...towards ethical issues in BP’s company. Just like to set up a communication consistent standard for all the employees of BP for different location, culture and language. Originally, this is a good way to guide the company staff to maintain company standard and reputation. But the code did not effectively address specific high-risk activities for the scope of daily operations. It was quite reasonable because at the very beginning stage of drafting the related guidelines, not every experience or assumed circumstancs were fully considered in the daily operations. Unfortunately, after the spill happened, several reports have pointed out that BP's internal problems were the main causes of the disaster. In 2009, the Occupational Safety and Health Administration had put a record largest fine of $87 million upon BP’s company. In the investigation, the OSHA has issued as many as 271 notifications to BP’s company. The notifications were mainly dealing with a series of misconducts which BP’s company performed in the 2005 Texas refinery explosion hazard. Moreover, BP’s company improper management and lack of adequate safety precautions were once again been found in the Deepwater Horizon oil spill at Mexico in 2010. Millions of gallons of oil were discharged into the Gulf of Mexico in this incident. The nearby environment was highly deteriorated and many precious lives had lost. On 5 January 2011, a report has been issued by the White House oil spill commission, it pointed out that BP, Halliburton...
Words: 1639 - Pages: 7
...1. Introduction The company, BP is the third-largest energy company where produces approximately 3.8 million barrels of oil and gas per day and possesses 22,400 service stations over the world. However, the oil disaster called as BP oil spill or the deep water horizon oil spill was occurred on April 20th, 2010 in the Gulf of Mexico recording the greatest oil spill compared to other oil spill accidents in our history. The Deepwater Horizon oil rig explosion caused deaths of 11 workers, 17 workers injured as well as a tremendous oil spill in the Gulf of Mexico. In fact, this case has been described as a complex accident including a variety of issues ranging from environmental to economic, politics and even ethical issues. The goal of our research is to find any ethical issues since this disaster happened is closely related to ethics which is concerned with moral obligation, social responsibility and justice (Carolyn Wiley, 1997) either individual (‘bad apples’) or organizational (‘bad barrels), which should be evaluated to verify this case. Firstly, the ethical issues can largely be divided into three categories, namely (1) technical design which has had some testing flaws before the actual usage and insufficient guidelines against the negative pressure test, (2) human factors including misjudgment, errors and a failure in duty, (3) organizational system such as taking risk procedures to save time and money and refusing the advice of staff and contractors as well as slowness to...
Words: 3144 - Pages: 13
...Ethical Issues Affecting Bp Operations Management Essay For a company to become a good corporate citizen it must follow the rules put in place by the government to where the company's operations activities are taking place, this also include protecting the environment and local people in the community from any harm from noise or water or air pollution. This report will explore more about the responsibilities BP have for making moral judgement and how their employees are involved and empowered. Also will have information on ethical issues affecting their operational activities and how do they ensure good relationship of employer and employee. Ending part there will be a summary about ethical code for oil industry. INTRODUCTION Considering ethics, a corporations' responsibility for taking actions that are morally sound needs to change. Reviewing the role of the individual, corporations are being subjected to the role of moral agent. The question is, can a corporation, composed of people, be held responsible for its own action as a moral agent? The answer is complexed from an individual's viewpoint with that of the corporation. Werhane (1989:821) viewed that corporation by law is identified as a person that is frequently held responsible for business practises. However, Werhane continues, if firms are not moral agents, they do not become morally liable and thus the onus is passed onto the individual person. [1] This becomes complicated because how can individuals become solely...
Words: 2698 - Pages: 11
...Cross-Cultural Perspectives ETH 316 BP is a global organization that has a multinational presence in the world. A cultural issue that can impact this organization outside of the United States is gender. In the United States and several other countries that BP works in, gender is not an issue as culturally it is acceptable for men and women to be in business together, but in some countries, especially in the Middle East this is tricky cultural difficulty. This can be a serious issue because women should be able to be equals in a corporation, but at the same time, BP has to be able to not offend someone that they are trying to do business with because they are culturally uncomfortable with women in business. This is a delicate balancing act between ethics, social responsibility and cultural awareness for the company. Legally and ethically a woman should be able to perform all the same tasks as a male counterpart, but it may be in the best interests of the company to respect the cultural differences that can occur in doing business in other countries. There are several ethical perspectives at BP when it comes to dealing with culture and gender. Consequence ethics and principle-based ethics can both be at play in this situation. Consequence ethics in that there can be consequences from both making business partners uncomfortable and in choosing a man over a woman for business dealings because of cultural differences. Principle-based ethics looks at this situation...
Words: 1114 - Pages: 5
...Petroleum, PLC (BP) has been thriving to satisfy the investors with legal, ethical, and social responsibility issues as a corporation while protecting employees and environment. The global economy has been fluctuating rapidly since the last tragic incident that happened in 2010; therefore, now is the time to evaluate the organization’s management planning function, analyze the influence that have had on management planning at BP, and analyze the factors that influence the company’s strategic, tactical, operational and contingency planning. Planning Function of Management The board of directors have played valuable role in both planning and decision making process at BP since the incident in 2010. Although BP had fully engaged to solve the issues from the incident by using top level skills and taking appropriate measures, the lesson BP learned was, in such a painful manner, that there are substantial financial risk accompany poor decisions and planning which was losing $30 billion, according to Marianne M. Jennings (Jennings, 2010). Therefore, BP plc is adopting a new basic planning process that was introduced by Bateman and Snell: situational analysis, alternative goals and plans, goal and plan evaluation, goal and plan selection, implementation, and monitor and control that moves not just in one direction, but in a cycle (Bateman & Snell, 2011). As top management of BP, board of directors should stand strong and have firm belief by using newly adopted method that BP will overcome...
Words: 833 - Pages: 4
...Ayrton Bettencourt Barry University • Ethical issue: Please describe the ethical issue that you have identified. Describe the who, what, where, why, and when. The ethical dilemma facing BP is how to balance profit maximization and at the same time be responsible for the environment and society. Several events have affected BP in recent years but none has challenged the balance between profit and environment responsibility like the Gulf oil spill. This event, recognized as the worst oil spill in the History of the United States, occurred on April 20th of 2010 in the Gulf of Mexico and was characterized by an explosion following an integrity failure of a well and a consequent 87 day spill of oil into the sea (BP, 2010). Eleven people were killed in the explosion and it is estimated that almost 5 million barrels of crude oil dispersed into the Gulf Sea (The Ocean Portal Team, 2010). Tony Hayward, the CEO of BP at the time of the oil spill incident, downplayed the effects of the oil leak in the environment and society, stating, “The Gulf of Mexico is a very big ocean“ (Webb, 2010). Previous events had caused concerns among authorities on the possibility of BP not doing the appropriate maintenance of its old system of wells. In fact, in 2004 the company was fined for $1.2 million by state regulators (Barringer, 2006) and in 2006 for $2.4 million by the labor department also because of unsafe practices (Pulham, Hilaire, & Fenn, 2010)...
Words: 572 - Pages: 3
...environmentally. This company markets its products in over 100 countries and, as of December 2011, employs over 83,000 employees. British Petroleum has worked hard to honour their commitments to the people and communities of the Gulf Coast. This company produces the natural resources that the world depends on daily, and produces them in some of the most operative, proficient, and resourceful ways which are possible today. (BP, n.d.). This company proves to be constantly evolving in the world. They are always innovating and coming up with new ways to operate their business as to cause the most minimal effect or damage on the environment. BP has become one of the most environmentally aware companies of the modern age, especially from what they have gone through in the Gulf of Mexico, and the revolutionary technologies they have integrated in their business operations. The vertically integrated company uses three main types of leadership, as well as an operational controlling method to ensure that the organization functions accordingly and remains socially responsible, ethical, and practices corporate social responsibility. By focussing on developing the company’s organizational structure on upstream and downstream tasks, British Petroleum can aim towards innovating and distributing their goods and...
Words: 3845 - Pages: 16
...A Costly Mistake Bus 311 Beth Garcia April 23 2012 Introduction- Thesis statement In April 2010 British Petroleum (BP) had its worst nightmare come true; the Deepwater Horizon drilling rig exploded. Gushing million and millions of barrels of oil into the ocean becoming the largest oil spill in history. Effecting animal life and small business for years to come; someone had to be responsible, someone had to pay. Throughout this paper we will explore BP’s legal options, the administrative agencies involved, the ethical dilemma they face in the coming future, and the issues between their business and the environment Topic Sentence: BP has a huge problem on their hands and its only getting bigger. Initially the underwater explosion and oil spill was thought to be a small problem, but once the continually had failure after failure to stop the leak BP knew there were in for a catrostophic event. I. What Laws did BP break if any? A. Was it more of an ethical issue? B. Tort Law 1. Negligent torts Topic Sentence: Administrative agencies “affect nearly every individual, business, firm, and organization in the country”, and BP is no exception. II. Administrative Law/agencies A. Functions of administrative agencies B. Administrative agencies roll in BP’s incident Topic Sentence: Business and the Environment, sometimes they can work in harmony but most of the times that’s not the case. IV. Business and the Environment? A. Major federal legislation...
Words: 376 - Pages: 2
...as the environment. Business ethics has come under scrutiny over the past several years thanks to such companies as Enron, and more recently BP. As a society we are faced with ethical dilemmas daily and our culture is shaped by how we handle these situations. A Code of Ethics policy is used in most businesses today to establish acceptable behaviors and actions expected among the employees and executive officers. The Code of Ethics is fundamental in building a stable business foundation with all members being expected to comply. It is here that the problems start because even though the Code of Ethics should guide the members toward appropriate moral activity, it is not always successful. When moral and ethical behaviors go bad it affects us all. The top three ethical issues within today’s business environment that affect my community and my organization are corporate social responsibility, leadership issues, and financial issues. The first ethical issue to affect us is corporate social responsibility (CSR). CSR is defined by how companies integrate social and environmental issues and concerns within their business operations. CSR goes beyond corporate donations and compliance of corporate laws to the management of an environmental impact. A good example of how a company’s CSR is inadequate would be British Petroleum (BP). BP is a large oil company in...
Words: 831 - Pages: 4
...The global ethical position of BP and their exploration of the Gulf oilfields. BP (formerly British Petroleum) is one of the world’s largest oil and energy companies, which provides fuel, energy and petrochemical products. They have been in existence since the early 1900’s and have gone through a number of changes. In July, 2003 after merging with Amoco they rebranded as a ‘beyond petroleum’ company. Their logo, a sunburst of green, yellow and white, symbolizes dynamic energy in all its forms. (BP, 2010). Their ‘beyond petroleum’ tagline featured BP as a company that was concerned with the environment and its corporate social responsibility (CSR). BP’s Director of Business ethics outlined their commitment to ‘being ethical’, which included respect for human rights, avoiding harm to people and the environment , avoiding conflicts of loyalty and interest. (Broome 2003). However, as a result of the oil spill in the Gulf of Mexico in 2010, BP’s ethics policy have been placed under extreme scrutiny, exposing them as a company whose marketing strategies is misaligned to their actions. This article looks at BP’s global ethical position with regards to their exploration in the gulf oilfields. It takes a further look at the implication that it caused to their branding and marketing strategies and suggests what marketing strategies they should adopt in order to move forward and regain sustainable competitive advantage. One of BP’s strategies is to create value for shareholders...
Words: 2377 - Pages: 10
...Subject: P4: Examine the ethical concerns of the communities in which BP operates and M3: Explain the ethical concerns of the communities in which a selected business operates and suggest measures that could be taken to improve corporate responsibility. Introduction: Within this report I will be explaining the ethical concerns for my chosen business BP and I will also be explaining what measurements BP carried out due to their ethical concerns. Some of BP’s ethical concerns: 1) The BP Oil Spill released over 200 million gallons of crude oil in which was pumped into the Gulf of Mexico for around 87 days, making it the biggest oil spill in history. 2) The oil spill caused 16,000 total miles of coastline to be affected, including Texas, Louisiana, Mississippi, Alabama, and Florida coasts. 3) The gushing oil was stopped in July 2010; but oil is still washing up on shores, which will cause long-term damages to people and animals living in the area. 4) Over 8,000 animals were reported dead as quick as 6 months after the spill. 5) The oil explosion killed in total 11 people and injured 17 others. Environment concerns 200 million gallons of crude oiled flowed into the Gulf of Mexico in which caused an explosion of the deep-water horizon oil rig. Oil and gas manufacture projects can have major implications on air, water and the wildlife. BP states that they try to diminish the environmental impact from the earliest stages of planning to the dismantling...
Words: 569 - Pages: 3
...oil and natural gas, Chevron is engaged to biofuel, geothermal, hydrogen, solar and wind energy production. According to the official website for businesses Chevron offers following goods and services: * Additives * Aviation Oils * Base Oils * Chemicals * Fuels * Lubricants * Marine * MSDS * Specialty Products * Technology And for consumers it offers goods and services listed below: * Fuels and Stations * Gift and Credit Cards * Pay Bill * Motor Oils and Fuel Additives Code of Ethical Conduct Chevron relies on values such as integrity, trust, diversity, ingenuity, partnership, protecting people & the environment and high performance. Among these core values trust, protecting society and the environment and integrity are vital to the success. Integrity provides huge confidence to the company to achieve ultimate ethical standards when it deals with all of its stakeholders. This value also...
Words: 2559 - Pages: 11
...the ultimate sinking of the Deepwater Horizon. Although this disaster was accidental there were many warning signs that BP neglected which could have prevented it. To begin with, the construction of the underwater drilling pipelines were shoddy and a vital valve was installed backwards. Consequently the pipelines became brittle, full of cracks, and flooded. In addition, equipment readings, internal documents from BP engineers, and other red flags warned that the rig wasn’t operating correctly and that there was potential for a dangerous explosion. However, all these signs were ignored and not addressed as threats by managers. In an effort to avoid incurring costs and to maximize profit, BP cut corners and underestimated the importance of safety. After initial investigations it became clear that BP not only missed significant signs but staff did not have proper training, maintenance of the rig was inferior, and overall BP lacked formalized emergency responses and a safety culture. As a result BP has undergone strict investigations by the U.S Justice Department and a variety of environmental organizations. The company has faced and is still facing both civil and criminal charges and was initially set to pay over $20 billion in damage claims. Due to the oil spill and explosion BP’s stock fell 52% in 50 days in the New York Stock Exchange. Before the disaster BP was valued at $182 billion...
Words: 3625 - Pages: 15
...company with a focus on finding energy sources to meet the needs of people everywhere. BP, like its many competitors, operates within the bounds of the four functions of management; planning, organizing, leading, and controlling. Management within the BP also has to deal with different business landscapes to make sure their company stays competitive. These landscapes would be globalization, technology, innovation, diversity, and ethics. BP has internal factors that can be corrected within these categories that can lead to its success; however they also come with external factors that the company has little control over. However not a rule, an organization is can have a factor that affects both the internal and external factors that affect the four functions of management. Globalization is described as “allowing a company to maximize its profits by trying to become the best in the world (Bateman, 2011).” British Petroleum saw the advantage in globalizing because of the world demand for natural resources. This was an internal factor that leads to the globalization of the company. One of the internal factors that helped BP in its globalization efforts was the company becoming public in 1995. This allowed it to become 12th largest producer of crude oil, fifth largest refiner, and Brittan’s largest company (British Petroleum a Global Company in a Global World, 2003). Globalization has allowed BP to provide goods and services in locations of the world that would not have access to...
Words: 1146 - Pages: 5
...BP: Marketing Case Study Sarah Allen, Matthew Earhart, Amelia Pye I. Case Summary BP plc, formerly known as British Petroleum and Anglo-Persian Oil Company, is a multinational oil and gas company headquartered in London, England (“BP”). It is the fifth-largest company in the world measured by 2012 revenues (BP Annual Report 51). Its extensive corporate history has created a non-malleable image and reputation which present-day marketing strategies must overcome in order to effectively promote the ideals of industry leadership and ethical responsibility. BP is faced with significant challenges to its brand as a consequence of its widely-known safety and environmental policy issues. An explosion at one of its Texas refineries caused fifteen deaths, 170 injuries, and a violation of the Clean Air Act in 2005. Years of neglecting pipeline corrosion led to its violation of the Clean Water Act in 2006 when Alaskan oil pipelines leaked crude oil into the tundra. The following year, another BP spill occurred near Prudhoe Bay, leaking toxic chemicals into the tundra and thus killing wildlife and vegetation (“BP Gulf Coast Disaster and Recovery”). These incidents, however, were dwarfed by an explosion at BP’s Gulf of Mexico offshore drilling rig, Deepwater Horizon, in April 2010. The explosion caused the largest accidental marine oil spill in the history of the petroleum industry. It resulted in the deaths of eleven people and the release of an estimated 210 million gallons...
Words: 4185 - Pages: 17
