BP case study Essay
BP case study
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 war- torn area of Nagorno Karabakh the project had always been accompanied by considerable fears of terrorist attacks. Also there are countries which the pipelines are supposed to go very high levels of bureaucracy and corruption, as shown in the various indices.
2. How would you evaluate BP’s approach to the social, environmental and economic impacts of the project for local communities? Assess the approach from the perspective of utilitarianism and deontology first. Will the assessment differ from the rights and justice based perspective? Bp is considered at the time of the pipeline’s construction to be one of the top or leading companies in embracing sustainability and corporate social responsibility (CSR).BP initiatives renewable energy , climate change , human rights , and corruption prevention. BP set up a Regional Sustainability Development Program (RSDP) from early stages of the project in order to to proactively address the social, ethical and environmental issues”
• Environment investment program which aims to address ecological issues. • Community Investment Program (CIP) with a budget of about $ 20m, mostly address the most social issues during the construction phase. •Long term Regional Development Initiative (RDI) with a budget of approximately U.S. $ 25mn and to accompany the project on a life span of 10 years after its opening. 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 fact that it has been one of the company around the most socially responsible, implying that he would never go against the welfare wider not to disturb the balance of the environment. It is also worth noting that defend the BTC pipeline will generate income for the country, job opportunities and help meet the growing demand. Being a responsible organization, BP should let people know that it takes all precautionary measures to avoid disasters such as oil spills, pollution of water.