Ethics: BP Struggles to Resolve Sustainability Disaster
BP, formerly known as British Petroleum, is one of the largest companies in the energy industry. Over the course of its operation, BP has been experiencing “attacks” from the public and the government. They have also received controversies concerning their unethical business practices, environmental damage they have done, worker’s safety issues, and the greenhouse gases produced from them. The public has perceived them as a pariah company. For a long time, BP has tried to repair its image as an unethical company, one who only cares about its shareholders and not its stakeholders.
Unfortunately, BP took another huge blow when the Deepwater Horizon oil rig exploded in the Gulf of Mexico in April 20, 2010. The explosion led to one of history’s worst offshore oil disaster. Prior to this incident, BP has experienced many other incidents. One of which happened in March 2005, where one of their oil refinery in Texas exploded. The explosion killed 15 employees and 170 others injured. The explosion was said to be cause by a hydrocarbon liquid and vapor leak. It then ignited and exploded. BP was charged for violating the Clean Air Act and was fined $50 million. In March and August 2006, BP violated the Clean Water Act when an incident that was considered as the largest oil spill on the North Slope occurred. The leak was a result of BP not responding to a few evidence indicating that there may be a leak that is likely to occur. They were fined a total amount of $45 million. The number of oil spill incidents did not stop there. In 2007, another oil spill occurred near the Prudhoe Bay. Many plants and animals were killed during this incident. During the same year, BP was charged for violating the Commodity Exchange Act, and also for committing mail and wire frauds (Pg 344).
It has clearly shown that BP has neglected its stakeholder such as the environment, local communities, suppliers, shareholders, and etc....