Resp. Corp Leadership Paper

Milestone Two

Shannon Bowers

SNHU

15, October 2017

Personnel

BP has several major investors. Barclays Global Investors, Norges Bank Investment Management, and Kuwait Investment Authority. All three of these companies suffered a loss from when BP stock plummeted due to the Deepwater Horizon oil spill. When blame was passed around by BP this showed irresponsible behavior on behalf of the company, and with no clear resolution BP was continuing to take hits on its profits. All three of the major investors are large investment firms from foreign countries. They have diverse portfolios and BP is just another company that they invest in. However, each suffered a financial loss when BP did back in 2010.

BP has good relations with its personnel. It holds the annual shareholder meetings to advise them of the progress of the company. Daily BP’s employees are treated well. The have their five values that BP adheres to at every level: safety, respect, excellence, courage, and one team. Like most large companies BP also has a code of conduct that each employee must adhere too. BP gives back to its community through charitable organizations such as Special Olympics. Employees enjoy may benefits and a competitive salary as well as opportunity for advancement and raises throughout their career. Between the employees and its shareholders BP does an excellent job making sure its personnel feel valued. They had to come along way after the Deepwater Horizon spill to show their employees and shareholders that they were valued.

Environmental

The most well known issue BP has experienced in the recent past has been the Deepwater Horizon oil spill. The well itself leaked for well over 4 months. The Gulf of Mexico was changed for years to come. Businesses on the gulf were also changed and some even went out of business. BP failed to take responsibility for their involvement in the spill and instead passed on blame to other companies who helped build the oilrig. BP eventually admitted it took shortcuts to save money and failed to use their safety technology on this particular rig. Another issue that occurred after Deepwater Horizon was an oil spill in Alaska’s North Slope in 2014 after a leak was detected in a line. This again puts BP on display as being unable or unwilling to prevent these types of needless tragedies for the environment. This continued negative exposure for BP only hurts its efforts to try and rebuild its reputation.

With the negative press regarding oil and its impact on climate change, BP has been pursuing other avenues of energy. There are several renewable energies that BP is using; one of those is wind energy. BP is currently among the top producers of wind energy in the United States. Wind is become more popular for an energy source. BP is also looking into water from sugar cane crops, as well as biofuels to help reduce carbon emissions.

Knowing that climate change is on the forefront of consumer’s minds, BP is doing it’s best to lower carbon emissions and find other renewable energy sources. Oil is still a current need for our lifestyles but BP is actively pursuing alternative sources and trying to help the consumer shift its demands to more renewable alternatives. Oil is also profitable and it will take some time for BP’s shareholders to see the need for a shift in its products. Short-term I also see some push back from BP’s shareholders as this will still be newer to some of them, and again oil is still very much here to stay for now. Long-term I see many shareholders being grateful that BP began to use renewable energy as early as it did. In the long run when oil is no longer required for our daily lives as it is now, BP will a step ahead and not having to wait until the last minute to find new ways to be profitable. By using these renewable energy sources now BP, and its shareholders are set up for more success in the future.

Sound Business Practices

When BP remains profitable a number of different shareholders benefit, such as the main shareholders who invest into the company, the public, governments, and researchers. As BP remains profitable it to can push money back into its business. This in turn helps the employees as it allows for even better work conditions and additional perks for the employees. Researchers benefit from the companies continued profits. As they can then spend more time finding additional renewal fuel sources, etc. The pubic benefits because profits can help with technology for the production of energy and in turn help keep cost low for the resources. Governments benefit because there is no potential need to bail anyone out. Also the government is a customer. Militaries require fuel and this makes them one of the largest oil consumers, and thus customers. A company can remain profitable and maintain responsible corporate behaviors. BP treats its employees and customers fairly. Outside of the oil spills BP cannot afford to have negative press if it wishes to remain profitable. BP has managed to stay out of the news for anything related to labor practices, human rights. As long as that continues and the oil spills reduce BP should remain profitable for years to come.

Recommendations

A. People

· Have more of a presence in the offices for employees.

· Have more incentives for customers.

B. Planet

· Take more precautionary measures to prevent oil spills.

· Cut back even more on the oil production and move toward solar and more renewable energy.

C. Profit

· Expand its product offerings into more renewable energy.

Implementation

A. People

· Find different rewards programs for those customers who shop at BP gas stations. Start with a point system and reward loyal customers. Once they hit so many point they get 5 dollars off their gas.

· Employees can have what is called skip level meetings with the higher ups. Where there is an opportunity for their voices to be heard and ideas implemented.

B. Planet

· Implement new safety features and protocols to prevent oil spills from occurring on their lines or rigs.

· Look into solar farms to start producing energy from that source. This should only be done in their more tropical areas. Places likes the UK would not be an ideal fit for this type of energy.

C. Profit

· Offering solar energy into its markets helps to push BP forward as many other companies are not currently using this technology.

· By becoming one of the first to offer it they will become a trusted name in the field

· Selling to business and people will help expand its profits as well.

Reference

About BP. (n.d.). Retrieved from https://www.bp.com/en/global/corporate/about-bp/people-and-values.html

Korosec, K. (2010, May 7). BP's History of Oil Spills and Accidents: Same Strategy, Different Day. Retrieved from https://www.cbsnews.com/news/bps-history-of-oil-spills-and-accidents-same-strategy-different-day/

Sustainability. (n.d.). Retrieved from https://www.bp.com/en/global/corporate/sustainability/climate-change.html