‘We try to work in ways that will benefit the communities and habitats where we do business – and earn the world’s respect’
Support BP offer communities and ways they preserve the environment.
BP have a long-term commitment to the communities they work within, because the process of finding oil and being able to actually extract it is an in depth and time consuming process. They recognise a responsibility to create more than quick revenues from the investments. Whatever they do, wherever they do it, they always strive to preserve and improve the surrounding environment, support enterprising business people and encourage energy-related education.
They planned the construction schedule for the BTC pipeline around the breeding season of a rare local grouse. And why BP funded satellite transmitters to help experts track endangered sea turtles in the nearby seas.
Improving the organisation
BP also recognises the need to constantly look at and improve their own organisation. So they work to rigorous health and safety standards and hold all employees to a global code of conduct, and hold all new projects to a set of environmental requirements. And then encourage each other, the people who work for BP, to raise any concerns they have about the business taking place.
When measuring progress, they don’t rely only on their own perspective. The annual Sustainability Report, charting the progress on environmental, health, safety and other measures, is independently verified by Ernst & Young. BP also regularly invites customers, shareholders, suppliers and others to tell them what they think and could change.
Finding energy to fuel the future
Some challenges they set are so big they belong to the world. The threat of climate change is one example. Another is the need to have enough energy to sustain not just life as we know it but also the better life taking shape in places where once-developing economies are beginning to boom and set their goals to achieve big things. Finding ways to balance these seemingly conflicting challenges will define the future of energy, at least for some decades to come. BP is helping to shape this debate, as well as some of the solutions.
Looking for tomorrow’s energy is as much a part of their business as supplying people and businesses with the fuel, products and power they need today and for the future.
How it affected Tourism
Tourism’s not a small player in the region. After oil revenue, tourism is the top earner for the area, bringing in some $140 billion to the five Gulf States: Florida, Louisiana, Texas, Mississippi, Alabama. As TV news showed looping footage of the bubbling oil leak off shore, many canceled trips to the region. The trickle effect of loss of revenue may not have been known for quite some time – even as private enterprises line up to make claims for the $20 billion BP has set aside to reimburse private enterprises in the clear up of the disaster.
What’s interesting is the spread of the impact. Communities like Fort Myers and St Petersburg – in the peninsular Florida, hundreds of miles from the nearest oil-affected beaches, saw a drop in visits too.
Dead animals were being washed up on the shores. Birds had been found dying in pools of oil and dispersant, which had taken over their marshland habitats.
Several species in the Gulf of Mexico are already endangered, including the Kemp's Ridley and Leatherback sea turtles, the Sperm Whale, and birds such as the Piping Plover and the Gulf Sturgeon, according to the Arizona-based Centre for Biological Diversity (CBD). As a result of the disaster, .
Assistant Professor Michael Blum of Tulane University's Department of Ecology and Evolutionary Biology warns that some species may be at risk of extinction after the affects that have occurred from BP’s oil spill.
Researchers at Oregon State University are finding elevated concentrations of ‘carcinogenic chemicals’ in the Gulf of Mexico as they investigate the lasting impacts of the BP oil spill. This is a concern for anyone who eats Gulf seafood. The chemicals accumulate for years in invertebrates. This raises concerns about the long-term safety of seafood specifically, shrimp, oysters, crabs, and other invertebrates. Other chemicals entering the food chain, eaten by fish and seafood harvested for human consumption are also consumed by smaller sea creatures that are more distant links in the human food chain.
The purpose of the dispersants was to break up the oil on the surface so it would not wash up onto land. The bottom of the Gulf has layers of oil. This is harmful for several reasons. Hurricanes come into the Gulf and bring up some of the sediment from the bottom of the Gulf and bring more of that crude onto the shoreline into the Louisiana marshes. In addition, plants and animals at the bottom of the gulf are eaten by creatures and absorbed into the food supply.
Less Tourists = Less Money = Less Income
Eastbourne could have been affected because of the spillage where the seafood chain has been damaged meaning the distribution of goods for restaurants and tourist pleasure has totally become non-existent. This means poor customer satisfaction in restaurants in Eastbourne and less sales however they will overcome this by going to other sources. Businesses may come into distribute in surrounding areas of the Gulf as they cannot meet demands meaning poor reputation.
BP tried many different methods to control the spillage and try to reduce the damage to a minimum. The image to the left shows some ways they did this. The extent of the oil spill was so severe even this couldn’t stop the affects and damage it caused to local communities, business and the environment.
These images show how much the
oil spread from the date of the
incident over the following two
weeks.
Measures to improve corporate responsibility
I want to address throughout this report the nature of corporate responsibility. Today ‘corporate responsibility’ is a phrase businesses will use to put themselves forward and in the public eye for positive reasons. At its root, responsibility flows from a company’s desire to be sustainable.
If a company is going to be sustainable it must do two things. First it must run a successful business that makes a profit and invests for continued growth and expansion, this is distinguishes businesses from other parts of society towards becoming a success. Second it must be trusted and supported by those it does business with meaning customers, suppliers, governments, communities, informed observers and experts.
Trust and support are not earned simply being kind and friendly with positive reviews and reports. Trust and support are earned when a company provides real benefits to those who are affected by its business. The customer gets value for money. Local communities receive benefits from investment, from jobs and from the company’s involvement in local activities such as money raising schemes. Suppliers benefit through winning business and learning new skills. And employees benefit through training and experience as well as through wages and pensions.
Whether a business builds trust is whether it creates a positive working relationship. If only one side benefits, then the other party becomes de-motivated, but if both sides benefit then the relationship and bonds built continue beyond a single transaction into what could be coincident business.
I believe that if a company keeps its eyes on the goal of sustainability then it will find the right balance. If it is too self-interested, not bringing benefits to others or worse if it actually breaks the laws or ethical codes then it will not survive over the long term.
But equally, a company will also fail if it neglects its shareholders and makes the mistake of taking over roles that belong to separate parties the business can become a mess. However, you cannot forget that Companies are businesses, not charities. Their primary role is to create products and services and create profits from these.
‘I think people value a company’s achievements more if they know they can trust that company, and they will trust the company if it is open about its difficulties. In short, cover-ups corrode trust - transparency builds trust.’
(Source: http://www.bp.com/genericarticle.do?categoryId=98&contentId=7006995)
This is a quote which I took from the BP website it highlights what I have repeated above about the importance of building respect and trust between all parties who you do business with.
With operations taking place in 100 countries, with many different laws and regulations, it is important for BP to set clear global standards of ethics and behaviour so that their actions are consistent around the world.
Education is another factor which BP takes very seriously when putting across their issues and views on business they are planning to do and other projects which are already in the process of being completed. They see the value of education every day in the workplace as their employees have to apply what they have learned in their education to take on new challenges.
‘There are online reports claiming that the Macondo well is leaking and BP has responded with boats and boom. None of this is true. The well was capped on July 15th, 2010, when all oil flow was stopped, and finally cemented and sealed on Sept 19th, 2010. The well is monitored.’ (Source: )
This was a statement I found on the BP press release section on their website it is in response to rumours which were appearing online and in the tabloids about the Gulf of Mexico Disaster. How the well was leaking again, this shows that BP will respond and be in contact immediately reassuring all parties that this was not a problem and it was just inaccurate rumours. This has a positive outlook for the business and it means they are gaining trust and people they do business with are not being kept in the dark on what is happening.
Overall I believe I have put across how BP aim to improve their corporate responsibility and ways in which they make sure they are doing the right things and using correct methods when dealing with business partners. Responsibility is more than just about the community. BP does not see their community investment as something separate from the core aims and objectives of the business. The investment benefits communities for example through wages, through taxes and through generating economic activity. It also helps the company in providing business and trust.
Ultimately I believe the route to sustainability is simple to describe. It is about running a business that is successful, responsible and plays a beneficial role in society and cares about their actions whilst doing so. Every company that wants to survive has to make a profit. But a company that wants to be different and great also has to make a significant contribution to human progress. I feel there is still a long way to go before BP can say they have the support and trust of the general public after such huge devastation taking part with business they were carrying out in the Gulf of Mexico, but I believe they are taking all the correct strides in doing so.
