economic and legal systems. Cultural systemscan vary significantly from country to country, as education, skilled qualifications of the population,and the countries are at different stages of economic progress. These distinctions can have allgrave consequences for practice of the international business. They have deep influence onbenefits, expenses and the risks connected with business dealing in the various countries; andstrategy of international firms should spend a way in which operations in the various countriesshould be operated in the different countries.

The basic purpose of this article is further to develop understanding and gratitude for value of thecountry on distinctions in political systems, economic systems, legal systems, and national culture.One more purpose of this article is further to describe, how political, economic, legal and culturalsystems of many nations of the world-states develop and to make consequences of thesevariations for practice of the international business.

1. Ethical Conduct Policy: Guidelines on Business Conduct of BP

Ethical behavior policy defines principles which if it to follow in all their actions and attitudes,will guarantee, their reputation for business dealing about conservation of integrity. It describesbehavior which it expects from our people, and gives some obvious borders around to activity. (BP,2001)

There will be questions which it is not clear. They require local leaders of business to take part inconsultations on the broad audience of a reason, and then to carry out decisions and to choose thebest way forward. It reflects general approach to management which requires a high degree of theresponsibility and an autonomy at all levels of the organization. (Auty, 1998)

Bases of policy help us to apply consistently principles in various circumstances in which BP workworldwide. A management on business dealing offer practical guidance for employees in thedecision of ethical questions, that help to make ethical policy of behavior "to live" in the company.


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They should be considered in a combination to a policy and have been updated with objective toinclude variations in the policy has declared in February, 2002, i.e. not political payments and notsimplifications of payments. A management on business dealing include: the decision model whichdescribes process to clear ethical questions of behavior and possible consequences.

Full research of questions, which most often concern employees, the some people experienceas it is better to struggle with them, and in some cases, rules which should be applied.

Steps, and tests which the manager can apply to maintain policy at places and works effectively inthe organization, include BP rules concerning the reporting and processing of any infringements ofpolicy. (BP, 2001)

A decision model

Some ethical questions are simple - for example, BP do not suggest or to take a bribe. Otherquestions often arise in developing situations when BP can feel, are compelled to choose betweentwo versions - any of which is represented comprehensible. Sometimes it occurs therefore,influencing or alternative is outside of BP authority and consequently it can be felt a dilemma cannotbe solved, if we accept double standards. (Ross, 2001)

In these cases, the analysis can show, that major problems not what BP think at first sight, and, orthere is an alternative a comprehensible rate of actions, or the dilemma is maybe solved only athigher level in organization - probably, in further cooperation with the government or theinternational organizations. It is often not enough for separate to operate extremely on the basis oftheir personal judgment, and nobody should operate contrary to a policy. The best approachconsists in development of some a starting point for the analysis "grey zones". (Auty, 1998)

Having passed through regular process and questions stated on adjacent pages can help to clearmajor problems in "a grey zone" distinctions in the mean time to actions which are comprehensibleand what are not, maintenance we lawful expectations of all of those who interest, and definitionshave addressed, whether it is necessary for BP to take this question at higher level for permit. It isimportant, that people to not place itself in a situation when they feel, that they should operatecontrary to policy , in case of doubts, employees should lift questions or the questions,appropriating managements. (Auty, 1998)

Political contributions

international business, participating in a society, but we should not confuse our role from thegovernment. Political payments are opened for interpretation of life of prompting in exchange for the

future it beneficial treatment by the government. They also can be interpreted as political bias orintervention in democratic processes. will not accept political payments, whether it be in themonetary or natural form, to what political party or the organization or separate persons whichactivity are intended for realization of interests of political parties. Such organizations as politicalbodies of research or scientific research institutes which are constructed according to politicalparties should be considered as though they are political parties.

However, will continue to participate in political debate concerning, representing a legitimateinterest for the company, its employees and communities in whom it carries out the activity throughsuch actions as lobbying. welcomes the employees participation in political process aspersons in the ways which approach to each country. For example, in in USA provides

administrative support for employees of committees of political actions. (BP, 2001)

Further information

Corporate commands of communication should be consultations about the state obligations oractivity which can be opened for interpretation as political approval.


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Bribery

The bribery is granting, the promise or the offer any gift, the credit, the payment, compensation orother advantages to any person, as spur to do that it dishonestly, illegally or breach of confidence.

will not find, payments to require or accept bribes in any form - we to not resolve to the thirdparties operating from our name, such as agents and advisers, to make it. The bribery is unethicalas it undermines validity of the market, deforms operational costs and terminates in failure theopen, fair and decent society. Availability of bribery in large scale harms the general economic,social and political progress in developing countries. (Auty, 1998)

The bribery is illegal according to the legislation practically all countries in which works, as wellas illegal is global on battle against terrorism to the Great Britain and USA Foreign CorruptPractices Act. (Skjrseth, 2001)

Irrespective of the fact how a wide circulation of bribery maybe in some countries, any countrypublicly protects demand on, payments, bribes, as from the ethical point of view.

Approve, that practice it "is accepted" locally usually means, that it to suffer, when keeps a secret,

and, consequently, the best action can challenge bribery top-level and consider exposures ofpractice in public property.

In some countries, in small assistance of payments as it is certain in the USA, the foreign law oncorruption is normal means of reception routine actions of a low level and / or statementsgovernment officials. considers such payments as bribes and will not do them. Culturaldistinctions never should be used as a pretext for poor compliances with ethical standards. Leadersin developing countries often with such attitude are offensive. Any requirement or the offer, bribes inany form that any employee should be rejected and immediately inform in a line ofmanagement.

Employees should know, what even on opinion of associates, that the gift actually is enough bribedamage of reputation BP. Employees should ensure and granting of gifts and entertainments,conformed their local gifts and entertainments of policy. The excessive quantity of gifts andentertainments can mean that there is an intention to bribe the addressee. Anybody from employeesBP should request any of a gift or entertainments. (Ross, 2001)

Legality

Prompt variations in character and scales of business, and in the environment business andpolitical, often arise questions where existing legal frameworks and the last experience can provideambiguous indications or answers. New laws can be unclear (for example, the new instruction ofpurchases or the tax laws), can arise discrepancies between national and international law, andsometimes and laws cannot contradict each other.

The law, consequently, cannot expect to capture all aspects of ethical behavior of business andcomplex situations which can arise. Compliance with the law is necessary, but not maybe sufficient,a condition for satisfaction of standards of business dealing. (BP, 2001)

Our standards often require more, than established by the law minimal. Applying principles of policyon ethics of behavior and consultation of others is your best management to make ethical

judgments. Rules which are inadequate or ambiguous require, that attempt to reconcile "to the letterof the law" and "spirit of the law" to provide efficient control any risk. In such cases, earlyconsultations with legal the command will help with development of an appropriating rate of actions.

Infringement of the law can create influences on compensation of damage, penalties orimprisonments. Connected publicity can represent the companies as irresponsible and operatesagainst the state interests in a society in which it works. supports creation of the open and fair


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competition. (Skjrseth, 2001)

will not be reconciled with certificates of employees which break a competition or theantimonopoly law even if these interested can have considers the actions to be for the blessing ofthe company. all over the world operations are with the legislation of many countries. Somecountries laws, especially of United States, are applied to entrepreneurial business outside theborder.

Human rights and economic

supports belief, that human rights are universal. They are fixed in the General declaration of theUnited Nations under human rights (the Universal declaration of human rights) which we support.The majority of the countries of the world have agreed about two pacts about the Generaldeclaration of human rights, including in the United Kingdom.

It provides the foundation public and international for expectation. It is duty of the state to protecthuman rights of their population. As the company, we are obliged to bring the contribution toencouragement of human rights to a society and to consider influence of our activity.

BP guarantee that it adhere principles of human rights in its activity and in those areas which areunder its control. BP is also sensitive to use of the personal information with a view of compliancewith the right to immunity of a private life. Besides, business-operation and attitudes provide theway to show our concern under human rights and assistance to the public regulations about humanrights. BP capacity will make it to vary depending on the situation and the countries. (Ross, 2001)

Effort on support of human rights can demand discussion with business partners both tradingassociations and authorities at local, provincial and national levels. They should be processed inconstructive and in view of interests, consultation of independent experts and responsible thenongovernmental organizations (NGO) or other international organizations if necessary (forexample, the International Amnesty, Human Rights Watch, World Bank and the United Nations

Organization). (Skjrseth, 2001)

2. Nike Business Ethics

This chapter is devoted to ethical problems which arise when the companies are engaged inbusiness in the different countries. Many of these ethical questions arise because of distinctions ineconomic progress, the politician, legal system and culture. The term ethics concerns to theaccepted principles proper or wrong which operate behavior of the person, members of a trade, oractions of the organization. (Argenti, 2002)

Business ethics are the standard principles properly or incorrectly, a businessman adjustingbehavior, and ethical strategy or a plan of action which does not break these recognized principles.In our society and other, many ethical principles are fixed in the law, Prohibitions against murder,larceny, and incest, for example, but many other things are not, such as a principle, that the authorshould not be engaged in plagiarism another, work.

While it is not connected a word for copying words, plagiarism technically do not break the law onthe copyright, but it, undoubtedly, is unethical. Similarly, the history of a science is full of examples ofresearchers which approve, that their idea was, stolen, from unfair the counterpart for its personalbenefits before the composer there was a chance to make an application on the patent or to publishidea of. Such behavior is not illegal, but it, apparently, unethically.


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Opening a case well illustrates a problem. Nike did not break laws when its subcontract works atfactories in Southeast Asia which were in very bad working conditions, but many approved, that itoperates unethically.

Nike has undoubtedly made the decisions concerning a subcontract to lower the costs and,consequently, at the most corporation, of long-term profitability. Originally, ethical questions,possibly, will not enter the companies, of decision-making calculation.

As managers in many other issues of the companies, those, in Nike can have proved there was thesubcontractor, a joint-stock company the responsibility to make sure, local laws has followed, andNike managers, probably, fondly believed, that these laws are protected interests of thesubcontractor, interests of employees.

Actually, legal structure in many developing countries is weak and incomplete in comparison withfound in the developed country. Local laws often do not provide that will be considered adequateguarantees for workers, and even when they do, these laws cannot be active during a life.

Considering it, fairly and properly a thing for Nike to do, when it has solved subcontract works for thecompanies in developing countries consists in creation of the ethical code in which main principles

concerning working conditions are stated, that subcontractors should meet. Nike finally has made it,and then is beyond it, employment of independent auditors to make sure, subcontractors adheredto these supervising principles, but has passed some years, the vocal protest before Nikeoperated.

These protests damaged Nike, of its reputation which is one of corporations, of the most importantnon-material actives. It is possible to approve, in such a manner that it in enlightened was active toinsert personal interest Nike ethical reasons during decision-making calculation. That is even moreimportant, it was only that it is necessary to do! (Argenti, 2002)

In this chapter it is considered, how ethical questions can and should be included in decision-

making process in the international business shall begin with consideration a source and characterof ethical problems and dilemmas in the international business. Further, to consider the reasons forpoor ethical decisions in the international business.

Then it is necessary to discuss various philosophical approaches to business ethics. Being close tothe chapter from the review of various processes, that managers can accept to make sure, thatethical reasons have been included in decision-making process in an international firm. Many ofethical problems and dilemmas in the international business root that political systems, the rights,economic progress and culture significantly differ from the country to the country. Consequently, thatis considered normal practice in one country can be considered unethical in others. Because theywork for establishment which is beyond national borders and culture, heads in multinational it is

necessary to be firmly especially sensitive to these distinctions and in a condition to choose ethicalactions when distinctions between societies are created with potential for ethical problems.

In international business conditions, most the general ethical questions are included employment ofpractice, human rights, preservation of the environment, with corruption and the moral obligation ofmultinational corporations. . (Edwards, 2002)

Difference between lawful and ethical

Many professionals of business who face problems concerning their activity will justify the decisionsbased on legality of the subsequent actions. That fact, that any action legal maybe enough for the

person to remove itself from any responsibility for negative consequences which can result. It leadswrong to think, that as legal systems allows, the unethical behavior cannot occur. Lawful not alwaysmeans ethical. (Argenti, 2002)

In 2006 Nike Inc did contract with the supplier to make footballs. Footballs have been made inPakistan before they have been sold Nike which then on the market and to sell a product worldwide.


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Many criticize Nike for footballs are made in Pakistan as child labor is used for an industrial line inPakistan.

Certainly use of child labor in the United States where Nike it is included, is illegal, but theAmerican laws on child labor to differ from the Pakistan laws on child labor. Child labor is used forsuch manufacture has fallen off in Pakistan laws so Nike to purchase of these footballs from thesuppliers there was no illegal according to Pakistan legal system. Later, it has caused the Westerndiscussion and disputes concerning business ethics of Nike. . (Edwards, 2002)

What is the ethical decision?

Question which arises when collides from an ethical dilemma: "I should operate so that to help withsomeone when this law will go against my own interests". This question often leads to discussionwhich is pulling War between various moral principles.

The frequent phenomenon in many countries of the standard moral principles in possession itspeople countries already built in laws. For example, many widely recognized western moralprinciples lay in the American laws. Nevertheless, morally accepted principles often differ in thecountries and cultures all over the world.

Nike Unethical Business Practices Case

The majority of people can easily define Nike and are familiar from offered production how to adjustthe options available in Internet-shop Nike, Nike Sportswear, Nike Women, Nike Basketball, andNike Football. It is maybe connected with successful branding and marketing strategy, which Nikerealizations (see Nike Sportswear Business: That means word Nike an average, Business Identity:Nike Swoosh the Trade mark and sports activity: Motivational Quotations from Nike) However whenbusiness reaches the questions connected from unethical business practice, i t always concerns toproblems, such as laws on child labor, wages, sweat shops and outsourcing influence on sales. .(Edwards, 2002)

Nike sweatshops work business have excited plenty of disputes in occasion of ethical businesspractice, and though Nike tried to recover from negative responses in press it has received nearbysweatshop system, it struggles to win negative feelings at people on all territory of the UnitedStates. (Biskupic, 2003)

In summary, Nike is of unethical business practice case, legal, cultural and ethical problems, playunderstanding of a role of the governments of host countries, and the strategic and operativeproblems, facing are important to receive full understanding a problem and business.

Nike Unethical Business Practices and CSR

When we wish to know, what companies should open the best of the social information theresponsibility before the public, it is very important to know these 2 words: Corporate citizens andthe corporate social responsibility (CSR).

1. Corporate citizens.

Corporate citizens companies operating in interests of social interest which can or cannot affectincomes. These socially efficiency duty cause ethical standards for such companies, because ofostensibly altruistic intentions which completely differ from unique objective were repaidcorporation. Ethical expectations corporate citizens, thus, more demanding, than for the enterpriseswithout public interest, especially in how corporate citizens to inform about charitable an expert.

2. The corporate social responsibility (CSR).

Also known as the corporate responsibility, the corporate citizenship, the responsible business,


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stable responsible business (SRB), or corporate social, CSR is one of forms of corporate self-regulation are integrated into business-model.

In an ideal, CSR policies will function as built in, self-adjusted which mechanism business willsupervise and provide its compliance with the law, ethical standards, and the international norms.

Business will cover the responsibility for consequences of the activity on an environment,consumers, workers, the communities, the interested sides and all other members to public area.

Business of Nike will actively advanced for public interests by encouragement of growth andprogress of communities and voluntary liquidations of practice which damage to public area,irrespective of legality. (Biskupic, 2003)

In essence, CSR deliberate inclusion of public interests in acceptance of corporate decisions, andcelebration a threefold line is: People, a planet, profit. Nike as the global company becomes moreand more expectation from people as the corporate citizen, and not just reception of profit of thecompany.

While participation in public dialogue, it is important to know such companies, how ethically, legally,and effectively to open the information at conservation of positive image. Though there can bedistinctions, defining as business ethics when business reaches up to the ethical questionsconnected with CSR disclosing the information and traditional advertising, the companies areobliged by the interested sides to initiate and participate in original dialogue concerning thecorporate social responsibility. (Edwards, 2002)

Increase in CSR disclosing of the information in itself is the form of socially responsible behavior,and that, offering there is more than information for the public, the companies it is better to carry outthe duties of the interested sides. (Byrum, 2003)

It should be made consistently with CSR promises, instead of for unique objective of increase ofincomes in the reporting on CSR. Thus, that fact, that at Nike unethical business practice hasresulted these ethical and legal questions, in light, sets to us final an example for the link at anassessment of the risks connected from the corporate communications.

References

Auty, R. M., 1998. Resource Abundance and Economic Development. Research for Action 44.

Argenti P.A. & Forman J, 2002. The Power of Corporate Communication: Crafting the Voice andImage of Your Business (McGraw-Hill, New York, NY), pp.195-265.

Biskupic, Joan, 2003. Nike Case: Are Press Releases Free Speech?, USA Today, January 13,A.02.

Browne, M.N. & Haas P.F., 1974. Social Responsibility: The Uncertain Hypothesis, MSU Business

Topics 22(3), 47-51.

Bush Administration, ACLU, Organized Labor, Media and European Entities Join Together to


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Protect First Amendment in Supreme Court Case Involving Nike, Inc., 2003, PR Newswire, March3, 2003, 1.

Byrum, Reed B., 2003. Nikes Speech Fight is our own, Advertising Age, 74(3), 22.

BP, 2001. Environmental and social report 2000, London: BP.

Campbell, Duncan, 2003. Nike's big ticking-off: How America's first amendment on free speechkept accurate corporate reporting away from company spin. The Guardian, Nov 17, 25.

Davenport, Kim, 2000, Corporate citizenship: A stakeholder approach for defining corporate socialperformance and identifying measures for assessing it, Business and Society 39(2), 210-220.

Edwards, Jim, 2002. Taking it to the big guys. Brandweek, 43(29), pp.19-24.

Emerson, Tony, 2001. Swoosh Wars: In an Operation Modeled on the Clinton Campaign Machine,Nike Takes on its Enemies, Newsweek, March 12, pp. 33-36.

Epstein, M.J. & Freedman, M., 1994. Social Disclosure and the Individual Investor. Accounting,Auditing & Accountability Journal 7(4), pp. 93-97.

Filios, Vassilios P., 1984. Corporate social responsibility and public accountability. Journal ofBusiness Ethics 3(4), pp. 303-311.

Filios, Vassilios P., 1986. Review and Analysis of the Empirical Research in Corporate SocialAccounting. Journal of Business Ethics 5(4), pp. 292-302.

Florini, Ann, 2003. Business and Global Governance, Brookings Review 21(2), pp. 4-8.

Gelb, D.S. & Strawser, J.A., 2001. Corporate social responsibility and financial disclosures: Analternative explanation for increased disclosure. Journal of Business Ethics 33(1), pp. 1-11.

Karl, Terry Lynn, 1997. The Paradox of Plenty. Oil Booms and Petro-States, Berkeley:

University of California Press.


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Ross, M., 2001. Extractive sectors and the poor. Oxfam America: Washington, DC.

Rowlands, I.H., 2000. Beauty and the beast? BPs and Exxons positions on global climate

change, Environment & Planning C: Government and Policy, pp. 335-353.

Skjrseth, J.B. and T. Skodvin, 2001. Climate Change and the Oil Industry: Common

Problems, Different Strategies, Global Environmental Politics 1(4), pp. 42-62.

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