TOPI C S COVERED

i.
ii.
iii.
i v.
v.
vi.
vii.

E xe c u t i v e S u m m a r y
B r i t i s h Pe t ro l e u m C o m p a n y B a c k g ro u n d
O p e r a t i o n s Lo c a t i o n s a n d Bu s i n e s s S eg m e n t s
Ethical Dilemmas
a ) D e e p w a t er H o r i z o n
b ) Pr u d h o e B a y O i l S p i l l
A n a l y s i s o f t h e d i l e m m a s u s i n g v a r i o u s t h eo r i e s
I m a g e re c o v e r y p ro g r a m s
a ) A l t e rn a t i v e E n e rg y Pro g r a m
b ) E m i s s i o n Re d u c t i o n Pro g r a m
Re f e re n c e s

A
B
S
T
R
A
C
T
It is
sai
d
tha
t oil
and

Executive Summary
T h e f o c u s o f t h i s re p o r t i s a n a n a l y s i s o f B P s a c t i o n s ,
i d e n t i fy i n g a n d e v a l u a t i n g i t s e t h i c a l d i l e m m a s . I t w i l l
i n c l u d e g e n e r a l i n f o rm a t i o n a b o u t t h e c o m p a n y ,
i d e n t i fi c a t i o n a n d e v a l u a t i o n o f e t h i c a l d i l e m m a s b a s e d
o n t h e re c e n t o i l s p i l l s h a p p e n e d i n Pr u d h o e B a y a n d
Deepwater Horizon.
To a c h i e v e s o m e c l a r i t y , b o t h d i l e m m a s w i l l b e o b s e r v e d
f ro m t h e d i ff e re n t s t a ke h o l d e r s p e r s p e c t i v e s .
Fu r t h e rm o re , i n t h e d i l e m m a s e v a l u a t i o n p h a s e , v a r i o u s
t h e o r i e s w i l l b e u s e d t o d e t e rm i n e w h e t h e r B P s a c t i o n s
w e re e t h i c a l o r u n e t h i c a l , u s i n g a re l a t i v e l y
s t r a i g h t f o r w a rd c o s t - b e n e fi t a n a l y s i s . Fi n a l l y , B P
p ro g r a m s f o r p re s e r v i n g t h e n a t u r a l e n v i ro n m e n t a n d
s c a rc e re s o u rc e s f o r t h e f u t u re g e n e r a t i o n s w h i c h w e re
l a u n c h e d a ft e r c o m p a n y s re a l i z a t i o n o f i t s u n e t h i c a l
behaviour will be discussed in the last part.
I n s u m m a r i z i n g , i t c o u l d b e s a i d t h a t t h e re p o r t w i l l
s h e d m o re p e r s p e c t i v e s o n t h e s e s e r i o u s i s s u e s a n d
c o u l d h e l p t h e re a d e r t o h a v e a b e t t e r u n d e r s t a n d i n g o n
t h e p ro b l e m a s w e l l a s o p t i o n s f o r a c t i o n t o s o l v e t h e
issue.

Company Background
B r i t i s h Pe t ro l e u m i s o n e o f t h e w o r l d s l a rg e s t
i n t e g r a t e d e n e rg y c o m p a n i e s , o p e r a t i n g i n a l l a c t i v i t i e s
w h i c h a re c o n n e c t e d w i t h t h e o i l a n d g a s i n d u s t r y ,
w h i c h i n c l u d e ex p l o r i n g a n d p ro d u c i n g , re fi n i n g ,
d i s t r i b u t i n g a n d m a r ke t i n g t h e s e p ro d u c t s t o t h e w o r l d
m a r ke t . I t i s a l s o h e e d f u l o f t h e re n e w a b l e s o u rc e s o f
e n e rg y , f o r i n s t a n c e , w i n d a n d s o l a r p o w e r ( B P , 2 0 1 2 ) .
E v e r y d a y , B P p ro d u c e s a l m o s t f o u r m i l l i o n ( 3 , 8 m i l l i o n )
b a rre l s o f c r u d e o i l a n d n a t u r a l g a s , w i t h m a r ke t
c a p i t a l i z a t i o n o f 1 3 5 b i l l i o n , re v e n u e o f 3 8 6 b i l l i o n , a n d
8 3 t h o u s a n d e m p l o y e e s i n 2 0 1 1 , o p e r a t i n g i n m o re t h a n

100 countries and owning 27,800 service stations (BP,

2012). All of
these attest that
BP is amongst
the worlds most
important
multinational
corporations.

Operations
Locations and
Business
Segments
BP's world headquarters in St. James's, City of
We s t m i n s t e r , Lo n d o n
B P h a s o p e r a t i o n s i n a ro u n d 8 0 c o u n t r i e s
worldwide[135] with the global headquarters in
E n g l a n d , l o c a t e d i n t h e S t J a m e s ' s a re a o f Lo n d o n . [ 1 3 6 ]
As of November 2013, the company had a total of
83,900 employees.[4]

Operations by location
The company operates out of the following major
l o c a t i o n s - U n i t e d K i n g d o m , I re l a n d , U n i t e d S t a t e s ,
Af r i c a , A s i a , A u s t r a l i a . C a u c a s u s a n d t h e C a s p i a n
re g i o n , E u ro p e ( ex . U n i t e d K i n g d o m a n d I re l a n d ) , N o r t h
A m e r i c a ( ex . U n i t e d S t a t e s ) , S o u t h A m e r i c a

M a i n bu s i n e s s s e g m e n t s
The company is involved in the following business
s e g m e n t s ex p l o r i n g o i l a n d n a t u r a l g a s , o i l re fi n i n g
a n d m a r ke t i n g , p ro d u c i n g a l t e rn a t i v e a n d l o w c a r b o n
e n e rg y.

The Ethical Dilemmas of BP

T h e d e fi n i t i o n o f E t h i c a l d i l e m m a , s t a t e s t h a t i t i s a
s i t u a t i o n t h a t h a p p e n s w h e n t w o o r m o re s o c i a l w o r k
m o r a l s a re i n c o n fl i c t . B P s c a n d a l s , l i ke t h e
e n v i ro n m e n t a l p o l l u t i o n a n d t h e u n s a f e l y p e r f o rm a n c e
c o n d i t i o n s d i s c o v e re d d u r i n g t h e Pr u d h o e B a y a n d
Deepwater Horizon oil spills. These dilemmas have
i m p a c t e d o n B P s t a ke h o l d e r s .

The Deepwater Horizon

B P s D r i l l i n g p l a t f o rm i n t h e G u l f M ex i c o , h a d a n
ex p l o s i o n o n A p r i l 2 0 t h , 2 0 1 0 , w h i c h c a u s e d t h e l a rg e s t
o i l s p i l l c a t a s t ro p h e i n t h e p e t ro l e u m i n d u s t r y h i s t o r y. I n
t h e a c c i d e n t 1 1 m e n w o r k i n g i n t h e r i g w e re k i l l e d , a n d
1 7 o t h e r s s u ff e re d i n j u r i e s . M o re t h a n 1 5 0 t h o u s a n d
b a rre l s o f c r u d e o i l g u s h e d i n t o t h e s e a , e v e r y d a y , f o r
a l m o s t 5 m o n t h s . U p t o 6 8 t h o u s a n d s q u a re m i l e s o f t h e
G u l f ' s s u r f a c e w e re c o v e re d ( B u rd e a u , C a i n , 2 0 1 0 ) .
T h e re w e re m a n y p ro b l e m s t h a t c o n t r i b u t e d t o t h e
ex p l o s i o n o n t h e r i g , d i s c o v e re d d u r i n g t h e
i n v e s t i g a t i o n o f t h e o i l s p i l l b y m a n y n o n - g o v e rn m e n t a l
a n d g o v e rn m e n t a l o rg a n i z a t i o n s t h a t p ro v e d B P s

u n e t h i c a l b e h a v i o u r l e d t o t h e d i s a s t e r. B u t t h e m a i n
re a s o n i s t h a t t h e re c o m m e n d e d d e c i s i o n b y
H a l l i b u r t o n , o n e o f t h e l a rg e s t m u l t i n a t i o n a l
c o r p o r a t i o n s , p ro v i d i n g o i l fi e l d s e r v i c e s , w a s n o t t o
i n s t a l l a n o i l p l a t f o rm . I n s p i t e o f t h e re c o m m e n d a t i o n s
a n d w a rn i n g s , B P c o n t i n u e d t h e i n s t a l l a t i o n o f a d r i l l i n g
rig, even using the cheaper well design that some
i n v e s t i g a t o r s c o n s i d e re d a s r i s ky .
T h e re i s n o d o u b t t h a t m a n y p a r t i e s w e re a ff e c t e d ,
d i re c t l y , o r i n d i re c t l y , w i t h t h i s e n v i ro n m e n t a l d i s a s t e r.
Everyone who works in the seafood or tourism
i n d u s t r i e s w a s o b v i o u s l y a ff e c t e d . T h e p o l l u t i o n t h a t
l e d t o t h e m u t a t i n g a n d t h e k i l l i n g t h e fi s h , p u t w o r ke r s
at the risk of losing their jobs, subsequently,
i n c re a s i n g s e a f o o d p r i c e s , a ff e c t i n g t h e re s t a u r a n t a n d
s u p e rm a r ke t s i n d u s t r y , a s w e l l . M o re o v e r , t h e t o u r i s m
s e c t o r w a s a ff e c t e d b e c a u s e p e o p l e re f r a i n e d f ro m
g o i n g t o t h e b e a c h e s c o v e re d i n o i l , s t a y i n g a w a y f ro m
water sports, or other fun attractions, meaning all those
involved in tourism, such as hotels, tour operators,
re s t a u r a n t s , b o a t re n t i n g c o m p a n i e s w e re a ff e c t e d w i t h
t h e o i l s p i l l ( B P , 2 0 1 2 ) . L i ke w i s e , a ft e r t h e b l o w - o u t i n
t h e D e e p w a t e r H o r i z o n , t h e p ro fi t fi g u re s s h o w e d
d i s a p p o i n t i n g re s u l t s , f a l l i n g t o 3 5 p e rc e n t , a s t h e
re s u l t o f i n c re a s e d ex p e n d i t u re s a n d o b l i g a t i o n s f o r
individual compensation and penalties, thus losing
re v e n u e . I t h a s d a m a g e d B P re p u t a t i o n a n d fi n a n c e s ,
l o s i n g t h e f a i t h " o f i n v e s t o r s a n d s t o c k h o l d e r s ( B e a m ,
2 0 1 0 ) . M o re o v e r , b e s i d e s l o s i n g i n v e s t o r s , t h e c o m p a n y
a l s o s t a r t e d t o l o s e c u s t o m e r s . T h e re w a s a b o y c o t t
campaign that started in the social media. Thus, the
Fa c e b o o k s o c i e t y g a t h e re d m o re t h a n 7 5 t h o u s a n d u s e r s
w h o w e re n e g a t i v e t o w a rd s B P. T h e m a s s i v e o i l s p i l l a l s o
h a d t h e n e g a t i v e i n fl u e n c e o n g a s o l i n e s t a t i o n s ,
a ffi l i a t e d w i t h t h e o i l c o m p a n y. Fo r ex a m p l e , p e t ro l
s t a t i o n s i n m i d d l e Te n n e s s e e w e re f a c i n g b o y c o t t s f ro m

c l i e n t s w h o w e re u p s e t w i t h t h e c o n t i n u o u s s p i l l
(Hayslip, 2010).
Another owner of a BP
station in Chicago had a

After the blow-out

in the Deepwater
Horizon, the profit
figures
showed
disappointing
results, falling to
35 percent. It has
damaged
BP
reputation
and
finances , losing
the
faith"
of
investors
and

In spite of the
recommendations
and warnings, BP
continued
the
installation of a
drilling rig, even
using the cheaper
well design that
some investigators
considered
as
2 0 - p e rc e n t f a l l i n s a l e s a t h i s fi l lrisky.
ing station during the
d i s a s t e r ( G u t i e rre z , 2 0 1 0 ) . L a s t l y , t h e a b s e n c e o f t h e
p ro f e s s i o n a l b e h a v i o u r b y To n y H a y w a rd , t h e C E O o f B P
a t t h a t t i m e , c o u l d b e o b s e r v e d , p re j u d i c i n g t h e e t h i c a l
b e h a v i o u r o f B P s s o c i a l re s p o n s i b i l i t y. Pe o p l e c o u l d s e e
how he was enjoying a yachting holiday during the
c r i s i s , w h i c h c re a t e d a n e g a t i v e i m a g e o n t h e w h o l e
a d m i n i s t r a t i o n o f t h e c o m p a n y ( B BC , 2 0 1 0 ) .

P r u d h o e B ay o i l s p i l l

I n l a t e Fe b r u a r y , 2 0 0 6 a n ex p l o s i o n a n d s u b s e q u e n t l y
o i l s p i l l h a p p e n e d i n Pr u d h o e B a y , A l a s ka , re l e a s i n g 2 6 7
t h o u s a n d g a l l o n s ( 1 m i l l i o n l i t re s ) o f c r u d e o i l i n t h e
t u n d r a o f t h e A l a s ka s N o r t h S l o p e . H o w e v e r , i t w a s
d i s c o v e re d o n l y a ft e r 5 d a y s . T h e d i s a s t e r w a s t h e
l a rg e s t o i l s p i l l i n t h e h i s t o r y o f t h i s re g i o n . A p i p e l i n e
c o rro s i o n p ro b l e m w a s a c a u s e o f t h e r u p t u re a n d
l e a k i n g o f o i l . T h e c o rro d e d p i p e l i n e w a s d e t e c t e d t w o
y e a r s b e f o re t h e c a t a s t ro p h e a n d t h e Lo n d o n
h e a d q u a r t e r s w e re i n f o rm e d , h o w e v e r , t h e y d i d n o t p a y
e n o u g h a t t e n t i o n t o c o rre c t t h e p ro b l e m ( N a t i o n a l
g e o g r a p h i c , 2 0 1 0 ) . T h e o i l s p i l l s i g n i fi c a n t l y i n fl u e n c e d
m a n y g ro u p s a n d i n s t i t u t i o n s b o t h p o s i t i v e l y a n d
n e g a t i v e l y. Fi r s t l y , g a s o l i n e c o n s u m e r s w e re ex t re m e l y
a ff e c t e d . T h e c l e a n i n g c o s t w a s p a i d b y B P , t h u s l e a d i n g
t o i n c re a s e i n t h e p r i c e o f o i l b y $ 2 . 2 2 , c l o s i n g a t
U S $ 7 6 . 9 8 f o r e a c h b a rre l . B e s i d e s t h a t , t h e a c c i d e n t
c re a t e d a s h o r t a g e o n t h e A l a s ka n g a s o l i n e m a r ke t
b e c a u s e o f t h e c l o s i n g o f t h e Pr u d h o e B a y o i l f a c i l i t y ,
w h i c h p ro d u c e d , a p p rox i m a t e l y , 2 . 6 % o f t h e U S d e m a n d
f o r p e t ro l e u m , a g a i n a ff e c t i n g t h e o i l - p ro d u c t u s e r s

n e g a t i v e l y. M o re o v e r , t h e o i l s p i l l i m p a c t e d o t h e r o i l p ro d u c i n g c o m p a n i e s . Ad d i t i o n a l l i m i t a t i o n s w e re
i m p o s e d o n t h e a re a s w h e re c o m p a n i e s c a n d r i l l ,
re d u c i n g t h e t o t a l a m o u n t o f d e m a n d e d o i l , re q u i r i n g
a d d i t i o n a l ex t r a c t i o n f ro m o t h e r. A l s o , t h e re a re
n u m e ro u s n e w re s t r i c t i o n s o n o i l d r i l l i n g a n d p ro d u c t i o n
i n t h e f u t u re a n d n e w re g u l a t i o n s i n t h e f o rm o f C l e a n
Wa t e r Ac t , t h e C l e a n A i r A c t a n d t h e Pi p e l i n e S a f e t y Ac t .
This spill damaged the corporate image of British
Pe t ro l e u m , i m p a c t i n g
t h e s h a re h o l d e r s ,
The
corroded
employees and its
pipeline
was
t e c h n o l o g i s t . B P s h a re s
detected two years
d e c re a s e d i n p r i c e ,
before
the
a l m o s t 2 p e rc e n t . B P
catastrophe and the
employees and people
London
i n t h e n e a re s t
headquarters were
communities began to
informed, however,
re p o r t a b o u t t h e i r
they did not pay
health, complaining on
enough attention to
t h e s y m p t o m s s u c h a s o ft e n h a v i n g h e a d a c h e s a n d
c h e s t p a i n s , re s u l t i n g f ro m t h e c l e a n - u p a n d re l e a s e d
c h e m i c a l s i n t o t h e e n v i ro n m e n t ( Ta y l o r , 2 0 1 0 ) .
Fu r t h e rm o re , t h e c l e a n - u p t e c h n i q u e s h a v e n o t b e e n
u s e f u l a t c l e a n i n g u p t h e p o l l u t i o n . M o re o v e r , B P
t e c h n o l o g i s t s w e re c r i t i c i z e d f o r o v e r- s i g h t i n g t h e
c o rro s i o n p ro b l e m , g i v i n g t h e m i n c e n t i v e t o fi n d b e t t e r
a n d f a s t e r w a y o f d e t e rm i n i n g a n d s t o p p i n g l e a k s i n
pipelines (Klein, 2010). Other party includes scientists
b e c a u s e t h i s i n c i d e n t h a s g i v e n g re a t e r m o t i v a t i o n f o r
them to discover new ways of cleaning an oil spill, such
a s b a c t e r i a t h a t e a t s t h e o i l a n d t o re s e a rc h t h e
re n e w a b l e s o u rc e s o f e n e rg y. Fi n a l l y , k n o w i n g t h a t
N o r t h S l o p e re g i o n o f A l a s ka i s h o m e t o t h o u s a n d s o f
m i g r a t o r y b i rd s , c a r i b o u , a n d o t h e r h a b i t a n t s t h e s p i l l
h a d a n e n o rm o u s e ff e c t o n t h e e n v i ro n m e n t . T h e o i l

s p i l l c o v e re d , a p p rox i m a t e l y , o v e r t w o a c re s o f s n o w c o v e re d t u n d r a a n d h a rd - f ro z e n l a ke . O n l y t h e c o l d
c o n d i t i o n s m a d e i t e a s i e r t o c l e a n u p t h e a re a , a ff e c t e d
b y t h e o i l s p i l l ( Ro s e n , 2 0 0 6 ) .

Analysis of Deepwater Horizon

Fro m t h e B P o i l c a t a s t ro p h e , t h e o i l s p i l l i n t h e G u l f o f
M ex i c o i n 2 0 1 0 , a r i s e s t h e d i l e m m a b e t w e e n t h e s a v i n g
c o s t s b y u n n e c e s s a r y r i s k s t a ke n a n d m e e t i n g s a f e t y
c r i t e r i a i n t h e t e rm s o f l a rg e n u m b e r o f f a t a l i t i e s o n t h e
p l a t f o rm r i g .
The individualistic business theory states that the only
o b l i g a t i o n f o r a c o m p a n y i s t o m a ke a p ro fi t . T h e
c o m p a n y c a n d o w h a t e v e r i t t a ke s t o m a ke a p ro fi t , a s

In this
case, BP did not do anything unethical because the
a c c i d e n t w a s a re s u l t o f m e c h a n i c a l f a i l u re . A
long as they stay within the legal boundaries.

s p e c i fi c p a r t , a c e m e n t s h o e b a rr i e r , f a i l e d t o u s e t h e
re s e r v o i r t o c o n t a i n h y d ro c a r b o n s w h i c h e v e n t u a l l y l e d

I f t h e e m p l o y e e s k n e w o f th i s a n d
d i d n o t d o a n y t h i n g t o fi x i t, i t w o u l d b e co n s i d e re d
u n e t h i c a l b e h a v i o u r. B u t s i n c e t h e y h a d n o
knowledge of what was happening, they did not do
a n y t h i n g u n e t h i c a l . T h e s t a ke h o l d e r s i n t h i s c a s e a re
t o t h e ex p l o s i o n s .

the company, their employees, and the customers.

The utilitarianism theory says that a company should
ke e p h a p p i n e s s t o t h e m s e l v e s a n d h a p p i n e s s t o o t h e r s
at a balance. No party should be happier than the
o t h e r , t o ke e p t h i n g s f a i r. T h e t w o p a r t s t h a t m a ke u p
u t i l i t a r i a n i s m a re e g o i s m ( m a x i m i z i n g h a p p i n e s s i n t h e
business) and altruism (maximizing happiness in
others). In the case of the BP Oil Spill, BP did not

m a ke t h e m s e l v e s h a p p y n o r t h e i r c u st o m e r s . T h e
company lost billions of dollars on wasted oil, paying
f o r c l e a n - u p s , a n d d o n a t i o n s t h e y m a d e a s a re s u l t o f

the spill. This money could have been used for

s o m e t h i n g l i ke u p g r a d i n g t h e i r m a c h i n e r y o r i n v e s t i n g i t
i n a n o t h e r c o m p a n y , w h e re t h e y c o u l d p o t e n t i a l l y m a ke
money out of it.
T h e Ka n t i a n t h e o r y o f b u s i n e s s c o n s i s t s o f f o u r p a r t s .
T h e y a re t h a t b u s i n e s s e s s h o u l d a c t r a t i o n a l l y , h e l p
o t h e r s m a ke r a t i o n a l d e c i s i o n s , re s p e c t p e o p l e , a n d
m a ke d e c i s i o n s b a s e d o n g o o d w i l l . B P d i d n o t f o l l o w
t h e s e f o u r r u l e s . T h e y d i d n o t re s p e c t p e o p l e
( e m p l o y e e s a n d c u s t o m e r s ) b e c a u s e t h e y d i d n o t t a ke
t h e n e c e s s a r y s t e p s t o m a ke s u re t h e e q u i p m e n t w a s u p
to date and in good condition. This shows that the
company would rather save time and money than to
e n s u re t h e s a f e t y o f t h e i r e m p l o y e e s . T h e y
d i s re s p e c t e d t h e i r c u s t o m e r s b e c a u s e a ft e r t h e i r
i n c i d e n t a t Tex a s C i t y , t h e y s a i d t h e y w o u l d i m p ro v e o n
their workplace safety which they clearly did not. This
s h o w s h o w t h e y a re n o t t r u e t o t h e i r w o rd s o t h e

T h e co m p a n y
clearly was not making decisions out of goodwill
b e c a u s e t h e y w e re j u s t t r y i n g to s a v e t i m e a n d
m o n e y b y n o t g o i n g t h ro u g h th e c o rre c t s a f e t y
p ro c e d u re s .
customers lose their trust in them.

T h e Vi r t u e T h e o r y s t a t e s t h a t i n o rd e r f o r a b u s i n e s s t o
f u n c t i o n p ro p e r l y , t h e y m u s t o b e y v i r t u e s s u c h a s
h o n e s t y , c o u r a g e , j u s t i c e , a n d s e l f- c o n t ro l , t o n a m e a
f e w. B P d i d d e m o n s t r a t e h o n e s t y a n d c o u r a g e b e c a u s e
they had the courage to admit to the public their
w ro n g d o i n g . T h e y w e re n o t h o n e s t i n t h e f a c t t h a t

t h e y d i d n o t t e s t o u t th e i r e q u i p m e n t co rre c t l y , a n d
w e n t o n u s i n g i t l i ke th e y d i d , b u t a ft e r t h e a c c i d e n t
h a p p en e d t h e y d i d a d m i t to i t. T h e y d i d n o t t r y
putting the blame on subcontractors or the
m a n u f a c t u re r o f t h e p a r t t h a t b ro ke , w h i c h t h e y e a s i l y

could have if they wanted to avoid some of the heat.

B P w a s e t h i c a l i n t h e p ro d u c t t h e y o ff e r t o t h e
customers. BP has consistently been one of the top
s e l l e r s o f o i l b a s e d p ro d u c t s , w h i c h p ro v e s t h a t t h e i r
p ro d u c t i s n o t c h e a p o r b a d q u a l i t y. Aft e r t h i s s p i l l ,
c u s t o m e r s c h a n g e d t h e i r o p i n i o n o f t h e c o m p a n y m o re
s o t h a n t h e p ro d u c t
O v e r a l l , B P m a d e t h e m a j o r i t y o f t h e i r m i s t a ke s i n t h e
a c t u a l i n c i d e n t . T h e y m a d e m i s t a ke s t h a t l e d u p t o t h e
ex p l o s i o n h a p p e n i n g . I f t h e y f o l l o w e d t h e i r c o rre c t
s a f e t y p ro t o c o l s t h i s i n c i d e n t c o u l d h a v e b e e n
c o m p l e t e l y a v o i d e d . To p re v e n t f u r t h e r a c c i d e n t s , I
w o u l d re c o m m e n d t h a t t h e c o m p a n y h i re s a m a n a g e r o f
some sort to collect
p h y s i c a l re p o r t s o f t h e
employees testing out
They
did
not
t h e p a r t s b e f o re p u t t i n g
respect
people
them to use. These
(employees
and
re p o r t s w i l l b e m u c h
customers) because
m o re c re d i b l e t h a n
they did not take
v e r b a l c o n fi rm a t i o n o f
the necessary steps
to make sure the
the quality check of the
equipment was up
parts. If they happen to
to date and in good
fi n d p a r t s t h a t a re n o t
u p t o s t a n d a rd s , t h e y c a n t h e n n o t i fy t h e m a n u f a c t u re r
o f t h e p a r t t o p re v e n t t h e m f ro m m a k i n g m o re d e f e c t i v e
p a r t s . T h i s w i l l m a ke t h e o v e r a l l p ro c e s s m u c h m o re
e ff e c t i v e f o r b o t h t h e c o m p a n y a n d t h e m a n u f a c t u re r.
T h e y c a n a l s o d e v e l o p u n i v e r s a l p ro c e d u re f o r w h e n
a c c i d e n t s l i ke t h i s h a p p e n . I f t h e y c a m e u p w i t h a n d
put to use a strategy that they know will work, it will
s a v e v i t a l t i m e i n c r u c i a l s i t u a t i o n s l i ke t h i s w h e n o i l i s
b e i n g p o u re d i n t o t h e o c e a n .

Analysis of Prudhoe Bay oil spill

T h e A l a s ka n O i l s p i l l a r i s e s t h e d i l e m m a , t h e n e g l i g e n c e
o f t h e c o m p a n y s b o a rd o f d i re c t o r s , t o g e t h e r w i t h
saving money and the unnecessary risk that seriously
a ff e c t e d t h e e n v i ro n m e n t . We c a n u s e t h e u t i l i t a r i a n
t h e o r y t o c o m p re h e n d , w h e t h e r i t w a s m o r a l o r i m m o r a l .
N o u t i l i t i e s w e re p ro v i d e d f o r t h i s o i l s p i l l , n e i t h e r t o
B P , n o r t o t h e s o c i e t y. Fi r s t l y , b e c a u s e B P s n e g l i g e n t
a c t i o n s , c o s t t h e c o m p a n y a l a rg e s u m o f m o n e y , u p t o
$ 2 0 m i l l i o n d o l l a r fi n e . S e c o n d l y , i t h a rm f u l l y a ff e c t e d
t h e e n v i ro n m e n t o f t h e A l a s ka s n a t u r a l e n v i ro n m e n t ,
h o m e t o n u m e ro u s a n i m a l s a n d b i rd s . I n t h e l o n g - r u n i t
c a n l e a d t o t h e ex t i n c t i o n o f o n e o f t h e s p e c i e s ,
d i s i n h e r i t i n g f u t u re g e n e r a t i o n s o f s e e i n g t h e b e a u t y o f
o u r w o r l d . N ex t , B P a c c e p t e d t h e fi n e , s u ff e re d d a m a g e s
o f l o s i n g t h e re v e n u e b e c a u s e o f t h e s t o p p i n g t h e
o p e r a t i o n l i n e a n d l a rg e a m o u n t o f o i l w a s t i n g , t o g e t h e r
w i t h t h e l a rg e ex p e n s e s f o r t h e c l e a n i n g u p .
Fu r t h e rm o re , i t i n c re a s e d o i l p r i c e s t h a t a re h a rm f u l f o r
the society and for the countys economy as well,
b e c a u s e o i l p ro d u c t s , s u c h a s p e t ro l a re i n e l a s t i c
p ro d u c t s t h a t a re d i ffi c u l t t o s u b s t i t u t e .

T h e b e n e fi t s , d e s c r i b e d a re a l l i n d i re c t . Fi r s t o f a l l ,
b e c a u s e p e o p l e b e c a m e m o re c o n c e rn e d a b o u t t h e
c o n s u m p t i o n o f re n e w a b l e s o u rc e s o f e n e rg y , a l l o w i n g
t o p a y m o re a t t e n t i o n a n d i n v e s t m e n t i n re s e a rc h a n d
d e v e l o p m e n t a c t i o n s . M o re o v e r , i t re q u i re d t h e
t e c h n o l o g i s t t o fi n d b e t t e r m e t h o d s t o d e t e rm i n e
l e a ka g e i n t h e
pipelines, that in longThe
alternative
t e rm w i l l p l a y a
actions
that
BP
s i g n i fi c a n t ro l e i n t h e
could
have
p re v e n t i n g o t h e r o i l
implemented in this
s p i l l s . Fi n a l l y , o w i n g t o
situation, were to
the spill, society and
consider employees
t h e g o v e rn m e n t h a v e
concerns about the
b e c o m e m o re a w a re o f
corrosion
in
the
BPs negligence
pipeline and to take
t o w a rd s t h e
appropriate
measures
to
e n v i ro n m e n t ,
remedy the defects
employees and the
security of their assets, thus implementing new
p o l i c i e s , re s t r i c t i o n a n d r u l e s f o r t h e g a s a n d o i l
i n d u s t r i e s t h a t w i l l h e l p t o a v o i d m a n y e n v i ro n m e n t a l
a n d s a f e t y p e r f o rm a n c e i s s u e s o f B P a n d o t h e r
companies.
T h e a l t e rn a t i v e a c t i o n s t h a t B P c o u l d h a v e i m p l e m e n t e d
i n t h i s s i t u a t i o n , w e re t o c o n s i d e r e m p l o y e e s c o n c e rn s
a b o u t t h e c o rro s i o n i n t h e p i p e l i n e a n d t o t a ke
a p p ro p r i a t e m e a s u re s t o re m e d y t h e d e f e c t s i n i t . I n
t h i s c a s e c o m p a n y c o u l d a v o i d m a n y p ro b l e m s , s u c h a s
h u g e fi n e s , d a m a g e d i m a g e , u n n e c e s s a r y ex p e n s e s ,
w i t h o u t h u r t i n g t h e e n v i ro n m e n t a n d t h e U S p e t ro l
m a r ke t . T h e s e c o u l d re l a t e t o t h e b e n e fi t s o f t h i s
a c t i o n . T h e o n l y c o s t w o u l d b e t h e ex p e n d i t u re s t o
re n e w t h e p i p e l i n e . To s u m u p , re n o v a t i o n t h e p i p e l i n e
i n t h e r i g h t t i m e c o u l d e n s u re B P i n t h e c o n s i s t e n t p ro fi t

a n d s u p p l y f o r t h e A m e r i c a n m a r ke t , m a k i n g B P a c t i o n s
unethical.

BPs attempts to recover its image

Alternative Energy Program
Aft e r t h e s e r i o u s d i s a s t e r i n t h e g a s a n d o i l , B P t r i e d t o
re c o v e r i t s i m a g e . N o w a d a y s , s t a ke h o l d e r s a re m o re
c o n c e rn e d a b o u t t ox i c e m i s s i o n s , r i s i n g g a s p r i c e s a n d
p o l l u t i o n t h a t c re a t e a v e r y u n p l e a s a n t p i c t u re o f t h e o i l
i n d u s t r y a s a w h o l e . T h e re f o re , B P h a s s t a r t e d a
c a m p a i g n t o f o c u s m o re o n g l o b a l w a rm i n g a n d
g re e n h o u s e e m i s s i o n s , s u p p o r t i n g t h e r i g h t o f f u t u re
generations for the
c l e a n e n v i ro n m e n t ,
together with the
We are all citizens
saving the natural
of one world, and
we
must
take
s c a rc e re s o u rc e s f o r
shared
later uses.

responsibility for its

future and for its
sustainable
development
~
John Browne, BP ex-

Fi r s t , B r i t i s h Pe t ro l e u m
changed its name to BP
and raising the range of
a l t e rn a t i v e e n e rg y
b e i n g o ff e re d t o t h e m a r ke t . J o h n B ro w n e , ex - C E O o f B P
p ro c l a i m e d ( B P , 1 9 9 8 ) t h a t w e a re a l l c i t i z e n s o f o n e
w o r l d , a n d w e m u s t t a ke s h a re d re s p o n s i b i l i t y f o r i t s
f u t u re a n d f o r i t s s u s t a i n a b l e d e v e l o p m e n t . B P h a s
b e c o m e t h e fi r s t w o r l d g l o b a l e n e rg y c o m p a n y t o
a c k n o w l e d g e t h e p ro b l e m o f c l i m a t e c h a n g e .
Secondly, in 2005, BP launched its Alternative

Energy Program. The company sees itself as going

g re e n b y ex p a n d i n g i t s b u s i n e s s a n d b e c o m i n g m o re
p ro fi t a b l e t o d o s o , g o i n g b e y o n d t h e o i l a n d g a s ,
investing money in the biofuels, wind and solar
p ro d u c t i o n s e c t o r s . Fo r ex a m p l e , i n b i o f u e l s , B P
p ro d u c e s e t h a n o l , u s i n g t h e f e e d s t o c k o f s u g a r c a n e

f ro m B r a z i l . I n a d d i t i o n , i t i s d e v e l o p i n g t e c h n o l o g i e s i n
o rd e r t o u s e t h e e n e rg y o f g r a s s e s a s a s o u rc e o f t h e
l i g n o c e l l u l o s e e t h a n o l ( B P , 2 0 1 0 ) . Fo r t h i s p ro g r a m B P
investments constitute of $8 billion until 2015, $5
b i l l i o n o f w h i c h h a s b e e n a l re a d y i n v e s t e d f o r a c q u i r i n g
a Brazilian biofuel company and another Brazilian
p ro d u c e r o f s u g a r a n d e t h a n o l t h a t c a n p ro d u c e 4 8 0
m i l l i o n l i t re s o f e t h a n o l p e r a n a v e r a g e o f y e a r ( B P ,
2 0 1 2 ) . M o re o v e r , t h e

c o m p a n y i n v e s t e d o v er
$500 million for the
past 10 years in the
E n e rg y B i o s c i e n c e s
I n s t i t u t e d , w h e re
l e a d i n g s c i e n t i s t s fi n d
n e w a n d m o re e ffi c i e n t
w a y s t o p ro d u c e
biofuels (BP, 2012). All

The company sees

itself as going green
by
expanding
its
business
and
becoming
more
profitable to do so,
going beyond the oil
and
gas,
investing
money in the biofuels,
wind
and
solar

of these enable BP to
b e c o m e t h e l e a d e r i n t h e p ro d u c t i o n o f b i o f u e l s .
Fu r t h e rm o re , B P e m b r a c e s w i n d p o w e r , w h i c h i s p l a y i n g
a s i g n i fi c a n t ro l e i n t h e re c o v e r i n g i t s i m a g e , b e c a u s e
w i n d p o w e r i s c l e a n , s a f e , re n e w a b l e a n d c o u l d re m o v e
a p p rox i m a t e l y o n e b i l l i o n s t o n s o f c a r b o n d i ox i d e e a c h
y e a r. To d a y , B P p o s s e s s e s e i g h t w i n d f a rm s t h a t
g e n e r a t e m o re t h a n 1 , 2 0 0 m e g a w a t t s , p ro v i d i n g
electricity to a city with a population of 700 thousand
people (BP, 2012).

Emission Reduction Program

T h e w o r l d c o n s u m p t i o n o f n a t u r a l o i l a n d o i l p ro d u c t s
i n c re a s e s e v e r y y e a r , s h o w i n g a g ro w t h o f 2 . 7 % o n
a v e r a g e e v e r y y e a r a n d t h e p ro d u c t i o n o f c a r b o n
d i ox i d e , re a c h i n g 3 4 b i l l i o n t o n e s i n c o m p a r i s o n t o 2 3
b i l l i o n i n 2 0 0 0 ( J o i n t Re s e a rc h C e n t e r , 2 0 1 2 ) . T h e re f o re ,
i n 1 9 9 8 , B P c h o s e t h e s t r a t e g y f o r re d u c i n g t h e a m o u n t

o f g re e n h o u s e g a s e s e m i t t e d i n t o t h e a t m o s p h e re f ro m
i t s o p e r a t i o n s o v e r t h e c o m i n g t e n y e a r s , re g a rd l e s s o f
t h e c o m p a n y s g ro w t h . B y t h e t a c k l i n g t h e p ro b l e m o f
g l o b a l w a rm i n g , B P h a s t h e a d v a n t a g e t o b e c o m e m o re
e t h i c a l i n re l a t i n g t o s o c i e t y , d o i n g i t s m o r a l d u t y o f
p ro t e c t i n g t h e w e l f a re a n d t h e e n v i ro n m e n t f ro m i t s o w n
h a rm f u l g a s e s e m i s s i o n re g a rd l e s s o f i t s c o s t s . B P
s u p p o r t p o l i c i e s s t re s s t h e e ffi c i e n c y o f t h e p ro d u c t i o n
a n d u s e o f e n e rg y , b e c a u s e t h e a m o u n t o f e n e rg y u s e d
c a n h a v e a n e ff e c t o n c a r b o n d i ox i d e e m i s s i o n s . A l s o ,
B P c o n c e n t r a t e s o n t h e s u p p o r t o f l o w e r- c a r b o n , h i g h p ro m o t i o n a l e n e rg y m e t h o d s , s u c h a s s o l a r a n d w i n d
e n e rg y. Fi n a l l y , B P i n v e s t s i n t e c h n o l o g y re s e a rc h a n d
i n n o v a t i o n s t h a t c o u l d c re a t e l o w e r- c a r b o n o p t i o n s f o r
t h e f u t u re ( B P , 2 0 1 1 ) .
In 2012, BP invested $3.4 million in the Clean Air
A g e n c y f o r p ro j e c t s d i re c t e d a t e m i s s i o n re d u c t i o n s i n
W h a t c o m , S ka g i t o r I s l a n d c o u n t i e s o f Wa s h i n g t o n s t a t e
in the U.S. (Schwarts, 2012). In 2011, BP participated in
the Australian debate on climate change, cooperating
w i t h o t h e r g o v e rn m e n t a n d n o n - g o v e rn m e n t
o rg a n i z a t i o n s , i n o rd e r t o re a l i z e a n d i m p o s e p o t e n t i a l
p o l i c y s o l u t i o n s . B P a c t i o n s l e d t o c re a t i n g t h e c l e a n
e n e rg y l e g i s l a t i v e p a c ka g e , w h e re t h e y s h a re d i t s
a n a l y s i s o f w o r l d e n e rg y p ro j e c t i o n s , b u s i n e s s i m p a c t s
i n n a t i o n s w h e re h a v e b e e n a l re a d y i m p o s e d c a r b o n
p r i c e s a n d k n o w l e d g e o f re n e w a b l e s o u rc e s o f e n e rg y.
To s u m u p , a ft e r 1 0 y e a r s B P c o u l d m a n a g e t o a c h i e v e
t h e i r i n t e n t i o n s a n d d e c re a s e t h e p ro d u c t i o n o f c a r b o n
d i ox i d e b y 1 0 % ( B P , 2 0 0 9 ) . I t c a n re d u c e e m i s s i o n s b y
almost 80 million tonnes, owing to, combining better
t e c h n o l o g i e s , w i t h s i m p l e o p e r a t i o n e ffi c i e n c i e s , s u c h a s
s t o p p i n g l e a k s a n d e l i m i n a t i n g t h e u n n e c e s s a r y b u rn i n g
o f n a t u r a l g a s . T h e re d u c t i o n c a n c o m e f ro m v a r i o u s
developments, which included the use of new
t e c h n o l o g y , c l e a n a n d re n e w a b l e s o u rc e s o f e n e rg y a n d

t h e e l i m i n a t i o n o f fl a r i n g . A l l o f t h e s e t e s t i fy t h a t B P
d o e s i t d u t i e s t o w a rd s t h e s o c i e t y a b o u t c a r i n g t h e
e n v i ro n m e n t a n d p re s e r v i n g i t t o t h e f u t u re
generations.

References
BP can reduce carbon
dioxide emissions by
80 million tonnes by
combining
better
technologies
with
simple
operational
efficiencies such as
stopping leaks and
burnings of natural

h t t p s : / / w w w. a c a d e m i a . e d u / 7 5 6 3 8 1 7 / B P _ e t h i c a l _ i s s u e s
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