Article Analysis on Deep water Horizon
Added on 2020-04-07
7 Pages1280 Words107 Views
RNNING HEAD: Article analysis on BP’s responses to Deep water Horizon1Name of the student-Topic- Article analysis on BP’s responses to Deep water HorizonUniversity Name-
Article analysis on BP’s responses to Deep water Horizon2With the increasing ramification of economic changes and complex business functioning,BP organization has grown very drastically and implemented various eco systems to reduce thenegative impact of hazardous substance and emission. The deep water Horizon Oil spill is thebiggest tragedy and resulted to high amount of loss of money and individual lives in Gulf ofMexico. This report reflects how well BP had responded to the deep water Horizon Oil spill. Ithas been observed that government has put high amount of penalties and traits on company toincrease the overall eco system in determined approach. It is evaluated that company hasdestructed its financial implication throughout the time after deep water Horizon Oil spill case.Point of discussion In this article, it is given that BP has responded to the deep water Horizon Oil spill byinstalling various eco system and cleanup all the hazardous substance and emission in Gulf ofMexico. However, government had implemented various rules and regulations to reduce theimpact of hazardous substance on society in Gulf of Mexico (Lamendella, et al. 2014). Thefinancial implication of BP’s responses to deep water Horizon Oil spill has shown the negativefinancial strategy. The point of discussion in this article could be why deep water Horizon Oilspill has occurred and government policies and rules and BP responses to mitigate the negativeimpact of deep water Horizon Oil spill on the people living in Gulf of Mexico. All theinvestment and expenses made by BP in response to deep water Horizon Oil spill has beencharged as operating expenses. This will not only reduce the tax burden of company but alsodecrease the overall profit to offset its tax burden from other units (Jaggi, et al. 2017). The mainpoint of discussion in this report is related to tax burden and reducing the negative impact of thedeep water Horizon Oil spill in gulf of Maxico. However, BP had used various financial
Article analysis on BP’s responses to Deep water Horizon3implications to reduce the tax burden and increasing the effectiveness of deep water Horizon Oilspill saving eco program. BP should have deposited whole penalties amount in escrow accountfor the betterment of the people living in Gulf of Maxico. Moreover, BP needs to install variouseco system to reduce the negative impact of its hazard substance in social and environment. Interest theory and motivation to regulators The financial implication of BP’s responses to deep water Horizon Oil spill has been usedas deduction from the tax payment. As per the interest theory, eco system installed by BP in Gulfof Mexico was for reducing the negative impact of its hazardous substance. Therefore, BP shouldhave not be allowed these expenses used as factors of reducing its social responsibility to pay offtax to government. Company should have charged these expenses as capital expenses instead ofcharging the same as operating expenses (Powers, et al. 2017). As per the interest theory, BPshould have deposited all the penalties and traits amount in the escrow account to discharge itssocial and environmental liabilities. BP had used its investment in the eco systems to reduce itstax burden and other investments to reduce the overall tax burden. If company wanted toincreases its brand image then it should have installed eco system and invested in escrow accountfor the betterment of lives. Motivation of politician as regulators As per the interest theory, regulators of Gulf of Mexico could have asked company to payoff all the imposed penalties and tax amount in determined approach. In addition to this,company had also failed to deposit the amount of penalties which are uncertain in its escrowaccount. Therefore, it is observed that BP should have deposited the entire penalties amount inits escrow accounts (Michel, et al. 2013). The main motivation for politician is development of
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