Essay BP- Texas City Oil Refinery Explosion (2005) – Case Summary

1591 Words 7 Pages
BP is the leading energy company. BP took its name from the initials of the company’s previous official name British Petroleum. The company was trying to persuade everyone that it was an environmental friendly company that was using and develop alternative energy technology. During its existence it paid so much in fines for pollution that it is become obvious that management did not really care about the environment, but only about maximizing profit in anyway. It was easier for them to pay fines than to change their management system and prove safety improvements in the workplace. After the explosion, BP’s stock price and its reputation went down, and it is one of the numerous results of the disaster. It has definitely happened because of …show more content…
BP did not properly place its stakeholders at the center of its strategy. Instead of being fixated on legal liability, which originally impacts internal stakeholders (management, employees, shareholders, creditors, customers); BP should have empathized with external stakeholders (customers, public, communities, media) that will suffer from the explosion. Finally, BP has hurt all of its stakeholders.
7 Steps
1. What are the facts of the case?
I think the most significant fact is that BP was neglecting obvious warning signs about the plant's weakening conditions, and was focusing on the minimizing costs and the maximizing profits. Employees were aware of the working conditions at the plant because every day they were going to work with a fear that something terrible could happen at any time. BP failed to repair a lot of safety problems they knew about, and it led to the explosion in 2005, 15 deaths and over 170 injured. BP reduced its expanses for buying safety equipment for employees, cut its budget to lower number of inspection, and maintenance workers at the plant. Indeed, BP did not repair a lot of multi-safety problems that at the end caused the explosion, and at the end the company was fined. Cost cutting and poor maintenance are the main factors in this case

More about Essay BP- Texas City Oil Refinery Explosion (2005) – Case Summary

Open Document