This main purpose of this review report is going to analyses the BP corporation by go through its sustainability 2010 annual report in order to use as references for future development. Sustainability disclosure is the process for publicly disclosing an organization’s economic, financial, environmental and social performance.
An organisation's stakeholders increasingly expect more than just financial and governance information. Stakeholders also require information about company economic, environmental and social performance. Information included in a sustainability report should meet the needs of those stakeholders who include customers, employees, ...view middle of the document...
“By the 31 of December, 2010 they have spent $17.7 million to maintenance the surround environment of Gulf of Mexico”.
Organizations continually seek to ensure that they operate within the bounds and norms of society. Under the social contract between social and organization, the BP has breached the “social contract” surely they do want to be consistent with the legitimacy. “They activity seek to corporate with the relevant legal and US government department. By establishing the a 20million dollars funds” The fund is designed to satisfy claims adjudicated by the GCCF, final judgments in litigation and litigation settlements, state and local response costs and claims, and natural resource damages and related costs. In Gulf of Mexico accident, the legitimacy of BP is threatened. The managers try to use the information disclosure to regain the legitimacy.
Beside of the legitimacy theory, the system-oriented theories also use the stakeholder theory to evaluate the performance of BP. It prescribes how stakeholders should be treated (based on various ethical perspectives), especially after happens of Gulf Mexico accident, The BP has contact the Government officials, NGOs and investors, listen to them. Many stakeholders – from non-governmental organizations (NGOs) to investors, from governments to community leaders – expressed their concerns with BP in 2010.
“They urged BP, among other things, to:
1. Involve NGOs in the Gulf of Mexico restoration efforts.
2. Play a positive role in the development of new industry deepwater regulations.
3. Clarify how its internal carbon pricing helps to address the issue of GHG reductions.
4. Clarify why it exited the US Climate Action Partnership.
5. Explain its public lobbying activities.”
Above is the actual actions of stakeholder and BP to save the organizations to meet the long term sustainability development, it is not just because of the BP public image, but also for the continuing development of their financial sustainability. These good actions are both in the field of ethic branch and...