Sustainable Management for BP PLC Future - Case Study Example

Contents

Sustainable Management for BP PLC Future3

Introduction3

Business Ethics4

Its Application4

BP’s Business Ethics Demands5

BP’s Public Business Ethical Views5

Corporate Social Responsibilities6

Its Application6

BP’s CSR Demands6

BP’s Public CSR Views7

Relevance of Business Ethics and CSR7

Analyses on CSR and Business Ethics in Regards to BP PLC8

Approaches10

Discussion10

Conclusion12

• Sustainable Management for BP PLC Future
• Introduction

Organisation and corporation around the world have an aim of remaining competitive in their lines of operations. Sustainable management is applied in the corporations operations in order to accomplish not only profitability but with an aim to make sure the company has more to offer in the society, environment and the economy the at large. Not only is the organisation there for commercial sake, it also has the purpose to accomplish the common good. Corporate social responsibility and business ethics are major organisation practices that a management may focus on for sustainable management beyond profitability and revenue generation. BP is one of the leading oil company in the United Kingdom which offers petroleum and energy production in UK and the whole world. Over years, it has carried out its activity not only making profits but also making decisions through sustainable management. The aim of this report is to do a critical evaluation on BP Corporation’s in line with corporate social responsibility and business ethics for the sake of its future existence.

To establish the above, the report will do an evaluation on various sources regarding the CSR and ethical ways that the corporation have been pursuing its activities in UK since 1908. The information will be gathered from media reports, recorded incidences and the history of the company recorded which could have facilitated decline or improvements on these aspects. There will also be critical analysis on the corporations aim towards maintaining a sustainable management in the future success of the organisation. The information gathered will be analysed to offer how the company has dealt the challenges during its existence and the way it has maintained its operations in respect to the environmental preservation. Information will be gathered from the organisations sustainability report, various bodies’ reports and individuals’ side analyses on BP’s recommendations for its future success.

Perspective - 1000

• Business Ethics

The ability for a business to carry out its operations through moral principles is known as business ethics. Making a distinction between what is right and that which is wrong and deciding to act with what is right is one is considered to have acted ethically (Warren, 2012). When a large corporation chooses to follow unethical ways, it will be easy to identify its loopholes in regards to its conduct. Some of the accepted unethical behaviours that a business must be careful to be caught between are like child labour, use of copyrights without the authority of the source, corruption and bribery among others are some of unethical behaviours that a business should look to. An organisation must on the other hand make sure that they offer returns to its shareholders and make sure that the employees are treated fairly. There should be also responsibilities to protecting the environment and the communities around the business must not suffer from the activities that the organisation is undertaking.

• • Its Application

The beginning of ethical operations of a business is the law. There are standards are laws that every government consider to be applicable of every enterprise in order to ensure that the operations are ethically carried out. The law is not the end to ethical operations. Every organisation must make its responsibility to apply its own laws that will act as a guideline towards its ethical operations. This rules and regulations are presented to every employee of the enterprise so that they can identify where to draw the line. The aim of these rules is to make sure the operations of an organisation are carried out in standards of general organisation and in addition the departments are applying their specific ethical requirements of the departmental employees (Warren, 2012).

• • BP’s Business Ethics Demands

It is the responsibility for BP plc to act in an ethical manner towards all its stakeholders. They should begin with their employees, followed by the customers, then the communities and finally to the shareholders. They must make sure that their choices on the employees are based on the professionals who will in return be able to handle the tasks they are assigned to responsibly. They should be able to follow all the rules and responsibilities handed to them in careful manner minding that it calls for a lot of care when it comes to petroleum industry. When it comes to the customers, the energy industry demands much of care and ethical manner of operations and service delivery. When it comes to petroleum products, pure products that are going to offer energy sufficient must be the aim of the corporation (Warren, S. 2012). Making sure that they are safe to the machinery and cannot lead to danger when in use is one thing that must never be ignored. Petroleum products are sensitive and they can be harmful if mishandled. BP must be sure that the processes do not lead to harm the community around them during processing. BP must finally make sure that their shareholders get the share deserve from their investment. It is the aim of the company to make sure the benefits are shared as per the terms and conditions.

• • BP’s Public Business Ethical Views

BP PLC by far or wide has received mixed up feelings from different stakeholders regarding their ethical behaviours. Some claim that they have been able to offer ethical solutions to the communities and the nations worldwide. However, others claim that there are numerous unethical cooperation’s by the organisations. Many have commended the organisation for the implementation of the aim in reducing the green houses emitted gases in the environments at large (Warren, 2012). The BP has done all it can to maintain ethics although to some, there are allegations that the corporation has acted unethically. Some claim that explosions, oil spills and fires are some of them while some maintain that they did not follow proper ethical means in resolving some of these issues and many others.

• Corporate Social Responsibilities

When it comes to the organisation activities and operations, they must be carried out in means that they offer economic, social and environmental considerations. The organisation aim at reaching these three by resulting in self-regulation more than following some set standards and regulations.

• • Its Application

The aim of the organisation is to ensure that the activities are leading to economic developments. This includes creating employment and offering goods or services that benefiting the economy of a region. The environments must be protected so that the products are not destroying or harming plants, animals and human beings (Warren, 2012). The company must also be able to offer social responsibility through sponsorship or participation of some events and aspects that are leading to benefits to the society. The social aspects are not based on the income generation or returns to the establishment.

• • BP’s CSR Demands

BP main focus is to establish corporate social responsibility in their energy production where they should create employment and they are liable to submit to governments’ taxes and revenue requirements. In employment, they should meet the standards of offering local communities and citizens employment opportunities that the local authorities demand. Social responsibilities that BP must apply are making sure they participate in local events that promote the energy industry (Warren, S. 2012). The aim should be to establish a name to themselves. They can participate in branding these events and some social places like stadia. When it come to the environment, BP has the responsibility to ensure that their distribution of the products does not harm the environments while in the mining areas they are applying all relevant technology that does not lead to environmental destruction.

• • BP’s Public CSR Views

BP PLC has made efforts to make sure that Corporate Social Responsibilities are implemented and their efforts are recognised all over the countries it has established its branches and firms. It has made efforts towards environmental protection, which many communities have been appreciating in a big way. They make sure that they have reports about environments to the public, which has received positive response by the communities. The budget set aside by the company for the sake of environmental development has been received with much gratitude by most of the nations and governments around the world. However there have been cases of oil spilling and some major accidents that has made negative effects on the environments (Warren, 2012). As a result, it had led to a straggle with the communities in establishing whether they have acted upon the incidents in a CSR manner. Some have led to cases in the courts that have not been concluded up to date.

• Relevance of Business Ethics and CSR

This report focuses on making sure there are critical analyses of ethics and CSR application in line to the existence of BP PLC in the nations worldwide. Sustainability of an organisation depends on ethics and CSR in a greater deal as well as it may depend on profitability and financial income. Especially when a company is dealing with mining and energy production, waste management, environmental factors, ethical dealings and social responsibilities come in handy for any corporation in the energy sector. BP must apply both of these perspectives for a future that will be sustainable and leading it to greater heights when it comes to energy industry.

• Analyses on CSR and Business Ethics in Regards to BP PLC

From the work of Bulkin (2010) there, BP has made efforts in developing a positive image in the way they lead their operations on matters of ethics. They have aimed at going beyond petroleum production and they have extended their activities in ethical manners that has won them favour with the regions they operate around (Jonker and Witte, 2006, 19). It has also focused on reducing the gases that have been affecting the environments and the rains. These gases have been emitted by petroleum products. The corporation has been able to count out of their successes that they can be able to boost about reducing the gas emissions by 10 percent between 1990 and 2010. More are on progress in order to make sure that even greater heights can be achieved in oil production that leads to gases emission controls. The aim of every organisation is to gain favour from the public before focusing on the financial benefits. Since BP has not been aiming at controlling the oil industry, the public correspondence to its existence has been a public favour on its side. Eventually, more profits were realised and still are falling the favour of the organisation.

Beyond petroleum products, the corporation has been able to adopt other sources of energy to supplement their productivity. It has applied the wind energy production and solar energy that has been a supplement to the power production by the company. Various environmental benefits come in hand because of this. For instance, once wind energy is implemented with an aim to produce electricity energy, where petroleum energy can be an alternative for the lack of electricity, the wind energy becomes the option where electricity failure occurs (Warren, S. 2012). In addition, environment that has no accessibility of common electricity, they opt for petroleum generators. However, the innovation of solar electricity has caused more efficient in such places. The investment is onetime and less maintenance costs on the facilities. Such alternative are just a few of major move by BP towards ethical approaches.

From BP’s report on the environmental control and development Crane, A., et.al (2007), the organisation has made efforts towards establishing a progressive approach in regard to the existing measures. Human regulations established in the matter compliments the compiling of the reports. Environmental protection is the major aim through the reports as it is complemented by the social and economic aims (Kouroupetroglou, 2014, 63). From the reports, the corporation has made proper clarification on how they implement legal and fair operations, taking law action on those who act against the stipulated rules, all gifts and bribe payments are zero tolerated by the organisation. In the report, BP makes sure that they indicate how they will implement various CSRs through management policies, decision and various actions. With an aim to accomplish the purposes, BP join with international bodies that help it accomplish the objectives (Warren, 2012). These bodies also act as a means to getting proper directions on the matters. One of the bodies is United Nation Global Compact that aims at creating universal business operations standards that make implementation of Ethics and CSR easily applicable.

Application of these two sources and other relevant sources becomes relevant in the analyses of the two perceptive since they outline various means of their implementation. They offer options that have enabled organisations and BP become effective applier of concepts and the challenges along the application process. There are also solutions to some of the hindrances that come along the implementation of such initiatives. The final results are the main focus to sustainable management for the future survival of different corporations.

• • Approaches

Out of the reports from BP and other sources, applied analyses are based on statistics collected from various sources and regions that BP has been operating. Stakeholders’ contribution has become more relevant in the conclusions that the information offers to the audience. Feedback from members of the community regarding some incidences like oil spills or refinery fires have been resourceful in compiling strategies that will help in the control of such events and more that may occur in the future (Warren, 2012).. When making the analyses on the lack of trust that many have had on the organisation, it becomes helpful in establishing what the corporation must consider for the future in the industry. In response to the accusation and the spoiled BPs name, the company has implemented alternatives that will handle the lost trust from the stakeholders and the participants in its continued success.

• Discussion

From the analyses on the reports by BP and other literature, there are evidences that the corporation has acted towards making a sustainable existence. BP has made efforts towards complementing its production through making proper diversification on the energy industry. The wind energy plants and various solar energy establishments are mostly an avenue that assists BP in maintaining its efforts of CSR. The outcome of it no tolerance to bribery and dubious treaty has made its possibility to stand tests of time (Jonker and Witte, 2006, 72). Its existence in various regions and countries makes the corporation susceptible to a lot of scrutiny especially in countries that takes the existence of foreign investors to offer various services according to the standardised regulations of the industry.

In an organisation, challenges are prone to occur and BP is not an exception. Dealing with petroleum products is a risky affair. When it is just one or two plants, firms and outlets, the directors may have more control. However, when more branches come into picture, there are chances that challenges may increase and more is demanded that as a director may be bit tricky in be in more than one place at the same time (Warren, 2012).. The challenge becomes greater when those left with responsibilities forget their tasks. One mistake in the petroleum sector can lead to massive danger to the surrounding and the environments as well as inheritance (Kouroupetroglou, 2014, 123). Oil spilling during transit or mining and explosions may occur being led by the mistake of a few employees. However, the blame goes on the company’s name and not the branch. The challenges were tackled before and those under resolution, the company has major strategies that has made it possible to remain competitive in the market.

The literature has indicated existence of some tasks that BP has worked on over years and has become a success. In the aim to save on energy and the green initiative, the company has worked tireless to bring some sanity in the energy industry. Others are following the suite where more are making efforts to resolve environmental problems that have been caused by increasing use of petroleum products global usage. With effects of global warming and harmful gases emission, the company has brought a challenge to the fellow competitors, which has brought about concern for the nature. All the projects by the company have come into completion with the aim to improve on the environmental conditions.

Some of the incidences and accidents that have occurred caused some loss of lives and properties of the communities in the regions. Others have been affected in their daily operations. As a result, BP have been handling the matters with an aim to bring sanity where there has been misunderstanding and some disparities. Those who needed compensations have been remunerated and settled in the affected issues. When it came to persistent in their operations, BP has always been ready to settle back to their normal operations with an aim of continued energy provisions. Breakdowns or accidents are managed and resources are always deployed to make sure they return to their operations like before.

Lastly, the company has been careful to remain faithful to the law in matters that pertained some cases out of the areas that there has been bleach in the responsibilities. Every case that has ever arisen due to an incident has been attended to according to the law. While there are cases of corporation in the energy industry bribing their out where there are complications and case, the company has adhered to the law even where it hurts. The first thing has been to get all regulations of foreign investments in the near and far regions. Where there has been a misfortune and the legal department takes action towards BP, the company has been respectful in maintaining integrity hence making its existence more firm in the industry.

• Conclusion

Every management of an enterprise has a reason to take the company from one level to another. The present represents experiences and major tasks that were implemented for its sustainability. However, the same applies for the future of a corporation. BP has not been exceptional from the case. Its future relies on the current way that it operates its purposes. The way to manage its survival in the future has been facilitated by major activities. Some of them are CSR and business ethics, which have been analysed in this report. The major factor that has been considered were their major implication to the organisation the way they have worked towards tackling challenges and remaining firm in areas that needed attention. Business survival has a lot to do with management that considers ethics and CSR as the values to embrace.