british petroleum out of control

Upload: abdullasaleem

Post on 03-Mar-2016

19 views

Category:

Documents


0 download

DESCRIPTION

Ethics in BP

TRANSCRIPT

  • THE GULF OF MEXICO OIL SPILL IS OFFICIALLY THE WORST

    ENVIRONMENTAL DISASTER THE US HAS FACED. BUT HOW HAVE

    CORPORATE GOVERNANCE REGULATIONS INFLUENCED THE SITUATION

    AND WHAT PART HAS ETHICS PLAYED?

    OUT OF

    CONTROL?

    24 BP OIL SPILL

  • WKHQWKH'HHSZDWHU+RUL]RQH[SORGHGDQGVDQNLQWKH*XOI RI 0H[LFRRQ$SULOYHU\IHZSHRSOHFRXOGKDYHSUHGLFWHGLWZRXOGFDXVHWKH

    ZRUVWHQYLURQPHQWDOGLVDVWHUWKH86KDVHYHUEHHQFRQIURQWHGZLWK

    %XWWKDWLVH[DFWO\ZKDWKDVIROORZHG(QYLURQPHQWDODQGHQHUJ\H[SHUWVLQFOXGLQJ:KLWH+RXVHHQHUJ\DGYLVHUVKDYHVXEVHTXHQWO\DOODJUHHGRQWKHHQRUPLW\RI WKHGLVDVWHU

    (OHYHQULJZRUNHUVGLHGZKHQWKHULJOHDVHGWR%ULWLVK3HWUROHXP%3E\6ZLVVEDVHG7UDQVRFHDQ/WGH[SORGHGDQGVDQNGXHWRDEXLOGXSRI QDWXUDOJDVHVWKDWZHQWXQQRWLFHG

    )ROORZLQJWKHH[SORVLRQRLOKDVFRQWLQXHGWRVSHZRXWRI EURNHQSLSHV(VWLPDWHVVXJJHVWOLWUHVRI RLODGD\KDYHEHHQSRXULQJLQWRWKHVHDRII WKHFRDVWRI /RXLVLDQDDIIHFWLQJZLOGOLIHDQGKXQGUHGVRI NLORPHWUHVRI FRDVWOLQH

    2QHFRXOGLPPHGLDWHO\DVNZKHWKHULWLVHWKLFDOIRURLOFRPSDQLHVWRRSHUDWHLQDUHDVZKHUHVXFKDQLQFLGHQWFDQVRDGYHUVHO\DIIHFWZLOGOLIHDQGWKHFRDVWDOUHJLRQV,WLVDKDUGTXHVWLRQWRDQVZHUJLYHQWKHZRUOGVSHUVLVWHQWWKLUVWIRURLO

    25

  • ,WLVHDVLHUWKRXJKWRVHHKRZ%3VEHKDYLRXULQWKLVVLWXDWLRQFKDQJHVRYHUWKHFRXUVHRI WKHOHDN

    6DUDK&RQGRQFRQWHQWVSHFLDOLVWDW.DSODQ3XEOLVKLQJVD\V$WILUVWLW%3GLGQRWDSSHDUWREHYHU\FRQFHUQHGQRUWDNHPXFKDFWLRQ$VWKHLPSDFWLQFUHDVHGLQVFDOHLWVWDUWHGWRDIIHFWPRUHSHRSOHDQGWKHSXEOLFLW\ZDVLQFUHDVHGVR%3VDFWLRQVKDYHVWHSSHGXS

    7KLVPRYHWRZDUGVPRUHHWKLFDOEHKDYLRXULQGRLQJDOOWKH\FDQWRUHFWLI\WKHVLWXDWLRQPD\EHFRQVLGHUHGWREHWKHUHVXOWRI LQFUHDVHGPRUDOLQWHQVLW\D3DSHU3WHUPUHODWLQJWRWLPHFRQFHQWUDWLRQRI HIIHFWSUR[LPLW\VRFLDOFRQVHQVXVHWFDQGKHQFHSUHVVXUHWRDFWLQWKLVZD\

    2QHRI WKHNH\FRQFHSWVRI FRUSRUDWHJRYHUQDQFHLVWKDWRI UHVSRQVLELOLW\LHDEXVLQHVVDQGERDUGRI GLUHFWRUVDFFHSWLQJUHVSRQVLELOLW\IRULWVDFWLRQV

    &RQGRQDGGV%3VILUVWUHDFWLRQWRWKLVRLOOHDNZDVWRVWDWHSXEOLFDOO\WKDWDOWKRXJKWKH\RSHUDWHGWKHULJLQTXHVWLRQWKH\KDGOHDVHGLWIURPDQRWKHUFRPSDQ\7KLVDSSHDUHGWREHDQLQLWLDODWWHPSWWRVKLIWWKHUHVSRQVLELOLW\HOVHZKHUH

    $VWKHVFDOHRI GLVDVWHULQFUHDVHGLWEHFDPHFOHDUWKDWWKH\FRXOGQWGRWKLVDQGKDGWRWDNHRZQHUVKLSRI WKHSUREOHPWKHPVHOYHV7KLVDWWHPSWWRSDVVWKHUHVSRQVLELOLW\HOVHZKHUHZRXOGEHWHUPHGDGHIHQFHW\SHRI UHVSRQVHXQGHUDVHWRI VWUDWHJLHVSUHVFULEHGE\&DUUROOGLUHFWO\LQ3DSHU3V\OODEXV

    %3KDVWULHGWRKDOWWKHVSLOODJHRQDQXPEHURI RFFDVLRQVZLWKRXWVXFFHVVLQFOXGLQJDQDWWHPSWWREORFNWKHOHDNZLWKKHDY\PXG/DWHURQDFRQWDLQPHQWFDSZDVORZHUHGRQWRWKHUXSWXUHGZHOOIXQQHOLQJPRUHWKDQKDOI RI WKHOHDNRXWRI WKHVHD

    +RZHYHUZDUQLQJVIURPWKHFRPSDQ\VXJJHVWWKHVSLOODJHPD\QRWEHFRPSOHWHO\VWRSSHGXQWLO$XJXVWDIXOOILYHPRQWKVDIWHUWKHLQLWLDOH[SORVLRQ

    7KLVLVZKHQ%3KRSHVWRFRPSOHWHWKHGULOOLQJRI DUHOLHI ZHOOZKLFKLWKRSHVZLOOEHWKHILQDOVROXWLRQ7KHUHDUHQRJXDUDQWHHVWKRXJKDQG%3KDVEHHQWROGWR

    GULOODVHFRQGZHOOLQFDVHWKHILUVWGRHVQRWZRUN

    $VDQLQWHUQDOLQYHVWLJDWLRQDW%3UHYHDOHGVHULRXV,7IDLOXUHVSOD\HGDSDUWLQWKHGHYDVWDWLRQSROLWLFLDQVKDYHEHJDQWRDVNHG%3ZK\LWVGULOOLQJSODQVGLVFRXQWHGWKHULVNWKDWVXFKDFDWDVWURSKLFSLSHOLQHUXSWXUHZRXOGHYHUKDSSHQDQGZK\LWDVVXPHGWKDWLI DOHDNGLGRFFXUWKHRLOZRXOGQRWSRVHDPDMRUWKUHDW"

    %3KDVVWDWHGWKDWWKHDFFLGHQWZDVEURXJKWDERXWE\WKHIDLOXUHRI DQXPEHURI SURFHVVHVV\VWHPVDQGHTXLSPHQW,WDGGHG7KHUHZHUHPXOWLSOHFRQWUROPHFKDQLVPVSURFHGXUHVDQGHTXLSPHQWLQSODFHWKDWVKRXOGKDYHSUHYHQWHGWKLVDFFLGHQWRUUHGXFHGWKHLPSDFWRI WKHVSLOO7KHVHGLGQRWVXFFHHG

    7KHULVNRI DQRLOOHDNZRXOGXQGRXEWHGO\KDYHEHHQRQ%3VULVNUHJLVWHUDQGVKRXOGKDYHEHHQDVVHVVHGDVKDYLQJDKLJKLPSDFW7KHSUREDELOLW\RI WKLVGLVDVWHURFFXUULQJPD\KDYHEHHQDVVHVVHG

    THE RISK OF AN OIL LEAK WOULD UNDOUBTEDLY

    HAVE BEEN ON BPS RISK REGISTER, SO IT SHOULD

    HAVE BEEN ASSESSED AS HAVING A HIGH IMPACT.

    26 BP OIL SPILL

  • 86SUHVLGHQW%DUDFN2EDPDKDVEODPHGWKHVSLOORQDEUHDNGRZQRI UHVSRQVLELOLW\DW%3

    &OHDUO\WKHLVVXHRI RZQHUVKLSOHDVLQJWKHULJVFDQPDNHWKHLPSOHPHQWDWLRQRI FRQWUROVGLIILFXOW7KLVDUUDQJHPHQWFDQFORXGWKHLGHDRI UHVSRQVLELOLW\EHWZHHQWZRRUJDQLVDWLRQVWKRXJKWKLVVKRXOGKDYHEHHQPDGHFOHDULQDQ\OHDVHDJUHHPHQWWKDWKDGEHHQSXWLQSODFH

    7KHGLVDVWHUPD\VHHWKHLVVXHRI FRQWUROVUHYLHZHGE\FRPSDQLHV7KHGLVDVWHUPD\QRZDOVRWULJJHUWLJKWHUUHJXODWLRQRI VXSHUWDQNHUVVKLSSLQJFUXGHWRWKH86

    $FFRUGLQJWRWKHODUJHVWRSHUDWRURI WKHYHVVHOV)URQWOLQH/WGUXOHVPD\EHWLJKWHQHGWREDQVLQJOHKXOOWDQNHUVIRUFLQJUHILQHULHVWRFKDUWHUGRXEOHKXOOFDUULHUVWKDWUHGXFHWKHVSLOOULVN

    8QIRUWXQDWHO\\RXDOZD\VKDYHWRKDYHDGLVDVWHUOLNHWKLVWRKDYHUHJXODWLRQVWLJKWHQHGXSD)URQWOLQHH[HFXWLYHDGGHG

    %XWIRUQRZLWVHHPVWKHPHVVFUHDWHGE\%3LVVHWWRFRQWLQXHERWKLQDQGRXWRI WKHZDWHU

    $OH[0LOOHULVDIUHHODQFHMRXUQDOLVW

    ZLWKWKHFRPSDQ\FRQFOXGLQJLWZDVORZ

    ,QGHHG%3FKLHI H[HFXWLYH7RQ\+D\ZDUGVHHPVWRVXJJHVWWKLVZKHQKHWROG7KH)LQDQFLDO7LPHVLWZDVDQHQWLUHO\IDLUFULWLFLVPWRVD\WKHFRPSDQ\KDGQRWEHHQIXOO\SUHSDUHGIRUDGHHSZDWHURLOOHDN+D\ZDUGFDOOHGLWDORZSUREDELOLW\KLJKLPSDFWDFFLGHQW

    7KH%3PDQDJHPHQWVWUDWHJ\ZRXOGOLNHO\KDYHEHHQFRQVLGHUHGRQDFRVWEHQHILWEDVLV%XWZLWKWKHEXVLQHVVIDFLQJPDVVLYHSHQDOWLHVILQHVORVVRI FXVWRPLI LWGLGQWDFWDSSURSULDWHO\WKHFRVWVWRUHFWLI\WKHVLWXDWLRQKDYHEHFRPHHQRUPRXV

    :LWKWKHH\HVRI WKHZRUOGRQWKHFRPSDQ\DVLWFRQWLQXHVWRWDFNOHWKHGLVDVWHU%3KDVVSHQWPRUHWKDQEQWU\LQJWRFRQWDLQWKHVSLOO,WKDVDOVRSURPLVHGWRSD\DOOOHJLWLPDWHFODLPVIRUFRPSHQVDWLRQZKLFKLVOLNHO\WRUDPSXSWKHFRVWE\IXUWKHUELOOLRQVRI GROODUV

    %3KDVDOVRSOHGJHGPIRUDQRSHQLQYHVWLJDWLRQLQWRWKHVSLOODQGWRUHVHDUFKEHWWHUZD\VRI WUDFNLQJRLOVSLOOVZLWKWHFKQRORJ\

    7KH\HDUUHVHDUFKSURJUDPPHZLOODGGUHVVZKDWFDQEHGRQHWRLPSURYHWHFKQRORJ\WRGHWHFWRLO

    GLVSHUVHRLODQGGLVSHUVDQWRQWKHVHDEHGLQWKHZDWHUFROXPQDQGRQWKHVXUIDFHDVZHOODVIRUUHPHGLDWLQJWKHLPSDFWRI RLODFFLGHQWO\UHOHDVHGLQWRWKHRFHDQ7KLVLVLQDGGLWLRQWRVWXG\LQJHIIHFWVRI WKHRLODQGGLVSHUVDQWRQWKHVHDEHG

    7KHGLVDVWHUZLSHGVRPHEQIURP%3VPDUNHWYDOXHDVLWVVKDUHSULFHUDSLGO\IHOOWRLWVORZHVWOHYHOVLQFH$SULO8QGHUVWDQGDEO\VKDUHKROGHUVDUHQRWKDSS\DQGWKH\KDYHVXHGWKHERDUGIRUIDLOLQJWRPRQLWRUVDIHW\DQGH[SRVLQJWKHFRPSDQ\WRSRWHQWLDOO\HQRUPRXVOLDELOLW\UHODWHGWRWKHVSLOO

    7KH'HHSZDWHUGLVDVWHUZLOOFDXVHILQDQFLDOFRQVHTXHQFHVWR%3DQGWKH%3VXEVLGLDULHVZKLFKZLOOEHWDEXODWHGLQWKHELOOLRQVRI GROODUVLQFOXGLQJOLDELOLW\IRUGDPDJHWRSURSHUW\FRPPHUFLDOLQWHUHVWVDQGZLOGOLIHVDLGWKHFRPSODLQW

    7KHSODLQWLIIVDUHVHHNLQJGDPDJHVDVZHOODVVHHNLQJWRGLUHFWWKHERDUGWRWDNHVWHSVWRLPSURYHFRUSRUDWHJRYHUQDQFHVXFKDVOLPLWLQJWKHQXPEHURI LQVLGHGLUHFWRUVDQGVHWWLQJXSDQHQYLURQPHQWDOH[SRVXUHRYHUVLJKWFRPPLWWHH

    27