Reasons for BP's Sustainability Programs

Running Head: BRITISH PETROLEUM 0
British Petroleum

BRITISH PETROLEUM 1
The reasons for BP taking the sustainability programs could be many and those have been
outlined below and ye the major reason for any company to opt for the sustainability of the
programs is the future sustainability in terms of the competition, market share and overall
existence. The existence matters and for the investors and the shareholders who are involved will
consider the fact of the health, safety, and other associated factors before investing in it. This is
also due to the brand value and the goodwill of the firm (Khan, 2016).
At present, the major reasons for BP to take the initiative of the sustainability programs is the
crisis which has been faced by the company in the year 1990. At this era, the British Petroleum
faced a situation of the huge debts and the sharp fall in the prices which extended more when the
pressure increased from the external agencies that the company shall cease to pollute the
environment. Thereafter when the company was merged with Amoco Oil Corporation, the
policies followed by the Amoco were crystal clear with respect to the protection of the
environment and this in return resulted in the huge inspiration for the company and hence the
Sustainable development was the only answer (Metaxas and Tsavdaridou, 2017).
According to Browne who became the CEO of the company in the year, 1995 decides that the
health safety and environmental performance would be of core importance for the success in the
countries in which they operate. Beyond that he concentrated on the environmental and the social
issues concerning the oil industry. This, therefore, made a path for the company to take proactive
initiatives towards corporate social responsibility. Since then the company also took over
Solarex and became the third largest company after the Royal Dutch Shell Plc. Due to the
environmental initiatives taken by Amoco BP the company was ranked number one in Worlds
Most Respected Companies Survey (Opoku‐Dakwa, Chen and Rupp, 2018).