Corporate Social Responsibility

17-Sambbhav Bengani 33-Tanvi Sheth 34-Tilak Debnath 45- Ricken Gala

The Deepwater Horizon oil spill (also referred to as the BP oil spill, the Gulf of Mexico oil spill, the BP oil disaster or the Macondo blowout) is an oil spill in gulf of Mexico. It is the largest marine oil spill in the history of the petroleum industry. The spill stemmed from a sea-floor oil gusher that resulted from the April 20, 2010 Deepwater Horizon drilling rig explosion. The explosion killed 11 platform workers and injured 17 others. On July 15, the leak was stopped by capping the gushing wellhead after releasing about 4.9 million barrels

CEO Tony Hayward Down play seriousness of issue:Actual 24,000 barrels were leaked instead of 7,000 barrels Tony Hayward called the amount of oil and dispersant "relatively tiny" in comparison with the "very big ocean. Lack of professionalism attitude I want my life back comment made to Americans. Went for a yacht holiday in the midst of the crisis

Haywards leaving package is under basic contractual terms. That means one-year's pay of 1m and a pension pot of more than 10m, capable of paying out more than 500,000 a year when Hayward reaches 60

Government intervention was late due to political system in USA. BP rejected help from other countries with expertise What is President Obama's response to the spill? Obama's response wasn't immediate. He ordered, from Air Force One, that the spill be taken as a Gulf Threat and wanted an aggressive response as it can cause damage to the Gulf's ecology and economy.

RESPONSE AND CLEAN-UP BP HAS ESTIMATED THAT THIS WILL COST $13.6BN, INCLUDING STOPPING THE LEAK FROM THE WELL AND CLEANING UP THE SPILT OIL GULF COAST CLAIMS FACILITY BP HAS PROMISED $20BN FOR THIS FUND TO COMPENSATE PEOPLE WHO LOST MONEY. KENNETH FEINBERG, WHO ADMINISTERS IT, EXPECTS TO MEET ALL THE CLAIMS WITH ABOUT HALF OF THAT AMOUNT CLEAN WATER ACT PENALTIES ARE LEVIED ON A BASIS OF $1,100 PER BARREL OF OIL SPILT, OR $4,300 PER BARREL IF THE SPILL WAS CAUSED BY GROSS NEGLIGENCE. BP HAS SET ASIDE ABOUT $3.5BN, BUT THE TOTAL COULD BE AS HIGH AS $17.6BN NATURAL RESOURCES THE COSTS OF MAKING GOOD THE ENVIRONMENTAL DAMAGE CAUSED BY THE SPILL. FOR THE EXXON VALDEZ SPILL IN 1989, THE FIGURE WAS $900M. BP SPILT ABOUT 15 TIMES AS MUCH OIL. CRIMINAL PENALTIES THE PENALTY FOR ENVIRONMENTAL DAMAGE IS UP TO TWICE THE COST OF THE DAMAGE DONE, AND THERE COULD BE FINES FOR DEATHS AND INJURIES CAUSED ON THE DEEPWATER HORIZON RIG OTHER ACTIONS VICTIMS OF THE DISASTER, INCLUDING THE FAMILIES OF THE 11 MEN WHO DIED, WORKERS WHO WERE INJURED AND LOCAL RESIDENTS WHO SUFFERED COULD ALL TAKE ACTION

This shows that ignoring social responsibility can have great costs to a business, therefore CSR is very beneficial to a business.

The Kyoto Protocol currently commits 38 ratified parties to meet emissions targets in the commitment period 2008 to 2012. The European Union (EU) Climate Action and Renewable Energy Package which requires increased greenhouse gas reductions The Clean Air Act (CAA) regulates air emissions, permitting, fuel specifications and other aspects of production, The Energy Policy Act of 2005 and The Energy Independence and Security Act of 2007 affect US fuel markets by imposing renewable fuel mandate and imposing GHG emission thresholds for certain renewable fuels. The Clean Water Act (CWA) regulates wastewater The Resource Conservation and Recovery Act (RCRA) regulates the generation, handling, and disposal of wastes The Toxic Substances Control Act regulates BPs import, export and sale of new chemical products. The Occupational Safety and Health Act (OSHA), imposes workplace safety and health requirements on our operations along with significant process safety management obligations The Emergency Planning and Community Right-to-Know Act, requires emergency planning and hazardous substance release notification as well as public disclosure of our chemical usage and emissions. The US Department of Transportation (DOT) regulates the transport of BPs petroleum products such as crude oil, gasoline and petrochemicals. The Marine Transportation Security Act and the DOT Hazardous Materials (HAZMAT) and the Chemical Facility Anti-Terrorism Standard (CFATS) regulations impose security compliance regulations on BP and require security vulnerability assessments, security mitigation plans and require security upgrades that increase our cost of operations.

If there werent so many regulations, arguably BP would not be interested in CSR