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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 many respects differ. The countries have various political, economic and legal systems. Cultural systems can 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 all grave consequences for practice of the international business. They have deep influence on benefits, expenses and the risks connected with business dealing in the various countries; and strategy of international firms should spend a way in which operations in the various countries should be operated in the different countries. The basic purpose of this article is further to develop understanding and gratitude for value of the country 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 cultural systems of many nations of the world-states develop and to make consequences of these variations for practice of the international business.

1. Ethical Conduct Policy: Guidelines on Business Conduct of BP Ethical behavior Ð’Ð 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 describes behavior 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 in consultations on the broad audience of a reason, and then to carry out decisions and to choose the best way forward. It reflects general approach to management which requires a high degree of the responsibility 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 work worldwide. A management on business dealing offer practical guidance for employees in the decision of ethical questions, that help to make ethical policy of behavior "to live" in the company.

whether it be in the monetary or natural form. Steps. and tests which the manager can apply to maintain policy at places and works effectively in the organization.e. but we should not confuse our role from the government. rules which should be applied. the some people experience as it is better to struggle with them. 1998) Political contributions Ð’Ð international business. in Ð’Ð in USA provides administrative support for employees of committees of political actions. (Auty.for example.probably. A management on business dealing include: the decision model which describes process to clear ethical questions of behavior and possible consequences. include BP rules concerning the reporting and processing of any infringements of policy. However. if we accept double standards. representing a legitimate interest for the company. 2001) In these cases. maintenance we lawful expectations of all of those who interest. Ð’Ð will continue to participate in political debate concerning. Political payments are opened for interpretation of life of prompting in exchange for the future it beneficial treatment by the government. It is often not enough for separate to operate extremely on the basis of their personal judgment.any of which is represented comprehensible. (BP. that major problems not what BP think at first sight. 1998) Having passed through regular process and questions stated on adjacent pages can help to clear major problems in "a grey zone" distinctions in the mean time to actions which are comprehensible and what are not. employees should lift questions or the questions. Other questions often arise in developing situations when BP can feel. its employees and communities in whom it carries out the activity through such actions as lobbying. or there is an alternative a comprehensible rate of actions. or the dilemma is maybe solved only at higher level in organization Ð’Ð . which most often concern Ð’Ð employees. 2001) Further information Corporate commands of communication should be consultations about the state obligations or activity which can be opened for interpretation as political approval. influencing or alternative is outside of BP authority and consequently it can be felt a dilemma cannot be solved. in case of doubts. (Auty. (Ross. BP do not suggest or to take a bribe. For example. participating in a society. not political payments and not simplifications of payments. The best approach consists in development of some a starting point for the analysis "grey zones". 2002. that they should operate contrary to policy Ð’Ð . and. in further cooperation with the government or the international organizations. the analysis can show. to what political party or the organization or separate persons which activity are intended for realization of interests of political parties. Ð’Ð welcomes the employee’s participation in political process as persons in the ways which approach to each country. Full research of questions. (BP. whether it is necessary for BP to take this question at higher level for permit. and nobody should operate contrary to a policy. .They should be considered in a combination to a policy and have been updated with objective to include variations in the policy has declared in February. It is important. Such organizations as political bodies of research or scientific research institutes which are constructed according to political parties should be considered as though they are political parties. appropriating managements. Sometimes it occurs therefore. 2001) A decision model Some ethical questions are simple . Ð’Ð will not accept political payments. and in some cases. They also can be interpreted as political bias or intervention in democratic processes. and definitions have addressed. that people to not place itself in a situation when they feel. i. are compelled to choose between two versions .

penalties or imprisonments. Rules which are inadequate or ambiguous require. compensation or other advantages to any person. The bribery is unethical as it undermines validity of the market. the credit. In some countries. early consultations with legal the command will help with development of an appropriating rate of actions. can arise discrepancies between national and international law. payments. that the gift actually is enough bribe damage of reputation BP. New laws can be unclear (for example. the new instruction of purchases or the tax laws). 1998) The bribery is illegal according to the legislation practically all countries in which Ð’Ð works. Connected publicity can represent the companies as irresponsible and operates against the state interests in a society in which it works. 2001) Legality Prompt variations in character and scales of business. Ð’Ð supports creation of the open and fair . Any requirement or the offer. often arise questions where existing legal frameworks and the last experience can provide ambiguous indications or answers. but not maybe sufficient. cannot expect to capture all aspects of ethical behavior of business and complex situations which can arise. (Ross. Availability of bribery in large scale harms the general economic. and sometimes and laws cannot contradict each other.Bribery The bribery is granting. such as agents and advisers. and. as from the ethical point of view. Employees should know. that practice it "is accepted" locally usually means. as spur to do that it dishonestly. 2001) Irrespective of the fact how a wide circulation of bribery maybe in some countries. conformed their local gifts and entertainments of policy. (Auty. the foreign law on corruption is normal means of reception routine actions of a low level and / or statements government officials. (Skjærseth. The excessive quantity of gifts and entertainments can mean that there is an intention to bribe the addressee. illegally or breach of confidence. The law. a condition for satisfaction of Ð’Ð standards of business dealing. the best action Ð’Ð can challenge bribery top-level and consider exposures of practice in public property. consequently. In such cases. the payment. Infringement of the law can create influences on compensation of damage. Leaders in developing countries often with such attitude are offensive. Ð’Ð considers such payments as bribes and will not do them. that it to suffer. 2001) Our standards often require more. Applying principles of policy on ethics of behavior and consultation of others is your best management to make ethical judgments. that attempt to reconcile "to the letter of the law" and "spirit of the law" to provide efficient control any risk. than established by the law minimal. when keeps a secret. social and political progress in developing countries. (BP. bribes. Employees should ensure and granting of gifts and entertainments.we to not resolve to the third parties operating from our name. to make it. the promise or the offer any gift. and in the environment business and political. Compliance with the law is necessary. what even on opinion of associates. consequently. any country publicly protects demand on. bribes in any form that any employee Ð’Ð should be rejected and immediately inform in a line of management. deforms operational costs and terminates in failure the open. fair and decent society. Anybody from employees BP should request any of a gift or entertainments. Approve. payments to require or accept bribes in any form . as well as illegal is global on battle against terrorism to the Great Britain and USA Foreign Corrupt Practices Act. Ð’Ð will not find. Cultural distinctions never should be used as a pretext for poor compliances with ethical standards. in small assistance of payments as it is certain in the USA.

are applied to entrepreneurial business outside the border. for example. the history of a science is full of examples of researchers which approve. (Ross. the International Amnesty. but many other things are not. unethically. we are obliged to bring the contribution to encouragement of human rights to a society and to consider influence of our activity. It provides the foundation public and international for expectation. that their idea was. BP is also sensitive to use of the personal information with a view of compliance with the right to immunity of a private life. (Skjærseth. While it is not connected a word for copying words. Besides. but it. undoubtedly. but it. from unfair the counterpart for its personal benefits before the composer there was a chance to make an application on the patent or to publish idea of. Prohibitions against murder. Human rights and economic Ð’Ð supports belief. is unethical. Many of these ethical questions arise because of distinctions in economic progress. especially of United States. Nike Business Ethics This chapter is devoted to ethical problems which arise when the companies are engaged in business in the different countries. legal system and culture. and incest. World Bank and the United Nations Organization). the politician. or actions of the organization. such as a principle. Such behavior is not illegal. In our society and other. Similarly. work. BP capacity will make it to vary depending on the situation and the countries. consultation of independent experts and responsible the nongovernmental organizations (NGO) or other international organizations if necessary (for example. provincial and national levels. larceny. 2001) Effort on support of human rights can demand discussion with business partners both trading associations and authorities at local. They should be processed in constructive and in view of interests. Ð’Ð all over the world operations are with the legislation of many countries. members of a trade. including in the United Kingdom. (Argenti. plagiarism technically do not break the law on the copyright.competition. 2001) 2. Some countries laws. that human rights are universal. As the company. apparently. and ethical strategy or a plan of action which does not break these recognized principles. business-operation and attitudes provide the way to show our concern under human rights and assistance to the public regulations about human rights. It is duty of the state to protect human rights of their population. Human Rights Watch. 2002) Business ethics are the standard principles properly or incorrectly. The majority of the countries of the world have agreed about two pacts about the General declaration of human rights. many ethical principles are fixed in the law. . BP guarantee that it adhere principles of human rights in its activity and in those areas which are under its control. They are fixed in the General declaration of the United Nations under human rights (the Universal declaration of human rights) which we support. that the author should not be engaged in plagiarism another. a businessman adjusting behavior. The term ethics concerns to the accepted principles proper or wrong which operate behavior of the person. stolen. 2001) Ð’Ð will not be reconciled with certificates of employees which break a competition or the antimonopoly law even if these interested can have considers the actions to be for the blessing of the company. (Skjærseth.

the unethical behavior cannot occur. that it operates unethically. the rights. ethical questions. in Nike can have proved there was the subcontractor. those. It is possible to approve. Actually. and even when they do. but many approved. Nike did not break laws when its subcontract works at factories in Southeast Asia which were in very bad working conditions. (Edwards. that ethical reasons have been included in decision-making process in an international firm. Nike has undoubtedly made the decisions concerning a subcontract to lower the costs and. Consequently.Opening a case well illustrates a problem. . In international business conditions. that as legal systems allows. of the most important non-material actives. That fact. It leads wrong to think. (Argenti. these laws cannot be active during a life. human rights. “Lawful” not always means “ethical”. Being close to the chapter from the review of various processes. with corruption and the moral obligation of multinational corporations. Local laws often do not provide that will be considered adequate guarantees for workers. to consider the reasons for poor ethical decisions in the international business. subcontractors adhered to these supervising principles. fairly and properly a thing for Nike to do. Because they work for establishment which is beyond national borders and culture. As managers in many other issues of the companies. local laws has followed. most the general ethical questions are included employment of practice. interests of employees. a joint-stock company the responsibility to make sure. but has passed some years. preservation of the environment. economic progress and culture significantly differ from the country to the country. it was only that it is necessary to do! (Argenti. of its reputation which is one of corporations. Originally. that these laws are protected interests of the subcontractor. . in such a manner that it in enlightened was active to insert personal interest Nike ethical reasons during decision-making calculation. that subcontractors should meet. that managers can accept to make sure. 2002) In this chapter it is considered. That is even more important. Considering it. consequently. employment of independent auditors to make sure. how ethical questions can and should be included in decisionmaking process in the international business shall begin with consideration a source and character of ethical problems and dilemmas in the international business. heads in multinational it is necessary to be firmly especially sensitive to these distinctions and in a condition to choose ethical actions when distinctions between societies are created with potential for ethical problems. possibly. Further. Nike finally has made it. 2002) In 2006 Nike Inc did contract with the supplier to make footballs. Footballs have been made in Pakistan before they have been sold Nike which then on the market and to sell a product worldwide. that any action legal maybe enough for the person to remove itself from any responsibility for negative consequences which can result. Many of ethical problems and dilemmas in the international business root that political systems. the vocal protest before Nike operated. legal structure in many developing countries is weak and incomplete in comparison with found in the developed country. These protests damaged Nike. when it has solved subcontract works for the companies in developing countries consists in creation of the ethical code in which main principles concerning working conditions are stated. fondly believed. of decision-making calculation. 2002) Difference between “lawful” and “ethical” Many professionals of business who face problems concerning their activity will justify the decisions based on legality of the subsequent actions. and then is beyond it. that is considered normal practice in one country can be considered unethical in others. at the most corporation. probably. and Nike managers. of long-term profitability. will not enter the companies. Then it is necessary to discuss various philosophical approaches to business ethics.

1. (Edwards. (Biskupic. and the strategic and operative problems. legal. what companies should open the best of the social information the responsibility before the public. . cultural and ethical problems. Nike Unethical Business Practices Case The majority of people can easily define Nike and are familiar from offered production how to adjust the options available in Internet-shop Nike. Certainly use of child labor in the United States where Nike it is included. The frequent phenomenon in many countries of the standard moral principles in possession its people countries already built in laws. Nike Women. . Nike Unethical Business Practices and CSR When we wish to know. The corporate social responsibility (CSR). which Nike realizations (see Nike Sportswear Business: That means word Nike an average. Corporate citizens companies operating in interests of social interest which can or cannot affect incomes. Nike Sportswear. It is maybe connected with successful branding and marketing strategy. it always concerns to problems. facing are important to receive full understanding a problem and business. the responsible business. more demanding. Ethical expectations corporate citizens. thus. sweat shops and outsourcing influence on sales. Child labor is used for such manufacture has fallen off in Pakistan laws so Nike to purchase of these footballs from the suppliers there was no illegal according to Pakistan legal system. many widely recognized western moral principles lay in the American laws. Business Identity: Nike Swoosh the Trade mark and sports activity: Motivational Quotations from Nike) However when business reaches the questions connected from unethical business practice.Many criticize Nike for footballs are made in Pakistan as child labor is used for an industrial line in Pakistan. and Nike Football. (Edwards. . than for the enterprises without public interest. Nike is of unethical business practice case. play understanding of a role of the governments of host countries. is illegal. Also known as the corporate responsibility. 2002) What is the ethical decision? Question which arises when collides from an ethical dilemma: "I should operate so that to help with someone when this law will go against my own interests". and though Nike tried to recover from negative responses in press it has received nearby sweatshop system. Corporate citizens. wages. 2002) Nike sweatshops work business have excited plenty of disputes in occasion of ethical business practice. For example. it is very important to know these 2 words: Corporate citizens and the corporate social responsibility (CSR). the corporate citizenship. These socially efficiency duty cause ethical standards for such companies. 2003) In summary. such as laws on child labor. Later. morally accepted principles often differ in the countries and cultures all over the world. but the American laws on child labor to differ from the Pakistan laws on child labor. 2. it struggles to win negative feelings at people on all territory of the United States. Nevertheless. it has caused the Western discussion and disputes concerning business ethics of Nike. Nike Basketball. because of ostensibly altruistic intentions which completely differ from unique objective were repaid corporation. especially in how corporate citizens to inform about charitable an expert. This question often leads to discussion which is pulling War between various moral principles.

Argenti P. how ethically. 2003) In essence. (Edwards.. it is important to know such companies.A. & Forman J. and that. profit. that fact. and celebration a threefold line is: People. (Byrum. legally. that at Nike unethical business practice has resulted these ethical and legal questions. ACLU. the companies it is better to carry out the duties of the interested sides. Resource Abundance and Economic Development. 2002.N.02. the communities. (Biskupic. offering there is more than information for the public. Joan. and the international norms. consumers. Nike as the global company becomes more and more expectation from people as the corporate citizen. References Auty. and effectively to open the information at conservation of positive image. Though there can be distinctions. The Power of Corporate Communication: Crafting the Voice and Image of Your Business (McGraw-Hill. 2003. In an ideal. Organized Labor. CSR deliberate inclusion of public interests in acceptance of corporate decisions. CSR policies will function as built in. 2003) It should be made consistently with CSR promises.F. 2002) Increase in CSR disclosing of the information in itself is the form of socially responsible behavior. defining as business ethics when business reaches up to the ethical questions connected with CSR disclosing the information and traditional advertising. MSU Business Topics 22(3). 47-51. 1974. Biskupic. A. self-adjusted which mechanism business will supervise and provide its compliance with the law. While participation in public dialogue. New York.stable responsible business (SRB). Business will cover the responsibility for consequences of the activity on an environment. pp. & Haas P. sets to us final an example for the link at an assessment of the risks connected from the corporate communications. Social Responsibility: The Uncertain Hypothesis. irrespective of legality. M. workers. R. Business of Nike will actively advanced for public interests by encouragement of growth and progress of communities and voluntary liquidations of practice which damage to public area. Media and European Entities Join Together to .195-265. Browne. and not just reception of profit of the company. a planet. USA Today. or corporate social. 1998. NY). in light. instead of for unique objective of increase of incomes in the reporting on CSR. the interested sides and all other members to public area. Nike Case: Are Press Releases Free Speech?. Thus. Bush Administration. M. CSR is one of forms of corporate selfregulation are integrated into business-model. Research for Action 44.. the companies are obliged by the interested sides to initiate and participate in original dialogue concerning the corporate social responsibility. January 13. ethical standards.

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