The Ethical, Negligence, And Environmental Issues

Discuss in detail the ethical, negligence, and environmental issues you see in this case. British Petroleum has a large operation in the United States and it has made investments to ensure that it develops these operations to maximize its production and increase profits. One such investment was the acquisition of the vast oil field at Prudhoe Bay, Alaska. This acquisition represented a good increase in the percentage of oil production in the United States and ensured that the company could increase its production and further its goals and objectives for the United States market. As early as 2001 there were incidents at the facility that the company internally accounted for and management was made aware of the safety concerns that existed.†¦show more content†¦If the problem had been brought up by employees and management failed to make the right decision, it is still not ethical. These were glaring problems management refused to address. The further problem of BP’s ov erall management not enforcing company policy means that there is a culture of unethical decision making where economics gains far outweigh the adherence to safety regulations (BP’s Troubled Past, 2010). BP had rented the rig from Transocean for $500,000 per day. Transocean had been recognized by the U.S. government for its safety record. Can companies distance themselves from liability and responsibility through the use of contractors? With BP renting the rig from Transocean for $500,000 per day, the company was sharing liability with Transocean as well. Transocean would be held liable according to the provisions of the contract that the two companies signed. Because the law of vicarious liability is very vague, BP cannot distance itself from liability and responsibility through the use of a contractor (Conn, 2009). The provisions of the contract should have stated exactly what BP would be responsible for, and what Transocean would be responsible for. With that said, Conn (2009) pointed out several factors that come into play when sharing liability and addressed the problem with the following points: Companies usually seek the help of experts to perform particular tasks. BP had contracted TransoceanShow MoreRelatedBusiness Regulation Law 5311295 Words   |  6 Pageshave to comply with the Environmental Protection Agency and Occupational Safety and Health Administration (OSHA). When an organization do not c omply with the state and federal regulation the company can face fines or become caught up in major litigation, costing the company major expenses. In this memo I will identify common tort and risk found in the organization of Alumina, and describe different measures to manage risk. 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