Corporate Social Responsibility Analysis

This assignment delves into the concept of Corporate Social Responsibility (CSR), examining its ethical implications and practical applications. It requires students to analyze various aspects of CSR, including communication strategies, stakeholder engagement, and the impact of globalization on ethical business conduct. Students will evaluate different perspectives on CSR and explore real-world examples to understand its complexities and challenges.

Business Ethics and
Social Responsibilities

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
Business context..........................................................................................................................1
Relate to existing CSR literature.................................................................................................4
Critical evaluation of CSR activities implemented in BP...........................................................4
Recommendation.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
For sustainable development of the business an organization needs to focus on business
ethics and corporate social responsibilities. Business ethics is concerned towards the moral
judgement about what is righty and wrong. Ethical behaviour and CSR policies can bring
sufficient benefits to a company. Unethical behaviour and inappropriate CSR policies can
damage the reputation and stakeholder’s relationship of the organization (Armstrong, Blouin,
Jagolinzer and Larcker, 2011). The current research project is based on business ethics and
corporate social responsibilities. Regarding this, study has been chosen British Petroleum (BP)
which is one of the leading organization of oil and gas industry of UK. For analysing business
ethics and CSR policies of this organization research will conduct review of literature. It will
comprise that how well or badly is CSR implemented in BP. Along with this, recommendations
for improving business ethics and CSR policies of the organization are also describing in the
following paragraphs of the report.
Business context
Being a responsible company and force for progress is the major aim of British
Petroleum. Objective of this organization help world to meet the growing need of heat, light and
mobility by offering secure, sustainable, reliable and diverse energy solutions. At present this
organization has focused on number of code of conducts of business ethics and different social
responsibilities of organization towards its stakeholders (Bredeson, 2011). But, on 10th April
2010 BP oil spill or BP oil disaster was one of the major accident which have reflected that
British Petroleum did not focus on business ethics and CSR policies, because this disaster has
affected the marine life of Gulf of Mexico in highly negative manner. Along with this, 11 people
was missing in this accident. It has huge negative impact on environment, health and safety of
individuals and marine life and economy of nation, etc. Overall, it has reflected that BP was not
followed the principles of sustainable development of the organization.
This disaster has negative impact on corporate reputation of BP and affect the financial
and non-financial performance of the organization (Leslie, 2013). Afterwards BP has focused on
business ethics and corporate social responsibilities. From last five years organization is trying to
maintain sustainable development of the organization in positive manner. Therefore, at present
code of conducts and CSR policies contributes in social development.
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Business ethics:
At present, business ethics of BP focuses on its values which are concerned towards
safety, respect, excellence, courage and one team. Its code of conducts help in maintaining high
ethical standards (Li, Zhao and Chen, 2012). Business ethics of BP focuses on safety and
security of people, respecting the values of employees, effective relations with suppliers and
partners, appropriate communication with government and communities and commitment to
human rights. Speaking UP: As per the current business ethics BP provides an open environment to its
employees which will help in creating questions on the code of conduct and practices
which can be unsafe, unethical and potentially harmful for stakeholders of the company.
Therefore, open environment and strong communication network helps in encouraging
employees to make effective discussion with management of the organization. Including
this, BP provides appropriate training sessions for employees, contractors and suppliers.
Therefore, it has reflected a strong ethical behavior of BP with employees of the
organization (Caroline 2010). Employee dismissals: Code of conduct of business ethics also focuses on appropriate
action against all those employees who are not following the business ethics. Employee
dismissals is one of the popular action of BP in case of any consequences for misconduct.
BP has dismissed 132 employees for non-conformance with our code of conduct or
unethical behavior in 2015. Therefore, it has reflected that organization is concerned
towards the business ethics (Charles, 2007). Anti-bribery and corruption: As per the Transparency International’s Corruption
Perceptions Index, BP is operating its business operations in those countries where risks
of Anti-bribery and corruption is high. Code of conduct of BP prohibits engaging in any
kind of bribery and corruption of these countries. Organization has a responsibility
towards employees, shareholders countries and communities to be ethical and lawful
behavior at the time of running business operations (Caulfield, 2013).
 Lobbying and political donations: As per ethics business ethics this organization does
not use BP funds or resources to support any political party of any nation.
Overall, above discussed code of conducts and business ethics have reflected that at
present BP is running its business operations in very ethical manner which has helped
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organization in resolving issues associated with the gulf disaster as well as also help in
developing strong brand image in the market (Abdullah and Valentine, 2009).
CSR policies of BP:
British Petroleum follows appropriate corporate social responsibilities towards all
stakeholders which help in developing strong relationship with them as well as also play
important role in sustainable development of the organization.
Community engagement: As per this policy BP focuses on the safety and security of society. For
better implementation of CSR policies BP involves society in terms of getting feedback on
its project and communicate them about the safety awareness, etc. therefore, organization
focuses on the community engagement which helps in social development as well as
maintaining health and safety of individuals of society (Banerjee, 2007).
Tax and financial transparency: BP is operating its business in different countries and for
appropriate financial reporting to government it focuses on tax and financial transparency.
Therefore, government can easily determine the tax and interest payment. Along with this
BP follows different tax laws and regulations at the time of paying tax. It helps in reducing
the financial cost and making financial transparency with shareholders and government.
Overall, BP is following strong CSR policies towards government of the nation (Bueble,
2009).
Human right policy: BP respects the rights and dignity of all people, complying with all legal
requirements. Along with this, it developed policies with considerations of rights of
employees, customers and shareholders. Along with this, organization treat each and every
employee without any discrimination. It encourage values, beliefs and rights of all
personnel. Therefore, this policy has reflected that organization is focused on social
development with growth and success (British Petroleum, 2016).
Social investment: at the time of running business operations BP focuses on social responsible
investment which helps in social development as well as progress of the organization. At
present organization’s investment project focuses on protecting environment and
communities where company is operating its business operations. Therefore, it has reflected
effective CSR policies of company towards society.
Lower-carbon future policy: At present BP is working towards a lower carbon future as well as
also focuses on reducing carbon footprints in its products and services. At present
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organization is trying to reduce emission by working with World Bank’s Zero Routine
Flaring, World Bank’s Global Gas, Climate and Clean Air Coalition Oil and Gas Methane
Partnership, etc. Overall, BP focuses on environmental protection also (Armstrong, Blouin,
Jagolinzer and Larcker, 2011).
Relate to existing CSR literature
Charles, 2007 has concluded that “CSR policies of organizations should focus on needs
and requirements of stakeholders of the company” (Charles, 2007). As per this statement CSR
policies of BP should be based on needs and expectations of customers, employees, shareholders,
suppliers, government and society. Above discussed CSR policies of British Petroleum has
reflected that company has introduced most suitable policies for social development. Along with
this, Tax and financial transparency policy has helped in developing strong relations with
government and shareholders of the company. This policy satisfy their needs and requirements in
effective manner. Bredeson, 2011 has reflected that “CSR policies need to focus on sustainable
development of the company” (Bredeson, 2011). As per this statement BP needs to focus on
social, economic and environmental development of the organization. CSR policies of BP are
based on community engagement, Human right policy, Social investment and Lower-carbon
future policy. These have helped in maintaining sustainable development of organization.
Critical evaluation of CSR activities implemented in BP
CSR activities are directly referred to the corporate social responsibilities of the firms
that plays a pivotal role in establishing the enterprise at a succeeding position into the market.
With a similar context of it, BP is together required to focus upon their applicative measures of
CSR that mainly refers them to frame some significant decisions of working that will in turn
make a direct impact upon their set base of clients and users. Such organisational decisions are
mainly with reference to influence the organisation and its societal surrounding that together
includes the stakeholders of BP. Darcy (2013) have stated as a vital mean of benefiting the
society with some stupendous implementation of strategies with a greener approach of serving
them that doesn't harm the environment as well. These CSR activities directly affects the brand
image of the organisation where it has now referred to a mainstream objective of operating the
business into n ethical manner. It thereby refers the quoted entity to opt for certain sustainable
practices of working with an interlinked concept of forward thinking. This will also assist them
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to create a shared value for their business and the society that will undoubtedly enhance their
brand image as well.
These activities are actively associated with some primary tactics of operating the tasks
with an ethical consideration that may also include welfare of animals, etc. It is also with relation
to state about some impelling means for the workers into the enterprise that mainly refers the
cited firm to provide a diversified and equal set of opportunities to them with no discriminative
approach as mentioned by Maciejovsky, Schwarzenberger and Kirchler (2012). Such CSR
activities significantly leads to enhance the sales prospective of the organisation with a
developed set of workforce. The appointed personnels will also work with a boosted factor of
enthusiasm into them that will correspond to the innovative content of BP. As a result to which,
the referred establishment will hereby work with an enhanced trust of their employees towards
them. It is considered to be a pivotal mean of attracting and retaining the efficient number of
staff members to continue with a long term prospective of working in the enterprise. This will
resultantly raise the reputation of BP where presently they are operating with five leading
formulations of CSR activities, as delineated into the below sections.
Community engagement is the foremost strategy to execute the CSR by BP where it
mainly refers to involve the stakeholders to frame some requisite decisions into the firm. It is
however with reference to acknowledge the ongoing cultural and biological issues that can be
strategically cured by the activating entity. It firstly requires BP to listen and understand the
foremost considerations of their stakeholders where they should together refer to dispense their
thoughts and concerns as stated by Rothaermel (2015). It is together referred that an interactive
discussion to ascertain the possible outcomes by prioritizing the given contents and ideas of the
stakeholders.
Furthermore, a succeeding formulation also refers to enforce a dual measure of
qualitative and quantitative submissions by the participants as a mean of consulting and
collecting their ideas. Both these strategies allocate some impelling alternatives of visualising
and co- designing by a collaborative bringing of solvents. This will sufficiently aid BP to work
with a long term cogitation of work by building strengthen relationship with the communities as
a principal source of capital (Tan and Tan, 2012). Such engagement of stakeholders together
leads to grasp plentiful opportunity of working with a successful future prospect of business by
together managing the associated risks into an effective manner.
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A transparent approach of taxation and other finance related activities is referred to yet
another CSR activity of BP where they refer to pay timely taxes to the government where it
vitally supports to develop the society. However, this particular formulation not only refers to
works into a transparent format of taxing but also requires the organisations to adhere by the laid
down policies of their respective regimental bodies, as mentioned by Weber and Wasieleski
(2013). Thus, with a similar perspective, BP stringently refers to works under a legitimate
postulation of UK governmental laws. Into which, they also possess an open and shaped
relationship with the tax authorities. This aids them to support into the enhancement of public
trust where BP also refer to involve in simplifying the associated regimes of tax with certain
improvised tactics that directly promotes their investing capacity which in turn supports into the
overall growth of economy.
Human rights policy is also a vital composition of CSR activities that are performed by
BP as a primitive mean of working into a dignified culture. It is mainly with regard to depict the
code of conduct where they refer to inculcate some considerable measures of working into it.
This is with a relative aspect of providing a fair and respectful surrounding of work to the
appointed personnels of BP where they are also taught to entail some fine strategies of servicing
their clients and users. Weiss (2014) have mentioned it to be the most important prospect of
work into which BP is vigorously referring to render a dignified culture to both its customers and
employees through its impelling policies of work. It is where they significantly believe to work
without any discriminative outlook towards their employees and rather provides them an equal
opportunity of work.
Social investment by BP is referred to yet another major enforcement of CSR activities
by BP where they support various developmental programmes. It is however with a related
concept of fulfilling the local needs of community that together shape up their vital business
activities. The affiliated statistics to organise a sensible program is attained from the engaged
participants of the community (Brooks, 2013). Educational initiatives with some applicable
sessions of training and development to varied institutions is yet another significant part of social
investment by BP into which they arrange some timely developmental sessions for the
community people. Disaster reliefs to the accidental regions with some profound benefited
support to the employees also refers to a related factor of such investments.
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Lower carbon future policy is the most efficacious consideration of BP where it duly
matches to their CSR activities for protecting the environment. Such strategy of working will
largely serve the entire globe with a reformed state of a safe and secured surrounding of living by
surviving into a healthy environment (Banerjee, 2007). It is not only a mere cogitation of BP but
together this also supports a major prospective of governmental bodies where they are equally
concerned about inculcating such greener solutions of survival with less use of contaminated
substances by the organisations like BP.
Recommendation
In current era of globalisation, an organisation needs to focus their attention on
developing their business operations with an aim to accomplish the entire set of objectives and
establish strong presence in the concerned sector. It is crucial that they should take innovative
steps in maintaining their approaches of performing the functions specified in the business
projects. Similar to this, BP should also focus on addressing the best form of overcoming the
operational and functional processes which needs to be effectively and systematically placed in
their aimed market. For this, they have to define a set of business commitments and principles
which would help them in building up their values and brand image among the customers. In that
context, BP should aim on areas which are directly linked with their stakeholders and determine
the aspects of creating CSR.
Moreover, the managerial aspects of BP should follow the defined criteria of stated
business commitments and principles that includes improving community engagement,
implementing transparency in taxation and financial policies, maintaining human right policy,
rising social investments and introducing lower-carbon future policy (Bredeson, 2011).
Processing the specified commitments would assist them to attain benefits from their aimed
market and segments. In addition to this, the elements of BP should also direct their efforts on
innovative and advance kinds of CSR activities like supporting societies and their respective,
maintaining high level of safety, developing an image of environment friendly and many more.
It is essential for BP for promoting their operations and functions by implementing
progressive, modern and innovating approaches in executing the business activities. The
management team of BP should mainly direct their efforts on existing group of employees and
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workforces in order to ascertain their performance and abilities for accomplishing the assigned
task. As the functioning capabilities and proficiency among the organisational individuals is
directly linked with their business achievements and overall success. Thus, the necessity of
understanding the benefits of maintaining CSR would be beneficial for BP in developing a better
image in the market and manage their business approaches in sustaining in the target market.
CONCLUSION
From the report, it has been articulated that the process of implementing CSR policies
and procedures are highly productive and profitable for an enterprise in maintaining their work
and overall organisational activities. This would help them to build up a proper business image in
their concerned sector and attain better form of achievements and success. The report includes
the benefits of implementing CSR policies and their effectiveness in relation to BP company
which is among the leading businesses in the energy sector. It is necessary to understand the link
between business operations and CSR which could be systematically done by ascertaining
company values and commitments. Moreover, the process of determining the CSR policies
should be executed effectively in order to gain proper set of benefits.
In addition to this, the report depicted that the organisation should address their entire
commitments made by them in respect to their customers and market. CSR policies helps the
business in regulating better functions and achieving proper set of success. It creates a way or
direction to conduct the flow of the business which enables the organisational aspects to attain
better benefits and achievements. The report is also recommending about the CSR polices which
needs to be consider by BP company for maintaining their relation with the employees and
customers.
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REFERENCES
Books and journals
Abdullah, H. and Valentine, B., 2009. Fundamental and Ethics Theories of Corporate
Governance. Middle Eastern Finance and Economics. (4). pp.88-94.
Armstrong, C., Blouin, J. L., Jagolinzer, A. D. And Larcker, D. F., 2011. Corporate governance,
incentives, and tax avoidance. Rock Center for Corporate Governance at Stanford
University Working Paper. Pp.136
Banerjee, S. B., 2007. Corporate Social Responsibility: The Good, the Bad and the Ugly. Edward
Elgar.
Bredeson, D., 2011. Applied Business Ethics: A Skills-Based Approach. Cengage Learning.
Bueble, E., 2009. Corporate social responsibility: CSR communication. GRIN Verlag.
Caroline D., 2010. From corporate social responsibility awareness to action. Social
Responsibility Journal. 6(3). pp.452–468.
Caulfield, P., 2013. The evolution of strategic corporate social responsibility. EuroMed Journal
of Business. 8(3). pp.220–242.
Charles, W. L., 2007. International business: competing in the global marketplace. New York:
McGraw-Hill.
Darcy, K.T., 2013. Ethics and Compliance. Business Compliance. 2(3-4). pp.36-45.
Leslie, D., 2013. Tourism Enterprises and the Sustainability Agenda across Europe. Ashgate
Publishing, Ltd.
Li, S., Zhao, Y. Y. and Chen, X. P., 2012. Optimization of Microwave-Assisted Extraction of
Flavonoids from Propolis by Response Surface Methodology [J]. Food Science. 18.
pp.028.
Maciejovsky, B., Schwarzenberger, H. and Kirchler, E., 2012. Rationality versus emotions: The
case of tax ethics and compliance. Journal of Business Ethics. 109(3). pp.339-350.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.
Tan, J. and Tan, A.E., 2012. Business under threat, technology under attack, ethics under fire:
The experience of Google in China. Journal of business ethics. 110(4). pp.469-479.
Weber, J. and Wasieleski, D.M., 2013. Corporate ethics and compliance programs: A report,
analysis and critique. Journal of Business Ethics. 112(4). pp.609-626.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
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Online
British Petroleum, 2016. [Online]. Available through:
<http://www.bp.com/en/global/corporate/sustainability/society/supporting-development-
in-societies-where-we-work.html>. [Accessed on 4th August 2016].
Brooks, C., 2013. 7 Steps to Ethical Leadership. [Online]. Available through:
<http://www.businessnewsdaily.com/5537-how-to-be-ethical-leader.html>. [Accessed on
4th August 2016].
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