The Environmental And Ecological Factors Essay

British Petroleum p.l.c once known as Anglo-Persian Oil Company is a registered oil and natural gas industry established on 14th April 1909 in United Kingdom. Harmonizing to BP ultimate ( 2012 ), during the early 1900 ‘s the hunt for oil was began by the Shah of Iran which was discovered in the mid of 1908 and it was known as the first major discovery in the Middle East. It ‘s besides say that BP was considered as a subordinate of Burmah Oil Company under the name of Anglo-Persian Oil Company ( APOC ). However in 1935 it became as the Anglo-Iranian oil company ( AIOC ). After 45 old ages of flourishing services, in 1954 the company got registered by the name today we know which is the British Petroleum p.l.c.

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Although BP does non hold a specifically labeled mission statement BP has published a statement placing its nucleus involvement is said to be progressive, responsible, advanced and public presentation driven ( retail industry, 2012 ).Each of these words in the statement being the chief mark of the company, describes its missions. These in general provinces that Bp creates a user friendly environment between them and their clients and besides Bp would wish to guarantee that the merchandises that they invent would be environmental friendly.

British Petroleum plc ( BP ) operates 22,400 gas station over more than 70 states with more than 80,000 employees.Being the world’sA third-largest energy companyand fourth-largest in footings of revenuesA integrated oil concern, It isA vertically-integratedA and puting on oil and gas industry, includingA alternate energy like Biofuel air current power and solar energy. Furthermore BP is active in marketingand distributing petrochemicals throughout the planetary. ( Corporate Watch, n.d ).

Today BP has invested inA 30 states on oil and gas and it has 18.1 billion barrels of oil militias equivalent. Furthermore, harmonizing to Corporate Watch ( n.d ) BP are the largest oil and gas manufacturer in the US and besides processA 4 million barrels of rough oil per twenty-four hours.


This assignment is based on “ internet information ”, sing many challenges adopted by BP to get the better of the competition and disasterlike ; Gulf of Mexico oil spills catastrophes were acquired through.

BPwebsites, publicationsand International Oil Spill Conferenceserved as the chief beginnings of information on authorities policies, ordinances and Torahs. Oil boring ordinance and policies are taken from UK, USA and international oil and energy studies published online. Furthermore, BP one-year studies, articles, diary articles, web sites, books and magazines.

4.0LITERATURE Reappraisal

In the modern concern environment planetary company like BP has to alter and follow different schemes to accomplish its hereafter vision and aims. To run into the hereafter challenges, its every of import to follow corporate scheme on corporate administration, corporate societal duties and moralss. Johnson and Scholes define scheme as follows “ Strategy is the way and range of an organisation over the long-run: which achieves advantage for the organisation through its constellation of resources within a ambitious environment, to run into the demands of markets and to carry through stakeholder outlooks ”. [ on-line ] Available: hypertext transfer protocol: // [ 28th September 2012 ], Bp is concentrated on those of import country as Johnson and Scholes reference on define of scheme to accomplish its long term aims.

OECD 2004 reappraisal, explain the importance of corporate administration and its map as follow. “ Corporate administration is about the manner in which boards oversee the running of a company by its administration weakens a company ‘s possible and at worst can pave the manner for fiscal troubles and even fraud. If companies are good governed, they will normally surpass other directors, and how board members are in bend accountable to stockholders and the company. This has deductions for company behaviour towards employees, stockholders, clients and Bankss. Good corporate administration plays a critical function in underpinning the unity and efficiency of fiscal markets. Poor corporate companies and will be able to pull investors whose support can assist to finance farther growing ” (2004 Review of the OECD Principles of Corporate Governance). BP is adopt and following the corporate administration to carry through all the stakeholder best involvement.

Claire Andre, Thomas Shanks, S.J., and Michael J. Meyer, Issues in Ethics IIE V1 N1 ( Fall 1987 )

Ethical motives refers to tenable criterions of right and incorrect that prescribe what worlds ought to make, normally in footings of rights, duties, benefits to society, equity, or specific virtuousnesss. Ethical motives, for illustration, refers to those criterions that impose the sensible duties to forbear from colza, stealing, slaying, assault, slander, and fraud. Ethical criterions besides include those that enjoin virtuousnesss of honestness, compassion, and trueness. And, ethical criterions include criterions associating to rights, such as the right to life, the right to freedom from hurt, and the right to privacy. Such criterions are equal criterions of moralss because they are supported by consistent and tenable grounds. [ Online ] Available: hypertext transfer protocol: // [ 24september2012 ].Bp shared many codifications of moralss like say no to bribery, no injury for marine life and ecology system.

Therefore corporate scheme, corporate administration and moralss are really of import elements in today ‘s concern environment.

Facts, findings, treatment and analysis


Situational Analysis

The oil industry has shown great resiliency in the face of ‘competitive catastrophes ‘ and the fast evolving ( PESTLE ) : political, societal and economic climes, technological environment, Legal and Ecological. Harmonizing to Cooper et Al 1994, it is province critical that the necessary information about the internal and external environment be gathered before a constructive unfavorable judgment is made. He besides argues that the findings are a really minimal to cover the bases of PESTLE probe, that is to analyze the political, economic, societal, technological, legal and Ecological alterations that may impact the company and the market. Governments provide and enforce the regulations including ordinances and policies due to Gulf of Mexico oil spill, “ authorities are outlining more Torahs and ordinances would necessitate that boring execute independent audits and hazard appraisal designed to cut down accidents caused by Technological and human mistakes ” ( Alan Levin, USA TODAY UpdatedA 5/10/2010 4:48 PMA ).

See in Appendix 1.

5.1 Political factors:

“ It was a combination of a deficiency of transparence, a deficiency of consecutive speaking and a deficiency of sensitiveness to the victims. When you ‘re pull offing an environmental catastrophe of this magnitude you non merely have to pull off the job but besides pull off all the stakeholders. ”

Dispute on Iran and other Middle East states causes instability on Stock market monetary values and the rough oil monetary value will.

Pressure group like Greenpeace and environment protecting bureau are act uponing and making bad image of the company.

5.4 Legal factors:

Bp is confronting many jurisprudence Sue due to oil spill in Gulf of Mexico, this is impacting the company image and repute.

Offshore oil boring is banned many states.

Most ambitious legal factors might be Carbon revenue enhancement and clime alterations

5.2 Economic factors:

These include involvement rates, revenue enhancement alterations, economic growing, rising prices and exchange rates. As you will see throughout the “ Foundations of Economicss ” book economic alteration can hold a major impact on a house ‘s behaviour.

For illustration:

Higher involvement rates may discourage investing because it costs more to borrow.

A strong currency may do exporting more hard because it may raise the monetary value in footings of other currency.

Inflation and deprecation of currency is impacting the investing cost and operational cost.

Economic crises and Euro crises is impacting the BP concern in footings of hard currency flow every bit good as investing

Due to rising prices employees are demanding more rewards.

Economic growing and development on BRIC increased demand for oil. This creates chance to BP to provide its oil or invest on those states.

Opening up market like India, China will make chances for planetary company like Bp

Current economic crisis and Euro zone, economic crisis is impacting the BP corporative aim of the company

5.3 Technological factors:

Latest engineerings brought new procedures to drills deep sea. This will increase efficiency and cost effectual manner to carried out BP concern. This improves BP production and environmental friendly manner to run its concern.

Due promotion of engineering Alternative energy use are increasing. This will make more chances to Bp. Because BP is one the universe larges alternate energy manufacturers.

Due to engineering BP now can cut down its operation cost.

Reduce researching oil and apparatus cost for new market like India.

5.4 Environmental and Ecological factors:

When an oil slipperiness from a big oil spill reaches the beach, the oil coats and clings to every stone and grain of sand. If the oil washes into coastal fens, mangrove woods or other wetlands, hempen workss and grasses absorb the oil, which can damage the workss and do the whole country unsuitable as wildlife home ground.

Ecological factors include the wildlife animate being, marine environment, High Dolphin Deaths, fishing birds and tonss of fishes move from that country.

BP operation on deep sea is impacting the Marine life.

Enforcing C revenue enhancements and other environment protect jurisprudence and ordinance isaffecting the concern.


Harmonizing to Mallen Baker Corporate Social Responsibility is the go oning committedness by concern to act ethically and lend to economic development while bettering the quality of life of the work force and their households every bit good as of the local community and society at big ( 8 Jun 2004 [ online ] Available: hypertext transfer protocol: // [ September2012 ]. Bp is actively prosecuting public assistance activities like:

After the Gulf of Mexico oil sloping incident BP image had been harm. To derive back its repute and public truest BP is puting on Corporate Social Responsibility ( CSR ).According to BP [ online ] Available: hypertext transfer protocol: // categoryId=9026901 & A ; contentId=7049221 ) [ 24th September 2012 ]. Over $ 96 million had invested on CSR and many other community plans around the universe.

To had compensated more than $ 14billion on response Gulf of Mexico incident. [ on-line ] Available: hypertext transfer protocol: // categoryId=9036575 & A ; contentId=7067541 [ 24th September2012 ].

To undertake and the response on clime alteration job BP as a company set a mark to cut down internal emanations by 10 % following alternate and latest engineerings.

BP is prosecuting, promoting and puting on many societal activities around the universe. sharp-sightednesss like, edifice schools, assisting natural catastrophe victims, awareness plans on AIDS and patronizing event like Landon Olympic 2012

[ Online ] Available: hypertext transfer protocol: // categoryId=98 & A ; contentId=2000340 [ 25th Sepetember2012 ].

Today ‘s concern environment, Corporate Social Responsibility ( CSR ) is the new modal or construction of the concern. Therefore BP is puting and prosecuting on CSR.

7.0 Corporate Administration

Harmonizing to Lisa Mary Thomson, Corporate administration refers to the set of systems, rules and procedures by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can carry through its ends and aims in a mode that adds to the value of the company and is besides good for all stakeholders in the long term. Stakeholders in this instance would include everyone runing from the board of managers, direction, stockholders to clients, employees and society.

The direction of the company hence assumes the function of a legal guardian for all the stakeholders [ on-line ] Available: hypertext transfer protocol: // [ 24th Sepetember2012 ]. To guarantee corporate administration BP following one tier board system. This system promotes transparence and answerabilities on its responsible activities. Harmonizing to ( Cited in 2004, OECD review p.58 ) the corporate administration model should guarantee the strategic counsel of the company, the effectual monitoring of direction by the board, and the board ‘s answerability to the company and the stockholders.

To guarantee the corporate administration PB is accepting and promote to internal and external auditing on environmental impact and societal public presentation.

BP every bit good as single employees, transparence, duty and answerability on their action will be taken to consideration with planetary stander.

BP codifications of behavior clearly mentioned any graft and facilitation payments are non allowed.

BP board promotes and promote ethical, environment friendly and risk direction operation throughout.

BP board and direction believe in the modern concern universe, corporate administration scheme will give an reply for deceitful trading and corruptness. Therefore BP encourages and promotes transparence, duty and answerability for every action.

8.0 Ethical motives

Harmonizing to David B. Resnik, Ethicsis the “ set of beliefs ” or “ norms for behavior ” A that distinguish between acceptable and unacceptable behaviour in the society. Therefore, moralss is really of import for company like BP to follow and followed. Because BP is a planetary company operates about every corner of the Earth. “ Our Code besides includes cardinal points from new BP criterions related to anti-bribery and corruptness, anti-money laundering, competition and antimonopoly jurisprudence, and trade countenances ” [ on-line ] Available: hypertext transfer protocol: // categoryId=9038306 & A ; contentId=7006600 [ 24th Sepetember2012 ].

BP faced biggest environmental catastrophes and ethical inquiry due to Gulf of Mexico oil spills. Many critics BP has had a questionable safety criterion and stuffs used to construct oil rig. Due to BP ‘s action, coastal communities, marine life, ecosystems and climes are impacting so severely. This full inquiry is about BP moral moralss. Therefore, BP has to see all these jobs and do scheme to carry through shareholdersas good asstakes. Harmonizing to Bp [ online ] Available: hypertext transfer protocol: // categoryId=9040290 & A ; contentId=7073463 [ 25th September2012 ] ethical conformity from its employees, contractors and providers. “ In 2011, our concerns reported 529 dismissals for non-compliance or unethical behaviour, compared to 552 in 2010. Misdemeanors of wellness, safety, security and environmental demands accounted for about 46 % of these dismissals, reflecting our accent on keeping people accountable for safe operating ”. Due unethical behaviours BP terminated 14 providers and contracts last twelvemonth. Bp codifications of moralss guarantee that its operation should suit for planetary every bit good as local communities.

9.0 Decision

Despite local and planetary competition PB has managed and retains its place into the market through implementing Corporative administration, CSR/PR and other major alterations necessary to get the better of the challenges faced by Gulf of Mexico. Second factor is even after this unexpected incident BP had certain exclusivities like market place, puting alternate energy, puting CSR, altering its safety criterions, bettering corporate administration, taking incriminations and paying off amendss to local and international community might better its concern image.

Due to Gulf of Mexico incident BP had faced many challenges from all around universe. Due to high hazard and marine life ecosystem impacting some state is banned off shore boring. Russia and most of the Middle East Countries over alterations in political and economic status BP is face many challenges every bit good as chances. To undertake these chances and menace to follow good corporate scheme, CSR and good administration will get the better of and do advantages those chances. To keep oil monetary value and Alternative energy BP has to put on ( BRIC ). Because these states oil and alternate energy demand are higher. Alternative energy demand will increase the following coevals. So BP has to put on alternate energy will acquire competitory advantages.

10.0 Recommendation

Harmonizing to OECD study 2011, there are sensed menaces to the BP demand to be more environmental friendly and good understand on concern environment as a whole. This can be accomplishing through:

Increase investing on alternate energy like biofuels, air current and maintain close tie on Middle East states may accomplish its corporate schemes.

Investing on emerging economic systems like India, concatenation and Brazil will give competitory advantages in the close hereafter.

To run into these challenges BP is altering its scheme towards on moralss, CSR and bettering its corporate administration.

After confronting unexpected loss due to oil spill BP has to accommodate in hazard direction scheme to cut down the amendss for an incidents.

BP has to do schemes and policies towards on environmentally friendly manner drill to cut down the amendss ecosystems.

Transparency and good administration demand promotes all its concern spouses.

BP has to take excess attention on environment and safety particularly high hazard country like Gulf seashore.


Corporate scheme, corporate administration and moralss on concern environment assignment I came across troubles and the hazard of operating concern in planetary prospective, particularly in field of oil concern. Most significantly, how good ethical and corporate administration will assist to get the better of the challenges confronting modern concern universe.

In my research I came to cognize moralss and corporate administration differ from state to state. So this will be really hard followed same criterion. Therefore I got an thought and knowledge on these of import issues and how to get the better of those issues confronting today concern environment. I ‘m quite assurance I can use these theories into practical concern on my ain.


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