Corporate Governance & Business Ethics - BP Corporate Social Responsibility

Résumé du document

Corporate Social Performance (CSP) is another tool inspired from Carroll's pyramid which put light on interactions between actions of the company, its social responsibility, social responsiveness and outcomes of performance in its environment. The objective of this theory is to allow businesses to evaluate their CSR positions and undertake actions to limit negative impacts on their external environment. Additionally, Wood argues that the CSP model does not only take into account shareholders interests but also a larger environment which includes the cultural, social, legal and financial perspectives of the firms. Traditionally, the Bottom Line refers to the financial and economic responsibility of the company that is making profits. However, the Triple Bottom Line model gives a wider view of responsibilities of organizations which obviously encompasses financial aspects and also environmental and social impacts of the company. The utilization of the triple bottom line allows companies to evaluate their success not only in their economic field but also in the environmental and social ones. Finally, the Balanced Scorecard concept is not a simple evaluation tool but it is a strategic planning and management system.

Extraits

[...] Traditionally, the Bottom Line refers to the financial and economic responsibility of the company that is making profits. However, the Triple Bottom Line model gives a wider view of responsibilities of organisations which obviously encompasses financial aspect, but also environmental and social impacts of the company (Lawrence, Weber, 2007). The utilisation of the triple bottom line allows company to evaluate their success not only on economic field but also on environmental and social ones. According to Savitz and Weber (2006) this model is very important because it is a way for company to achieve a sustainable growth. [...]

[...] However, at anytime, BP answers to the sickness problems of indigenous accusation that lead the project. BP is engaged to reduce its GHG emissions as the sustainability reports underline. For this reason, the company responds to accusation by stressing that oil sand industry does not consume more than 5 to 15% of the crude consumed by the USA. Does the crude consumed by USA is a reliable indicators of comparison? Moreover, BP leans on a study of the Jacob Consultancy and IHS Cambridge energy research to argue that oil sand industry does not generate more GHG that traditional oil exploitation. [...]

[...] Corporate citizenship as a metaphor for business participation in society, Business Ethics Quarterly pp.427–451. Moreci, M., (2008) Beyond propaganda, In the times, [online] Available at: http://www.inthesetimes.com/article/3568/beyond_propaganda/, [Access 16 march 2010] National Energy Board of Canada (2006) Canada's oil sands: Opportunities and challenges to [online] Available at http://www.neb-one.gc.ca/clf- nsi/rnrgynfmtn/nrgyrprt/lsnd/pprtntsndchllngs20152006 pprtntsndchllngs20152006-eng.pdf, [Access 18 march 2010] No tar sands (n.d) no tar sands campaign, [online] Available at: http://www.no-tar-sands.org/index.html [Access 17 march 2010] Pagnamanta, Robin (2007) BP faces protest over oil sands development, Timesonline, [online] Available at: http://business.timesonline.co.uk/tol/business/industry_sectors/natural_reso urces/article7018483.ece, [Access 17 march 2010] Pals, F., (2010) BP shareholders protest Canadian oil sands project update Bloomberg, [online] Available at: http://www.bloomberg.com/apps/news?pid=20601207&sid=agncUeKHmHJo, [Access 16 march 2010] Polaris Institute (n.d) Tar sand watch, [online] Available at: http://www.tarsandswatch.org/, [Access 17 march 2010] Raynolds, M., McCulloch, M., Wong, R., (2006) Carbon neutral 2020, Pembina institute, [online] Available at: http://www.pembina.org/pub/1316, [Access 16 march 2010] Ruth, L., (2002) Corporate Social Responsibility: IoD Member Opinion Survey, London: The institute of Director. [...]

[...] Carroll's pyramid is the most recognized theory for the evaluation of CSR in business ethics literature. The pyramid is composed of four different levels which evaluate the ethics stance of a company (Carroll, 1991). At the bottom of the pyramid, there is the 'economic level' where the company is only looking for profitability. The second stage of the pyramid highlights the 'legal level'; actually, the company has to respect the minimum required by the law. Then, a company achieves an ethical position, which means that the organisation respect and make efforts towards the environment, its stakeholders, etc. [...]

[...] Doubtless, it is an important point to highlight given the huge amount of quantity that the industry needs. Further, the company does not talk about toxic water, but just water that they cannot recycle. Underground non-potable aquifers can also be criticised because this area of stocking is probably not without effect on the environment. Local communities are taken into account by BP as the report notice n.d). The company also expresses that different local communities have an interest in project, because the mine can have a positive impact on the economy of the region. [...]