Ethics in Bp

Topics: Board of directors, Corporate governance, Business ethics Pages: 11 (4000 words) Published: October 19, 2013
1) BP PLC- Background detail of the Multinational Corporation BP (Plc.) is a British multinational oil and gas company headquartered in London, England, United Kingdom. It boasts of an extensive service market with operations in more than 80 countries in all parts of the world and nearly 90,000 employees that form its increasing human resource base. It has grown since its inception in 1909 to become one of the world's leading oil companies on the basis of market capitalisation and proven reserves. Its main businesses are Exploration and Production, Refining and Marketing, and Chemicals. Exploration and Production's activities include oil and natural gas exploration and field development and production, together with pipeline transportation, natural gas processing and gas and power marketing. The activities of Refining and Marketing include oil supply and trading as well as refining and marketing. Chemicals activities include petrochemicals manufacturing and marketing. In addition, the Company has a solar energy business which is one of the world's largest manufacturers of photovoltaic modules and systems.

BP is one of the world's leading oil companies on the basis of market capitalisation and proven reserves. Its main businesses are Exploration and Production, Refining and Marketing, and Chemicals. Exploration and Production's activities include oil and natural gas exploration and field development and production, together with pipeline transportation, natural gas processing and gas and power marketing. The activities of Refining and Marketing include oil supply and trading as well as refining and marketing. Chemicals activities include petrochemicals manufacturing and marketing. In addition, the Company has a solar energy business which is one of the world's largest manufacturers of photovoltaic modules and systems.

2) Staying afloat in the energy business.
Since time immemorial the goal of a firm for all managers and employees is to maximize the shareholders wealth. However every business should be modelled in such a way that allows for the satisfaction of all key stakeholders related to the main line of business rather than just shareholders who are keen on getting the maximum returns on their investments and managers who see the success of the business as an opportunity for career growth. This dilemma is nothing foreign to BP (Plc.). As a result of operating in the highly competitive energy industry, the company has been forced to adapt to the dynamics of the energy industry in order to maintain its market leadership ahead of its competitors such as Shell and Total. This obviously draws in the need for high capital expenditure, Research and development and other costs meant to help the oil giant stay afloat in the face of competition. Definitely an increase in such costs is likely to dampen the spirits of other stakeholders who are interested more in the profit growth of the entity. In order to ensure that all the needs of all these people are met, BP executives have had to come up with highly strategic Corporate Governance & Ethics codes that are implemented on all the levels of its gigantic organisational structure.

It is against this backdrop that the main purpose of this essay has been formulated. The aim of this article is to provide a critical analysis of the major elements of BP`s corporate governance putting much emphasis on ethical issues that have probed the company since the turn of the 21st century. Its Corporate Governance Report for the year 2012 will be brought to scrutiny in this essay noting all the crucial points where the multinational corporation has done well in complying with societal codes and corporate ethics in its operations and more importantly, outlining gross violations of such set standards that are supposed to be strictly adhered to.

3) Corporate Governance & Ethics : An in-depth review of Policies and Procedures. Corporate governance refers to the system...
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