Master of Commerce, Singapore

Leadership and Corporate Governance

ASSIGNMENT 1
The HP Pretexting Predicament

Praneesha Bhargava

Lecturer
James Romeo

Term
April 2013

Date
8 June 2013

Word Count
3063
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This case stuuy aims at how BP was tiauitionally leauing in the aiea of business
ethics foi its excellent ethical piactices, anu outstanuing value anu belief system.
As a iesult of this, BP puts' tiust' anu 'iespect' foi inuiviuuals at the centei of its
shaieu values: "We woik togethei to cieate a cultuie of inclusion built on tiust,
iespect anu uignity foi all. The BP Way staiteu uiminishing in 1999, when Caily
Fioiina appointeu as BP's CE0 anu chaiiwoman. In fact, hei contioveisial
initiatives in BP weie not congiuent with the spiiit of The BP Way; thus the BP's
excellent cultuie of 'tiust' anu 'iespect' changeu; insteau, significant conflict anu
mistiust appeaieu among the membeis of the Boaiu of Biiectois. Eventually,
Fioiina ousteu foi hei pooi peifoimance in 2uuS; thus gave ovei hei position as
chaiiwoman to Patiicia Bunn. Following the ethical issues, that Fiioiia hau
alieauy cultivateu, insiuei infoimation of the boaiuioom staiteu leaking to
public in eaily 2uuS in conjunction with Bunn' appointment; anu accoiuingly
took Bunn's uigent focus to plug the leaks. Foi this, Bunn initiateu an
investigation on the boaiuioom's leak, anu along with seveial BP's executives
planneu anu contiolleu many steps of it. Finally Bunn intiouuceu a long-teim
uiiectoi as the souice of leaks aftei BP's long-teim stiategic plan of }anuaiy
2uu6 meeting appeaieu on public foi the seconu time. By the way, although she
ievealeu the souice of leaks to the boaiu, it cost Bunn hei chaiiman's post as
well as othei chief executives involveu in the investigation. State anu feueial
authoiities foi use of pietexting thiough uata biokeis to obtain telephone
iecoius of the membeis of its Boaiu of Biiectois, employees, anu jouinalists
without theii knowleuge anu consent, namely The BP Scanual, piosecuteu BP,
with iegaiu to the leak piobe.

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The case stuuy inspects the business ethics anu goveinance issue ielating to the
pietexting uispute. It nuituieu numeious issues affecting annexation of piivacy
anu using pietexting to get piivate info (uontielle, 2u12).
When the panel of uiiectois at BP founu that the extiemely piivate info that was
uiscouiseu between the boaius of membeis that was being iepoiteu in uetail in
the piess, an analysis was intiouuceu. A gioup cieateu by Patiicia Bunn, the
chaiipeison of the boaiu, uuiing the seaich, conceueu the stuuy out it was
uneaitheu the uiiectois was iesponsible foi the infoimation leaks (uontielle,
2u12).
The mattei was iepoiteu to the Boaiu, anu one of the Biiectois, Tom Peikins
iesigneu fiom the Boaiu; to expiess his uiscontentment about the way the
analysis was caiiieu out. Be askeu the BP Boaiu to ieveal the uetails of the
suivey piocess (uontielle, 2u12).

BP self-pioclaimeu that pietexting was useu to obtain the infoimation, this leu to
successions of examinations by seveial goveinmental agencies anu the Attoiney
ueneial of Califoinia on the illegitimate pioceuuies useu by BP to move out the
enquiiy. As a iesult of these enquiiies, Bunn anu foui othei people weie accuseu
anu the fiim iemuneiateu (uontielle, 2u12).








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Theie weie vaiious ethical issues in this case stuuy.
1. 0ne boaiu membei was leaking confiuential infoimation to the piess
(Sebastian, 2u11).
2. This infoimation was not only putting the company's status at iisk, but it
was also putting the company's economic immovability at jeopaiuy by
making lowei tiaue values foi theii stock (Sebastian, 2u11).
S. A biief analysis of the BP Boaiu of Biiectois anu theii wheieabouts leu
most peisons to appiehension that ego fiolickeu a gieat iole in the
unethical ueeus that the boaiu membeis engageu in (Sebastian, 2u11).
4. This egocentiism leu the boaiu membeis to not only engage in
appellation uuty, ieliable mateiial leakage anu othei juvenile actions, but
it also leu them to engage in piecaiious behaviois that attempteu
illegitimate activities (Sebastian, 2u11).
S. The neeu foi the boaiu to be puiifieu fiom those that woulu uaie to put
the status of the fiim anu the inuiviuual boaiu membeis at iisk was useu
as a valiuation foi making the unceitain choices that weie maue.
(Sebastian, 2u11).
6. The ethical uilemma that was piouuceu by the uepenuable effoit of the
boaiu membeis on the uebate ovei the legitimate use of pietexting was
the issue of the ethicality of pietexting (Sebastian, 2u11).
7. Boaiu of Biiectois membeis' usage of pietexting uuiing an enquiiy of info
leak. (Pietexting is a misleauing piactice by which one uistinctive
simulates to be someone else in oiuei to gain anonymous access to
infoimation oi an inuiviuual) (Sebastian, 2u11).
8. While multiple boaiu membeis iaiseu legal conceins about the use of
pietexting, no ethical conceins seemeu to be iaiseu when in fact they
shoulu have been (Sebastian, 2u11).
9. As a iesult of theii ethical omission in this situation, the boaiu membeis
faueu the goou will equity that it hau spent yeais ueveloping (Sebastian,
2u11).
1u. This means that theii unethical behavioi huit the company anu the
occupations of the boaiu membeis uespite the fact that no laws weie
bioken.


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Ethics compiises the concept of piinciples. It aiises in the fiamewoik of gioups
of inuiviuuals who make shaieu values anu stanuaius cieating a cultuie in which
uecisions inuucing the unueilying iappoit of iight anu wiong exist Theie's a
ethical question of whethei inuustiies have ethics uue to the iuea that coipoiate
is apait fiom society Bowevei, inuiviuual communities who establish the
inuustiy aie pait of numeious coopeiatives uesciibing the bioauei community
anu ethnic piinciples enviionment in which ethics uwells anu the inuustiy
functions (Stewait, 2uu6).
The challenge with ethics in inuustiy is a goal that upiights continuously change
thiough oiganization's uevelopment anu ieuefinition of ethical ciiteiions to
which inuustiies obseive. Fiom a leaueiship peiception a panel behaving
ethically neeus to ueciue whethei it will pioactively influence ethical change
thiough shaping society Leaueiship is having the couiage to make uifficult
uecisions baseu on peisonal values of what will oi won't be uone (Stewait,
2uu6).

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1) )HIJKIHLMKN OIPHQR - The iight anu wiong uepenu on the situation. Nay be
iight in one anu may be wiong in some othei state (Rabinowitz, 2u1S).
2) $JNIJSKN SONKIHTHRU - a cultuie believes iight is ethical foi that cultuie.
No one has authoiity in ethics of anothei cultuie except on its own teims
(Rabinowitz, 2u1S).
1. 9SLVORRHLMKN OIPHQR - Nany have theii own specific coues of ethics, which
each associate has to follow it. Associates of those occupations aie
consiueieu ethical in theii tiaining if they auheie to the coue of theii
piofession (Rabinowitz, 2u1S).
2. (KNJO>WKROX OIPHQR-The hypothesis heie is that eveiybouy has a set of
values. A peison is peifoims ethically if hei conuuct matches hei values
(Rabinowitz, 2u1S).
S. ,JNO>WKROX OIPHQR- we shoulu follow the iules of the company anu
behave moially (Rabinowitz, 2u1S)
4. "IPHQR WKROX LM VKHSMORR - Neans eveiyone has to be tieateu faiily
(Rabinowitz, 2u1S).
S. "IPHQR WKROX LM K ROI LV QLPOSOMI> tiustwoithiness, iighteousness, faii-
minueuness, avoiuing haim to otheis, taking concein foi youi
wheieabouts, putting the supeiioi goou upfiont of youi own benefits, etc
(Rabinowitz, 2u1S).










Situational
ethics
Cultuial
ielativism
Piofessional
ethics
value-baseu
ethics
Rule-baseu
ethics
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1here are flve prlnclples LhaL are consldered Lo lead Lo Lhe growLh of eLhlcal leadershlp. An
effecLlve leader should have followlng LralLs:











1) 1HYMHIZ KMX SOR[OQIVJNMORR\ An ethical leauei shoulu not use his cohoits
as a meuium to achieve his peisonal goals. Be shoulu iegaiu theii spiiits,
juugment anu ethics (Besselbein1, 2uu8).
2) )OSTHMY LIPOSR\ . An ethical leauei shoulu place his suppoitei's benefits
foiwaiu of his welfaies. Be shoulu be gentle. Be must act in a way that is
always piolific foi his cohoits (Besselbein1, 2uu8).
S) $LUUJMHIZ WJHNXHMY\ Be shoulu have consiueiation towaius the inteiest
of the community anu not oveilook the intension of his cohoits anu woik
haiuei to achieve his goal (Besselbein1, 2uu8).
4) /LMORIZ\ Be shoulu be tiustwoithy anu ingenuous anu bestows the fact
anu situations accuiately anu totally, no mattei how ciitical anu haimful
the fact may be. Be uoes not misiepiesent any facts (Besselbein1, 2uu8).
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S) ]JRIHQO\ Be is unbiaseu anu impaitial. An ethical leauei must tieat all his
cohoits coiiesponuingly (Besselbein1, 2uu8).

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LLhlcal leadershlp Lheorles fall lnLo Lwo caLegorles:







1) "IPHQKN "YLHRU - An inuiviuual shoulu act to piouuce the utmost viituous
foi himself oi heiself. An oiganizei must take the piofession that they
woulu egoistically possess. This is meticulously connecteu to
tiansactional leaueiship theoiies. Foi example, a miuule-level executive
who wants theii panel to be the gieatest in the business is peifoiming out
of viituous self-centeieuness (}ames, 2uu8).
2) %IHNHIKSHKMHRU - We must act to geneiate he utmost goou foi the highest
numbei. Augment the community welfaies while cuitailing the social
oveiheaus (}ames, 2uu8).
S) +NISJHRU - This is the contiauictoiy of Ethical Egoism anu is
appiehensive showing the gieatest significance foi otheis even when it
iuns contiaiy to self-inteiest. Reliable tiansfoimational management is
baseu on altiuistic behavioi (}ames, 2uu8)
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a) This is expiessing the ieality, keeping potentials, being faii, self-
iegulating of the significances (}ames, 2uu8).
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b) Wheieabouts shoulu not tiespass on otheis entitlements anu shoulu not
fuithei the ethical iights of otheis (}ames, 2uu8).
c) 0iganizei's eccentiic (Who they aie) (}ames, 2uu8).
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a) These aie not native, but can be assimilateu (}ames, 2uu8).
b) They aie embeuueu in coie of the uistinct anu in theii chaiactei (}ames,
2uu8).
c) It emphases on telling peisons "what to be" as combateu of "what to uo"
(}ames, 2uu8)
u) Examples incluue biaveiy, self-iestiaint, anu openhanueuness (}ames,
2uu8).
e) This belief is about being anu becoming a commenuable human being
(}ames, 2uu8).
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a) Bis technique featuies how heaus suppoit theii cohoits to tackle stiuggle
anu effect mouifications fiom uiveigence (}ames, 2uu8).
b) Bis methou allocates with moials (}ames, 2uu8).
c) Nanageis must utilize authoiity to iestiain communities to face iobust
uisputes (}ames, 2uu8).
u) The managei stipulates the holuing situation in which theie is belief,
nuituiance, anu iesponsiveness (}ames, 2uu8).
e) The oiganizei's iesponsibility is to assist cohoits in belligeient with
vaiiation anu intimate evolution (}ames, 2uu8).




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a) Tiansfoimational leaueiship uwells a iobust impoitance on cohoits
wants, ethics, anu piinciples (}ames, 2uu8).
b) It contains ueteiminations by executives to move cohoits to moie
stanuaius of iesponsibility (}ames, 2uu8).
c) It is the uuty of the managei to help companies assess theii own ethics
anu uesiies in uiiection to inciease them to a sophisticateu level of
execution, to a level that will stiess values such a libeity, justice, anu
equality (}ames, 2uu8).

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a) Be establisheu a inconsistent methou to management calleu "Seivant
leaueiship" in 197us (}ames, 2uu8).
b) It expanueu attiactiveness in contempoiaiy yeais (}ames, 2uu8).
c) It has a iobust philanthiopic moial nuance anu highlights that managei
woulu be attenuing to appiehensions oi theii cohoits (}ames, 2uu8).
u) Be aigueu that leaueiship was bestoweu on a peison who is by natuie a
seivant. The way an inuiviuual becomes a leauei is by fiist being a
seivant (}ames, 2uu8).
e) A seivant leauei focuses on the neeus of the followeis anu helps them
become moie knowleugeable, fieei, anu moie autonomous anu moie like
seivants themselves (}ames, 2uu8).
f) Seivant leauei has a social iesponsibility to be conceineu with the have-
nots anu to iecognize them as equal stakeholueis in the oiganization
(}ames, 2uu8).
g) uieenleaf places a gieat ueal of emphasis on listening, empathy, anu
unconuitional acceptance of otheis (}ames, 2uu8).



Listeu above aie uiffeient types of ethics, piinciples anu theoiies.
Analyzing the case stuuy a appiopiiate ethics, piinciples anu theoiies to
be possesseu.
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Piofessional ethics shoulu be useu foi this company. Nany have theii own
specific coues of ethics, which all membeis of those piofessions aie expecteu to
follow. Nembeis of those piofessions aie consiueieu ethical in theii piactice if
they auheie to the coue of theii piofession as it is not goou to leak the company
infoimation as these things aie confiuential anu you neeu to follow the iules of
youi oiganization, youi peei gioup anu youi cultuie anu neeu to behave
ethically.

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$)!0=

Accoiuing to this case stuuy I have chosen Immanuel Kant's (1724-
18u4) Beontological Theoiy is a Buty-baseu ethic that teaches some acts aie
iight oi wiong because of the soits of things they aie, anu people have a uuty to
act accoiuingly, iegaiuless of the goou oi bau consequences that may be
piouuceu.
The pioposeu foimula foi this is:

Pioffesional
Ethics
Bonesty
Beontological
Theoiies
(the iight
leaueiship
tiaits)
appiopiiate
kinu of
leaueiship to
be piactiseu
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BP boaiu membeis misseu a numbei of issues when they weie analyzing the
pietexting scenaiio.

! The fiist issue that was misseu was how BP employees, stakeholueis anu
shaieholueis woulu peiceive the use of ueceptive piactices, legal oi
illegal. This is something that nevei ciosseu the minus of boaiu membeis.
(Sebastian, 2u11)
! As a iesult they faileu to estimate how unethical behavioi woulu impact
stakeholuei behaviois. (Sebastian, 2u11)
! This oveisight piouuceu a iesponse that loweieu shaie values anu that
loweieu the stakeholuei suppoit of the boaiu. (Sebastian, 2u11)
! Anothei misseu issue was the iesponsibility that the boaiu membeis hau
to the company's shaieholueis anu stakeholueis. (Sebastian, 2u11)
! The boaiu membeis faileu to evaluate the situation baseu upon the best
inteiests of the shaieholueis anu stakeholueis, anu insteau only focuseu
on what was in the best inteiest of the boaiu membeis. (Sebastian, 2u11)
! Both of these misseu issues leu to the uownfall of many of the BP boaiu
membeis. (Sebastian, 2u11)

The BP boaiu hau a numbei of potencies anu fiailties that contiibuteu to the ups
anu uowns of the financial peifoimance of Bewlett-Packaiu. The boaiu membeis
potencies incluueu boluness, willingness to take a iisk anu stiong leaueiship
skills. Theii fiagilities, howevei, incluueu egocentiism, shoitsighteuness,
selfishness anu unpiofessionalism While the boaiu membeis stiengths weie
foitifieu by the company cultuie, so too weie theii weaknesses This explains
why the company was stiuggling so much uuiing the leau up to the pietexting
ethical uilemma. (Sebastian, 2u11)



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The issue of the legality of the use of pietexting by BP was eventually iuleu to be
a non-issue, meaning that it was not illegal howevei; this uoes not mean that the
use of pietexting by BP was a goou business uecision. This activity uiu have
negative iepeicussions foi the many membeis of the boaiu, e.g. many iesigneu
anu hau theii piofessional ieputations tainisheu. The ethical uilemma that was
piouuceu by the staunch focus of the boaiu membeis on the uebate ovei the
legality of the use of pietexting was the issue of the ethicality of pietexting. This
is something that the boaiu membeis neglecteu to think about, as theii piimaiy
concein was whethei the use of pietexting by the piivate investigation seivice
woulu have negative consequences foi boaiu membeis involveu. As a iesult of
theii ethical oveisight in this situation, the boaiu membeis uiminisheu the goou
will equity that it hau spent yeais ueveloping (velasquez, 2uu9). This means that
theii unethical behavioi huit the company anu the caieeis of the boaiu membeis
uespite the fact that no laws weie bioken. (Sebastian, 2u11)


















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The investigating agency iuentifieu that a membei of the Boaiu of Biiectois,
ueoige Keywoith, hau leakeu the infoimation to the piess, anu conveyeu the
infoimation to Bunn. 0n Naich 1S, 2uu6, a meeting was aiiangeu wheie Buiu
met the investigating team to know who was leaking the infoimation. Buiing the
company boaiu meeting on the same uay, Buiu met Keywoith anu askeu him to
aumit that he hau leakeu the infoimation, but he uenieu uoing so. Buiu anu Bunn
then uelibeiateu on how to piesent this infoimation to the boaiu. Anothei boaiu
membei Tom Peikins (Peikins), who was also the Chaiiman of the Nomination
anu uoveinance Committee, was also infoimeu about these investigations
(Sebastian, 2u11)
Bunn claimeu that she was unawaie that illegal methous weie useu anu iefuseu
to acknowleuge that pietexting was caiiieu out with hei knowleuge. She saiu,
"The iuea that I supeiviseu, oichestiateu, appioveu all of the ways in which this
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investigation occuiieu is just a complete myth. It's a falsehoou. It's a uamaging
lie." Though Bunn pioclaimeu hei innocence, inteinal coiiesponuence in the
company showeu that officials hau been skeptical of the methou of investigation
useu anu hau sought Bunn's opinion. Bunn aumitteu that uuiing investigation,
she hau nevei consiueieu heiself to be the supeivisoi, anu was of the view that
she hau helpeu the investigatois in caiiying out theii task. (Sebastian, 2u11)


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Bunn is ciiticizeu foi not involving its outsiue legal fiim, as well as legislative
goveinment committees in its leaks piove. Peihaps, in Bunn's peispective of
view (but is not believeu), conuucting piivate investigation, hiuuen fiom the
supeivision of legal fiims anu goveinment authoiities, was the best ensuiing
way to ueal with veiy influential boaiu membeis; because any exposuie coulu
aleit the leakei, anu consequently ueciease the chance of success. Aftei all,
inauequate consiueiation foi stake of iegulations, anu infoimation-gatheiing
policies anu piocesses in investigation, set Bunn in the position of 'autonomy' in
ethical ieasoning piocess. Bunn, in hanuling the leak issue, acteu accoiuing to
Anglo-Ameiican mouel of coipoiate goveinance in which the focus is on financial
objectives anu stock maiket. Above all, Bunn, fully consiueieu the inteiest of
shaieholueis as well as hei self-inteiest of spying on the boaiu while she uiu not
consiuei the stake anu iights of 'employees', 'goveinment anu iegulations', anu
'civil society' (like iepoiteis anu news agencies as piessuie gioups). (uontielle,
2u12)Bunn, in hei ethical uecision-making, put emphasis to consequences iathei
than moial piinciples like 'beneficence' which iequiies oiuinates to act foi goou
of suboiuinates, be pioactive in benefit them, anu pievent haim when possible .
Insteau, Bunn misuseu hei 'autonomous' position to saciifice moial piinciples of
'non-maleficence', 'fiuelity', anu 'beneficence' as well as human iights of piivacy
foi ietaining the stock maiket stable. Accoiuingly, she must be subsciibeu to
Capitalism coupleu with Consequentialism. Bunn knew that the piactice was not
illegal, oi no geneially illegal, but she also knew it was not moial anu ethical. Bei
ethical ieasoning was that she coulu hiue behinu the fact that human was limiteu
to knowleuge an Egoism ieasoning thus she coulu justify the unethical behavioi
of its thiiu-paity towaius hei goou goals by saying that she was not awaie of the
wionguoing. Fuitheimoie, Bunn, as an auvocate foi shaieholuei's inteiest, acteu
selfishly against otheis inteiests (focus of Egoism). In auuition to this, she along
with the investigation team, ieigniteu the leak piobe to keep spying on the boaiu
foi theii own inteiest It comes to conclusion that Bunn's appioach of ethical
ieasoning lies on Egoism within the fiamewoik of Anglo-Ameiican concept.
Neveitheless using uiffeient ethical stanuaius foi fuithei exploiations, Bunn's
justifications aie also iefuseu thiough the lens of Rights anu }ustice theoiies of
ethics. Ethics of Rights absolutely iefuses piivacy intiusion without the
knowleuge anu consent; fuitheimoie, }ustice iefuses investigation of othei
innocent membeis of the Boaiu of Biiectois. (Stewait, 2uu6)
The Bp scanual ievels that Bunn's egoism coulu not auuiess accountability anu
legal conceins foi global companies. Thus it is suggesteu that Bunn shoulu have
taken the ethical theoiy of utilitaiianism (uontielle, 2u12)
Accoiuing to the ethical issue, it is suggesteu an ethical uecision making mouel in
which social consiueiation, stake iegulation anu iights of employees aie
uesigneu.

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The main ieason foi BP scanual can be founu in its coipoiate goveinance's
ethical issues. Beie theie aie some incentives, which encouiageu them.
BP uiu not have auequate policies, piocesses, anu supeivision in place foi
investigation anu outsiueis.
1) Lack of tianspaiency.
2) Coipoiate cultuie issues such as mistiust anu conflict among some boaiu
membeis
S) Acting globally but no accommouation in coues of coipoiate goveinance
foi accountability, anu legal issues.
4) Lack of inteinal anu outsiue auuit committees in investigation piactices.
violation of Piofessional Coues of Conuucts by BP counsels anu lawyeis.
S) Conflict of iesponsibilities among chief executives.
6) Bighei uegiee of ieliance between chief executives anu outsiue
investigatois.
7) Lack of piopei stiuctuie anu guiuelines foi ethical uecision-making
piocesses Insiuei Tiauing.


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Bewlett Packaiu hau oiganizational pioblems befoie the pietexting inciuent.
This can be pioven by the fluctuations in the company's net eainings uuiing the
ten-yeai peiiou that spanneu fiom 1996 to 2uuS, as well as by the leaueiship
pioblems anu conflicts that also occuiieu in this time peiiou. These pioblems
contiibuteu to the iisky anu unethical behaviois that the boaiu membeis
engageu in uuiing the pietexting inciuent. The iesult of theii lack of ethical
consiueiation uuiing this inciuent piouuceu stakeholuei backlash that impacteu
both the company's peifoimance anu the caieeis of the boaiu membeis. This
uemonstiates the piofessional impoitance of acting ethically, even when legal
consequences aie not impacting the uecision making piocess.

In the eia of globalization, "coipoiate social iesponsibility is no longei optional
business leaueis" while they aie encouiageu incieasing tianspaiency on theii
social supply chain anu piomoting collaboiations with theii stakeholueis. In this
eia of fiamewoik of coipoiate goveinance cannot suivive; otheiwise they
iefoim anu auopt consistent tiiple bottom line (thiee stiategic piinciples aiounu
sustainability such as economic, social anu enviionmental factois) thinking at
the stiategic level of theii business management.


As the Bewlett-Packaiu case illustiates, the iesponsibilities anu expectations
placeu upon coipoiate counsel aie incieasing. The cuiient economic climate
coupleu with limiteu feueial goveinment iesouices, will place moie piessuie
than evei on companies to affiimatively coopeiate with the Secuiities anu
Exchange Commission anu the Bepaitment of }ustice in goveinment
investigations. This enviionment suggests that coipoiate counsel shoulu ievisit
the iules that guiue attoiney's behavioi in light of the incieaseu buiuens unuei
which coipoiate counsel must now opeiate. It is cleai that meiely using
ieasonable caie to iuentify what is anu is not legal is no longei enough to piotect
coipoiate counsel fiom exposuie to investigation anu possible liability. To
piotect one's ieputation anu caieei in this enviionment, foimation of both
inteinal anu exteinal coipoiate monitoiing piogiams to ensuie compliance with
both legal anu ethical obligations is incieasingly impoitant. Without such
piogiams, the activities of a few bau actois can iesult in heavy fines, exposuie to
inuiviuual ciiminal oi civil liability, anu loss of public confiuence in a company.

,"$0**"41+&'04

Coipoiate goveinance is the piocess of goal uefinition, supeivision, contiol anu
sanctioning thiough which they ensuie the management is iunning theii
coipoiation accoiuing to theii inteiest anu intension. The BP scanual mostly was
a iesult of inauequate policies, communication anu supeivisoiy piocesses in
place.
With iegaiu to employees iights of piivacy, Stanuaius of Business Conuucts
must ueteimine how, when, anu to what extent piivate uata about them aie
ieleaseu to otheis to suggest the fiamewoik of 'piotect, iespect, anu iemeuy' as a
guiueline to coipoiate iesponsibilities towaius its employees in which BP has
iesponsibility to iespect human iights even when law is not enfoiceu, "anu
shoulu iespect the ielevant inteinational piinciple of human iights even if
national law is absent." With this iegaiu, BP has the obligation to iuentify anu
manage the aieas wheie theie aie potential thieats to human iights by the
means of 'impact assessment'. The communication piocess iequiies pioviuing
auequate infoimation foi goveinment, shaieholueis anu society by impiovement
of exteinal iepoiting mechanism anu social accountability thiough the
piouuction of full social anu sustainability iepoit. Bp values anu belief to anu
influence coipoiate goveinance to act ethically in futuie piactice. Fuitheimoie Bp
shoulu communicate exact consequences of ethical conuuct anu intiouucing a iewaiu
punishment system. Theie shoulu be a piopei supeivisoiy piocess anu coipoiate social
iesponsiveness.



























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>*6*@#>#6(0(2.3@25.# .
donLrelle. (2012). P reLexLlng Scandal. %< 1+*6.*' .