Ethical issues of BP Essay - 852 Words

BP has had a long history of ethical and legal violations because BP chose to put profits above all else. In the past twenty years, BP subsidiaries were convicted of environmental crimes in Texas and Alaska. In addition, BP received the biggest fine in US history regarding safety violations. Although BP accepted responsibility, their record showed questionable and illegal behavior for twenty years. One of BPs major issues happened in a Texas refinery close to Galveston in 2005 (Jennings, 2009). This explosion took the lives of fifteen workers and injured five hundred people and caused residents nearby to become sheltered in their homes (Jennings, 2009). The US Chemical Safety and Hazard Investigation board concluded that BP had†¦show more content†¦BP knew in advance, the life span of the pipes. These pipes were installed in 1977 and had a twenty five year expiration (Jennings, 2009). BP decided not to replace the pipes. The explosion occured in 2006 because the corr osion in the pipes had exceeded their expiration date by five years. In addition, BP was convicted of a felony due to their violation of the Clean Air Act. The judge fined BP $50 million and put them on probation for three years. OSHA fined BP the largest fine in OSHAs history, $87 million due to two hundred seventy safety violations that they never fixed along with four hundred thirty nine new violations. Previously, twenty years preceding, BP partnered with Exxon in Alaskas Prudoe Bay oilfield when the Exxon Valdez oil spill occured. BP and Exxon shared the trans-Atlantic pipeline ownership which is referred to as Alyeska. Some important documents had been leaked to Congress and the news media, which stated Alyeska did not fulfill promises to contain spills. Chuck Hamel was the chief suspect in the leakage of the documents. Hamel had also complained to management at BP about corrosion of the pipes and concerns about the workers safety (Jennings, 2009, p 409). Hamel stated that ...workers were asked to skimp on the use of anticorrosion chemical s in the pipe because of expense. (Jennings, 2009, p 409). Hamel then proceeded to take his complaintsShow MoreRelatedBp Ethical Issues1630 Words   |  7 Pages1. Originally, an Ethics and Compliance team was formed to monitor the formation and operation of the company guidance towards ethical issues in BP’s company.  Just like to set up a communication consistent standard for all the employees of BP for different location, culture and language.  Originally, this is a good way to guide the company staff to maintain company standard and reputation. But the code did not effectively address specific high-risk activities for the scope of daily operations.  ItRead MoreThe Ethical Issues Of Bp3305 Words   |  14 PagesIntroduction BP, formerly known as British Petroleum, is the third largest oil and gas producer in the world, producing almost 3.8 million barrels per day. BP was founded in 1908 by William Knox D’Arcy in London, United Kingdom. The company operates worldwide in several sectors of the oil and gas industry such as generating low carbon energy, moving oil and gas, and off and onshore oil and gas extraction (BP, 2014). However, the offshore Deepwater Horizon oil spill that happened on April 20th, 2010Read MoreEthical Issues Raised By Bp1237 Words   |  5 Pagesfor human being. However, oil industry brings about many ethical issues such as safety and environmental impact. In this ethics report, we will study one of the world’s leading international oil company – BP, who operates in nearly 80 countries . We will particularly discuss ethical issues raised by BP in oil industry in the United States (US) between 2002 and 2006. The three ethical issues which are going to be discusse d are (1) safety issue in workplace depicted by the Texas City explosion in 2005Read MoreEthical Issues Surrounding the Bp Oil Spill1236 Words   |  5 PagesEthical Issues surrounding the BP Oil Spill By: Angela Higgins December 16, 2010 The BP Oil Spill which happened on April 20, 2010, was the largest offshore oil spill in U.S. history releasing approximately 185 million gallons of crude oil into the gulf. This event was the result of a wellhead on the Deepwater Horizon oil drilling platform blowing out in the Gulf of Mexico approximately 40 miles southeast offs the Louisiana coastline. Eleven men working on the oil rig platform were killedRead MoreCross Cultural Perspectives1127 Words   |  5 PagesPerspectives ETH 316 BP is a global organization that has a multinational presence in the world. A cultural issue that can impact this organization outside of the United States is gender. In the United States and several other countries that BP works in, gender is not an issue as culturally it is acceptable for men and women to be in business together, but in some countries, especially in the Middle East this is tricky cultural difficulty. This can be a serious issue because women should beRead Morebp case study Essay641 Words   |  3 Pagesï » ¿1. What are the main ethical issues and dilemma BP faces in this case? A project that is on a large scale faces some issues, including: There are concerns about the coating of the pipeline and the risks of leakages, in particular in Georgia, where oil spills might significantly impact the country’s strategic water resources in the Bojorni National Park. Concerns were also raised over the fact that the pipeline runs through earthquake zones, which leakages nearly inevitable or could not be avoidedRead MoreBp Case Study931 Words   |  4 PagesCover Sheet Case Study: BP (Beyond Petroleum) Focuses on Sustainability University Instructor: 03/15/2012 Abstract When a person thinks of BP they image a green gas station and gas pumps. But BP has over 100 years of history behind it. BP was formally known as British Petroleum and the Anglo-Persian Oil Company. It was founded in 1908 by William D’Arcy, a rich British man who invested all his savings in his quest for oil in the Middle East. At the time BP was committed to protect theRead MoreBp s Ethical Culture And Corporate Social Responsibility Procedures1305 Words   |  6 Pagesas it is now known as BP, has grown into one of the four major Oil and energy multi-nationals on the planet. Their success can be attributed to their innovative prowess and their ability to stay one step ahead of their competitors, by investing in places no one has before. The common perception of BP by the general public over the past decade has been quite positive, with people aligning environmental values’ with their new brand positioning. All of this changed after BP was blamed for one of theRead MoreWhy Law And Ethics Should Be Legal1501 Words   |  7 PagesPeople that work with laws every day know that it isn’t an exact science. The reason is not that it has a lot of issues or that it is always affected by politics, instead the main reason is the human factor. People end up changing their minds and everyone one makes mistakes at some point. For example, in legal situations the information that is collected could be incorrect or made up. That is the main reason why law and ethics go side by side. Most people want to make the correct decision wheneverRead MoreThe Hurricane Katrina Disaster And The Bp Oil Spill Tragedy941 Words   |  4 PagesAbstract This essay relates ethical behavior in high-profile events, as well as examining various regulatory and sustainability market approaches to business environmental responsibilities. The paper focuses on two major occurrences; the Hurricane Katrina disaster and the BP oil spill tragedy. Hurricane Katrina entered into records as one of the worst disasters ever to hit the US, the storm is considered as the most disastrous and damaging in the US history in