This is a video of Tony interacting with the press on a Louisiana beach. Take a close look, you will see Tony avoiding the oily muck, and then yelling at a cameraman for filming him.
A Stakeholder Approach that developed stakeholder theory into management practice arguing for a widening of managerial focus away from the exclusivity of stockholders to include any individual or group having an interest or is affected by organizational activity.
In its broadest terms, stakeholder theory helps managers create organizational mechanisms and procedures for dealing with social issues in a proactive, rather than a reactive, way of achieving economic gains. Stakeholder theory includes environmental stewardship under its rubric, since the environment can be affected by corporate activity.
And many companies pay homage to the environment as stakeholder in their glossy reports.
The oil spill in the Gulf of Mexico by British Petroleum is one such example. Preliminary results into the cause of the Gulf spill, according to BP, reveal significant failures of equipment designed to prevent a blowout.
To what extent and when BP knew of this equipment failure is unclear, but eyewitness evidence from rig workers claim that BP knew weeks before the blowout that equipment was malfunctioning. Despite BP being unaware of the technological malfunction, according to stakeholder theory, they would have still had to weigh potential equipment failure and environmental harm against cost and profit.
From a strategic management approach, BP would have to consider the natural environment as a stakeholder and take steps to incorporate environmental components into their goals, strategies, and structures as a way of achieving an overall company approach. Stakeholder theory would correctly identify the environment as a stakeholder but it provides no guidance regarding the ethics of how or what we ought to do in order to protect the environment.
From a moral point of view, BP ought to have stopped drilling and fixed the blowout preventer before continuing even if it meant losing money. However, from a stakeholder perspective, nothing requires BP to stop drilling so long as they consider the interests of all stakeholders relative to their own interests.
A moral point of view would require a manager to look at other sources for inspiration, such as philosophical arguments, to determine if polluting the ocean with oil is ethically legitimate.
However, it is still fraught with problems. First, balancing stakeholders is difficult. Second, assessing stakeholders is often based on descriptive, not normative, assumptions. Third, individuals are often members of more than one stakeholder group and it is unclear how this is to be included into the calculation.
Consider BP, once again. The investigation into the Deepwater Horizon drill rig explosion is accusing BP executives of putting drilling costs ahead of well safety in order to save time and money. Executives agreed to give more weight to cost saving and future profits than environmental considerations, the wholesale loss of the seafood industry, and decades of decimated oceans for future generations.
Stakeholder theory is not inimical to ethics; establishing an ethical culture within organizations with strong ethical leadership must be at the center of any stakeholder assessment.
Perhaps the greatest advantage of stakeholder theory, once normative principles are incorporated into organizational decision-making, is that it allows managers to give an unbalanced or biased weighting of issues in order to preserve ethical integrity.
That is, it gives managers permission to put other stakeholder interests ahead of shareholders as a way of making the ethical choice for long-term, not short-term, gain.
BP should have heeded this advice. Putting the environment ahead of well-costs could have saved BP billions and potentially the company itself.
Stakeholder theory can help managers solving ethical problems, such as the environment, and gives managers a practical framework for assessing and balancing interests so long as normative principles are the foundation upon which decisions are made.
If only BP had taken this advice to heart.Stakeholder analysis on the British Petroleum oil spill disaster Stakeholder: UK and USA Government The British Petroleum (BP) oil spill in the Gulf of Mexico flowed unabated for three months in It is the largest accidental marine oil spill in the history of the petroleum industry.
This event affected individuals and groups, know as. Assignment # 1 Stakeholder analysis on the British Petroleum oil spill disaster Stakeholder: UK and USA Government The British Petroleum (BP) oil spill in the Gulf of Mexico flowed unabated for three months in It is the largest accidental marine oil spill in the history of the petroleum industry.
A PR situational analysis and communication issue analysis of BP as of December SECTION 1. Identify British Petroleum’s (BP) key stakeholders and map these stakeholders in terms of the power/interest grid.
The stakeholder analysis of British Petroleum will identify those entities that can influence or are influenced by the company’s objective and strategies (Freeman, ). Stakeholder theory is massively popular but without strong normative principles as its foundation, it can be usurped by short-sighted self-interested initiatives leaving ethical considerations excluded from managerial analysis.
The oil spill in the Gulf of Mexico by British Petroleum is one such example. Assignment # 1 Stakeholder analysis on the British Petroleum oil spill disaster Stakeholder: UK and USA Government The British Petroleum (BP) oil spill in the Gulf of Mexico flowed unabated for three months in It is the largest accidental marine oil spill in the history of the petroleum industry.
This event affected individuals and groups.