British Petroleum ranks one of the top most three industries of gas globally with their operations in Asia, America, Europe, Africa and Australia. The gas company has generated profits of more than 70% in United States and Europe still the organization needs to have some of the explorations and operations regarding production in some of the countries like South America, Caspian Sea and Africa. In United States the company British Petroleum in retailing industry is one of the largest companies. In more than 50 companies the organization supplies the branded Castrol lubricants as BP is the largest retailer (BP, 2010). In this study the main discussion point is ...view middle of the document...
The control and command that was used by many organizations and this was not worked effectively, the organizations have to apply the real delegation regarding authority and to maintain the standards. The next challenge is the concern regarding the cultural diversity. This is related to the historical culture of the business. The next challenge is the issue that is related to the corporate responsibility for the business activities (John Manzoni, 2005).
The organization British Petroleum claims the tax credit of 9.9 dollars on the costs that are related to the operation of the cleanup in the Gulf of Mexico. The crisis of oil spill can be the turning point and this will be the next steps of the company and the organization has to concentrate on crisis (Doug Simpson, 2010).
The oil spill incident in Gulf by British Petroleum is an example that has taken place because of the ethical mismanagement. According to BP, the Gulf spill incident reveals the fundamental equipment failure that is specially designed for preventing the blowout. The oil industry is producing increasingly technologically superior equipments in order to deal with such incidents. At the same time, the fact remains unchanged i.e. virtually not possible to solve the problems that occurred due to computer simulations. More problems can be foreseen if a single part of the equipment is made stronger. As per the stakeholder theory, BP is ignorant of the technological malfunctions and it can be considered as the reason for potential technical failure and not inappropriate business ethics. From the approach of strategic management, BP has to consider the steps to incorporate the other environmental components like structures, strategies and goals in order to achieve the overall organizational approach. At the same time, BP is lacking he strategic management system of environment.
From the ethical viewpoint, British Petroleum have to stop fixing and drilling the blowout preventers even before it loses money. Instead, the ethical considerations informs that the doing right thing often needs to give up the managements self interest for doing well to others. Here, an ethical point of view must be considered by the management to regard the inspirational sources like philosophical arguments so as to determine the ethically legitimate conditions (David, 2010).
In 2005 March, a fiery explosion has taken place in Texas City which is considered as British Petroleum’s major oil refinery. In this incident 170 were injured and 15 members died. The company has implemented investigation upon on the recommendations and this report stated that the fundamental causes were because of the organizational failure which added to such a tragedy in the history of BP. The team of investigation has found that there are no clear evidences for intentional or conscious decisions or actions were reasons for the attack. However they...