Project Presenter Name Registration no Topic AN ASSESSMENT OF AN BPS CORPORATE SOCIAL RESPONSIBILITY POLICIES, INCLUDING BUSINESS ETHICS, AND THEIR IMPACT ON BUSINESS PRACTICE AND KEY STAKEHOLDERS
Organization: British Petroleum (BP)
Reasons for Choice of Topic Corporate social responsibility has become a core concept among organizations Commercial banks in US and UK face an ongoing criticism for not being active in society welfare CSR has evolved from a social concept to strategic input Diverse range of activities including risk management, change management and behaviors, changing corporate governance Increasing awareness of global warming and carbon foot print have caused the companies to go through stringent regulations Reasons for Choosing Company BP is a multinational company in the oil and gas industry operating in eighty countries The history of the company is back dated to 1909 The relation of BP with the society; be it with humans, environment and wildlife is observed via corporate social responsibility activities At first the financial performance and number crunching was given importance With the passage of time non quantitative or ethical performance has grabbed equal attention Research Objectives To study the importance of CSR by the Oil & Gas Industry in todays world To find relevant literature related to CSR theories To analyze the degree to which targeted companies practice CSR approach (BP and Chevron) To study the effectiveness of companies for practicing their CSR activities and its impact on profitability and stakeholders To recommend possible future initiatives which can be adopted by BP to promote strong CSR culture Research Questions How important is the CSR for organizations in recent era? Which theories and models are dominant in evaluation of CSR? To what extent BP practice the CSR initiatives compare to Chevron? How CSR has impacted BPs profitability and stakeholders? And which important events have questioned BPs efforts related to CSR? What is the way forward for BP to promote CSR into companys overall culture? Research Strategy Only Secondary sources for data collection are used to carry out research Secondary data collection source is already existent and referred to as second hand information Inductive approach is applied to find out answer to corporate social responsibility questionnaires Inductive approach is the use of specific cases and the response of the company to that issue Articles, books, journals, corporate reports, corporate websites, documented information and case studies Case Study Method This research consists of qualitative framework for complete understanding of problem Case study approach for research purpose will enable to focus on the organization and their relationship to the functions performed The subjective and objective regimes of the problem through available source Educational, evaluative, action research and ethnographic this research mainly adopts the evaluative method Application of Models The Carrolls CSR Pyramid Model CSR model is more applicable to oil industry Legal, philanthropy, economic and ethical aspect of the company over society and the extent to which they have complied with the criteria are shown To evaluate corporate social responsibility of the organization The pyramid gives the balance of all the factors needed for business to survive internally and in the external environment Organizations should take initiative in terms of educating the society, building schools and hospitals Research Ethics and Limitations Research ethics including written consents of audience as well as the target company, data protection, secrecy of respondents, use of copy right material Use of authorized work of scholars has been clearly cited and referred Approval from the target company has been obtained Results provided are presented with full integrity without any fake assumption or plantation Limitations Time consumption due to its vast constituency A personal biasness is also dominantly criticized in qualitative research Limited financial resources needed to conduct the research study Analysis and Review of Corporate Social Responsibilities Corporate Social Responsibility Dimensions Differentiation CSR Strategy CSR is as important as other strategies implemented by the business to attract investors such as institutional investors Business resorts to product differentiation A differentiation in strategy must be implemented in CSR approach of the company to make it stand out from the competitors Value Statement Analysis BPs aim is to find cost efficient method to cater for energy demand for the world BP is focusing on research and development for which it established partnership with 13 top notch universities to enhance energy efficient program Continued Brand Loyalty by CSR Establishing efficient CSR standards in regards to improved product quality leads to greater customer retention in return Ethical Training and Ecological Development Ethical training is involved in educating the employees regarding the core values and ethics of the organization BP is focusing extensively on research and development to cater for safety and health matters Corporate Governance Risk management should be incorporated to achieve good corporate governance BP has resorted to differentiation in CSR strategy enabling it to secure reliability in terms of safety, security, integrity, operations Continued.. Evaluation of BPs Score Using EPS BP has focused mostly on the areas affected by its negligence and carelessness Community Events like oil spills, gas pipeline leakage, illegal waste dumping has led to carelessness towards the environment Employees BP has spent around $ 13 billion on employee welfare BP is working in conjunction with the government and local authorities so that it rightly abides by the labor laws Customers BP has published elaborate disclosures relating to various products and techniques it uses or intends to use in future to educate the customers Suppliers BP has been reported to pressurize it suppliers to cut prices and renegotiate contracts Continued The Carrolls CSR Pyramid Application PHILANTHROPIC BP- is involved in fundraising and giving donations to improve life Community investment in Angola to bring about educational and health reforms ETHICAL Initiative on human rights relating to workforce: labor laws, workers abuse and installing suggestion boxes Efforts to develop local suppliers by sharing information and guiding them LEGAL Legal proceedings against oil spill in Gulf of Mexico in 2010 which killed 11 workers and injured 17 ECONOMICAL The profitability and return on capital employed has also reduced to about half the value than a year before Conclusion BP is a very strong organization and it has maintained its
position in the industry for the longest time
BP accepted the responsibility of social irresponsibility and
paid both civil and criminal damages.
CSR reporting suggests that BP needs to be more proactive
in philanthropic work Environmental cleaning and governance is strategic issue at
BP as stakeholders are distrusting the BP.
BP has managed to satisfy its shareholders by giving out
more dividend than last year
BP is spending on training and development Recommendations Measures should be taken to identify risks and their mitigation should be plan like it happens in Chevron Spending should not only limit to giving donations but initiating programs leading to empowerment to local people BP should work on research and development of technologies leading to low carbon emission products BP needs to work on community development and environmental conservation projects