CRISIS IN THE GULF

The recent crisis in the Gulf of Mexico

The recent crisis in the Gulf of Mexico

Question 1. Describe and discuss the potential CSR risks that were present in BP's activities in this region. (25%)

Since the access to energy is an important requirement for growth, in the developing nations for the purpose of economic growth that is assisting millions of people to reduce their poverty level and to minimize diseases into a better life. However, the increase in demand of such factors has limited supply of oil and gas, which has caused an increase in anxiety about security of supply. Since British Petroleum is a global energy provider, therefore, they must pay adequate attention to these issues. In order to address these issues, they should search for new and innovative solutions that work at scale (Adler, 2007, pp. 24-34).

In British Petroleum, innovation means taking action to form a new business line such as BP Alternative Energy or any other pathfinder projects. The management of BP has always paid attention to innovative ideas without previous resolution of all the scientific or technical issues, or a clear policy framework, even without a conventional, watertight business case. However, it is important to emphasize on the point that businesses are typically best placed to lead, to take decisive actions on global issues such as climate change.

Innovation in British Petroleum is about the means of turning ideas into decisive actions. However, good and inventive ideas are needed to process these ideas into work in the first place. For BP, collaboration has proved to be a successful method in order to develop innovative ideas.

On March 2, 2006 was discovered in Prudhoe Bay in Alaska, an oil spill due to corrosion of the trans-Alaska oil pipeline (owned by BP Explorations). On April 6, 2010, there was a leak in a BP refinery in Texas City by the malfunction of a key piece of machinery. The leak did not stop until 40 days later. On April 20, 2010 a leak caused an explosion in the semisubmersible rig Deepwater Horizon, which was followed by a fire. Two days later she sank taking with eleven lives. The oil spill damage caused serious environmental damage because of its high toxicity and the decrease in oxygen concentrations in the area. Eight U.S. national parks were threatened by the stain, plus about 400 species, including some already endangered. Major oil spills, such as the Prestige tanker spill in November 2002 off the Atlantic coast of France and Spain, generally involve a high economic cost—around US$1 billion. In 2009, the European Parliament approved a directive to all members to impose penal sanctions against heavy and persistent pollution. Some polluters are not deterred by fines, and to save money, they continue polluting.

"Oil spills have a negative effect on eco systems as this recent study shows how it is impacting on different species, animals living in those zones (often already endangered) are no longer able to ...