Case Studies

Topics: Ethics, Petroleum, Business ethics Pages: 6 (2230 words) Published: March 10, 2013
At the end of 2008, Interior Department Chief Earl E. Devaney launched investigations into allegations of misconduct by employees of the Department of Minerals Management Service (MMS), which collect royalties paid by companies to produce oil and gas from public lands through royalty in form. Program officials have allowed the buyer agency sell gas and oil to check the offer down after they were awarded the contract of purchase. Agency workers are exposed to the "culture of substance abuse and promiscuity" and "world-account-fueled spending oil and gas executives' in MMS. In addition, MMS considers' organization of the work that has been a question mark with a conflict of interest, and free unprofessional behavior for all situations. Alcohol is often used in industry councils, cocaine and marijuana, and had sexual relationships with representatives of the oil and gas companies. Comfortable in the process of developing professional relationships, employees royalty-type program also took inappropriate gifts from industry contacts. Socialize with industry representatives is just a function of their participation in the culture industry, and they assured the investigators that the relationship had no effect on the performance of their officials duties. Two months later, MMS, which is also regulated offshore oil drilling activities adopt the plan for drilling in the Gulf of Mexico produced by petroleum giant BP to assure the agency that the environmental damage from the spill anywhere would be "minimal or nonexistent". Predict the worst case spill 1500-4600 barrels. MMS approved BP's plan to set a cement plug to the temporary closure of wells with only a 90-minute telephone conversation between the MMS and BP officials. BP declares MMS application 'categories excluded "from environmental analysis and give oil companies the green light in early April. On 20 April, a giant oil rig exploded in the new facility approved BP kills 11 workers and they pour oil into the Gulf of Mexico nearly five million barrels - 206 million gallons of oil into the Gulf of creating a layer of oil that affected 4,200 miles of coastline (about five times length of California). In 2009, oil and gas industry spent $ 169 million to lobby government officials of $ 9.15 by BP to Secretary Salazar MMS. He has really failed to reform the Minerals Management Service and protect the public interest by conducting environmental review, plan drilling agency rubber stamped BP for Minerals Management Service has gotten worse under Salazar watching. "My favorite agency ', think Senator Bill Nelson of Florida. 'Remember the Bush administration, this is a man who has sex orgies and pot parties and does not appear to work. In May 2010, Secretary Salazar dissolved MMS. CASE QUESTIONS

1. The section on 'Managerial Ethics' highlights three sets of relationships involved in the exercise of managerial ethics - relationships of the organization to its employees ,of its employees to the firm and of the firm to the other economics agents .Explains how each of these relationships was a factor in the ethical failing of the Mineral Management Service. In your opinion, which of the three was the biggest factor? Explain your answer.

Ethics management is that its employees by organizations such as hiring and firing, wages and working conditions and employee privacy and respect, wages and working conditions. Most observers agree that the organization is responsible for protecting the privacy of its employees. A manager who revealed to employees that one of their colleagues have AIDS or have an affair is widely seen as unethical in privacy. As well as the way in which the organization had to address issues related to sexual harassment involving employees' privacy and related rights. For examples is MMS considers the organization a function of unprofessional behavior and sexual relationships with representatives of the oil and gas...
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