Examining Ethical Frameworks: The BP Deepwater Horizon Oil Spill

This essay examines the ethical dimensions of the Deepwater Horizon oil spill, owned by BP, in the Gulf of Mexico, analyzing the incident through various ethical frameworks like utilitarianism. It highlights the disaster's impact on industries, natural resources, and marine life, as well as the legal repercussions faced by BP executives. The essay critiques BP's handling of the crisis, including the CEO's responses and flawed decision-making processes, and suggests improvements in environmental review processes. It also touches upon the Sarbanes-Oxley Act and its implications for corporate governance, emphasizing the importance of ethical conduct in business. Desklib provides similar solved assignments and past papers for students.

Running head: CORPORATE RESPONSIBILITY
Corporate Responsibility
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Business ethics refers to applied ethics that helps in examining the ethical principles
which can arise within business environment. It can be applied to all the aspects of the
business conduct and it is important for the conduct of the organizations. Ethical framework
is known as the virtue ethics and it helps in providing alternative approach to that of ethical
reasoning. In the ethical framework, emphasis is laid on the personal characteristics along
with the behaviour instead of the rules. The Deepwater Horizon Oil spill can be said to be the
largest oil spill in that of history which is located within Gulf of Mexico. It is owned by BP
which is an oil company and natural gas got ignited and it resulted in killing of 11 workers
and 17 people were injured in the incident that took place on April 20 (Britannica.com.,
2019). This essay throws light on the situation of oil spill in that of Gulf of Mexico and
elaborates on the ethical nature of the incident. The essay also talks about the recent reforms
made in the arena of corporate legislation and its effect on the companies. The essay also
states the recommendations that can be implemented by the company that can help in dealing
with this kind of a crisis.
Natural gas had travelled in the rig of the Deepwater and it got ignited. Rig capsized
on morning of the 22nd of April and the riser was raptured. Drilling mud was injected so that
it could counteract upward pressure of the oil. There was no opposing force and oil was
discharged into Gulf. Oil escaped into damaged well and it was thought of by BP to be
around 1000 barrels in a day (Youtube.com., 2019). The officials of the US government later
said that it was more than that of 60,000 barrels in a day. BP wanted to activate blowout
preventer of the rig that can help in closing the channel. The blind shear rams had been
malfunctioning as the pipe bent under pressure of that of rising gas along with oil.
The oil spill of the year 2010 affected many industries and there was damage of
around $ 17.2 billion to natural resources within Gulf of Mexico. The natural resources
possess immense amount of monetary value and a large amount of valuable resources were

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damaged (Ecowatch.com., 2019). There were many birds along with mammals that had been
plastered due to the leaking of oil. There were speculations regarding the fact that spike had
taken place in the cetacean stranding and the deaths took place owing to the oil spill. The
contaminants that came out from the spill was responsible for making the cetaceans more
vulnerable to that of the environmental dangers (Theguardian.com., 2019). The living
dolphins in that of Barataria Bay was found to be extremely sick owing to the incident of oil
spilling of BP Deepwater Horizon oil rig.
Criminal charges were levied upon the senior drilling manager of BP and he was
charged in the federal court. The stakeholder was the senior officer of BP Deepwater Horizon
who had to face charges in that of federal court. In the November of the year 2012, senior
officers of that of Deepwater Horizon oil rig called Robert Kaluza along with Donald Bidrine
had been accused for manslaughter. The individuals who had been charged for the criminal
offenses did not receive prison sentences and it disappointed many people
(Sciencedaily.com., 2019). The ethical framework of utilitarianism states that the best action
can be stated to be the one that can pave the path for happiness. The concept of utilitarianism
can help an individual in making ethical decisions as it deals with the decisions in relation to
consequences (Waddock, 2017). It helps in weighing different amount of the good and the
bad that can be produced with the help of action. The incident of oil leak at that of Deepwater
Horizon rig had cost the lives of 11 people and it was detrimental for the lives of the birds
and the mammals thus going against the ethical framework of utilitarianism. The releasing of
the oil and the methane gas into that of Gulf of Mexico proved to be harmful for the aquatic
animals.
The dispersing of oil of that of BP Deepwater Horizon rig the effects proved to be
catastrophic for the entire community. The chief executive of BP called Tony Hayward made
flippant responses in the media interviews and this angered a large number of people. The

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decisions regarding the installation process of defective concrete cap should have been done
in a more careful manner that could have been instrumental in preventing such a disaster
(Leipziger, 2017). The BP along with Transocean employees had at the time of the testing
procedure ignored indications pertaining to the problem and this could have played an
important role in preventing the incidence of full-scale blowout. BP Deepwater Horizon can
strengthen the process of environmental review that can help in integrating science into the
decision making of that of gas development process. The environmental review can prove to
be more appropriate as it can play an important part in increasing equipment reliability and it
would be able to build upon the industry standard. Sarbanes-Oxley Act that was enacted in
United States changed the situation pertaining to corporate governance. It extended beyond
that of the securities law that had an effect on many areas in relation to business conduct
(Iclg.com., 2019). This rule had effect on managers along with the directors in United States
and it brought out the fact that those people who should be in the management of the
company would be responsible for monitoring of the company.
Business ethics is indicative of applied ethics that can be applied to that of the
business conduct. Oil spill of BP Deepwater Horizon that took place in year 2010 had an
effect on various industries and damage was done to the natural resources within that of Gulf
of Mexico. The natural resources can be said to have monetary value and valuable resources
were damaged on account of the oil spill that took place in year 2010. Many birds and
mammals had been adversely affected owing to leaking of oil and many deaths occurred due
to oil spill. The people who were responsible for the criminal offence were not sentenced and
this hurt the sentiments of many people in United States. Ethical framework pertaining to
utilitarianism states that those actions can be considered to be the best that can help in
bringing happiness for the people. The responses of chief executive of the company BP Tony
Hayward were irresponsible and this was responsible for bringing about angry outbursts on

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the part of the people. The installation process of concrete cap being carried out effectively
that could averted such a calamity.

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References
Britannica.com. (2019). Deepwater Horizon oil spill of 2010 | Summary & Facts. Retrieved
from https://www.britannica.com/event/Deepwater-Horizon-oil-spill-of-2010
Ecowatch.com. (2019). Oil Change International. Retrieved from
http://www.ecowatch.com/community/oil_change_international
Iclg.com. (2019). Corporate Governance 2018 | Laws and Regulations | USA | ICLG.
Retrieved from https://iclg.com/practice-areas/corporate-governance-laws-and-
regulations/usa
Leipziger, D. (2017). The corporate responsibility code book. Routledge.
Sciencedaily.com. (2019). Deepwater Horizon oil spill: Oil biodegradation inhibited in deep-
sea sediments. Retrieved from
https://www.sciencedaily.com/releases/2018/07/180719121748.htm
Theguardian.com. (2019). Deepwater Horizon disaster altered building blocks of ocean life.
Retrieved from https://www.theguardian.com/environment/2018/jun/28/bp-
deepwater-horizon-oil-spill-report
Waddock, S. (2017). The difference makers: How social and institutional entrepreneurs
created the corporate responsibility movement. Routledge.
Youtube.com. (2019). BP Ethics Trailer. Retrieved from https://www.youtube.com/watch?
v=jdzZIcEwqfE