MANAGEMENT ETHICS AT BP
Beyond Petroleum, BP is among the largest Oil and other energy companies in the world. Its targets and confidence in the market has enabled it reduce Carbone dioxide waste and enhance alternative sources of energy like solar power. This upward success has, however, in the recent past been challenged. BP’s environmental image in the globe has been tarnished due to accidents and ethical issues it faces. Its actions are argumentative based on the facts and the rational thing that ought to be done at the time of the incidents. Looking at its business norms and the theoretical standpoints that contrast, therefore, paves way for arguments on the ethics of its business practices.
Business Management Ethics Issue at BP
BP is currently being heavily scrutinized due to its history of ethical and legal violations that law enforcers, critiques and members of congress have ascertained. The London based oil company has a tendency of putting profits ahead of anything else. Its subsidiaries over the past two decades have had two felonies, including a conviction three times of crimes against the environment in Alaska and Texas. In the U.S history, it is the company with the highest fine levied against it for willful work safety violations. BP’s accepting responsibility is just a formality but denies it is guilty of a continuous sequence of safety and environmental faults (Greenpeace USA, 2010). Beyond Petroleum, formerly British Petroleum, aimed to drastically cut down the greenhouse gas emissions by 10% between 1990 and 2010. This they did, successfully pointing out their intent to either help the environment in their work or just instill a better image of an environmental-friendly company that intends to tap into the developing market of alternative energy. Most of BP’s actions have, with time, been regarded as unethical. For instance, after the Alaskan oil spills, Texas City refinery fire, treatment of the Colombian farmers and the explosion in the Gulf of Mexico, ultimate decisions made by the company eventually led to destructive results for the majority of the stakeholders (BP, 2012). The environment is recognized as a stakeholder in many companies including BP since it can be affected by cooperate activities. It is also included in their annual reports. A 2009 report by BP indicates its mission to renew assets, deliver and create products that the Stakeholder theory continuous needs of society, as well as sustaining the customers’ support in communities they work in. The Stakeholder theory where the environment is as stakeholder is popular. However, if not founded with strong, assertive principles, it can be saturated by self-interested initiatives, hence, excluding the ethical considerations from managerial analysis. An example of this is the oil spillage in the Gulf of Mexico by BP (Ohreen, 2010). Preliminary results in the cause of the Gulf spill, according to BP, indicate failures of the tools designed to avert a blowout. According to an eyewitness, evidence from rig workers indicates that BP was aware of weeks before the blowout that there was a malfunction with the equipment. According to the Stakeholders theory, even though BP was unaware of the technological problem, they ought to have weighed the danger to the environment and failure of the gadget against the costs and profits earned. Drilling should have stopped and the blowout preventer repaired even though it meant making losses. On a strategic approach, BP should have considered the natural environment a vital partner and incorporate measures into their goals and structures. The ethical value lacks in within BP’s strategic environmental management system (Campbell & Clifford, 2010). On a manager’s point of view, it is ethical to look at other sources like philosophical arguments to...