Are There Any Aspects of Bp’s Ethical Culture That Could Have Contributed to the Gulf Coast Oil Spill Disaster?
BP Gulf Coast Disaster and Recovery
INTRODUCTION BP, formerly British Petroleum and the Anglo-Persian Oil Company, has experienced a lot of ups and downs over its hundred-year history—from nearly bankrupting its founder William D’Arcy to becoming one of the world’s largest energy companies. BP has also experienced its fair share of controversies regarding business practices, environmental damage, and hazards to workers. It and all other large energy companies have come under fire for releasing huge amounts of greenhouse gasses into the atmosphere. For some time, BP has attempted to turn a page in its history book toward a more environmentally-friendly future through investments in renewable energy and a support of ethics and compliance initiatives. British Petroleum changed its name to BP and then tried to rebrand itself as Beyond Petroleum. This rebranding was a signal to stakeholders that it was focused on sustainability and the need to move beyond nonrenewable energy sources. When a company tries to reposition itself as socially responsible and sustainable, it has an obligation to attempt to fulfill those policies. However, BP’s efforts backfired when on April 20, 2010 the explosion of the Deepwater Horizon oil rig, operated under the oversight of BP, created one of the greatest offshore oil disasters in history. This unfortunate event has made BP the poster boy for negligence and environmental degradation. Not until August 2010 did there appear to be a final resolution to stopping the oil leak. This case provides an opportunity to observe the past efforts of BP to improve its image, along with how these efforts were rendered virtually useless after the oil spill. Before delving into recent issues that BP has faced, a brief history of BP is given to provide some background. Certain disasters resulting from company negligence are detailed in this analysis, and although BP made efforts to establish itself as a socially responsible company, the recent oil spill
INTRODUCTION BP, formerly British Petroleum and the Anglo-Persian Oil Company, has experienced a lot of ups and downs over its hundred-year history—from nearly bankrupting its founder William D’Arcy to becoming one of the world’s largest energy companies. BP has also experienced its fair share of controversies regarding business practices, environmental damage, and hazards to workers. It and all other large energy companies have come under fire for releasing huge amounts of greenhouse gasses into the atmosphere. For some time, BP has attempted to turn a page in its history book toward a more environmentally-friendly future through investments in renewable energy and a support of ethics and compliance initiatives. British Petroleum changed its name to BP and then tried to rebrand itself as Beyond Petroleum. This rebranding was a signal to stakeholders that it was focused on sustainability and the need to move beyond nonrenewable energy sources. When a company tries to reposition itself as socially responsible and sustainable, it has an obligation to attempt to fulfill those policies. However, BP’s efforts backfired when on April 20, 2010 the explosion of the Deepwater Horizon oil rig, operated under the oversight of BP, created one of the greatest offshore oil disasters in history. This unfortunate event has made BP the poster boy for negligence and environmental degradation. Not until August 2010 did there appear to be a final resolution to stopping the oil leak. This case provides an opportunity to observe the past efforts of BP to improve its image, along with how these efforts were rendered virtually useless after the oil spill. Before delving into recent issues that BP has faced, a brief history of BP is given to provide some background. Certain disasters resulting from company negligence are detailed in this analysis, and although BP made efforts to establish itself as a socially responsible company, the recent oil spill