Ethical culture is based on the idea of supporting one another to become better people and on doing what is good to the world. BP saw an opportunity to tap into a new, profitable oil reservoir that would better the lives of the people who lived around (Freudenburg & Gramling 2011). They hired an oilrig from Transocean to tap the reservoir, but later on, an explosion rocked the rig, killing 11 employees. As a result, the burning rig sank two days later. Moreover, the oil well being drilled was damaged in the explosion and caused an oil spill disaster in the Gulf Coast.
It is evident that BP purposefully avoided risk management. The oilrig had safety systems, but they were not safe as they were supposed to be. In addition, Transocean and BP did not have any laws governing them. Some people suggest that BP cut down risk management as a method to save money and time. Alternatively, records show that Transocean limited resulted in incidents that caused federal investigations on safe oil drilling in deep sea. BP was supposed to take safety measures before hiring this company. On the contrary, there were pending lawsuits on suspected safety failures against Transocean (Juhasz, 2011).
BP experienced a wide range of ethical issues, which led to making better plans for the future. In this regard, the company should launch better sustainability initiatives as well as social responsibilities. The global corporation faces the responsibility of restoring the environmental damage it created on top of repairing economic damage imposed to the various stakeholders. Moreover, the company should examine risks to the stakeholders (Farrell, 2011). There has to be safeguards necessary to protect suppliers, employees, and local communities. In addition, the viability of industries involved such as fishing, tourism, and sustainability of offshore drilling industry. There should be increased awareness of the risks of offshore drilling and the authorization to execute any safeguard that can protect the environment.
Farrell, C. (2011). The Gulf of Mexico oil spill. Edina, Minn: ABDO Pub.
Freudenburg, W. R., & Gramling, R. (2011). Blowout in the Gulf: the BP oil spill disaster andthe future of energy in America. Cambridge, Mass: MIT Press.
Juhasz, A. (2011). Black tide: The devastating impact of the Gulf oil spill. Hoboken, NJ: John Wiley & Sons, …