Bp unethical business practices. Top 8 Ethical Business Practices to Follow 2022-11-01
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BP, also known as British Petroleum, is a multinational oil and gas company with a history of unethical business practices. These practices have had significant negative impacts on both the environment and local communities.
One example of BP's unethical business practices is the Deepwater Horizon oil spill in 2010. The oil spill occurred when the Deepwater Horizon oil rig, which was owned and operated by BP, exploded and caused an oil spill in the Gulf of Mexico. This disaster was one of the worst environmental disasters in US history and released millions of barrels of oil into the ocean, causing widespread environmental damage and harm to marine life. The spill also had significant economic impacts, as the fishing and tourism industries in the Gulf region were severely affected.
Another example of BP's unethical business practices is the company's history of lobbying against climate change regulations. BP has a long history of lobbying against regulations designed to reduce greenhouse gas emissions and combat climate change. This is particularly concerning given the significant role that the fossil fuel industry, and BP in particular, plays in contributing to climate change.
In addition to its environmental impacts, BP has also been accused of unethical practices in its dealings with local communities. For example, the company has been criticized for its treatment of indigenous communities in countries such as Ecuador and Canada. In Ecuador, BP was accused of causing significant environmental damage through its oil drilling operations, leading to a lawsuit that resulted in a multi-billion dollar settlement. In Canada, the company has been accused of exploiting indigenous communities and failing to adequately consult with them on its oil sands operations.
BP has also been criticized for its lack of transparency and accountability. The company has been accused of hiding information about the environmental impacts of its operations and failing to adequately disclose its financial risks. This lack of transparency makes it difficult for stakeholders to hold the company accountable for its actions and ensure that it is acting in an ethical and responsible manner.
Overall, BP has a long history of unethical business practices that have had significant negative impacts on the environment and local communities. While the company has made some efforts to improve its practices in recent years, it still has a long way to go in order to fully address the harm it has caused and ensure that it is operating in an ethical and responsible manner.
British Petroleum: Unethical Issues
Although the intention may be good, there is every likelihood of things blowing up in your face. The CSB, using investigation techniques that were similar to the techniques used by the Columbia Accident Investigation Board during their probe in the explosion of the space shuttle, found that warning signs of possible disaster were present for several years before the 2005 BPTCR explosion. Superfund also gives authority to federal natural resource agencies, states and Indian tribes to recover natural resource damages caused by releases of hazardous substances, and created theAgency for Toxic Substances and Disease Registry ATSDR , CERCLA's broad cleanup authority, to clean up releases or threatened releases of hazardous substances that may endanger public health or welfare or the natural environment was given primarily to theEnvironmental Protection Agency EPA and states, though most states now have and most often use their own versions of CERCLA. . The BP Texas City Refinery Explosion March 23, 2005, the BP Texas City Refinery BPTCR exploded causing 43,000 people in the surrounding area to remain indoors after being issued a shelter-in-place order. BP has though mentioned in Tangguh an LNG plant, potential development of recycling of waste cooking oil as biodiesel, which potentially reduces the diesel requisition by 30% BP, 2014a. However, it did not because the work was poorly done.
A reward can be as simple as praise in the face of good behavior — particularly when it would be easy for an employee to act unethically. The owner Tino De Angelis caused a huge business scandal when he defrauded clients, including the Bank of America, making them believe that he was trading in vegetable oil. BP's own accident investigation reportstated that the direct cause of the accident was heavierthan-air hydrocarbon vapours combusting after coming into contact with an ignition source, probably a running vehicle engine. Creating Codes of Conduct and Practice Organizations should invest in researching, developing and documenting policies that help in defining, identifying, and reporting unethical practices. Besides, BP communicates with local community groups to avoid and minimize impact on their life. Works Cited Ferrell, O.
The investigation relates to trading activity that occurred in October and November 2008. The decision by the Environmental Protection Agency EPA to bar BP from working on government contracts affected its revenues Landau 51. There are, of course, ethical ways through which a business can build links. The companys headquarters are in London. In future, the company needs to maintain high standards in implementing safety measures. According to government reports, the spill was mainly caused by defective cement on the well which could not withstand the high pressure of the rig. Lately they have been investing a lot of their investments green wise in order to improve their image.
Unethical Business Practices: The List You Need to Avoid
According to the judge the three involved parties were to blame in varying degrees. BP integrated safety at work by 3 line of defence Self-verification, assurance and audit. BP also helps in creating jobs. Dolphins found death because of the toxins released into the air. BP has not reported on G4-EN30 which require declaring their environmental impacts of transporting its products in upstream and downstream business.
BP admitted that cost cutting measures had resulted in a lapse in monitoring and maintenance of the pipeline and the consequent leak. The issue was concerning and provoked investigation to understand how it could have happened. At that time, CFTC Enforcement staff provided BP with a notice of intent to recommend charges of attempted market manipulation in violation of the Commodity Exchange Act. Then, it brings long term interest. Several stakeholders including the company and the government tried unsuccessfully to seal the leak several times.
BP emphasizes on how important safety seems to be on their behalf, but how would one know if they hold true to their value? Sustainability and Ethics are fundamentals in determining success or failure of an organization. BP has a substantial and diverse presence worldwide. You should avoid such practices at all costs. The dividend increased at 3rd quarter of year 2011 but it is still very much lower than the dividend paid before the accident on Gulf of Mexico. Types of unethical business practices 1- Unethical marketing practices Ethics in marketing means the implementation of moral values and fairness in the marketing practices of an organization. They combined together people, processes and plant to make a good performance in BP. There should be an equal opportunity to both sex at work regardless of background difference or religion, race, nationality etc, employees confidentiality should be protected at all times.
If they exhibit unethical behavior or seem to encourage it by promoting unethical employees for examples, other employees are likely to follow in their footsteps. BP should work with local governments and policy makers to create fundamental policies and reduction in price of renewables to support its growth in most markets Rondinelli, 2007. In 2013 it was reported that dolphins and other marine life continued to die in record numbers with infant dolphins dying at six times the normal rate. How the company can avoid similar incidents The oil spill resulted from ethical and legal violations by the company Mauer par. Other Iranian fields and refineries were built, and by 1938 bdn had the largest single refinery in the world.
If BP goes out of business as a result of the Deepwater Horizon crisis, then its leaders have failed on a monumental scale. However, BP Critchlow, 2015b; Campbell, 2014 has been cutting corners in health and safety, capitalising in oil derivatives and indorsing short-termism amongst their staff. A BP crew sent to inspect the pipe in early August discovered a leak and small spill,following which, BP announced that the eastern portion of the Alaskan field would be shut down for repairs on the pipeline,with approval from theDepartment of Transportation. Dudley did show, some characteristics of connectedness and complexity of leadership but has not demonstrated systemic leadership as he lacked emphasizing wisdom and humility, fostering collaboration and building relationships of trust Painter-Morland, 2008. Responding to increasing interest in non-carbon based energy, BP institutionalized by combining new business development and socially responsible activities by diversifying into solar, wind and bio-fuel energy generation and pursuing innovations in alternative and renewable energy technology BP 2014a.
BP acted unethically because it implemented cost-cutting changes that were projected to increase profits. Initially, no one truly understood the significance of the spill and how much oil was actually leaking into the gulf; however finding out the large amount of oil being lost made me realize the severity of the situation. Harvard Business Review, 2012 Shareholder seeks profit and return on investment rather than growth of business. Loy, 2007 BP continues to show ethical problems by ignoring red flags and warning signs that could have stopped the leaks from occurring. However, their efforts were unsuccessful.