Business
Executive Summary:
The value of oil in spurring growth and development in world economy is undeniable. In the last 100 years, the allure for oil has increased. This development is anticipated to surge until an substitute sources are discovered. Bp is among the global and outstanding oil company of revered repute. However, its businesses practices have been compounded with environmental challenges which it needs to solve. Recent oil spill in the Gulf of Mexico highlights gives a credence why it is important for the business to implement environmental compliance policy. It is reported that around 174 million gallons spilled over an area of 25, 000 square miles. The sustained loss has adversely affected the company’s performance since over $ 6 billion was immediately allocated to clean the spill while the whole process was estimated to be around $ 40 billion. The environmental compliance policy will help BP direct its operations and prevent it from attracting major financial penalties associated with negligence. This paper seeks he Board’s authority to pass environmental compliance policy so as to streamline environmental policies of BP.
Background
Environmental conservation plays a major role in enhancing business success. BP faces a fundamental issue that involves environment issues. The issues are a result of Oil spill in the Gulf of Mexico, which happened in 2010. Accidents such as Oil spill result in disastrous environmental effects such as water pollution, damage to aquatic life, loss of lives breakdown of businesses and change in climate. The Mexico’s tragedy shows that around 174 million gallons spilled over an area of 25, 000 square miles, moreover, BP in recent reports has shown plans of waiving $75 million on environmental harm and obliged to foot costs in any weight they may occur. An effect of poor environmental practices affects customers and suppliers as stakeholders. Similarly, it makes a company to lose colossal amount of money when the accident occurs in terms cleaning the mess, litigations, disruption of business operations and compensations.BP should remain steadfast in showing its commitment to business processes that supports the growth and profitability, as well as being environmental friendly. The organization compliance through have an environmental solution in its business practices will help improve safety of all suppliers and customers as well as promoted a balanced and a healthy ecosystem.
BP should be a solution to environment effects that is caused by accidents such as oil spill. Different alternative solutions exists to mitigate issues of environmental damage, however, environmental compliancy policy is a fitting strategy. Environmental compliancy policy will commit the business to ethical business practices. The policy should spell out guidelines and practices that govern their operation on matters relating to environmental protection. The policy should cover methods of evaluating the business operations to determine their suitability. Ways of minimizing spills and other toxic emissions, adhering to environmental regulations and subscribing to accredited institutions to reduce greenhouse gases.
Implications of non-action and of the recommendation
Failing to implement environmental compliancy policy will have detrimental effect to the company. One of implication that will arise is the ethical standing of the company. The company will have failed to embrace ethics in its business practices and this perspective will portray a negative impact on its stakeholders such as customers and suppliers. Also, if an oil spill occurs uncertainly in the course of business operations, legal aspects will follow. It will make the company use a lot of money in terms of legal defense, compensation environmental clean up among others. On the other hand, the policy implementation will result in a stronger company’s mission and comprehensive CRS policies reduce financial implications and reduce environmental risks.
References
Hayward, T 2010, BP 2010; Strategy Presentation. New York, NY: BP Corp.
Bateman, TS & Snell, SA 2011, Management: Leading and Collaborating in a competitive World. New York: MacGraw-Hill Irwin
Kraft, M E, & Kamieniecki, S 2007, Business and Environmental Policy: Corporate Interests in the American Political System. Massachusetts: MIT Press
Banerjee, SB 2009, Corporate Social Responsibility: The Good, the Bad and the Ugly. New York: Edward Elgar Publishing
Hopkins, M 2012, Corporate Social Responsibility and International Development: Is Business the Solution?. New Jersey: Earthscan
Gardner, D. (2010). Bp Market Plunge Wipes Billions Off UK Pension Funds as Shares In Oil Giant Suffer Fresh Falls. Retrieved from
http://www.dailymail.co.uk/news/worldnews/article-1282870/BP-shares-plunge- 15-oil-giant-admits-oil-spill-August.html#ixzz1IqpQPk00
Boeger, N, Murray, R & Villiers, C 2008, Perspectives on Corporate Social Responsibility. New York: Edward Elgar Publishing
Lenssen, G 2006, Corporate Responsibility and Competitiveness. London: Emerald Group Publishing
Appendix
BP’s Mission
BP finds, develop and produces critical sources of energy. They convert these sources into finished products that help people wherever they are. The company expects to be held in high standards in what they do. Besides, safety defines BP.
Values
BP’s values include teamwork, respect, excellence, safety and courage
BP’s Strategy
The company aims in creating a long lasting value to stakeholders by helping meet the growing demand of energy in a responsible and safe manner. The company strives to be a global leader and a respected employer.
Personal Accountability for CEO and Board of Directors
Accountability for the company is a chain shared by CEO and Board of Directors. They are bound to take taking risks. The board is responsible for protecting the interests of the stakeholders.
Effects of Oil spill: A disaster to wildlife
Environmental pollution: Causes greenhouse effect, a disaster to the environment
Oil Spill Impact
Oil Spill by Numbers
Financial Implications
Risk Assessment
