1. What are the main ethical issues and dilemma BP faces in this case?
A project that is on a large scale faces some issues, including:
There are concerns about the coating of the pipeline and the risks of leakages, in particular in Georgia, where oil spills might significantly impact the country’s strategic water resources in the Bojorni National Park. Concerns were also raised over the fact that the pipeline runs through earthquake zones, which leakages nearly inevitable or could not be avoided.
Campaigners have highlighted the prospect of up to 30,000 civilians along the pipeline being at least temporarily relocated.
On the political level, with civil unrest and wars in the region the pipeline passes within only a few miles of the
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From the point of view of ethics and utilitarianism, BP has taken initiatives that led to fairly immediate impacts. It proactively addressed the social, ethical and environmental issues. From the perspective of human rights and justice, the company was alleged to violate human rights and to engage in corrupt practices.
3. This case raises questions about the scope of responsibility for a Western MNC operating in environments with corruption and poor governance. What is your opinion on how far a company such as BP in this case should go? Can they really be made responsible for the actions of local officials and governments? Try to base your answer on arguments derived from one or more ethical theories.
MNC as BP operate in a globalized world where there are different types and forms of government and different levels of inefficiency and corruption involved. It would be foolishly brave to expect that they should be held responsible for what officials and governments, because it can never be completely within their control. If they do not exploit the potential then someone else would. However, they can have a significant influence on the policy on their fields where they must try to resolve an ethical manner.
4. What is the appropriate way for BP to respond to its ongoing criticism? Base your answer on the contemporary ethical theories, in particular virtue ethics, discourse ethics, and postmodern ethics.
BP can probably focus on the
One of the most controversial issues faced nowadays is the way we deal with the transport of oil. One of the proposed methods is The Keystone XL Pipeline. Although there are some pros associated with building the pipeline, the risk outweighs the benefits by far. Building the Keystone XL pipeline would negatively affect the environment, jeopardize the public health and is to no benefit to the American people.
Almost 95 million barrels of oil and fuel are produced each day in order to provide energy and fuel to people the world over. A major component of the oil industry is the transportation of oil through various means including oil pipelines. These pipelines are capable of transporting thousands of barrels of oil thousands of miles per day. In the United States one possible pipeline has caused a lot of controversy and discussion on the impact it will have on the United States. The difficulty in deciding if the Keystone XL Pipeline should be built is in whether the possibility of economic growth outweighs the possibility of environmental destruction. In order to make a decision, one must first look into the history of oil pipelines. It is crucial
The Dakota Access Pipeline has been a topic of controversy since it was first announced to the public June 25th, 2014. This pipeline will run under the Missouri river to transport oil from the North Dakota Bakken oil fields to Patoka, Illinois, despite it being built on Sioux Nation territory grated to them through the 1851Treaty of Fort Laramie. This poses a threat to many tribes, including the Winnebago Tribe of Nebraska, for their concern of the environmental impacts, possible water contamination, and the destruction of sacred burial grounds.
One of these is that this pipeline will be among the largest in America. Yet the oil that flows through it will not be used in the US, but sent to Asia to compete with our own exports. The next is the accident rate in North Dakota is extremely high. There have been massive leaks, and spills all throughout the state, yet the companies are in bed with the politicians, and end up pay fractions of what they should. The most disturbing is that OSHA only has 9 inspectors between North and South Dakota. This lack of supervision and accountability contribute helps to one death once every six weeks. Since the big oil companies use subcontractors they cannot easily be sued for injuries, or deaths. As usual legalized corruption has a massive effect on policy, and regulation. The politicians turn a blind eye, while everyone else is
The next major environmental issue of the pipeline is the indigenous populations. “Northern Alberta’s, where the tar sands oil comes from, people are coming under attack because of their operation of the tar sands in their livelihoods and cultural traditions.”5 Other people affected by this project are the people who live in communities downstream from the tailing ponds, “they have seen spikes in rates of rare cancers, renal failure, lupus, and hyperthyroidism.” “In the lakeside village of Fort Chipewyan, for example, one hundred of the town’s one thousand-two hundred residents have died from cancer.”5 So not only will this pipeline affect the people living around it but it will also affect the people working on it and living around the tailing ponds, wherever those may be located. With it traversing six U.S. states that means a lot of people could get sick and even die from a project that has so many issues with it before it’s even began to be used for its intended purpose.
The Keystone XL Pipeline has divided North America because it is an enormous environmental issue. It has divided us due to our opinions. Many Americans see the potential it could bring to our country and economy, but there are several environmental problems to consider and health issues to think about before deciding which side to take. Not only do those factors matter but also how it could affect the lives of many Americans. There are two sides to this issue, to either approve or disapprove the Keystone Pipeline project, and by researching I will form an opinion.
The construction of this pipeline has raised a lot of controversy regarding its necessity, but also in the potential impact on the environment. On the list of controversies, it is facing the established route for the pipeline because it runs half-mile near of the Standing Rock Sioux reservation, crossing beneath the Missouri River. The concern is the huge impact this would cause if the pipeline breaks near to the river spilling the crude oil into the river contaminating the drinking water. The other concern is that as this pipe passes very close to the Indian reservation, it also disturbs sacred land. In addition to all this, there is the controversy of the use of eminent domain by the government, to get the land for the construction of the pipeline.
The likelihood of this pipeline bursting and spilling oil into the land and water it passes through is not completely out of the picture. Although trucks or trains transporting oil have a higher chance of spilling, according to the article, "the International Energy Agency found that pipelines spill much more in term of volume." This could be very bad news in terms of polluting the land and water used everyday. Some of the land this line is set to run through is farmland. Even if a spill never occurred, this farmland would still be damaged during the installment of the pipeline when having to dig it up. Among this land is private property, whose land is unwillingly being used for the implication of the pipeline (Sammon). Not only are farmers' lands at risk of damage, but sacred ground of Native Americans are in the middle of the crossfire as well. "The Standing Rock Sioux tribe says the project threatens its drinking water source and could destroy ancient sacred sites," explains Agence France-Presse. The installment of the pipeline will damage their sacred grounds, and if it would even spill, would pollute their only water source for drinking and irrigation as well as the land they live off
As this case shows Human Rights violation BP, The company was lacking operational decisions, such as ensuring that safety standards are appropriate for employees; rather than pursuing additional profits and hiding behind a mask of public relations. Viewed from this perspective, ‘calculated casualties’ don’t provide the greatest amount of good; it simply highlights an unethical and ruthless pursuit of profits and hence environmental destruction and human deaths would widely be considered unethical.
The company was on the right track, far as it trying to change the reputation of the company. The first step BP took to repair the image of the company was to repair the image. And by doing that, they their name from British Petroleum to simply BP. The next step was for BP to launch its Alternative Energy business in 2005. BP also seen fit for the company to continue “going green” efforts. This is in efforts for it to become more profitable. Their next step in restoring their reputation was to establish a code of conduct. The company code entitled “Our Commitment to Integrity”. BP seeks to unite its diverse employees. This code of conduct was the largest mass communications exercise ever attempted at BP.
BP has had a long history of ethical and legal violations because BP chose to put profits above all else. In the past twenty years, BP subsidiaries were convicted of environmental crimes in Texas and Alaska. In addition, BP received the biggest fine in US history regarding safety violations. Although BP accepted responsibility, their record showed questionable and illegal behavior for twenty years. One of BP's major issues happened in a Texas refinery close to Galveston in 2005 (Jennings, 2009). This explosion took the lives of fifteen workers and injured five hundred people and caused residents nearby to become sheltered in their homes (Jennings, 2009). The US Chemical Safety and Hazard Investigation board concluded that BP had
The environment is a very important thing to take care of and can be very fragile. In the recent years humanity hasn’t been doing much to take care of the earth, and instead is destroying it in the name of progress. One of the harmful things that could really impact the environment is the North Dakota Pipeline. Some facts about the pipeline is that it is owned by Energy Transfer Partners who are the owners of Sunoco. Sunoco has had multiple onshore pipeline leaks and disasters that have devastated many environments. The planned pipeline is going to be 1,134 miles long and will cut through North Dakota, South Dakota, Iowa, and Illinois, by doing that it crosses fifty counties in total. Pipelines in general aren’t really the most reliable things
A company with such extensive operations in developing countries also needs to carefully manage its approach to human rights, and ethical business practices. BP will have significant impact on local communities - both as a huge
In its Annual General Meeting in 2011, BP faced protests against BP’s executive’s remunerations and voiced their injustice (Webb & McVeigh, 2011). Facebook pages such as “Boycott BP” and RIP Spongebob, who died in an oil spill cause of BP” have been set up by activists, and have garnered 847,730 and 468,157 likes respectively (Jarvis, 2010). Hence, the impacts on these stakeholders have varying degrees, but are nonetheless affected one way or another by BP’s mistake.
The focus of this report will be to perform an audit of Beyond Petroleum’s ethical practices. This report will identify three main breaches of ethics, explain why they are unethical and make recommendations of what could be done to rectify the issues identified.