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Questions for discussion 1. What are the major ethical issues in this case? 2. Aside from personal greed, what factors might lead an oil company to compile a long list of environmental damages? 3. Which approach to social responsibility does BP appear to be taking? 4. Distinguish between ethical issues and social responsibility issues as they apply to this problem

Questions for discussion 1. What are the major ethical issues in this case? 2. Aside from personal greed, what factors might lead an oil company to compile a long list of environmental damages? 3. Which approach to social responsibility does BP appear to be taking? 4. Distinguish between ethical issues and social responsibility issues as they apply to this problem

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Questions for discussion

1. What are the major ethical issues in this case?

2. Aside from personal greed, what factors might lead an oil company to compile a long list of environmental damages?

3. Which approach to social responsibility does BP appear to be taking?

4. Distinguish between ethical issues and social responsibility issues as they apply to this problem

The Deepwater Horizon disaster clearly dealt a blow to BP's efforts to portray itself as the leading environmentally friendly oil company. Not only were 11 workers killed in the explosion, but millions of gallons of crude oil gushed into the Gulf of Mexico for months as the firm seemed hapless in its efforts to stop the leak. Businesses across the entire Gulf Coast were affected, and thousands of people lost their jobs-permanently or temporarily. BP also faced a major crisis as it attempted to stop the leak, minimize the environmental damage, and assure people it would provide adequate compensation once everything was settled. But BP is nothing if not bold. For example, the oil giant continues to risk compromising its green image by engaging in what Greenpeace calls the "greatest climate crime" in history-extracting oil from the tar sands of Alberta, Canada. The project is energy- and water-intensive, produces excessive amounts of greenhouse gases, destroys acres of forest, and harms indigenous communities, but it comes at a time when oil prices are high and western consumers are dependent on Middle Eastern oil. It remains to be seen whether BP's seemingly socially responsible ends can justify their environmentally damaging means.
Transcribed Image Text:The Deepwater Horizon disaster clearly dealt a blow to BP's efforts to portray itself as the leading environmentally friendly oil company. Not only were 11 workers killed in the explosion, but millions of gallons of crude oil gushed into the Gulf of Mexico for months as the firm seemed hapless in its efforts to stop the leak. Businesses across the entire Gulf Coast were affected, and thousands of people lost their jobs-permanently or temporarily. BP also faced a major crisis as it attempted to stop the leak, minimize the environmental damage, and assure people it would provide adequate compensation once everything was settled. But BP is nothing if not bold. For example, the oil giant continues to risk compromising its green image by engaging in what Greenpeace calls the "greatest climate crime" in history-extracting oil from the tar sands of Alberta, Canada. The project is energy- and water-intensive, produces excessive amounts of greenhouse gases, destroys acres of forest, and harms indigenous communities, but it comes at a time when oil prices are high and western consumers are dependent on Middle Eastern oil. It remains to be seen whether BP's seemingly socially responsible ends can justify their environmentally damaging means.
Under the Guise of Green Oil companies aren't necessarily known for their environmentally responsible reputations. Exxon Mobil, for example, is remembered for the damage inflicted off the coast of Alaska when one of its tankers ran aground, and Royal Dutch Shell has been widely criticized for environmental damage resulting from its explorations in the Amazon basin. Another global energy giant, BP, however, has been making a concerted effort to create and market an environmentally friendly image. For the most part, this strategy has worked-ironically leading many to overlook the facts suggesting that BP is not entirely the environmentally responsible exception it claims to be. For the past several years, BP has been charged with major environmental offenses almost annually. In 2000 the company was convicted of an environmental felony for failing to report that its subcontractor was dumping hazardous waste in Alaska. In 2005, BP allegedly ignored knowledge that its Texas City refinery was unsafe in a cost-cutting effort that led to an explosion, 15 deaths, and dozens more injuries. The following year, BP's negligence at its Prudhoe Bay oil field caused a 200,000-gallon oil spill and misdemeanor violation of the Clean Water Act. Then, in 2007, BP lobbied Indiana regulators for an exemption allowing it to increase its daily release of ammonia and sludge into Lake Michigan. Finally, the BP oil spill in the Gulf of Mexico in 2010, when the firm's Deepwater Horizon rig collapsed, led to a significant backlash against the firm and ultimately resulted in the ouster of CEO Tony Hayward. Despite these misdeeds, however, BP still tries to maintain its image as a "green" company. The Natural Resource Defense Council has even praised it for being a leader in the industry's move toward renewable energy. Indeed, true to the tag line, "Beyond Petroleum," that accompanies its green logo, BP's 2010 Sustainability Report projects spending $8 billion over the next ten years on renewable energy products. Its web-site even offers a carbon footprint calculator that lets visitors see how their own choices affect the environment. Indeed, even a cursory look at the BP website conveys an image of environmental awareness and social responsibility. The BP logo, an image that combines elements of a classic solar rendering and a flower, is clearly intended to convey an image of "nature friendliness," for example, and the color green is used prominently across the site. There are also links to descriptions of the firm's environment initiatives and policies and practices regarding "green" business practices.
Transcribed Image Text:Under the Guise of Green Oil companies aren't necessarily known for their environmentally responsible reputations. Exxon Mobil, for example, is remembered for the damage inflicted off the coast of Alaska when one of its tankers ran aground, and Royal Dutch Shell has been widely criticized for environmental damage resulting from its explorations in the Amazon basin. Another global energy giant, BP, however, has been making a concerted effort to create and market an environmentally friendly image. For the most part, this strategy has worked-ironically leading many to overlook the facts suggesting that BP is not entirely the environmentally responsible exception it claims to be. For the past several years, BP has been charged with major environmental offenses almost annually. In 2000 the company was convicted of an environmental felony for failing to report that its subcontractor was dumping hazardous waste in Alaska. In 2005, BP allegedly ignored knowledge that its Texas City refinery was unsafe in a cost-cutting effort that led to an explosion, 15 deaths, and dozens more injuries. The following year, BP's negligence at its Prudhoe Bay oil field caused a 200,000-gallon oil spill and misdemeanor violation of the Clean Water Act. Then, in 2007, BP lobbied Indiana regulators for an exemption allowing it to increase its daily release of ammonia and sludge into Lake Michigan. Finally, the BP oil spill in the Gulf of Mexico in 2010, when the firm's Deepwater Horizon rig collapsed, led to a significant backlash against the firm and ultimately resulted in the ouster of CEO Tony Hayward. Despite these misdeeds, however, BP still tries to maintain its image as a "green" company. The Natural Resource Defense Council has even praised it for being a leader in the industry's move toward renewable energy. Indeed, true to the tag line, "Beyond Petroleum," that accompanies its green logo, BP's 2010 Sustainability Report projects spending $8 billion over the next ten years on renewable energy products. Its web-site even offers a carbon footprint calculator that lets visitors see how their own choices affect the environment. Indeed, even a cursory look at the BP website conveys an image of environmental awareness and social responsibility. The BP logo, an image that combines elements of a classic solar rendering and a flower, is clearly intended to convey an image of "nature friendliness," for example, and the color green is used prominently across the site. There are also links to descriptions of the firm's environment initiatives and policies and practices regarding "green" business practices.
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