Social and Environmental Accounting

Article:

The largest marine oil spill to date started in April 2010 from an accident in an oil-rig called the Deepwater Horizon. 492million litres of oil was discharged into the waters of the Gulf of Mexico resulting in death of 11 people and injuring 17 others not forgetting the immeasurable destruction to the environment. Deepwater Horizon was oil-rig owned by Transocean and lease to BP. For most parts, BP was blamed for the accident.

Required:

(a) Informed by Legitimacy Theory, discuss 4 possible strategies that BP might undertake in order to reduce the damaging publicity it encountered because of the oil spill. (12 marks)

(b) Discuss hoe Coercive and Mimetic isomorphism may reduce some of the environmental problem associated with negligent oil-drilling such as that of BP and Deepwater Horizon (8 marks)