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THE POLITICAL ECONOMY OF REGIONAL
Introduction
In the last Century, the world has experienced a sudden rise of regional blocs that seeks to pursue common welfare for the member states. This phenomenon was primarily pursued to promote security especially in the post-world war II era, however, the concept of states integration developed to include the social economic interests of the member states(affordable papers review). Trading blocs arose as a form of integration to promote free movement of goods, services and labour across countries. In the East African region, the East Africa Community (EAC) is an intergovernmental organization that seeks regional integration based of the geographical conveniences of the member states. The East African Community (EAC) member’s states are the Republics of Kenya, Uganda, the United Republic of Tanzania, Republic of Rwanda and Republic of Burundi. The Community has its headquarters in Arusha town in Tanzania.
The Treaty o Establish of the East African Community was signed on 30 and started operations in July 2000 after the ratification process by the founding states of Kenya, Uganda and Tanzania. The Republic of Rwanda and the Republic of Burundi joined the EAC on 18 June 2007 when they signed the treaty. The EAC vision is to establish a prosperous, competitive, secure, stable and politically united East Africa as a base to expand the economic, Political, cultural and Social integration of the citizens.
Burundi Crisis
According to the World Bank 2015 Poverty and Equity Data, Burundi is one of the world’s poorest countries. It is landlocked with limited natural resources. The economy is agricultural dependent. The Burundi people includes the majority Hutu population (estimated at 85%) and minority Tutsi (14%) and Twa (1%) ethnic groups(instant essay typer)
The vision of setting up a secure and stable region has been undermined by the political instability in Burundi. For the last 2 years Burundi has undergone a political social and human rights crisis that have affected the EAC region. The genesis of this crisis was the decision by the current Burundi President Pierre Nkurunziza, to express interest in a third term presidency. According to the country’s opposition, this decision undermined the 2000 Agreement signed in Arusha to end the prolonged Burundi’s civil war. The Arusha agreement had provided a maximum of two presidential terms, on the other hand, the president argued that he was directly elected to assume office in 010 and therefore exempted from the presidential terms capping made by the Arusha agreement. The country’s constitution provides that a president “is elected by universal direct suffrage for a mandate of five years renewable one term”
EAC Security policy
The East African Community has an established protocol on peace and security that has been adopted by all the member states. The protocol acts as the guiding policy framework in promoting matters stability in the region. It also stipulates the extents and the roles of the member states in resolving conflicts in the region and how the community relates to the UN, the African Union and other regional bodies in promoting political stability.
Article 8 of the protocol, on peace support operations provides that The Partner States shall formulate a joint mechanism for the operationalization of peace support operations within the context of the Charter of the United Nations, the Constitutive Act of the African Union and the Treaty. The Partner States shall conduct peace support operations within the Community under a conflict prevention, management and resolution framework. Article 4 of the peace and security protocol focuses on Conflict Prevention, Management and Resolution, it provides that The Partner States develop an East African Community conflict prevention, management and resolution mechanism and they shall manage and seek to resolve any dispute or conflict within and between two or more Partner States or with foreign countries by peaceful means. The Community may, in consultation with the United Nations Security Council and the Peace and Security Council of the African Union, offer to mediate in disputes or conflicts within and between two or more Partner States or with foreign countries.
It is on the basis of the provisions of Article 4 and 8 that the EAC has sought to implement its policy in Burundi. This has been through appointing a mediator, former Tanzanian president Benjamin Mkapa to lead the mediation talks between the government and the opposition. The community has also selected a team from all the member states to assess the security situation in Burundi and report to theinter-minesterial secretariat in Arusha(essay typeer). EAC has had supplementary budget allocations to the intra Burundi peace talk’s process to reduce the dialogue funding from EU and China which might compromise the peace process due to real and perceived interests of the funding agencies on the outcome of the negotiations.
Factors that affect implementation of the EAC Security Policy in Burundi
Structural factors
The EAC enjoys the geographical conveniences across the member states; however, these conveniences are more within certain countries due to the control and ease of trade routes. Burundi being a landlocked country has been caught up in the existing structural differences emanating from various economic regimes and geographical locations. Since 2013, As EAC grew there were separations among two blocs. The perception that Tanzania was frustrating the integration efforts led to Kenya, Uganda, and Rwanda initiating several projects among themselves in efforts to hasten the integration efforts. In this political milieu, Burundi was torn between the two blocs but eventually joined Tanzania and openly condemned the isolationist approach that had been adopted by Kenya Uganda and Rwanda. This was understandable since Burundi relies on the port of Dar es Salaam for export and import markets. This portrayed the Burundi question as more inclined to Tanzania since the country had failed to fully adopt the integration strategies across all the member states.
Role of the Political Elites and Agencies
The November 2015 elections in Tanzania saw the rise of president Magufuli who was willing to pursue a more open integration oriented approach towards the EAC states to the West, the past strained relationship between Tanzania and Rwanda on the mechanisms of dealing with the rebel group Democratic Forces for the Liberation of Rwanda (FDLR). The presence of Democratic Forces for the Liberation of Rwanda (FDLR) in Burundi worsened the situation since Rwanda feared that the coalition between Tanzania and Burundi may have a soft spot for the rebel groups that seeks o destabilize Rwanda. The existence of these suspicions made Rwanda a key player resolving the crisis and interested party in the outcomes. This undermined the legitimacy of the EAC as the chief mediator in the Burundi Crisis.
The National Council for the Defence of Democracy and Forces for the Defence of Democracy (Conseil National pour la Défense de la Démocratie et Forces de Défense de la Démocratie) CNDD-FDD top brass and it’s youth militant goup-Imbonerakure had antagonised many counties in the EAC, managing the crisis did no enjoy the urgency and commitment as envisaged in the peace and security strategy which had been adopted as a result of a participatory process.(easy typer)
Formal and Informal institutions
The EAC Summit of Heads of State is the highest decision making organ in the community. This summit determines the major political and security positions that EAC takes. However, the summit has not acquired sufficient experience to handle internal crisis among its member states. Although this can be partially attributed to the doctrine of non-interference which is the universal approach in regard to sovereignty, the EAC member states did not have a tested and proved clear cut approach to internal crisis. EAC had been conspicuously absent in resolving the 2007 post- election violence in Kenya. The organization only made an initial effort of sending Tanzanian president Jakaya Kikwete to mediate the process. Similarly, the 2010/2011 post-election crisis in Burundi was solved by the African Union AU.
At the start of the crisis, the EAC had not taken a clear position on the contentious issue regarding the Arusha agreement. The organization adopted a heads on the sand approach by pursuing the principles of promoting peace and stability in the region. This fence-sitting soared any trust the opposition and the government would have had on EAC ability to resolve the crisis. If the EAC fully owned up the provisions of the Burundi Constitution and the accords in the Arusha agreement, the organization would by extension be expected to appeal to the president to drop his plans for a third term. Tanzania’s president, the then president of the EAC expressed this position but the member states did not join him in taking up this stand. There were contradictions to the extent of embassies based in Bujumbura making statements that were contrary to the positions in their mother countries. This confusion undermined the EAC effort in enforcing the security policy that Burundi was a signatory to.
The EAC secretariat did not act on the early warning signs to the Burundi crisis as envisaged in the peace and security protocol. After the president declared that he would be vying for the third term, EAC did not start early crisis resolution mechanisms; they waited until there were demonstrations in Bujumbura. This escalated fast with the excessive force used by the security forces in combating the demonstrators. The role of The National Council for the Defence of Democracy and Forces for the Defence of Democracy (Conseil National pour la Défense de la Démocratie ET Forces de Défense de la Démocratie) CNDD-FDD top brass and its youth militant goup-Imbonerakure escalated the crisis to a connotation between opposition led demonstrators youth militia, party loyalties and the country’s security forces.
Global issues in the Burundian Crisis
The EAC as a player in the regional integration process had the first prerogative in conflict resolution. This is a global principal to avoid duplication and conflict among resolution actors. The AU pan African body had lad the efforts in signing the Arusha peace agreement whose provisions were the subject of contest in the Arusha crisis. Further this, the AU had been involved in the 2010/2011 post-election crisis in Burundi, in light of this; the AU was better placed to resolve the crisis due to its past involvement. The EAC taking of the lead role in crisis negotiations appeared like a board room effort emanating from the peace and security protocol rather than a resolution mechanism that is recognizing the historical and political context of the crisis. The Arusha accord had been signed long before Burundi joined the EAC and thus EAC’s legitimacy as an authority on the provisions of the agreement has remained questionable.
The AU had announced targeted sanctions on Burundi due to claims of human rights violations, the European Union EU instituted travel restrictions and assets freeze to politicians belonging to the CNDD-FDD . The fact that EAC is a regional bloc in the AU with friendly trade and strategic cooperation with the EU put the organization in an odd position in its claim of neutrality in resolving the Burundi crisis.
The Hague based International Criminal court ICC, had expressed concerns on the human rights abuses in Burundi. As a signatory o the Rome Statute, Burundi was to cooperate with ICC in case they sent their investigators to the country. However, this was against a backdrop of regional hostility towards the court championed by Kenya and Uganda. EAC did not enjoy the deterrent aspects that ICC would have had in promoting peace.
In April 2015, Nkurunziza’s candidacy was granted and citizen’s protests erupted in Bujumbura the country’s Capital city. There were clashes between the protesters and the government security forces. In May 2015, there was an unsuccessful coup attempt to oust Nkurunziza; in July 2015 the opposition boycotted the planned elections giving president Nkurunziza an n easy sail. The legitimacy of his presidency was however challenged by the opposition. This has fuelled the cycle of violence in Burundi; there has been politically instigated assassinations nod human crisis as refugees trooped to the neighbouring East African countries.
President Nkurunziza efforts to present Burundi as a stable country were mean to invalidate the case for EAC involvement. This insincerity from the government made the international donors to impose sanctions and suspend donor funding to the Burundian government thus worsening the security and humanitarian crisis. The UN approved a police mission to Burundi and the EAC had to continually restructure its approach to the crisis to accommodate the new developments from the international players
Conclusion
The EAC inability to implement its security policy in Burundi affects it’s standing as a regional bloc that can avert crisis without external assistance. This jeopardises the provisions of the EAC treaty and other policies adopted to promote regional integration. The Challenge of a Rwanda that is accused of being an interested party in the crisis, a Kenya that is more focused on the domestic threats from terrorism, a Uganda with a regime whose standing on matters presidential terms may not attract respect will continue undermining the implementation efforts. It’s only Tanzania that is willing to dedicate all in pursuing stability in Burundi owing to I’s strategic point as the main port of entry and exit for Burundian imports and exports.
References
Burundian Dialogue (2016)the Arusha session sets the direction, but everything remains to be done (Dialogue burundais : la session d’Arusha fixe le cap, mais tout reste à faire), RFI, 25 June 2016, www.arib.info/index.php?option=com_content&task=view&id=14971&Itemid=1.
Statement by the Joint International Facilitation Team (JIFT) on Burundi. 26 June 2015.
Burundi: An Ambitionless Summit (Burundi: un sommet sans ambition), LeMonde, 7 July 2015, www.arib.info/index.php?option=com_content&task=view&id=12413&Itemid=1.
Press release, EALC concerned about Burundi. East African Legislative Assembly, Arusha, Tanzania, 21 January 2016.
Report of the Secretary-General on the United Nations Office in Burundi, January 19, 2015, U.N. doc. S/2015/36
U.N. Office for the Coordination of Humanitarian Affairs (UNOCHA), “Flash Update 1—Elections crisis in Burundi and Regional Impacts,” April 27, 2015
Congestive Cardiac Failure
Case Study: Congestive Cardiac Failure
1. Outline the causes, incidence and risk factors of the identified disease and how it can impact on the patient and family
Congestive cardiac failure may be caused by heart valve diseases. These diseases prevent the heart valves from functioning normally making blood to leak back into the lungs (Pinkerman et al., 2013). Blood and fluids collect in the lungs and the heart is forced to work harder than normal. This can be studied at accounting homework help. Hypertension is another cause of congestive cardiac failure because it increases the workload of the heart over time (McMurray, 2010)). In addition, coronary artery disease that results from deposition of fatty materials in the artery lumen can cause congestive cardiac failure. These fatty materials cause narrowing of the blood vessels, making it difficult for the heart to pump blood effectively (McDonagh et al., 2012). Another cause of congestive heart failure is heart attack that damages the heart muscles thereby leading to inactivity. Inflammation or any infection to the heart muscles, a condition known as cardiomyopathy, also causes congestive cardiac failure (Cohn et al., 2012). Some individuals might develop congestive cardiac failure due to congenital heart malfunctions.(cause and effect essay topics)
In the United States of America alone, more than four million people are currently living with congestive cardiac failure, with approximately 600,000 new cases yearly. About 2 million new cases are reported every year worldwide. The incidence is approaching 100 per 10,000 populations among persons older than sixty-five years of age (Stewart et al., 2009). Ideally, this condition affects people of all age groups, from children to adolescents, to adults and to the elderly. Approximately 1.5 million persons with congestive cardiac failure are below 60 years of age. According to McMurray (2010), congestive cardiac failure is present in 3 % of persons aged between 40 and 59. These percentages are lower than those found among populations that are over 60 years of age (Paterson, Meara and Beanlands, 2011)). For instance, nearly 5 % of people aged between 60 and 69 are currently living with congestive cardiac failure in developed countries alone. The incidence of congestive cardiac failure is equally frequent in men and women, and African-Americas are 2 times more likely to develop heart failure than Caucasians (McDonagh et al., 2012).
Old age is one of the risk factors of congestive cardiac failure. During old age, about 65 years and above, the heart becomes a little weaker than normal (Lam et al., 2011). The blood muscles are unable to pump blood with the normal pressure and the blood vessels get narrower. This can also lead to blood leaking back into the lungs thereby causing congestive cardiac failure (Reddy, Bahl and Talwar, 2010). Other risk factors include; diabetes, thyroid diseases that cause thyroid hormones imbalance; cocaine use; cancer treatment using chemotherapy and other radiative strategies; alcohol abuse; and HIV/AIDS (Cohn et al., 2012). Congestive cardiac failure causes pain and stress to the patient. Demand supply curve. Family members may also have to spend a lot of money in their attempt to look for treatment (Nasif and Alahmad, 2009).
2. List five (5) common signs and symptoms of the identified disease; for each provide a link to the underlying pathophysiology
Congestive cardiac failure results from changes in diastolic and systolic functions of the left ventricle of the heart. The pathophysiology involves the heart’s inability to handle normal blood volume or to tolerate a sudden expansion in blood volume. It manifests in various ways including ineffective airway clearance, poor exercise tolerance, hyperthermia, acute pain and fatigue (Albert, 2010). Comprehensive analysis is as shown in the table below;
Table: Underlying Pathophysiology of Congestive Cardiac Failure
Signs and symptoms
Pathophysiology
References
Ineffective airway clearance
The mucous membranes of all air passages in the body continuously produce mucus (Albert, 2010). Any inflammation of these membranes, results in overproduction of mucus which collects in the tracheobronchial tree (Nasif and Alahmad, 2009). Congestive cardiac failure causes inflammation of the upper respiratory tract. These secretions block the airways making it difficult for the affected person to breathe easily (Albert, 2010). Cough reflex is stimulated to remove the excess mucus secretions. A person therefore presents with abnormal breathing patterns and frequent coughs (Reddy, Bahl and Talwar, 2010).
(Albert, 2010)
(Nasif and Alahmad, 2009)
(Reddy, Bahl and Talwar, 2010).
Poor exercise tolerance
Congestive heart failure prevents the heart from pumping the correct amount of blood required to meet all of the body’s needs (Reddy, Bahl and Talwar, 2010). The little amount of blood available is diverted to major organs like the heart and lungs at the expense of upper and lower limbs (Nasif and Alahmad, 2009). Patients of congestive cardiac failure therefore feel weak in the arms and legs, and cannot perform ordinary activities such as climbing up the stairs, walking, running and lifting even light weight materials (Reddy, Bahl and Talwar, 2010).
(Nasif and Alahmad, 2009)
(Reddy, Bahl and Talwar, 2010).
Hyperthermia
Presence of excessive mucus in the upper respiratory tract due to congestive cardiac failure condition triggers the activity of leukocytes (Pinkerman et al., 2013). Pryogen from leukocytes activates the hypothalamus which ultimately increases vasoconstriction of the skin vessels (Nasif and Alahmad, 2009). The skin temperature of patients rises due to peripheral vasodilatation (Pinkerman et al., 2013).
(Nasif and Alahmad, 2009)
(Pinkerman et al., 2013)
Acute Pain
In congestive cardiac failure associated with coronary artery disease, blood flow to the patient’s heart is always hindered (Pinkerman et al., 2013). The remaining blood flow is normally inadequate to meet the oxygen demands of the heart leading to myocardial infarction (Albert, 2010). This stimulates the neural pain receptors and the patient feels pain as the heart tries to pump blood (Reddy, Bahl and Talwar, 2010).
(Albert, 2010)
(Reddy, Bahl and Talwar, 2010).
(Pinkerman et al., 2013)
Fatigue
Congestive cardiac failure is characterized by inadequate cardiac output which leads to hypoxic tissue and slowed removal of metabolic waste products (Nasif and Alahmad, 2009). The patient therefore tires more easily than a normal person (Albert, 2010).
(Albert, 2010)
(Nasif and Alahmad, 2009)
3. Identify and explain, in order of priority the nursing care strategies you, as the registered nurse, should use within the first 24 hours post admission for this patient.
The nursing care strategies that are appropriate for this patient within the first 24 hours of admission include assessment for abnormal heart and lung sounds. This is the first strategy because it allows for detection of left-sided heart failure due to blood volume excess (Reddy, Bahl and Talwar, 2010). Secondly, the blood pressure and pulse of the patient would be monitored. Patients with severe congestive cardiac failure may at times become hypertensive due to the excess blood in the lungs and the initiation of rennin-angiotensin mechanism (Pinkerman et al., 2013). Thirdly, assessment of the patient’s level of consciousness and mental status would help. Accumulation of waste products in the blood stream due to ineffective heart function impairs oxygen transport and intake by brain tissues, which may cause confusion and unconsciousness (Oudejans et al., 2011). The fourth strategy involves assessment of the patient’s body temperature and peripheral pulses. Decreased flow of blood to tissues due to ineffective pumping may lead to decreased temperature of the arms and legs, and diminished pulses that are not easy to palpate (Pinkerman et al., 2013). This should be followed by auscultation of breath sounds for the presence of crackles. Auscultation of crackles helps in testing for the presence of fluids within the alveolar septum (Nasif and Alahmad, 2009). Fluids occur in the alveolar septum when increased pulmonary capillary hydrostatic pressure exceeds the oncotic pressure.
Before further assessments are carried out, it is important that the laboratory results of all the diagnostic tests are monitored. This sixth step helps in obtaining clues to the status of the disease before any treatment method can be initiated (Oudejans et al., 2011). The seventh strategy involves monitoring of oxygen saturation in order to find out the heart’s ability to supply oxygenated blood to the distal tissues. The patient’s symptoms observed in this step will direct the nurse on how he or she should give oxygen to the patient. Giving oxygen forms the eighth strategy and it makes more oxygen available for exchange of gases in the lungs, thereby helping to prevent hypoxia and to promote physical activity tolerance (Kelder et al., 2011). The next step involves administration of cardiac glycoside agents based on the laboratory results for signs of left sided failure (Tops, Schalij and Bax, 2013). Normally, digitalis has a positive isotropic effect on the heart muscles (myocardium) that strengthens contractility, thus improving cardiac output (Stewart et al., 2009). The patient should then be encouraged with periods of rest in order to reduce cardiac work load and to minimize myocardial oxygen consumption. Assisting the patient to assume a high Fowler’s position is the eleventh step that helps in allowing better chest expansion for improvement of pulmonary capacity (McMurray, 2010). The nurse needs to teach the patient about the pathophysiology of congestive cardiac failure for improved management and compliance. Next, the patient must be repositioned every two hours to prevent development of sores. Finally, the patient’s body must be allowed to relax and this is enhanced by instructing him or her to get adequate sleep and bed rest (Lam et al., 2011).
References
Albert, N. (2010). Signs and Symptoms of Heart Failure: Are You Asking the Right Questions. American Journal of Critical Care, 19(5): 443-451. Retrieved, March 19 2014, from http://www.aacn.org/WD/CETests/Media/A101905.pdf
Cohn, N., Pfeffer, A., Rouleau, J., Sharpe, N., Swedberg, K., Straub, M., Wiltse, C. & Wright, J. (2012). Adverse Mortality Effect on Central Sympathetic Inhibition with Sustained-release Moxonidine in Patients with Heart Failure. European Journal of Heart Failure, 5(6): 659-667.
Kelder, C., Cramer, J., Wijngaarden, J., Tooren, R., Mosterd, A., Moons, G., Lammers, W., Cowie, R., Grobbee, E. & Hoes, W. (2011). The Diagnostic Value of Physical Examination and Additional Testing in Primary Care Patients with Suspected Heart Failure. Circulation, 124: 2865-2873.
Lam, S., Donal, E., Kraigher-Kreiner, E. & Vasan, S. (2011). Epidemiology and Clinical Course of Heart Failure with Preserved Ejection Fraction. European Journal of Heart Failure, 13:18.
McDonagh, A., Blue, L. Clark, L., Dahistrom, U., Lainscak, M., McDonald, K., Ryder, M., Stromberg, A. & Jaarsma, T. (2012). European Society of Cardiology Heart Failure Association Standards for Delivering Heart Failure Care. European Journal of Heart Failure, 1(3): 235-241.
McMurray, J. (2010). Clinical Practice: Systolic Heart Failure. National England Journal of Medicine, 362: 228-238.
Nasif, M. & Alahmad, A. (2009). Congestive Heart Failure and Public Health. Retrieved, March 17 2014, from http://cwru.edu/med/epidbio/mphp439/CongHeartFail.pdf
Oudejans, I., Mosterd, A., Bloemen, A., Valk, J., Velzen, E., Wielders, P., Zuithoff, P., Rutten, H. & Hoes, W. (2011). Clinical Evaluation of Geriatric Outpatients with Suspected Heart Failure: Value of Symptoms, Signs and Additional Tests. European Journal of Heart Failure, 13: 518-527.
Paterson, I., O’Meara, E & Beanlands, S. (2011). Recent Advances in Cardiac Imaging for Patients with Heart Failure. Current Opinions on Cardiology, 26: 132-143.
Pinkerman, C., Sander, P., Breeding, E., Brink, D., Curtis, R., Hayes, R., Ojha, A., Pandita, D., Raikar, S., Setterlund, L., Sule, O. & Turner, A. (2013). Health Care Guideline: Heart Failure in Adults. Institute for Clinical Systems Improvement. Retrieved, March 19 2014, from https://www.icsi.org/_asset/50qb52/HeartFailure.pdf
Reddy, S., Bahl, A. & Talwar, K. (2010). Congestive Heart Failure in Indians: How do we Improve Diagnosis and Management? Indian Journal of Medical Research, 132: 549-560. Retrieved, March 17 2014, from http://icmr.nic.in/ijmr/2010/november/1112.pdf
Challenges in the Global Business Environment
Introduction
Many companies today strive to expand their businesses and enter the global market. Survival in such global business environments are however not very easy, because organizations experience a lot of challenges, some of which are unbearable (Mujtaba, 2010). These challenges are believed to originate from unethical business practices, failure to embrace technology advancements, and stiff competition among businesses(cheap dissertation writing service). This paper discusses Chevron’s code of ethical conducts and three key issues in the code that are critical for its success. In addition, it benchmarks these issues with the code of ethical conduct of ConocoPhillips and Statoil Companies. The paper also addresses how Chevron Corporation embraces technological advancements, and how it manages its environmental issues. Also outlined are Chevron’s efforts to promote global corporate citizenship, as well as how these efforts have contributed significantly to the Company’s sustainable development goals.
About Chevron Corporation
Chevron Corporation is an energy company with its headquarters in California. It is one of the leading energy companies in the world, and this is attributed to its employees who are committed in achieving the best results for the realization of the Company’s objectives. In addition, Chevron takes advantage of every available business opportunities in the global market, as it applies innovative technologies to enhance quality. Its main activities include production and transportation of crude oil and natural gas, refining, marketing and distribution of transportation fuels and lubricants, manufacturing and selling of petrochemical products, generation of power and production of geothermal energy, provision of renewable energy and energy efficiency solutions, and development of the energy resources of the future (Kabir, Khan and Nahid, 2012). Chevron Corporation has approximately 62, 000 employees worldwide with more than 3,500 service station employees across six continents. The Company has invested in eleven power-generating facilities in Asia and the United States. Organizational structure consists of Board of Directors, Corporate Officers and the workers (Chevron Corporation, 2012).
Three Key Issues Critical for Chevron’s Success
The Company has its own code of business ethics that explains its policies on how it should effectively conduct its business around the world. All the Board of Directors, Corporate Officers and workers must acquire full understanding of this Code and abide by the stated principles in order for Chevron to overcome challenges in the global business environment. Three key issues in the Code that are critical for Chevron’s success in the global environment include; its strict policy against conflict of interest, its compliance with Local and International Trade Laws, and its involvement in government and political affairs (Chevron Corporation, 2012). Avoidance of conflict of interest helps Chevron Corporation to prevent its directors, officers and employees from engaging in insider trading. In addition, they are prevented from receiving or accepting gifts, favors, fees or other advantages from companies or people doing business with Chevron. In this manner, the Company is able to guard against purchase and sale of its securities or material non-public information to other companies, as well as to maintain professional integrity among workers.
Chevron’s compliance with Local and International Trade Laws enables it to respect and conform to each country’s business practices and customs. This policy prohibits against bribery of any government officials with the aim of receiving business advantage. Additionally, it helps Chevron to abide by the licensing requirements of other trading countries, and to understand all the Anti-Boycott Laws (Kabir, Khan and Nahid, 2012). The third issue concerning involvement in government and political affairs allows the company to employ effective lobbying strategies, and to make political contributions where necessary. These three key issues remain critical for Chevron’s success because they are all aimed at realization of business objectives as well as maintaining positive business relationship with other countries in the global market. The significance of these three key issues in achieving success in international trade explains why they are applied by ConocoPhillips and Statoil Companies that also operate in the energy industry (Chevron Corporation, 2012).
Benchmarking
ConocoPhillips is the fifth largest energy company in the United States with its headquarters located in Texas. It produces, transports and markets natural gas liquids, crude oil, bitumen, natural gas and liquefied natural gas on a worldwide basis. The company conducts its operations in more than thirty countries across Europe, North America, Australia and Asia. Like Chevron, ConocoPhillips is able to overcome the challenges in the global business environment through observance of policies stated in its ethical code of business conduct (ConocoPhillips Code of Business Ethics and Conduct). ConocoPhillips’ employees demonstrate total commitment to the Company and its shareholders by avoiding conflict of interest. All those employees dealing with competitors, suppliers or customers of ConocoPhillips must act in the best interest of the Company. Cheap college essays. This is in line with the requirements of Chevron’s ethical code of business conduct. Like Chevron, ConocoPhillips embraces commitment to global market place by ensuring that all its managers and employees observe the international trade laws and regulations, and not to engage in corrupt activities. This helps in maintaining a positive relationship with the trading countries for international business success. ConocoPhillips also works best in the global market by encouraging participation in political activities just like Chevron. The company frequently gives its opinions on local and national issues, especially those affecting its business operations (ConocoPhillips Code of Business Ethics and Conduct).
Statoil Company is also engages in exploration and production of oil and gas products, with its headquarters in Norway. It conducts its business operations across 41 countries within and outside the United States of America. The Company has approximately 24, 000 employees worldwide, who work towards goal achievement. Statoil Company and all its employees believe that they can achieve competitive returns for their shareholders through a performance-based work culture and total compliance to an ethical code of conduct that promotes personal integrity (Statoil Ethics Code of Conduct: Version 5). Like Chevron and ConocoPhillips, Statoil works under the compliance of the code of business practice that prevents managers and employees from engaging in corrupt deals. Any employee found to go against the local and international trade laws or engage in bribery or any trading influence is liable for job termination on a legal action.
The Company also participates in political activities that are either directly or indirectly linked with its operations in the international market. It does this by participating in public debates only if it is in the Company’s interest. Statoil, like Chevron and ConocoPhillips, works under the policy that guards against conflict of interest. Employees must not give organizations, companies, or individuals improper advantages, but act impartially in all business dealings concerning the company (Statoil Ethics Code of Conduct: Version 5). These three issues cannot be avoided by any company that wishes to succeed in the global business environment. For this reason, both ConocoPhillips and Statoil Companies cannot fail to include them in their codes of business conducts. Consequently, only similarities in practice between these two companies and Chevron can be highlighted, but not any differences as far as the three key issues are concerned.
Significance of the Three Critical Issues to ConocoPhillips and Statoil
ConocoPhillips and Statoil Companies can greatly achieve success in the global business environment if they comply with the policy against conflict of interest, comply with Local and International Trade Laws, and participate in government and political affairs. Two potential positive outcomes for ConocoPhillips include; objective realization, and business expansion to other countries (ConocoPhillips Code of Business Ethics and Conduct). Employees are known to be one of the most important assets of every business organization. If they are made to work by the interests of the Company, they will feel part of ConocoPhillips and they will do everything possible to meet the set goals. Again, if ConocoPhillips adheres strictly to the international laws, it will find an opportunity of opening its branches in other continents, especially in Africa (ConocoPhillips Code of Business Ethics and Conduct). However, failure to observe the local and international trade laws might lead to closure of branches across the world. ConocoPhillips might also fail to realize its business objectives, by losing employees, if the policy of conflict of interest is not addresses.
Two potential positive outcomes for Statoil include; attraction of more customers from other countries across the world, and obtaining government support on trade issues. When the company and its employees work under a common interest, it will be able to formulate strategies that can enable it attract as many customers as possible (Statoil Ethics Code of Conduct: Version 5). Statoil will indeed achieve this if it observes the policy of conflict of interest. Its participation in political activities will also promote strong relationship with the government, hence extension of business support. Failure to address these issues will however prevent Statoil from attracting new customers and to lose the already existing ones. In addition, the government might enact laws that might stop the Company’s operations if it fails to participate in political activities (Statoil Ethics Code of Conduct: Version 5).
Keeping the code of ethical conduct relevant over the coming years
The process of preparing the code of business conduct is not that simple. Chevron Corporation must therefore ensure that its code of conduct remains relevant through years of changing economic, political, social, cultural, and technological forces on business and society. The company can achieve this by using two main techniques namely; formulation of the codes based on both short and long term business objectives; making each code of conduct flexible in such a way that, appropriate changes can be made to it when necessary (Kabir, Khan and Nahid, 2012).
Environmental Issues Management and Technological Advancements
Chevron Corporation is aware that its relationship with competitors and suppliers is very crucial for its business success in the global business environment. The competitors and suppliers therefore act as the company’s environmental factors affecting its operations (Chevron Corporation, 2012). Compliance with the anti-trust laws and observance of competition laws are the two methods that Chevron currently adopts to manage its environmental issues. As the company makes agreements with competitors in the market, it is always careful not to sign contracts that might restrain trade (Kabir, Khan and Nahid, 2012). Again, Chevron only makes business agreements that cannot restrain trade with its suppliers. Competition in the market normally arises from companies producing similar products. These two methods are highly effective because they help Chevron employees to take caution before they can exchange any information with their competitors and suppliers. A company that applies the use of technology in its operations normally realizes competitive advantage. Chevron Corporation improves business offerings by ensuring high quality through technological advancements. Two approaches that the company has taken to embrace technological advancements include usage of computer systems for record storage, and conducting both local and international business communications through emails and the internet. These help in ensuring faster delivery of information concerning available products and any other issues about the Company, thereby improving business offering (Chevron Corporation, 2012).
Potential Technological Challenges and how they Can be Minimized
With these technological advancements, Chevron can however face technological challenges (Chevron Corporation, 2012). For instance, there might be lack of privacy of information stored on the company’s computer, especially those that should not be made public. This challenge can be minimized by using access codes that must be kept in secure places and not shared with others. In addition, all the company’s records might be lost in case of accidental system crash. Chevron Corporation can eliminate this challenge by using other sources like compact discs to store company’s records. The third technological challenge is that, some employees might not have technological competence and they might not adapt quickly to any technological changes. By conducting frequent technical trainings, the Company can effectively help its employees to acquire the necessary technical skills (Kabir, Khan and Nahid, 2012).
Chevron’s Lobbying Strategy
Chevron’s success is also attributed to the nature of influence it has had on the national and local government, to make decisions in its favor. The lobbying strategy used by Chevron Corporation is direct communication with public officials (Kabir, Khan and Nahid, 2012). Chevron has used this strategy to provide information to appointed officials as it explains its needs and business gaps. The lobbying process used by Chevron is very appropriate for the Corporation because it is one big energy company that has its branches across the six continents. In order for all these governments to gain proper understanding of the company and its business needs, Chevron’s officials must provide comprehensive explanations to these governments through direct communication (Chevron Corporation, 2012).
Chevron’s Global Corporate Citizenship Efforts
Businesses, especially those operating in the global market must always strive to be socially responsible for meeting all the ethical, economic and legal responsibilities placed on them by the shareholders (Mujtaba, 2010). Chevron Corporation uses two main global corporate citizenship efforts to ensure that its objectives are met in the global business environment (Chevron Corporation, 2012). The Corporation uses its internal audit services to analyze business priorities and to know what to provide for the society to encourage future developments. In addition, it focuses on business innovations that expand opportunities to marginalized members of the society including those markets that are underserved (Kabir, Khan and Nahid, 2012). These two efforts are effective in accomplishing the company’s goals because they help Chevron to maintain its old customers, attract new buyers, and make profits. Through continued innovation and profit making, Chevron is able to realize competitive advantage in the global market against its close competitors, Occidental Petroleum and Hess Corporation.
Conclusion
Organizations that do well in the global business environment strictly adhere to the requirements of their ethics codes of business conducts. In addition, they effectively embrace technological advancements, and have properly laid down strategies that they use to manage their competitors. Chevron Corporation has succeeded in the international market because follows its code of ethical conduct to the latter. The three key issues in the conduct that are critical for success include its strict policy against conflict of interest, its compliance with Local and International Trade Laws, and its involvement in government and political affairs. Like Chevron, ConocoPhillips and Statoil Companies address these three key issues in their codes of ethical conduct. Chevron Corporation also embraces technological advancements, as it puts in much effort to manage its competitors. The company’s current sustainable development goals are greatly attributed to its global corporate citizenship efforts.
References
Chevron Corporation. (2012). Chevron Business Conduct and Ethics Code. United States of America: California.
ConocoPhillips Code of Business Ethics and Conduct. Retrieved 14th March 2014, from https://secure.ethicspoint.com/domain/media/en/gui/26697/code.pdf
Kabir, S., Khan, N. & Nahid, S. (2012). State of Ethics and Ethical Practices in Chevron. Dhaka: Dhaka University Press.
Mujtaba, B. (2010). Ethical Implications of Employees Monitoring: What Leaders Should Consider. Journal of Applied Management and Entrepreneurship, 3:22.
Statoil Ethics Code of Conduct: Version 5, Retrieved 14th March 2014, from http://www.statoil.com/en/About/EthicsValues/Downloads/Ethics%20code%20of%20conduct.pdf
