Roll no.

15221001
Name: Huma riaz
Business Ethics

EXECUTIVE SUMMARY
The world witnessed the largest oil spill in its history in April 2010 in the Gulf of Mexico. The
explosion occurred in an oil well of British Petroleum and it is estimated that almost 4.9 billion
barrels of oil was leaked to the Atlantic Ocean during the first three months since the incident.
The oil spill had devastating effects of the economy and environment of America and the
company had to face severe criticism from across the world community
The explosion killed 11 men working on the platform and injured 17 others.
EXPLOSION!
It is the largest accidental marine oil spill in the history of the petroleum industry. On 20 April
2010, high-pressure methane gas from the well expanded into a drilling riser and was released
onto the drilling rig, owned by Transocean, where it ignited. In other words, it was caused by a
wellhead blowout. BP tried to put a fitting well cap over the source of the oil spill to prevent
further leakage of the oil and they drilled relief wells so that they can close the oil well
permanently
PROBLEM STATEMENTS
Problem 1:
There is no crisis management strategy in case of emergency
Problem 2:
Huge impact on environment after incident the water is mixed with oil and created many
problems
Problem 3:
No one is ready to take the blame is people are angry that there will be no actions taken by
government
Long term problem: the water pollution effective the marine life and indirectly to us created a
huge problem under bad circumstances

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Key Persons involved

Company BP

CEO tony Hayward.

Employees

STAKEHOLDERS

Co
Inv
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Resi
Gov est
any
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BP
Envi s
men
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EHOL
men
Employ
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DERS
CAUSES OF THE PROBLEM:
Problem 1:
BP, having been involved in crisis situations before, ironically did not have a crisis
management plan in place when the Deepwater Horizon oilrig explosion occurred. Due to this
fact, BP, a multi-billion dollar company, had a were winging it attitude in regards to its
response to the crisis.
Problem 2:

Plants and animals were completely covered in the oil. Seabirds, sea turtles and dolphins
have been found dead.
Oil that entered wetland areas meant recovery would be slow.
Fish stocks were harmed, and productivity decreased.

ALTENATIVE SOLUTIONS:

Risk analysis

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Its important to understand the need for a comprehensive risk analysis. First impressions
demonstrating and competence are vital.
It didnt appear BP was prepared to successfully deal with such a disaster. A good old-fashioned
SWOT analysis of strengths, weaknesses, opportunities and threats with worst-cases scenarios
would have sufficed.

Crisis management

Despite BPs best efforts, the company was not been front and center of the media. And when it
has been in the media, it wasnt good.
Nor has BP been seen as compassionate and aware of their social responsibility. Nor did it appear
eager to roll up the proverbial sleeves to work with government to minimize the ecological
damage.

BP might not admit

Their faults and shift the blame to other parties. The company could conduct some methods to
collect and dissolve only the surface oil and pledge to compensate the affected people with the
view to show their CSR and improve the image of company.

React immediately

The BP should react immediately by working with the officials to seek effective methods to
collect the spilled oil, close the oil well and reduce the impact of the oil in the column of water
on the surrounding ecosystem. Doing research to develop method for ocean life recovery should
be included in the long-term plan to improve the water quality affected by the accident. In
addition, the company should build a channel to receive all the claims of the resident, verify and
make full payment for those really affected. In the long term, moreover, the company should
support the residents living along the coastline in advertising the safe seafood and promoting the
tourism.
EVALUATION OF OPTIONS:
The following problems which are discuss above in the heading of problem statement considered
are solution pros and cons
Pros:

It will help to solve problem

Combine effort make the loss go away

Cons:
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No one is willing to accept the loss

Bad reputation

Media and people are protesting against them

Messed up situation is created

DECISION CRITERIA

The greatest good for the greatest number.

The most good & The least harm.

Analysis for solutions:

S2 and S3:

BP and other companies ignored their responsibilities, it was an accident.

Violates this theory because they were irresponsible for the
consequences of their actions.
S3 is better when BP did a little effort to resolve the visible problems.
However, it is only way

S4 is the best one because:

Solve environmental issues immediately will minimize the negative impacts for
environment and local resident.
Treat affected people well will reduce the sadness, suffering and economic losses of
people; give chances for their future careers
Have the suitable improvement for the sea and surrounded environment, for local
tourism and the company itself in the long term will sustainable development
RECOMMENDATION
Short term:

Ensure that the company would recover from this disaster as soon as possible.

Create a group of staff to solve the problems. Continue to do business

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Long term:

REFRENCES
http://ocean.si.edu/gulf-oil-spill
https://www.ukessays.com/essays/management/bp-case-analysis-of-the-gulf-of-mexico-oil-spillmanagement-essay.php
http://www.bizcoachinfo.com/archives/3494

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