Social, Cultural and Environmental Responsibility of Corporate Business Leaders

In 2010, BP’s Deepwater Horizon rig exploded, causing millions of barrels of crude oil to be leaked out into the Gulf of Mexico. The extensive oil spill created a lot of pollution and far-reaching effects on the tourism industry. The resultant damage to marine wildlife such as fish will continue to be felt for many years to come. Weeks after the event, and while it was still in progress, the Deep Water Horizon oil spill was being discussed as a disaster that will impact global economies, markets, and mining policies. The potential consequences included structural shifts in energy policy, insurance marketplaces and risk assessment, and financial liabilities to be incurred by BP. The law that affected the operation of BP’s business was the Clean Water Act, which regulates the discharge of pollutants in US’s waters (EPA, 2008). Following the oil spill, regulations have been put in place to regulate oil drilling operations. The Obama administration proposed new regulations on offshore oil and gas drilling. The regulation focused on oil and gas drilling companies to use stronger blowout Preventers that have the capability to close an offshore well in case a drilling breach occurred accidentally.

Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social

Corporate social responsibility (CSR) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism that has business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered stakeholders. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines

On April 20, 2010, the petroleum industry suffered the largest maritime disaster oil spill in its history known as the Deepwater Horizon oil spill. The Deepwater Horizon oil rig that had been working on a well for BP in the Gulf exploded and went up in flames. Subsequently, massive amounts of oil spilled out into the water, threatening the marine life and those living on the shore. The fire burned for 36 hours before the rig sank into the ocean, leaking dangerous chemicals into the water. Hydrocarbons and oil continued to leak into the Gulf of Mexico for 87 days before they managed to seal the well. “The Gulf spill, which left 11 workers dead and 17 injured, is about the size of Rhode Island, running across the northern Gulf of Mexico between the mouth of the Mississippi River and Florida. It runs wide, threatening the coastlines, and deep, traveling beneath about 5,000 feet of water and 13,000 feet under the seabed,” (Emami, 2010). BP faced an angry uproar from the media, consumers, and environmentalists all over the world. The economy and the environment suffered greatly because of this incident. As investigations began, speculations quickly arose about the morals and capability of the company. The one positive image of BP had been shattered. Customers lost faith in the company and criticized the actions of its executives. Tony

Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society (2). CSR may also be referred to as "corporate citizenship" and can involve incurring short-term cost that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change(1).

In April of 2010, the Gulf of Mexico ground to a halt. An explosion on the Deepwater Horizon mobile offshore drilling unit resulted in one of the worst environmental and economic catastrophes in history. Eleven members of the crew were killed, many others sustained serious and permanent injuries. A moratorium on drilling lasted long into the following year. Massive layoffs ensued across multiple business sectors. Many commercial fishing vessels could not leave port, and those that did caught far fewer fish. Oyster beds were destroyed and miles of wetlands were marred by oil. At the time, we could only imagine how pervasive the effects would be. Shortly after the explosion, Arnold & Itkin LLP, a Houston-based litigation boutique, which represented

The Deepwater Horizon oil spill has been recognized as the one of the worst environmental disasters, if not the worst, in U.S. history. On April 20, 2010, an offshore oil rig leased by British Petroleum’s (BP) in the Gulf of Mexico exploded in a ball of flames on, killing 11 employees. While much of the nation was riveted by the attempts to cap the mile-deep well, the hidden tragedy was the cloud of tens of millions of barrels oil that was slowly creeping toward land. BP and others would work for over a year to clean up the beaches and wetlands affected by the spilled oil. The impact of this was felt by costal wildlife and those who made their business working in the Gulf and along the shore.

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

This paper will explain some of the effects of three legal issues and three ethical issues surrounding the London-based British Petroleum Company’s involvement in the explosion of the offshore oil rig Deepwater Horizon and the subsequent oil spill into the Gulf of Mexico. There are many legal issues surrounding this disaster, but the three this paper will focus on are the Oil Pollution Act of 1990, maritime laws, and criminal charges

There are very few aspects of how a company behaves as a corporate citizen that do not apply to a company of the size and nature of BP. The most significant of these are the sheer environmental impact - not simply of the extraction of oil and the energy use of BP's own operation, but more significantly of the impact on climate change of the actual use of all the oil by BP's customers. The state of current scientific evidence raises serious question marks over whether or not human society can actually afford to burn all the hydrocarbons whose existence we have already identified - never mind potential future discoveries. Twenty years ago, people worried that one day the oil would run out. Now, it is the case that the real issue has been identified as one of emissions.

Late summer of 2010 saw one of the biggest environmental disasters in American history. In a region already plagued by the affects of Hurricane Katrina, a massive oil leak exploded just off the coast of Louisiana in the Gulf of Mexico. For three months, oil gushed out of the broken well and flooded delicate swamplands with crude oil. The owner of the well, BP tried to take action and effectively communicate their solution strategies to both the public and to government, but ultimately failed tremendously based on massive miscommunication of how their efforts were actually faring in the region.

CORPORATE SOCIAL RESPONSIBILITY (CSR) is a term describing a company’s obligation to be accountable to all of its stakeholder in all its operation and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholder with their need to make profit.

A difficult challenge primarily from operating on a multinational scale in the petroleum industry is managing a diverse range as well as a large number of sustainability issues. BP’s global operations and footprint can have severe impacts on the environment, individuals, communities and society at large (Sustainability Review, 2012).

The oil spill undermines the reputation and market position of British Petroleum, thus its stock prices decline dramatically. Even though BP took measures for resolving these problems, its way was not beneficial enough and therefore, it still requires more advantageous resolutions.

Climate change around the world was the most pressing issue at that time, and according to Levy (1997), it was an international environmental issue that stirred up widespread controversy amongst all the industries worldwide. In addition, Kolk and Levy (2001) also noticed that with increasing public measures, rules and regulations, most oil companies have started to change their strategies, with Shell taking very strong measures to be responsive to social and environmental concerns. Without any actions like Shell, BP would face a situation whereby lack of social legitimacy is seen as a fundamental threat to the company (Kolk & Levy, 2001).