Organisational Responses to Responsible Enterprise Drivers
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British Petroleum which is also known as BP is counted among the 7 leading oil and gas organisations in the world. British Petroleum is the multinational company of Britain which is grounded as well as headquartered in London, England. The company provides services such as fuel for transportation, lubricants to keep engines moving, energy for light and heat, and petrochemicals that are used for creating everyday products. The organisation operates in more the 70 countries all over the world and has 79800 employees. It is noticed that the company had been directly involved in some of the major safety and environmental incidents in the past few years.
Key Sustainability Challenges faced by British Petroleum
It is important from the perspective of every organisation either it is a manufacturing business or service business to consider the matter of sustainability for the reason that it would help them to execute their operation in a more accurate manner. For that reason, the top officials of British petroleum are quite a concern about the matter of sustainability challenges faced by them. However, due to the nature of their business operations, it is quite difficult for them to reduce the environmental risk to the negligible level (Nidumolu et al., 2009). Some of the key sustainability challenges that are faced by the British Petroleum are as follows:
It is noted that due to the globalisation British petroleum try to grasp each & every opportunity through which they can enhance their business operations and get the maximum market share. For this reason, the expansion of business operations might influence them to take all possible measures through which they can expand their activities that affect the local community or people in a pessimistic manner. However, the most important water challenge faced by British Petroleum took place on the evening of 20th April 2010, a gas discharge and ensuing blast happened on the deepwater horizon oil rig operating on the Macondo exploration well for British petroleum in the Gulf of Mexico (Smith et al., 2011).
Another significant sustainability challenge that is faced by British Petroleum is the issue of climatic change. It is noticed that due to their operations, the greenhouse gas emissions had increased widely in the last few years due to which significant changes is taking place in the climate. It is evaluated that the emissions of carbon dioxide from the energy make up about two-third of the global greenhouse gas emissions that are man-made. The increasing evolvement of greenhouse gas emissions has given rise to the problem of global warming which is impacting the climate all over the world. In addition to this, another gas that formed the cause of increasing climatic change is methane that is emitted from the production function of the British Petroleum. Moreover, another reason behind increasing emissions is the use of fossil fuel. It is noticed that British Petroleum made use of coal widely which gave rise to the increasing emission of CO2 from the fossil fuels (Asif & Muneer, 2007).
Strategies to Address Challenges
It is noticed that the top officials of British Petroleum utilise different tools and approaches through which they can cope with the water challenge substantially. For that reason, they use Global Environment Management Initiative Local Water Tool to evaluate the local water situations and limits and formulate accurate management measure in order to tackle this complex challenge (Smith et al., 2011).
For the purpose of dealing with the challenge of climatic change, the British Petroleum focused on the strategies. These strategies include calling for a carbon price, using natural gas, increasing the use of renewable energy, pursuing energy efficiency, and supporting research and partnerships. It is noticed that with the help of these strategies, the British Petroleum had been able to reduce the impact of the sustainability challenge on the environment because it contributes in considering the factors through which greenhouse gas emissions can be controlled (Burch, 2010).
Impact of Challenge on the Society
Impact of Water
Around 11 people expired as a consequence of the mishap and numerous were wounded. Furthermore, they extremely remorse this loss of life and identify the terrific loss agonised by the family members, associates, and friends of those who died. It is found that the fire scorched for around one and half day earlier the rig dropped, and hydrocarbons escaped into the Gulf of Mexico already the well was closed and sealed. Additionally, the misfortune intricates a good veracity disappointment, trailed by a loss of hydrostatic regulator of the well. This was charted by a catastrophe to switch the movement from the well with the help of BOP equipment that permitted the discharge and succeeding explosion of hydrocarbons. It is observed that the BOP crisis functions unsuccessful to closed the well later the early outbursts. According to BP, they regret the effect on the atmosphere and livings of those in the societies affected (Cox, 2008).
Impact of Climatic Change
British Petroleum measures the sustainable challenge of climate change by evaluating the difference in the global warming in the world. Two most dangerous gases are emitted in the atmosphere due to the functions of the company which is carbon dioxide and methane. The company makes use of fossil fuels due to which the CO2 emissions have been increased resulting in the frequent climate change. It is noticed that methane gas has a strong warming impact on the climate due to which global warming is also rising. Due to this increase in global warming, the individuals all over the world have to face instant and intense fluctuation in the weather conditions (Ballou et al., 2006).
Approach of BP towards Waste Management
It is found that British Petroleum utilised private contractors or workers to continue over the administration of the trash and waste produced by the clean-up exercises. Moreover, the waste management was contracted to work out of the MCS (Mobile Command Site), responsible for managing the waste for different places that are Florida, Alabama and so on. However, Heritage, Inc. was contracted to work out of the HCS (Houma Command Site) leading the Louisiana tidy up exertion – the condition of Louisiana has uncommon controls with respect to calamity waste and trash transfer. Pulver (2007) specified that these organisations were responsible for keeping up waste operations in understanding to the affirmed waste administration arranges (Pulver, 2007). The catastrophe waste was gathered, taking to arranging stations, inspected lastly sent to the best possible disposal facility. The waste expected can be isolated into classifications relying upon the make-up of the waste and the destined disposal facility. These categories incorporate solid waste, recouped oil, and oily water and so on. However, solid waste incorporates oil sullied material, for example, sorbents, flotsam and individual defensive hardware, and in addition non-contaminated solids, for example, those materials required by the bolster operations. In 2010, around 7,224.3 tons of sleek solids and around 11,581.7 tons of strong waste were gathered and taken to municipal solid waste landfills (Pollach et al., 2009).
It is noted that the oil water speaks to oil-water emulsion from skimming operations this water can experience oil recuperation or recovery procedures to separate the oil from the water. The oil can be reused – adequately, it has been reused – while the water is seen as cleaning water, a liquid waste. Moreover, around thirty percent of emulsified oil was sent to handling offices for recovery. In addition, the liquid waste is water with oil sheen or that contains a little measure of oil beads. It can come about because of tempest water that has come into contact with oil, tapped water or water from disinfecting forms. Furthermore, the slick water and liquid waste are transported through vacuum truck to the approved fluid transfer offices; as of November 28, 2010, around 4.5 lacks BBLs and 7.5 lacks BBLs were discarded separately. Furthermore, the animal cadavers coming about because of the oil slick are taken care of and discarded by US Fish and Wildlife Service (Schrag, 2007).
It is found that the strong waste created from the clean-up and support activities will be classified investigation and generation (E&P) waste, and it is not anticipated that would be perilous – however all waste streams will be profiled to guarantee this is valid. However, (TCLP) is performed for volatiles, semi-volatiles and metals and the EPA autonomously tests the stream to check these outcomes. Dangerous waste has not been discovered up to this point; although minor issues with the waste administration have been distinguished amid EPA waste facility evaluations. The characterised strong waste will be sent to RCRA subtitle landfills, and all areas that have been recognised and affirmed for transfer are recorded on the waste management plan for every incident command site. It has been observed Burch (2010) that there are some other oil and gas producing firms that are quite keen to adopt appropriate plans in order to manage their waste that help them to evade the environmental issues to some extent. Shell Plc is the biggest example of this because they have very effective solid waste management techniques through which they can easily cope with the challenging situation by putting important exertion and cost. Therefore, it is a core duty of the top officials of British Petroleum to consider all possible measures other than current approaches that would help them to manage their solid waste in a more accurate manner. However, with the help of effective planning and its implementation BP can effortlessly deal with the complex situation that supports them to throw a good impression on their stakeholders and other people (Burch, 2010).
Approach of BP towards Code of Practice and Other Ethical Issues
According to Zadek et al (2013), code of practice is the important aspect for the organisation because it is the means of ensuring that the business activities are functioning viable. It is noticed that British Petroleum gave importance to the code of practice so that all other ethical and sustainable issues can be addressed effectively. In order to establish the code of practice, the management of the British Petroleum conducted different assessment and evaluation of its business processes. They determined all the key areas of their business in order to ensure that develop the codes that are in line with their functions and operations. The British Petroleum made its code of practice by following a public context that the organisations are committed to doing right things through which not only their business would gain but the environment and society would also be impacted in a positive manner (Zadek et al., 2013).
The code of practice of the British Petroleum is focused on serving as the valuable resource so that employees are assisted and other individuals that are linked to the business are able to make an informed decision related to ethical issues. Before establishing a code of practice, the company evaluated the impact of their processes on their internal and external environment. With the help of this assessment, the company was able to determine effectively the areas where the code of practice is needed instantly. Moreover, the British Petroleum drafted the code of practice in the manner that it is applied to all the employees, members of the Board and officers of the BP. The code of practice illustrates the policies, rules and regulations that must be considered by the employees to implement their business processes importantly (Tuodolo, 2009).
The benefits of the stakeholders are also analysed by the British Petroleum at the time of drafting code of practice. It is noticed that the management believes the code turned out to be important for the stakeholders because they are the ones who determine the processes, methods, and techniques that must be adopted by the business currently and in future to achieve their targets ethically. Moreover, the approach of BP towards a code of practice also focused on the challenges that the company had to face in their previous years due to their performance and operations. This aspect is important because BP had gone through with some key sustainable challenges, the consideration of which holds significant importance in the preparation of a code of practice (Collier, 2007).
It is noticed that BP focuses on its approach towards ethical issues because it assists in minimising the negative impact of the business operations on the internal and external environment. However, by considering the ethical issues they are more focus towards the betterment of a whole society rather than to centre their plan to attain their sole target of maximising the profit. For this reason, their top officials were keen to formulate effective strategies through which they can handle the ethical issues impacting their function (Cox, 2008). In order to develop these strategies, the management of the BP at first conducted an in-depth analysis of the ethical issues so that appropriate strategies are determined. Moreover, they also focused on the development of policies so that other ethical issues are addressed viably.
It is concluded that British Petroleum is facing two sustainability challenges which include water and climatic change. The climatic change has taken place due to the functions of the organisation because it has given rise to the increasing greenhouse gas emission. This GHG has resulted in the intense global warming due to which instant climatic changes are taking place. However, in order to address these challenges effectively, the company has followed some strategies such as carbon price, using natural gas, increasing the use of renewable energy, pursuing energy efficiency, and supporting research and partnerships. Moreover, another vital sustainability challenge that was faced by British Petroleum is about the water that is why their officials are very keen to cope with this challenge in a proper manner. They used different contractors for the purpose of cleaning the water through different tools that assist them to minimise the water pollution to the negligible level.
The British Petroleum focused on different approaches such as utilising private contractors or workers towards waste management. With the help of these approaches, the BP was able to manufacture sustain products along with managing waste. Moreover, the approach towards a code of practice and other ethical issues involves the development of effective strategies and policies. They also conduct in-depth analysis of all the features to make sure that effective code of practice is developed because it serves as the means of making decision by the stakeholders in relation to the business processes and functions,
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