BP Domestic and Global - Essay Example

Running head: BP Domestic and Global Instructor: Date: BP Domestic and Global When Britain’s biggest company reports its annual reports on profit, the market generally sits up and listen. BP is a corporate giant, one of the handful of UK companies with a truly global clout, and a barometer of the wider health of the oil industry. BP remains the bigger of Europe’s two leading oil producers when measured by stock market value and is currently worth $239 billion to Shell’s $222 billion (Campell, 2011).

Though still there are some issues that the BP needs to address in order to make them shine both in global and domestic environment. Historically, many new oil-exporting countries failed to give adequate attention to the environment and social aspect of the petroleum sector. Laws and policies alone are not enough to manage environmental and social standards in its nearly developed stages. At a later point, it was precisely the overlooked environmental and social impacts of petroleum production that had the greatest negative political and economic ramification for the government the oil industry and society as a whole.

Environmental and social issues touched by the oil sector are best addressed through joint collaboration by the oil industry and government, based on respect mutual understanding and agreed objectives and clear delineation of roles and responsibilities. It is the best business interest international oil companies to achieve the level of collaboration. Environmental and social issues should not be compartmentalized into separate functions, but should be recognized as overlapping and interlinked domain that are best addressed holistically.

Reputation and credibility of both government and private companies are jeopardized if these issues are not handled well. For BP to fit in the global market, it needs to make effective and worthwhile operational system. The way forward is increased competitiveness with the companies that offer similar products. This can be realized by ensuring that the workers are well paid and given there rights. This will motivate them to a level that there is reputable work from labour force. It will inevitably improve workforce performance.

Secondly BP can formulate policies to maximize production. This will go along way with maximized revenue by increasing the profit of the firm (Henric, 2011). BP needs too to be strategic. A scenario where by there is a plan of action that channels an organization’s resources so that it can be effectively differentiate itself from competitors and accomplish unique and viable goals. Strategies are organized based on the organization’s strength and weakness relative to the competition and assessing opportunities.

This can be done by reducing risk. Though no business can prosper without taking risks, it is necessary to take calculated risk so that the risk itself is managed. The company social investment can be too increased. There should a tangible demonstration of companies’ corporate citizenship philosophy. For example, Indonesian government and BP have embarked on major initiative to develop one of the major gas fields on a partnership basis. Extracted gas is converted into liquefied natural gas (LNG) for export to global market.

The firm is located in mangrove ecosystem of about 300000 hectares of land which support approximately 300000 households and can create conflict. To avoid this conflict, 70% of post tax revenue from the project is returned to the community improving infrastructure and government services aimed at providing lasting socio-economic benefit. Indonesia government, BP and UNDP formulated Diversified Growth Strategy (DGS) for the community and affected project area. They have also placed special emphasis on linking Millennium Development Goal MDG1 poverty reduction and MDG7 protection of environment (Tims, 2007).

Finally proactively addressing environmental and social issues at the very early stages in the development of the oil sector can help avoid later unforeseen problems by recognizing the different social environmental requirement that must be addressed at each stage in the lifecycle of an oil project. References Campell, A. (2011). The 10 Best Corporations 2011. Retrieved Nov 25, 2011, from www.multinationals.org/mm2011 Henric, C. (2011). BP: Beyond Petroleum. London: Lloyd Books. Tims, P. (2007).

The BP Structure. Oxford: Oxford University Press.