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Business Ethic Analysis On Bp

3342 words - 14 pages

Table of content
1.0 Introduction………………………………………………………………...2
2.1 Background of British Petroleum…………………………………..2
2.2 BP ethical practice………………………………………………… 3

2.0 Deep water horizon drilling rig explosion leading to ethical dilemma…… 4
3.3 Environmental scanning to BP’s ethical dilemma………………… 4
3.4.1 Economical dilemma……………………………………… 5
3.4.2 Social dilemma……………………………………………. 5
3.4.3 Environmental dilemma……………………………………6

3.0 Methods of BP handling ethical dilemma…………………………………7
4.4 Handle economical dilemma………………………………………7
4.5 Handle social dilemma…………………………………………….8
4.6 Handle environmental ...view middle of the document...

Trading, bio-fuels and wind power.

1.2 BP ethical practices

BP has a long term ethical practices which is to fight against corruption. BP has complied with the US Foreign Corrupt Practices Act for many years. Beside this, BP work together with Transparency International (TI) and other company to develop a set of business principles for countering bribery. Other anti-corruption initiative included: supporting institution and non-government organization that aim to eliminate bribery and corruption. Conducting training programmers for its employees and supporting the UK Bribery Act.

2.0 Deep Water Horizon drilling rig explosion leading to ethical dilemma

20 April 2010, the Deep Water Horizon drilling rig explored and caught fire in the Macondo prospect oil field. Two days after the blowout accident, oil started leaking from the rig. An estimated 53,000 barrels of oil escaped from the well per day just before it was capped on 15 July 2010.
The spill caused extensive damage to the ecosystem, environment and to the gulf’s fishing and tourism industry. Which it has lead BP into ethical dilemma.

2.1. Environmental scanning to BP’s ethical dilemma

To analyze the ethical dilemma facing by a company, we can use “environmental scanning” method, which is to analyze its PESTEL environment. Now, we look at the BP’s ethical dilemma from 3 areas: Economy, Social and Environment.

2.1.1 Economical dilemma
Many industries in the Gulf of Mexico included fisheries, resort, shipping and so on, were forced to temporary shut down or lose a lot of business. This led to economy down fall in the four affected state: Alabama, Florida, Louisiana and Mississippi. In Louisiana alone, it loses 77% of seafood production which equal to 35 million in production. In addition, a lot of U.S buyers feel that all seafood from gulf were contaminated, they refused to buy any seafood or even not to consume seafood in any restaurant, this cause many restaurants to lose their business. Besides that, a lot of the vacation spot in the gulf were affected by the oil spill. Vacationers were deferring from visiting the Gulf of Mexico, many booking of hotel and room rental were canceled after the spill, it was seriously wrecking the tourism industry.
2.1.2 Social dilemma
In the Gulf of Mexico, societies were consisted of many communities, such as Vietnamese, Native American, Black, and Cajun. These communities are highly depending on fishing and tourism industry. In Louisiana alone, 27,000 of people were employed in the seafood industry. After the oil spill, a quarter of US water in the Gulf of Mexico was closed to fishing, it hitting the livelihood of these people. The communities were very concern about their future: can they ever be able to fish again? Without fishing or losing job, how can they made a living? They were living with a huge burden after the spill; the worrying about life has causing many people to an unhealthy mental condition. It...

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