Ethics and governance Essay Example | Topics and Well Written Essays - 2000 words

Ethics and governance - Essay Example The action by the Safety and Hazard Investigation Board (CSB) to investigate BP was to audit its safety standards. Hence, this decision was based on the oil fire incidence at BP which killed 15 of its workers and injured 170 others as well. This is due to the fact that the company had ignored this issue for a long time. The report notes that this company was plagued by years-of cost cutting which in turn increased its vulnerability to this catastrophe in its refinery in Texas. The other actor in this case is BP Company itself through its management and workers; in which case its decision was based on the need to improve its image in the oil market according to Mortishead, (2005, p. 8). From the above BP’s case, there are a range of possible consequences based on the reports findings. One such possible consequence is the remarkable improvement in the compliance to safety standards by BP and other companies as well. In so doing, these oil firms would have to embrace the tenets of ethics and governance. In this regard, they shall have to implement fundamental organizational changes to ensure for them to be virtuous. The other actual consequence is the loss of market leadership position by BP to its competitors. According to the CSB report, the company had been noted to be more concerned with profit maximization through cost cutting at the expense of ensuring that its employees were safe. As noted by Carl, BP’s main concerns were in terms of meeting its production targets, budgets and operational goals but not safety. This is best captured by the management’s decision to opt to cut- costs with the main emphasis being on saving of such costs for ot her uses. To the other companies, this action by CSB would result to them being under both public and government over safety compliance. One of the key decisions which are culpable in BP’s case can be