Analyze BP’s efforts to improve sustainability. Do you think they are sufficient, or does the company need to do more?
BP, formerly British Petroleum and the Anglo-Persian Oil Company, has experienced a lot of ups and downs over its hundred-year history—from nearly bankrupting its founder William D’Arcy to becoming one of the world’s largest energy companies. BP has also experienced its fair share of controversies regarding business practices, environmental damage, and hazards to workers. It and all other large energy companies have come under fire for being responsible for the release of huge amounts of greenhouse gasses into the atmosphere. BP, however, has attempted to turn a page in its history book toward a more environmentally-friendly future. The company has invested in renewable energy and has thrown large amounts of support behind ethics and compliance initiatives, even writing an expansive code of conduct for its 92,000 employees.
This case provides an opportunity to observe the efforts of BP to improve its image and manage decisions related to ethics and social responsibility. Before delving into recent issues that BP has faced, a brief history of BP is given to provide some background.
Although BP has sought to establish itself as an ethically responsible company, certain disasters resulting from company negligence are detailed in this analysis to show that it has often failed at this goal in the past. In recent years, BP has realized the need to become more environmentally-friendly, being the first oil company to recognize the presence of global warming and to launch initiatives into producing cleaner forms of energy. In so doing, the company also hopes to educate others about how they can personally reduce their impact on the environment in the hopes of repositioning itself as an environmentally responsible company.