Garcia, Arlene Joy S.

ACC 312B-BSA
Serentas, Kristine T.

I. Summary

This paperwork contains the answer to the question of whether the

management of BP Company or the Transocean has failed or succeeded in

performing their duties and responsibilities as agents of their shareholders.

Also covers one agency relationship theory to support the case and the

essence of this topic to as an individual as a student or professional.

II. Body

The movie “Deepwater Horizon” that actually happened in real life

shows the selfishness and irresponsibility of the supervisors of the BP

company’ Kaluza and Vidrine, who have been charged for the

manslaughter of eleven people who died due to the explosion of the titular

oil rig. Kaluza, the supervisor of BP company, insisted on continuing the

operation even the test says it is a bad test. He didn’t consider the first

negative test that turns out to be a bad test. Kaluza uses his authority so

that the Transocean staff would follow his orders to start the operation.

Jimmy Jarrell tried to stop most of the incident together with Mike Williams,

his CET, but they failed to lessen the damage to the Transocean rig, and

the massive blowout of mud cause the destruction of Transocean in the

Deepwater Horizon. That incident maybe could have been prevented if

Jimmy Jarrell, the Captain/leader of the Transocean who leads safety for

how many years in structure have opposed to what the supervisors want

and didn’t give permission to start the operation in the excavation of muds.

The point is, if only the supervisor that BP company sent into Transocean

were a responsible and selfless person that cares about the safety of the

other not who only thinks about money and no matter what the outcome is.
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Garcia, Arlene Joy S. ACC 312B-BSA
Serentas, Kristine T.
The answer to the question of whether the BP company is accountable to

their Shareholders, as their agent, is clearly yes because for what their

supervisors have done and decided they should take responsibility for it as

well though the supervisors uphold the image of the BP company and take

the authority to command by mocking the staff to do a report that to destroy

the reputation of the worker in the Transocean. This case is more of in

relation to the Agency Theory. There's a separation of control which leads

to a potential conflict of interest between the management. BP company is

liable to extend that the shareholder and other stakeholders have invested

to them for the operation to be done in Deepwater Horizon, the billions they

invest must be refunded to the shareholder and other stakeholders

because, as an agent, they are responsible for bringing the best service

they can provide to their principal shareholder and other stakeholders. The

principal employs them to perform the service. Therefore, anything

happened to what the investor has invested. Then the agent must take

responsibility and should be accountable.

III. Application

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