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BRITISH PETROLEUM CASE STUDY: 2010 DEEPWATER HORIZON SPILLBusiness ethics is a philosophy of how business and society are interlinked and viewed from two distinct points of views. The goal of every business is to engage in activities which ensure profit maximisation whilst society expects businesses...

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BRITISH PETROLEUM CASE STUDY: 2010 DEEPWATER HORIZON SPILL

Business ethics is a philosophy of how business and society are interlinked and viewed from two distinct points of views. The goal of every business is to engage in activities which ensure profit maximisation whilst society expects businesses to act in a way which should not be detrimental to society. Ethical dilemmas arise when some business practises result in revenue for the organisation but, may be harmful to society. This case study aims to audit the activities of British Petroleum, to recognise and analyse its ethical dilemmas. It will include general company information, identification and evaluation of unethical behaviour leading to 'The Deep-Water Horizon Spill of 2010.'

British Petroleum is a global gas and oil company founded in the United Kingdom, 1909. As of 2018, this multinational company operates in 80 nations, has 70,000 workers employed, an annual income of 203.7 billion and creates around 3.4 million barrels of oil a day. BP is involved with all parts of the procedure, including exploring and producing, refining, distribution and marketing oil and gas products in the global market (BP, 2019). However, BP has experienced significant events that have harmed the company. The Deepwater Horizon Oil Spill 2010 was a catastrophic result of BP's negligence and dereliction. The tragedy killed 11 employees and wounded hundreds. The spill in the Gulf of Mexico ocean released over 130 million gallons of crude oil (Burdeva,2010).

The 2010 BP Deepwater Horizon Oil Spill resulted due to BP's lack of company behaviour and carelessness (Malik,2010). BP's insistence on reducing risk reduction costs to improve profit contributed to a lack of accountability and ethical behaviour. The ethical dilemma posed by BP was the use of unreasonable decision-making, leading to a lack of accountability for enforcing appropriate precautions and protection measures. The decisions made by top executives couldn't be deemed morally appropriate- they refused to recognise the risks associated with their acts (Farrell,2013). Many of the poor decisions taken on the Deepwater Horizon drilling rig before the fatal blow-out on 20 April were to save time and money (Goldenberg,2012); however, by continuing with production, this features BP's deliberate carelessness in actualising the structure for reinforcements (Goldenberg,2012). Moreover, following details on spillage, BP's oil drilling continued- highlighting the organisation's ignorance in safety strategies and prerequisites. BP refused to consider members' well-being,

resulting in the death of 11 employees and hundreds wounded. Upon investigation, BP was revealed to have provided deceiving data to Congress. The fraudulent data BP prevented the introduction of steps to reduce the damages. The spillage, therefore, can be seen as intentional and ethically dishonest (Lustgarten,2012)

As a result of the unethical conduct of BP, undoubtedly, many stakeholders were affected. This includes internal stakeholders such as BP itself, shareholders, employees, companies that work with BP and external stakeholders such as the environment, industries like seafood and tourism and local residents. Due to the Oil Spill, BP faced potential bankruptcy- it was fined with many charges as well as a serious detriment on its company's image. The deteriorating public image not only affected BP and its employees but shareholders as profit decreased by 32%. Organisations working with BP such as Transocean and CameronInternational Corporation were likewise affected- the lack of oil extraction activity in the Gulf District after spillage resulted in a loss of profits. External stakeholders were also severely affected by the spillage - there was tremendous damage caused to the environment and local residents. Fishermen's jobs were threatened as marine life either died or mutated due to the high levels of pollution caused by the thousand barrels of crude oil gushed into the sea. This had further repercussions on the tourism industry as many chose not to travel where beaches water was polluted with oil.

Regardless of a deontological or a teleological perspective, the actions of BP were unethical. By seeking after its financial objectives, BP disregarded its ecological commitments and overall social utility and, neglected the external impacts of its actions despite executives being conscious of the associated risks (Snyder,2013). This features the unethical behaviour of BP from a deontological view- the corporate thought of their desires, not future prospects. The failure of BP to be able to recognise worker safety with success is additionally thought of unethical from a deontological viewpoint- executives have behaved unethically by prioritising speed over health and safety (Rubio,2012). Furthermore, the false data provided by BP to Congress shows BP's absence of honesty, which is unethical conduct by deontology. Similarly, from a teleological point of view- primarily utilitarianism- BP's actions concerning the spill were unethical as there were only negative ramifications. The disaster not just cost BP lots of money with misfortune in investors and customer certainty, but had catastrophic effects on the earth, the travel industry and angling enterprises and inhabitants. Therefore, via

utilitarianism, the activities of BP officials were profoundly unethical as there were no beneficial results from the moves/choice taken as the oil spill just prompted inconvenient monetary and ecological effects.

Taking all of this into account, the examination of the BP case study displays how companies face an ethical dilemma when their actions do not comply with ethical business behaviour. The 2010 Deepwater Horizon Oil Spill was a follow-up to the unethical activities of BP's executives and their lack of responsibility to the consequences of such actions.

References 1. BP global. 2020. BP At A Glance | What We Do | Home. [online] Available at:

[Accessed 19 April 2020]. 2. Encyclopedia Britannica. n.d. Deontological Ethics | Definition, Meaning, Examples, & Facts. [online] Available at: [Accessed 18 April 2020]. 3. Farrell, J., 2013. British Petroleum Deepwater Horizon Oil Spill (2010). [online] Businessethicscases.blogspot.com. Available at: [Accessed 21 April 2020]. 4. Goldenberg, S., 2012. BP Cost-Cutting Blamed For 'Avoidable' Deepwater Horizon Oil Spill. [online] the Guardian. Available at: [Accessed 23 April 2020]. 5. Ibe.org.uk. n.d. Ethical Values. [online] Available at: [Accessed 22 April 2020]. 6. Lustgarten, A., 2012. BP Agrees To Plead Guilty To Crimes In Gulf Oil Spill. [online] Business Ethics. Available at: [Accessed 21 April 2020]. 7. Malik, S., 2010. Ethical Questions Surrounding The BP Oil Spill | Practical Ethics. [online] Blog.practicalethics.ox.ac.uk. Available at: [Accessed 22 April 2020]. 8. Richard A. Snyder, R., 2013. Two Years On: The Legacy Of The BP-Deepwater Horizon Oil Spill. [online] The Conversation. Available at: [Accessed 21 April 2020]. 9. Rubio, S., 2012. The Deepwater Horizon Spill: An Ethical Nightmare. [online] Business, Society, and Government 4. Available at: [Accessed 21 April 2020].

10. Washington Press, 2014. Investigation Into 2010 BP Oil Spill Finds Failures, Poor Testing And Ongoing Risks. [online] the Guardian. Available at: [Accessed 23 April 2020]....