Sustainability Report of BP

1447 Words6 Pages
What responsibility did the executives of BP have in making more socially responsible and safety conscious decisions at the expense of not meeting the consumer demand of cheap gas and thus lowering the returns for shareholders and their own compensation? Executives in many prominent companies must constantly be aware of consumer sentiments in regards to business practices. As such, executives have a very compelling social obligation for safety and compliance. This is particularly important in industries that can cause systemic damage to both the society and the environment. Oil companies are no different in this regard. A drilling mistake can have catastrophic consequences for all stakeholders involved, as evidenced by the case. Ultimately, executives should put ethical and social considerations first as it will directly influence profits. By doing what is best for the customer, the business will eventually profit. Many of the socially responsible initiatives started by company's are really an effort to increase sales. It is proven that promotions that focus of socially responsible initiatives sell more than regular price promotions. Executives should therefore be aware of cause marketing and its implications on the bottom line. Recent research has indicated that consumers are extremely value conscious and are eager to patronize businesses that share their own values and ethics (Menon, 2012). In short, consumers are swayed by causes that they care about. They appreciate the
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