Evaluation of Business Code of Ethics Steven Turlington PHL/323 December 4, 2012

I have reviewed this code of conduct set into place as of January 1. its partners and suppliers. This is another form of a code of ethics. government. and trade sanctions. At BP (British Petroleum) they had a code of conduct. For more than ten years the EPA (Environmental Protection Agency) has been investigating BP. safety and the environment. It is a very well written code of ethics. BP’s code of conduct covers health. yet from other articles that I have read. All of the standards are sound and look good on paper. Yet. For 12 years. a woman named Jeanne Pascal (former EPA attorney) spoke out about all the things that had gone wrong at BP over the many years while they were under investigation. Each section contains key principles. but it seems that BP does not want to follow the laws set by the U. and protecting BP’s assets. governments and communities. group standards and legal requirements. its people.Evaluation of Business Code of Ethics A code of ethics states a company’s standard to of work. BP has a problem following its own codes and guidelines. There has been many ethical issues that have come up against BP over the years that the EPA has found them guilty of. competition and antitrust law. A new section added from the previous code is. 2012. The code of conduct also includes key points from new BP standards related to anti-bribery and corruption. which is designed to help people make decisions when faced with dilemmas where there are no clear rules to follow.S. It also tells a potential employee its values. “Living our Code’. In an article I have read. basic rules and advice on where to find further information. Pascal had wrestled with whether BP’s pattern of misconduct should . and clarifies the ethics and compliance expectations for everyone who works there. anti-money laundering. they have had numerous ethical issues arise. over the many years BP has been in business.

By mid-2001 he had also bought ARCO and four other companies. By late 2009 she was warning the government and BP executives themselves that the company’s approach to safety and environmental issues made another disaster likely. But BP was in its own league. that it could hardly feel their tailwind. On her watch she would see BP charged with four federal crimes—more than any other oil company in her experience—and demonstrate what she described as a pattern of disregard for regulations and for the EPA. On paper. Federal law empowers government officials to “debar”—ban from government business— companies that commit fraud or break the law too many times. Over the years she’d persuaded hundreds of troubled energy. BP’s ascent to the top tiers of the oil industry hit full stride in 1995. reviewed records and made sure they were good corporate citizens entitled to government contracts. Pascal was a senior EPA debarment attorney for the Northwest. Browne was hailed in Britain as the “Sun King. BP’s next challenge was not only to integrate its thousands of . the world’s largest independent oil companies. At first. Pascal thought BP would be another routine assignment.disqualify it from receiving billions of dollars in government contracts and other benefits. Here is a short history of where BP came from. it was so far behind Exxon and Shell. She worked with their top management. In 1998 Browne put together what was at the time the largest merger in corporate history—the $61 billion buyout of Amoco Corporation. when John Browne became CEO. the company quadrupled in value and became a huge global competitor overnight. mining and waste-disposal companies to quickly change their behavior.” and in 1999 BP’s stock soared to what was then an all-time high. By the time Browne took over. The company was founded as the Anglo Persian Oil Company in 1909 but languished after Middle Eastern countries nationalized their oil in the 1970s. and her job was to act as a sort of behind-the-scenes babysitter for companies facing debarment.

At the same time he steamed ahead with extracurricular projects that Tony Hayward would later describe as distractions. and the disparate corporations they acquired were never fully integrated. While Browne reveled in the spotlight—he was even knighted by Queen Elizabeth—cracks began to appear in his burgeoning company. the other major company operating there. When you dig into BP’s past you will find that they have had a long history of “cutting corners”. in 2009. home to one of BP’s longest-standing and most important business units. Browne. it has had 52 worker-safety violations since 1990. He rebranded the company from British Petroleum to BP and added the “Beyond Petroleum” tagline to put it in a more cosmopolitan. Nationally. compared with ConocoPhillips’ seven. employees still identified themselves as ARCO. And each of those cultures approached safety and maintenance differently. Since those statistics were compiled. compared with 240 for Chevron and even fewer for its other competitors. or Amoco. BP’s workers also appear to be more at risk. In Alaska. ecological light. He squeezed out $2 billion in savings from the Amoco merger alone. BP had more spills than Shell between 2000 and 2009. Browne delivered speeches on climate change. even though Shell produced more oil there. or wherever else they came from. BP had 518 safety violations over the last two decades. the company produced nearly twice as much oil as ConocoPhillips. with little wiggle room.new employees and numerous industrial facilities. cracks that Jeanne Pascal would be among the first to spot. but to do it without increasing the company’s already-significant debt. But Browne and other senior managers weren’t deeply engaged in the day-to-day operations of their facilities. . chemicals or waste. brought the companies into the fold by slashing jobs and cutting costs. according to an extensive analysis of data from the Occupational Safety and Health Administration. but since 2000 it has also recorded nearly four times as many large spills of oil. More than a decade later. In Alaska. In the Gulf of Mexico.

OSHA records show that BP has been levied 300 times more in fines for refinery violations than any other oil company. This company has a sense of entitlement. BP has not lived up to it code. one near Toledo. meaning they think they deserve to be at the top and will do whatever is necessary to get there. Many of the employees had begun to call Pascal with complaints about safety and possible disasters that could happen at any moment. Some of these employees where dismissed after BP’s five year probation was lifted for an earlier crime. . now their employees and their families have paid the ultimate consequence. Through the numerous oil spills and alleged pay offs. Soon after came the Texas explosion of 2005. Even with this evidence from the employees Pascal could not find a legal way to shut down BP. where 15 people were killed and 170 injured in a 2005 explosion. Texas.OSHA has announced 745 more violations at two BP refineries. and the other in Texas City. They have tried to cut back on spending and chose to do so in the worst possible way. BP is a leader in its industry when it comes to oil spills and accidents. but they do not back them up with actions. In the last decade. BP is very good a writing its code of ethics. Ohio. I did not see any flaws with BPs code of conduct except the inability to follow it.

by Abrahm Lustgarten ProPublica. Are we surprised? by David Ohreen July 5. 2010 retrieved from: http://business-ethics.S.bp.propublica. Operations.com/2010/07/05/1432-opinion-bp-puts-well-costs-aheadof-environment-are-we-really-surprised/ . 2012 retrieved from: http://www.do?categoryId=9038306&contentId=7006600 EPA Officials Weigh Sanctions Against BP’s U. 28.References Code of Conduct by BP retrieved from: http://www.org/article/epa-officialsweighing-sanctions-against-bps-us-operations Opinion: BP puts costs ahead of environment. Nov.com/sectiongenericarticle.

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