Friday, November 29, 2019
Leadership Theory and Practice via an Account of BPs Gulf of Mexico Oil Spill
Moral Accountability Issues at BP Every organization is expected to be morally accountable in all its operations and activities (Caulfield, 2011; Tittle, 2000). Lack of moral accountability can lead to lawsuits and loss of consumer loyalty. Companies should be responsible in all they do.Advertising We will write a custom essay sample on Leadership Theory and Practice via an Account of BPââ¬â¢s Gulf of Mexico Oil Spill specifically for you for only $16.05 $11/page Learn More They should ensure that their activities do not cause harm to the people around or to the ecosystem. It is a legal requirement in most countries that companies should be morally accountable (Bergsteiner, 2012; Fisher, 2012). BP is a company that has been accused of accidents that occur mainly due to lack of accountability. The company deals with petroleum products, which are known to be very harmful to both human beings and the environment in general if not handled responsibly. Fro m the perspective of a rig operator, one of the morality issues that seem to be inherent at BP is the failure to follow the right procedures in making the rig machinery. Secondly, the maintenance of the machinery is not done in the right way. Despite the aging machinery, no one seems to care . For instance, in the year 2004 the company did not pay attention to the concerns raised by its workers regarding safety and environment. Instead, managers opted to save on maintenance costs through a practice referred to as ââ¬Å"run to failure.â⬠The aging equipment was left to continue running with little or no maintenance. This led to spills in the year 2006 of over 200000 gallons. It was the largest spill that ever happened in Alaskaââ¬â¢s North Slope.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In the year 2006, BP failed to follow the correct procedure in the manufacture of the rig machinery. Before the completion of the machine, there had to be final drawing designs that are called the ââ¬Å"as-builtâ⬠drawings. These drawings are very important since they ensure that the machinery being made is ready for use and ensures the safety of people. When Kenneth Abbott was hired as the project control leader, he advocated for the completion of ââ¬Å"as- builtâ⬠documents since they were essential for a standard machinery. The BP engineers strongly opposed this idea and supported the making of this machinery without the forms. It is understood that they did this in order to save on cost. The impact of these issues to the rig operator is that his life is left at risk since the machinery can explode any time. The people around him, as well as the ecology around the area of operation are also exposed to risk. From the perspective of a UK based retiree with a major income stream from BP shares, following shortcuts would be beneficial in that the earnings woul d increase. However, the machinery manufactured is not standard. The machinery is likely to explode at some time. Their major concern is the loss they might incur if the machinery exploded and/or the spill occurred. The default machinery would also lead to poor perception of the company by employees, both current and potential employees. The implication would be high turnover of employees who would fear for their safety. Potential employees would be reluctant to join the company. The retiree shareholders would be concerned since the productivity of the firm relies largely on the employees and their morale.Advertising We will write a custom essay sample on Leadership Theory and Practice via an Account of BPââ¬â¢s Gulf of Mexico Oil Spill specifically for you for only $16.05 $11/page Learn More Leadership issues Leadership is essential for the success of any organization (Northouse, 2010). The issues that have been affecting BP can be associated to poo r leadership of the company. There are a number of leadership issues that are notable in the company. First, the managers of BP harass or intimidate employees so that they do not report the negative things that happen within the company. The employees are concerned about their safety since the equipment is not safe to work with. However, the leaders intimidate them and the problems result in big losses through spills and explosives. Leaders avoid these problems from being reported since they do not want to spend a lot of money on repairs and maintenance costs. This indicates conflicting interests between managers and employees. While employees want the aging equipment well maintained, the managers, on the other hand, do not want to maintain it since they want to reduce costs. The other leadership issue that needs to be addressed is about promotion of managers. Promotion should be done on merit (Gill, 2010). A manager or any other employee should be promoted depending on his or her p erformance. At BP, senior managers are never held accountable for failures. They are, instead, offered promotions despite their poor performance. This is a leadership issue that is likely to affect the organization negatively in the long run. This is a policy that needs to be amended. If managers are promoted without any merit, in the future the company will be headed by managers who do not have the ability to propel it forward. These managers will cause poor performance and probably failure of the organization.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is important to note that promotion of managers without merit might demotivate employees who have the interest of the organization at heart (Winkler, 2010). Such employees will feel that they are being overlooked despite their efforts. Such employees are likely to leave the organization or their productivity is likely to go down. Leadership theories The practices of managers in BP can be changed if the organization adopts the right leadership theories. The theories or the policies that are applied in the organization today are not effective, or they have insignificant effect if any since the organization seems to be going the wrong way in terms morality issues (Meindl and Schyns, 2005). Global policies today advocate for a clean environment, but BP is not in line with the global policies as the case displays. One of the leadership theories that can be applied in BP management is the contingency theory. Under this theory, the managers of BP would have the responsibility to determi ne the leadership style to be applied in various situations. Situations are bound to change since the world is full of uncertainties. The success of an organization is dependent on a number of variables (Banner and Blasingame, 1988). One of the variables is the leadership style that should be used. For instance, the leaders of the organization ought to have applied the autocratic leadership style in the situation where the machinery had to be designed only after the ââ¬Ëas- builtââ¬â¢ documents had been completed. The leaders should have stood firm and ensure the making of the machinery does not proceed until the documents are completed. The documents ensure that the machinery is of high quality, and that it can be safe for use by anyone. The compromising behaviour of the managers could be as a result of pressure from shareholders who want costs to be reduced so that their earnings can increase. Managers should be bold and not compromise since the machinery could be risky to t he employees and to the environment. Their decision making in such a situation needs to be centralized. The other theory that should be used by the BP managers is the situational theory. This theory is not very much different from the contingency theory. Under situational theory, a leader or a manager should take the best action that can address the situation he or she is faced with. This means that the decisions the leader makes in various situations could be based on various leadership styles, depending on the situation at hand. Some situations need decentralized decision making, while others need centralized decision making (Schyns, 2006). In the former, the leader can apply the democratic leadership style, while in the later the authoritative leadership style is applicable. BP managers are faced with a number of situations that lead to accidents and losses. One of the most notable situations is the Gulf Spill, where gallons of oil spilled off. The spills were as a result of poor maintenance and poor management. BP managers need to be authoritative in such a situation, but they should have the best interest of the organization at heart. The decisions they make should be favourable to the well- being of the organization, as well as its employees and the environs. Decision making is one of the most sensitive activities in an organization (Schyns, 2006). Managers are trusted with decision making since they are knowledgeable and have experience in decision making. Decision making at BP is more sensitive since the company deals with products that could be risky to human beings, as well as the environment. The machineries used in the industry are subject to breakdown and they can cause much damage if they do not function properly. In such situations managers need to apply the best leadership styles to ensure that the machinery is corrected and functioning properly. In replacing those machines that have faced out or are becoming obsolete, democratic leadership sty le could be effective. Leaders could meet with all the stakeholders and decide on the best machine to make or buy. BP senior managers need to adopt the participative theory of leadership. This is the leadership style whereby the input of the rest of the organizational members is put into consideration. All the members of the organization are included in decision making and other activities within the organization. At BP, managers get promotion even if their performance is poor. The employees are always ignored and usually threatened if they raise concerns about their safety and environmental issues. This kills the morale of employees, and their productivity is negatively affected. Participative leadership will always motivate employees. Employees feel they are part of the organization and they report any problem before it occurs (Dion, 2012). This keeps the mangers on alert such that they take the necessary actions before the problem occurs. If participative leadership was applied i n BP by the senior managers, the Gulf Spills could not have occurred. The employees had already raised concerns about their safety and the environment, but the managers chose to ignore the employees and even intimidated them. As a result, the management could not prevent the spills since they failed to pay attention to employeesââ¬â¢ concerns. In participative leadership, employees are considered as important people who can make positive contributions in the organization (Mann, 2011). Finally, management theory of leadership could be very influential and effective at BP Company. The theory is also referred to as the transactional theory (Mann, 2011). Its focus is mainly on supervision, as well as on the groupââ¬â¢s performance. As it is displayed in the case, there is poor supervision in the activities being conducted. This is displayed in the making of rig machinery. The machinery was made without the completion of ââ¬Ëas- builtââ¬â¢ documents. Proper supervision of a p roject ensures that all the relevant and significant procedures have been followed in the manufacturing process. It ensures that quality products have been produced. Proper supervision was not conducted, thus the machine produced was of poor quality and it ended up with an explosion. Under management theories, reward systems as well as punishments are embraced. This lacks in BP Company. The managers ignore important issues that end up with serious accidents, but they always get away with it (Dion, 2012). The managers are never punished for their negligence. To make the matters worse, the managers who ruin the company are promoted contrary to expectations. This encourages them to go ahead with their dismal actions and performances. There are employees who have always raised concerns about the aging equipment and the threat it poses, yet they are always ignored. Under managerial theory, such employees could be appreciated and rewarded so that in future they would talk of a problem the y perceive in the organization. This would be effective in preventing future accidents in the organization. BP managers should adopt the above named theories since they would be very effective in salvaging the situation that is currently in the organization. List of References Banner, DK Blasingame, JW 1988 ââ¬ËTowards a developmental paradigm of leadershipââ¬â¢, Leadership Organization Development Journal, vol. 9, no. 4, pp. 7 ââ¬â 16 Bergsteiner, H 2012 Accountability theory meets accountability practice, Emerald, Bingley Caulfield, H 2011 Vital notes for nurses, John Wiley Sons, Hoboken, NJ Dion, M 2012 ââ¬ËAre ethical theories relevant for ethical leadership? Leadership Organization Development Journal, vol. 33, no. 1, pp. 4 ââ¬â 24 Fisher, K 2012 Moral accountability and international criminal law: Holding agents of atrocity accountable to the world, Routledge, London Gill, R 2010 Theory and practice of leadership, SAGE Publications Ltd, London Mann, S 2011 ââ¬ËLeadership: A very short introductionââ¬â¢, Leadership Organization Development Journal, vol. 32, no. 5, pp. 529 ââ¬â 529 Meindl, JR Schyns, B 2005 Implicit leadership theories: Essays and explorations, Information Age Publishers, Greenwich, CT Northouse, PG 2010 Leadership: Theory and practice, Sage Publications, Thousand Oaks, CA Schyns, B 2006 ââ¬ËThe role of implicit leadership theories in the performance appraisals and promotion recommendations of leadersââ¬â¢, Equal Opportunities International, vol. 25 no. 3, pp.188 ââ¬â 199 Tittle, P 2000 Ethical issues in business: Inquiries, cases, and readings, Broadview Press, Peterborough Winkler, I 2010 Contemporary leadership theories: Enhancing the understanding of the complexity, subjectivity and dynamic of leadership, Physica-Verlag, Berlin This essay on Leadership Theory and Practice via an Account of BPââ¬â¢s Gulf of Mexico Oil Spill was written and submitted by user Jaelynn W. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.
Monday, November 25, 2019
Study Case Essay
Study Case Essay Study Case Essay Son V. Kim, Study Case Anna Smith Regulation Kaplan University Prepared for Paul S. Franklin, EJP CPA August 12, 2014 This case study involves two persons: Stephen Son and Jinsoo Kim, and the subject of the case to determine if Kim, plaintiff, should be granted reimbursement of losses promised by Son. Jinsoo Kim, investor, invested $170,000 into one of the Stephen Sonââ¬â¢s corporations. However, Sonââ¬â¢s corporations did not sustain competition and failed. Later, the two accidently met at the restaurant. Feeling guilty, after consuming abundant amount of alcohol, Son promised to repay the debt. To support the words, Son gave Kim a promise written in blood. Kim accepted the document in exchange for promise not to sue Son for received damages. However, later on, then the Son sobered up, he refused to honor the promise. Kim filed a suit trying to reinforce the contract (Beatty, Samuelson, Bredeson, 2013, p. 164). To try to figure out who was right in this situation, I want to identify a law that should be used to support the argument: Common Law or UCC. To be able to make a choice, letââ¬â¢s give the laws definitions; and look at the differences between them. Uniform Commercial Code (UCC) finds application in deeds associated with commerce, and deals with transactions of personal property. It is used in sales and leases, bunking and transactions with use of negotiable instruments, bank deposits and transfers, bulk transactions, title transfers, operations with real estate (Application of the UCC p.5). Common law is adopted by most of the states, excluding Louisiana, and deals with real estate, service, insurance intangible assets and employment contracts. The laws are similar, but have differences. The differences are as followed: 1. In the Common Law, mirror effect and counter offer would be considered as a rejection of the existed offer. It does not necessarily happen in UCC. When counter offer is made it does not lead to cancellation of the contract; 2. In UCC the main focus is quantity, whereas in Common Law, the main terms are: quantity, price, performance time, nature of work and identity of offer; 3. When the Common Law does not allow revoking of the option contracts, the offers made by a firm is irrevocable if the deal is made in writing in UCC; 4. Different time frame in Statute of Limitation: it is four to six years in Common Law; and just four years in UCC (Pabhat, 2010, p.9). So, after reviewing the two laws, I would refer this case to properties of UCC. However, to tell exactly if Kim can hope for remedy of the losses, we also need to see if the consideration was made while communicating with the defendant. Consideration means that if you want to get something you have to give something back. It has to be something of value, not necessarily the same value, but valuable to the person at the moment; and an object of value requested by promisor. In this case the consideration is lawful, unless: It is illegal; It is fraudulent; It involves or implies injury of another person; It is immoral, or against public safety (CSJune89, 2009). Contract can also be voidable if on the moment of entering the contract the person was intoxicated. In this case the fact can be proven. It does not happen often that the dispute is settled in favor of intoxicated person because it is not easy to prove that on the moment of creating the contract the person was too
Thursday, November 21, 2019
Music - the ministrel show Assignment Example | Topics and Well Written Essays - 250 words
Music - the ministrel show - Assignment Example The passage relates to the topic of impact of stereotypes in the society and creates a deep message for the white Americans that discriminated the black people slave trade era. From the passage one learns that the minstrel shows and the entire music industry could be instrumental in delivering messages not deeply received through other forms. The passage raises questions about the efforts of the Americans in combating the injustices towards the black Americans. More information would be necessary to show the aftermath of the minstrel performances on the welfare of the African-Americans. ââ¬Å"Early minstrelsy was not only about race, but also class and region; it was as much anti-Southern as it was anti-black. There were also black minstrel troupes, comprised largely of African-American men (Brooker and Clayton Minstrel Show, Thomas Dilward, William Henry Lane, Callendars Minstrels, and Blackbirds) imitating poor and uneducated African-Americans from the southâ⬠(OTRCAT.com 4). This passage was chosen because it shows the diverse impacts of the minstrel shows on the society that goes beyond undermining the African cultures. The shows were mainly intended to humiliate the African Americans but in contrast it affected the entire southern society. The passage relates to the topic of development of the stereotypes due to the minstrel show and impacts to the entertainment industry as well as the society. Through the passage, one learns about the emergence of stereotypes imitating uneducated Black Americans that shows influence in the entertainment industry. It also shows some superior capabilities/ talents for of the black southerners. It raises question based on the educational status of Africans and more information would be needed on the educational developments for southerners due to the performances of the
Wednesday, November 20, 2019
How does the history of India's textile industries reflect the growth Term Paper
How does the history of India's textile industries reflect the growth and decline of colonialism - Term Paper Example This has also comprised of a significant component of trade in Portugal.1 Traditionally, the textile industry in India is the only industry that generated huge employment in the country after agriculture. Textile industry is the second largest income and employment generating sector in India. Textile industry occupies a special position in India, and accounts for over 14 percent of total production. This approximates to 30 percent total exports. The industry provides one of the basic needs in the country, hence enhance maintenance of sustainable growth and improve the quality of life. The industry holds a unique position as a self reliant industry, ranging from raw material production to delivery of finished products, accompanied by the addition of value at every stage. This paper evaluates how the textile industry in India reflects the growth and decline of colonialism.1 History of Textile Industry Indiaââ¬â¢s textile industry remains remarkable worldwide for production and suppl y of textile goods. The industry was virtually decayed during the colonial period. Nevertheless, the modern textile industry dates back at the beginning of 19th century after the establishment of the first textile mill in Calcutta in 1818. The textile industry, however, made a real beginning in 1850s in Bombay, with the first textile mill established in 1854 by the Parsi cotton merchant who engaged in internal and overseas trade afterwards. Indeed, vast majority of early mills were by handiwork merchants who engaged in the cloth trade in markets at home and in African2 markets. The cotton mill in Ahmedabad was established in 1871 and emerged as a rival centre to the one in Bombay. The Gujarati trading class facilitated the development of the cotton mills at Ahmedabad. The industry has since then expanded rapidly, especially during the second half of 19th century that saw the establishment of 178 cotton mills. However, in 1900, the textile industry was in a very bad state due to incr eased due to famine leading to mot mills in Bombay and Ahmedabad closed for long periods. By 1945, the mills had employed more than 5.10 lahk workers. The industry is described as Swadesh as it was developed from the indigenous entrepreneurship as well as capital in the pre-independence era when the Swedish movement stimulated the demand for the Indian textile. The countryââ¬â¢s partition during independence affected the textile industry when the Indian union gotten 409 out of available 423 mills in undivided India. This saw 14 mills and 22 percent of the land going to Pakistan. Also, some mills were closed down making most Indian mills import their cotton from Pakistan and other countries after independence. After independence, the country made more rapid strides under the plans. This saw doubling of the spindles from 11 to 22 million between 1951 and 1982. This further increased during 1989-90. The colonialists used textile industry for their own personal gain where they exploi ted the weavers and created a cultural hotch-potch. This affected native cultures where the indigenous production moulds and design patterns underwent major modifications at the onslaught of the alien culture. This sometimes encouraged virtual extinction of some valuable native crafts. The colonial history of the textile industry in India can be split into two phases; 17th and 18th centuries. During this period, Indian muslins and calicoes enhanced commerce in the European East India Companies. The second phase of
Monday, November 18, 2019
Why Do We Need Environmental Engineering Topic LOVE CANAL TRAGEDY Case Study
Why Do We Need Environmental Engineering Topic LOVE CANAL TRAGEDY - Case Study Example This led to protests, intervention by the government and multiple lawsuits in pursuit of the compensation for the affected residents. Most of them moved, the infrastructure brought down and the Love Canal crossed for revitalization processes by the Environmental Protection Agency. William T Love is the impresario behind the famous Love Canal as indicated by his last name (Johnson 1). Significantly, the core purpose of the canal was to connect the separations of the Niagara River that had Niagara Falls parting them. Moreover, the canalââ¬â¢s construction would be in a way that residents of the Niagara area would also source electrical power from it; typically, this was a prevalent idea for environmental conservation and community development. Unfortunately, Williamââ¬â¢s plan faced multiple challenges during the 1892 economic downfall leading to the planââ¬â¢s ultimate failure; however, this was after he had dug a large percentage of the proposed area. Nonetheless, there was not much that he could do leading to its sale in auction over 25yrs later. Shockingly, the Love Canal served the wrong purposes after its sale. Firstly, the purchasers used it as a chemical disposal site and later on, the United States Army joined the party by using it for warfare experiments that entailed chemical weapons. In the late 1940s, a company (Hooker Corporation) that dealt with chemicals and plastics acquired the Love Canal for the private practices (Phillips 313). Conversely, the company also concealed multiple tons of toxic surpluses in the Love Canal for a period of over 5 years filling it, after which they used land material to cover the chemicals. Niagara City bought the canal to counter its over-population problem from Hooker Corporation that was keen to caveat relative to previous dealings of the land. After purchasing the Love Canal, the city set up infrastructure in form of
Saturday, November 16, 2019
Book Review The Communist Manifesto Sociology Essay
Book Review The Communist Manifesto Sociology Essay The Communist Manifesto was written by Karl Marx and Friedrich Engels in 1848. Whether or not the publication was planned to coincide with the first revolutions in France we can only surmise. However what we do know is that both Marx and Engels were commissioned to compile the Communist Party Manifesto at the Second Congress of the Communist League which met between November and December 1847. The Manifesto is split into four sections but the overall aim of the book is an attempt to explain the ideologies and goals of the Communist party. Marx and Engels argue that it is the history of class strugglesà [1]à that are the driving force of history. Marx claims that relationships between classes are dependant upon that periods channel of production. He also argues that once these relationships are no longer well-suited a revolution happens and a new ruling class take power. This is Marxs explanation for the move from feudalism to capitalism at the hands of the bourgeoisie (middle classes). This is also how Marx views the progression from capitalism to socialism and from socialism to communism. Marx and Engels believe that Communism is inevitable, that eventually the proletariat (working class) will seize power straight from the hands of the bourgeoisie. The first section of the manifesto is based on the Communists theories of history and of the relationship between the bourgeois and the proletariat in a capitalist society. Marx informs the reader of class struggles that have dominated history, how classes are either oppressor or oppressed. Marx states that as a result of the move from the complicated feudal system to the capitalist system hostilities between classes have simplified to the point where there are no only two classes in direct opposition; the bourgeoisie and the proletariat. The manifesto pinpoints the fact that because of the demands of society and the rise of modern industry the modern bourgeois have became the ruling class by doing away with the old feudal system and allowing people to become more self-interested. Despite this new self-interest Marx argues that the modern bourgeois has done away with the traditional family values and instead turned each family member into a commodity, someone to go out and earn a wag e. He states that this new bourgeois society has resolved personal worth into exchange value. This new capitalist society, Marx states, leaves one man dependant on another in a way they had never been previously; it has created a class of labourers, who live only so long as they find work, and who find work only so long as their labour increases capital. Thus we have a society based on production and demand. However this society will not always see the relevant demand for the products they produce so those who rely on industry to supply wages in order for them to have a roof over their heads and food in their bellies, are expendable, they will be used, and be able to afford to live, only so long as the bourgeoisie need their skills. Section two then goes on to discuss the relationship between the Communists and the proletarians. Marx is keen to point out that the Communists do not see other working class parties as opposition rather they wish to help these other parties in à ¢Ã¢â ¬Ã ¦clearly understanding the line of march, the conditions and the ultimate general results of the proletarian movement. Marx addresses the question on the abolition of property directly and clearly states that it is not the aim of the communists to abolish all property but to abolish private property, that property owned by the bourgeois. He points out that property only belongs to one tenth of society as the other nine tenths cannot afford such luxury as owning their own properties. Upon addressing this he also claims that as a result of this, and many other defining features, Capital, is therefore not a personal, it is a social power. Upon defining the role of the proletariat in society Marx states that the Communist party wish to do away with the miserable characterà ¢Ã¢â ¬Ã ¦.under which the labourer lives merely to increase capital, and is allowed to live only in so far as the interest of the ruling class requires it. The third section of the Manifesto outlines and evaluates the three divisions of Communist writings. These are; reactionary socialism, conservative socialism and critical-utopian socialism and communism. Marx argues that each of these divisions fail because each of the fail to realise critical communist values. The reactionaries and the conservatives fail to take note of the fact that the bourgeoisie will eventually fall at the hands of the proletariat whereas the utopians fail to realize that social change is essential; there is no perfect world where communism is king without this change. The fourth and final section of the manifesto confronts the Communist partys feelings towards the opposing parties that exist in society. The communists final and foremost aim is the proletarian revolution and they strive for this constantly and consistently even if it means working with other opposition parties in order to achieve this. Marx and other communists believe that history goes through stages of social change and that by arming the proletariat in one particular stage (capitalism) it will ensure the overthrow of the bourgeoisie at the hands of the proletariat thus reigning in a new era of socialism and eventually communism. All in all The Communist Manifesto is extremely clear
Wednesday, November 13, 2019
Turkish Free Zones :: essays research papers
TURKISH FREE ZONES Free Zones are defined as special sites within the country but deemed to be outside of the customs border and they are the regions where the valid regulations related to foreign trade and other financial and economic areas are not applicable, are partly applicable or new regulations are tested in. Free Zones are also the regions where more convenient business climate is offered in order to increase trade volume and export for some industrial and commercial activities as compared to the other parts of country. With the objective of increasing export-oriented investment and production in Turkey, accelerating the entry of foreign capital and technology, procuring the inputs of the economy in an economic and orderly fashion and increasing the utilization of external finance and trade possibilities, Free Zones Law numbered 3218 was issued in 1985. Since then, - Mersin (1987) - Antalya (1987) - Aegean (1990) - à stanbul Atatà ¼rk Airport (1990) - Trabzon (1992) - à stanbul-Leather (1995) - Eastern Anatolia (1995) - Mardin (1995) - ISE à stanbul International Stock Exchange (1997) - à zmir Menemen-Leather (1998) - Rize (1998) - Samsun (1998) - à stanbul Thrace (Ãâ¡ATALCA)(1998) - Kayseri (1998) Free Zones became operational. In general all kind of activities can be performed in Turkish Free Zones such as manufacturing, storing, packing, general trading, banking and insurance. Investors are free to construct their own premises, while zones have also available office spaces, workshops, or warehouses on rental basis with attractive terms. All field of activities open to Turkish private sector are also open to joint-venture of foreign companies. INCENTIVES OFFERED IN TURKISH FREE ZONES Turkish Free Zones are tax free zones. Income generated through activities in the Zones are exempted from all kinds of taxes including income, corporate and value-added tax. The validity period of an operation licence is maximum 10 years for tenant users, and 20 years for users who wish to make their own offices in the zone; If the operating licence is for production, these terms are 15 and 30 years for tenant users and investors, respectively. The requested operation licence period can be prolonged to 99 years according to the type of investment. Free Zones earnings and revenues can be transferred to any country, including Turkey, freely without any prior permission and are not subject to any kind of taxes, duties and fees. There is no limitation on the proportion of foreign capital participation in investment within the Free Zones. In contrary to most Free Zones of the world, sales into the domestic market are allowed in Turkish Free Zones.
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