...Corporate Social Responsibility, Course 2016 FE1 EDHEC Nice Tutorial 3 BP, Deepwater and Sustainability Reporting The Deepwater Horizon oil rig fire and explosion on April 20, 2010, killed 11 men and caused one of the largest marine oil spills in history. The leak from the undersea well flowed for 87 days and polluted an estimated 68,000 square miles of the Gulf of Mexico waters and nearly 500 miles of coastline from Louisiana to Florida. At the moment of the accident BP was the leaseholder and operator of the Maconda well located off the coast of Louisiana. The company was ultimately responsible for conducting operations there safely and in respect of the environment. BP hired Transocean Ltd (the owner of the drilling rig Deepwater Horizon) to provide the vessel and drilling crew to implement BP’s operations of the Maconda well. 1 Investigations established that bad management on the Deepwater Horizon resulted in poor safety on the rig. The US chemical safety board concludes that a last-ditch safety device on the underwater well had multiple failures and wasn't tested properly. It found that the cause of the initial explosion involved multiple screw-ups with cement, drilling mud, fluid pressure, botched tests, management problems and poor decisions. The blowout preventer sealed the well temporarily, but then it failed and that caused the massive spill. 1 For a description of BP’s implication in the Deepwater Horizon accident you can also read Cherry...
Words: 1059 - Pages: 5
...I. Introduction BP is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors". It is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has major renewable energy activities, including in biofuels, hydrogen, solar and wind power. BP has operations in over 80 countries, produces around 3.8 million barrels of oil equivalent per day and has 22,400 service stations worldwide. Its largest division is BP America, which is the biggest producer of oil and gas in the United States and is headquartered in Houston, Texas. As at 31 December 2010, BP had total proven commercial reserves of 18.07 billion barrels of oil equivalent. The name "BP" derives from the initials of one of the company's former legal names, British Petroleum. II. Issues 2010 was a year that called BP’s sustainability into question. The remarkable accident in the Gulf of Mexico on 20 April 2010 cost 11 lives, leading to a major oil spill and a widespread loss of trust in BP, caused irreparable damage on the surrounding environment. What did they do before and after the event, how to build a safer and stronger BP as they claimed? The Gulf of Mexico oil spill, which flowed unabated for three...
Words: 2453 - Pages: 10
...Sustainability Review 2011 bp.com/sustainability Building a stronger, safer BP What’s inside 2011 was a year of recovery, consolidation and change for BP. Our employees worked hard to make BP a stronger, safer company. We recognize there is more to do, but we believe important progress was achieved during the year, and we are clear on our priorities and responsibilities as we move forward. In this Sustainability Review, we look at how we are working to enhance safety and risk management, earn back trust and grow value, following the Gulf of Mexico accident. Stakeholder voices External and internal stakeholders have been essential in shaping this report. Many of their insights and opinions are highlighted here and online. We also include observations and a summary statement from our external assurance provider, Ernst & Young. During our work we interviewed staff responsible for engaging with external stakeholders and reviewed evidence of how information from these dialogues is captured. We have also attended a selection of briefings to investors and two of the roundtable discussions held in 2011 to understand the perspectives of various thought leaders on how BP should evolve its reporting and communications. We noted that stakeholders welcome this dialogue but there remains a desire for more comprehensive reporting on how BP is changing. Ernst & Young Observation Find out more online This Sustainability Review is a summary...
Words: 32523 - Pages: 131
...Petroleum is a public limited company. They suffered a huge downfall from their 2010 Mexican Gulf oil spill, although have rebounded very positively since then with major improvements in the company, both ethically and environmentally. This company markets its products in over 100 countries and, as of December 2011, employs over 83,000 employees. British Petroleum has worked hard to honour their commitments to the people and communities of the Gulf Coast. This company produces the natural resources that the world depends on daily, and produces them in some of the most operative, proficient, and resourceful ways which are possible today. (BP, n.d.). This company proves to be constantly evolving in the world. They are always innovating and coming up with new ways to operate their business as to cause the most minimal effect or damage on the environment. BP has become one of the most environmentally aware companies of the modern age, especially from what they have gone through in the Gulf of Mexico, and the revolutionary technologies they have integrated in their business operations. The vertically integrated company uses three main types of leadership, as well as an operational controlling method to ensure that the organization functions accordingly and remains socially responsible, ethical, and practices corporate social responsibility. By focussing on developing the company’s organizational structure on upstream and downstream tasks, British Petroleum can aim towards innovating and...
Words: 3845 - Pages: 16
...is now known as British Petroleum (BP) was founded in 1909 and is one of the world’s leading international gas and oil companies. The multinational British company’s headquarters is located in London, United Kingdom and is one of the five largest oil companies in the world. The pioneer of the Middle Eastern oil industry, BP discovered oil in Iran before World War I and eventually became involved in all aspects of the oil industry, from exploration to marketing. Offering an array of services that expand from providing fuel for transportation to providing energy for heat and light, BP has become one of the leaders in energy sourcing across the globe. (Company History Index, n.d.) BP is also known for petrochemical products for everyday items and retail services. BP is one of the leaders of the energy industry. The company has high standards and uses the most modern technology in order to deliver long-term value and to meet energy needs. As a global company all activities and interest are held or operated through subsidiaries, associates or joint ventures which are governed by the laws of many jurisdictions. Around the world there are 16,400 BP service stations. (Company History Index, n.d.) Specify the nature, structure and type of products or services of Apple, and Identify two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale. British Petroleum (BP) is one of the world’s leading international...
Words: 1639 - Pages: 7
... : 100010779 Exploring Justice, Fairness and Organizational sustainability in the international environment: The case of 2010 Gulf of Mexico Exploring Justice, Fairness and Organizational sustainability in the international environment: The case of 2010 Gulf of Mexico Abstract This study leverages insights from the literature of organizational sustainability, stakeholder theory as well as the notion of organizational justice and fairness to help answer the question as to how companies should morally prioritize corporate social responsibility, corporate accountability and stakeholder claims. In this paper, I also utilized the concept of corporate social responsibility as well as the triple bottom line in order to form my own model of sustainability. This model is used to analyze the case of the 2010 Gulf of Mexico oil spills which was claimed as the responsibility of British Petroleum. I also addressed the strong relationship between organizational justice and organization sustainability with the conclusion that by enhancing organizational justice and fairness, organizations will be able to obtain its sustainable development in the long terms. Moreover, it is important to note that this article mostly focus on the sustainability regarding to three dimensions of economic, environmental and social, analyzing the real-world problems in order to emphasize the importance of philosophical roots of sustainability. Perhaps the result came out from this study will be seen as a...
Words: 19408 - Pages: 78
...initiatives, which in some cases can be used to hide environmental damage you may be causing. In this essay I will extend on greenwashing, supporting the definition. I will explain the reason a company may commit greenwashing, using a lot of TerraChoices’ ideas about greenwashing for support. I will also analyse the different forms (the sins) of greenwashing, supporting these ideas with examples of some of these sins being committed by various companies. Concluding the main body of my essay I will include some various ways greenwashing is attempting to be addressed, in particular by the federal trade commission with the green guide. According to TerraChoice (2010) there was a growth of 79% between 2008 and 2009 green products. With green marketing increasing, greenwashing is also increasing. Lane (2013, p.168) states greenwashing can be described as making false or misleading claims regarding purportedly friendly products, services or practices. As a result to the increase in knowledge of climate change and a range of other environmental issues consumers demand that products are more environmentally friendly and are sustainable. This has led to the increase of businesses to engage in greenwashing, or falsely advertising their products. The reason that greenwashing matters, according to Sage Publications (2010, p.189) when greenwashing occurs consumers waste money buying products that are advertised as being environmentally friendly, and may not be. Paetzold (2010) claims also that...
Words: 1877 - Pages: 8
...The global ethical position of BP and their exploration of the Gulf oilfields. BP (formerly British Petroleum) is one of the world’s largest oil and energy companies, which provides fuel, energy and petrochemical products. They have been in existence since the early 1900’s and have gone through a number of changes. In July, 2003 after merging with Amoco they rebranded as a ‘beyond petroleum’ company. Their logo, a sunburst of green, yellow and white, symbolizes dynamic energy in all its forms. (BP, 2010). Their ‘beyond petroleum’ tagline featured BP as a company that was concerned with the environment and its corporate social responsibility (CSR). BP’s Director of Business ethics outlined their commitment to ‘being ethical’, which included respect for human rights, avoiding harm to people and the environment , avoiding conflicts of loyalty and interest. (Broome 2003). However, as a result of the oil spill in the Gulf of Mexico in 2010, BP’s ethics policy have been placed under extreme scrutiny, exposing them as a company whose marketing strategies is misaligned to their actions. This article looks at BP’s global ethical position with regards to their exploration in the gulf oilfields. It takes a further look at the implication that it caused to their branding and marketing strategies and suggests what marketing strategies they should adopt in order to move forward and regain sustainable competitive advantage. One of BP’s strategies is to create value for shareholders...
Words: 2377 - Pages: 10
...ISSN: 2278-3369 International Journal of Advances in Management and Economics Available online at www.managementjournal.info CASE STUDY Crisis communication failures: The BP Case Study Daniel De Wolf1, Mohamed Mejri2* 1University 2Ecole of Littoral Côte d’Opale (ULCO)/Management & Economics, Dunkerque, France. Superieure de Commerce/Management Department, University of Manuba, Tunis, Tunisia. *Corresponding author: Email: mohamed.mejri@univ-littoral.fr Abstract On the 20th of April 2010, an outstanding explosion of the BP Deepwater Horizon oil rig situated in the Golf of Mexico caused the largest maritime disaster oil spill in the USA history and particularly caused considerable reputation and financial losses to BP.To deal with the spill oil as well as reputation and financial losses, the company particularly use many tactics and tools to communicate with stakeholders during and after the crisis. However, crisis management and communication experts’ opinions differed on whether BP crisis communication was effective or ineffective.This paper aims to assess BP crisis communication and mainly to point out possible failures through a content analysis of secondary data collected from various sources (newspapers, magazines, annual reports and blogs). Keywords: British Petroleum, Crisis communication, Crisis Management, Deepwater horizon. Introduction On the 20th of April 2010, the petroleum industry has been marked by the largest maritime disaster oil spill...
Words: 6804 - Pages: 28
...Quality Issues in the Gas and Oil Industry: BP PLC Project Outline I. Overview of BP PLC a. Full Name- British Petroleum b. Amount of Individuals Employed- 83,400 people c. Worldwide Industry- Gas and Oil Production d. Products and services- Aromatics and acetyls, Asphalt, Aviation and marine fuels, Petrochemical products, Bitumen, Fuel cards, Liquefied petroleum gas (LPG), Marine fuel, Oils and lubricants, Photovoltaic solar electric products and systems, Polymers, Purified terephthalic acid (PTA), Paraxylene (PX), Acetic acid, Ethylene, Propylene, Solvents and industrial chemicals, Downstream derivative products, Generation of power, Operation of fuel stations, Oil and gas exploration and production, and Oil and natural gas transportation, distribution, and marketing e. Quality Management Processes i. Finding Gas and Oil 1. Use refined technology and new scientific techniques through the use of typographical maps, sound waves, aerial photography, 3D projections, and more 2. Form educated guesses regarding size, shape, and oil/gas consistency ii. Extraction of Gas and Oil 1. Building of Production Facilities a. Analyze environmental data to ensure ways facility will make minimal impacts on environment b. Recycling of facility 2. Environmental Impact a. Environmental experts assess the impact b. Review possible problems in order to properly address them iii. Gas and Oil Transportation 1. Pipeline Usage 2. Shipping 3. Global Energy Trading iv. Making of the...
Words: 640 - Pages: 3
...KENSINGTON COLLEG OF BUSINESS AND UNIVERSITY OF WALES BP Market Analysis and Strategic Marketing Recommendations In the USA after the Gulf of Mexico Oil spill Nahid Mohsen Pour 2/28/2011 Contains: 2962 words Without charts, content, references, tables In this essay, I am performing Macro environmental analysis of BP business in the USA, after the gulf of Mexico oil spill, and also try to give Strategic Marketing recommendations to recover from the so called “Marketing disaster in the USA market” Nahid Mohsen Pour Table of Contents Introduction ............................................................................................................................................ 4 Approach ............................................................................................................................................. 4 Importance of Marketing ..................................................................................................................... 4 Part I: Macro Environmental Analysis of BP business in the USA after the Gulf of Mexico Oil Spill ............ 5 Political Analysis .............................................................................................................................. 5 Economical Analysis ......................................................................................................................... 5 Social Analysis..........................................................................
Words: 3733 - Pages: 15
...BP in Azerbaijan Sustainability Report 2013 bp.com/caspian Building a stronger, safer BP About our report This report covers the calendar year ending 31 December 2013. In some instances significant events from 2014 have been included. Unless otherwise specified, the text does not distinguish between the activities of BP p.l.c. and those of its subsidiaries and affiliates. References in this report to ‘us’, ‘we’ and ‘our’ relate to BP in Azerbaijan unless otherwise stated. When we cite ‘BP in Azerbaijan’ we refer to operations in Azerbaijan only. If we refer to ‘BP AGT’ we are including all our activities in Azerbaijan, Georgia and Turkey. Specific references to ‘BP’ and the ‘BP group’ mean BP p.l.c., its subsidiaries and affiliates. All dollar amounts are in US dollars. All gas volumes are indicated in standard cubic metres or standard cubic feet. The report is issued annually by BP Exploration (Caspian Sea) Limited in its capacities as operator and manager of the joint operating company for the Azeri-Chirag-Deepwater Gunashli field, as manager of The Baku-Tbilisi-Ceyhan Pipeline Company and by BP Exploration (Shah Deniz) Limited in its capacities as operator of the Shah Deniz field and as technical operator of The South Caucasus Pipeline Company. For this report each of these entities has provided information relevant to its project and statements applicable to its project. Front cover imagery The Sangachal terminal is one of the world’s largest integrated oil and...
Words: 35186 - Pages: 141
............................................................ 3.2 Global Market........................................................................ 3.2.1 NAFTA & MERCOSAR................................................. 3.2.2 APEC........................................................................... 3.2.3 EU Vs Global Markets................................................. 4. Corporate Social Responsibility....................................................... 4.1 CSR and BP- Olympics in London; 2012..................................... 4.2 BP vs. the Consumer.................................................................. 4.3 Russian takeover with sex parties............................................. 5. Environmental policies.................................................................... 5.1 Kyoto protocol and the EU........................................................ 5.2 The EU and the environment.................................................... 5.3 BP and the environment............................................................ 5.3.1 Breath of fresh air......................................................... 5.3.2 Ten tips to save more fuel............................................ 5.3.3 Alaskan pipeline........................................................... 6....
Words: 3936 - Pages: 16
...1 PRINCIPALS OF GREEN MARKETING MKT/411 Individual Assignment Barbara Figiel Instructor: Rodger University of Phoenix 2 | | | | | | | | | | | Green Marketing Principles1. Be CredibleCredibility is essential for successful green marketing. You have to implement sustainable business practices before promoting green products and services or the public will perceive you as cynically taking advantage of environmental concerns.2. Make Specific ClaimsPeople understand the cost and difficulty in making a product or service completely green. Communicate about the particular attributes that are rooted in sustainability. The FTC offers guidance on what's acceptable: http://www.ftc.gov/bcp/grnrule/guides980427.htm3. Validate Through Third PartiesUse external organizations, Non-Governmental Organizations (NGOs), or governmental entities to substantiate any green claims. Examples include: UL Environment (Underwriters Laboratories), Ceres, and the EPA's Green Power Partnership.4. Engage Your CustomersGreen consumers have an above average propensity to engage, interact with, and even help companies that are making credible efforts to operate with sustainable business practices and offer green products and services. Use interactive channels to involve your customers in developing and managing your green products and services.5. Engage Your EmployeesIn addition to ensuring a consistent message across all customer contact points, your employees can feed...
Words: 967 - Pages: 4
...`BP is one of the largest vertically integrated oil and gas companies in the world.The company'soperations primarily include the exploration and production of gas and crude oil, as well as themarketing and trading of natural gas, power, and natural gas liquids. BP, with a focus to drive futureperformance, continuously invests in research and development (R&D). Strong R&D capabilitiesenable BP to attain competitive advantage over its peers, maintain technological edge over itscompetitors, and stay ahead of industry trends. However, the company is Robust research and development capabilities Vertically integrated operations Wide geographic presence Oil spill in the Gulf of Mexico Transformational partnership between BPand Reliance Industries Expansion of the biofuels business in Brazil Boosting of PTA production capacity inChina Strategic agreements and contract Risks concerning environmental Instability in some oil-producing regions Saturation of resources in the North Sea Strengths Robust research and development capabilities BP, with a focus to drive future performance continuously, invests in research and development(R&D). Investment in R&D is also a measure of the company’s commitment to the future organic growth of the business. In FY2011, BP’s expenditure on R&D was $636 million. As of FY2011, BP treated 78 wells with Bright Water technology in Alaska, Argentina, Azerbaijan,and Pakistan, which has delivered increased...
Words: 3103 - Pages: 13
