Ethics Paper MGT/498 Professor: The primary purpose of ethics and social responsibility is imperative to the way we do business and live amongst society. Ethics most commonly know as the rights and wrongs are principles and standards that establish what is know as acceptable conduct within an organization. Organizations have moral and legal duties to implement ethics when developing a strategic plan while considering stakeholders and consumers, they do not want to be lied to or cheated into buying a false product.
Unethical companies will use aggressive sales tactics and mischievous ways, of doing usiness to sell, promote and profit from vulnerable consumers. Unethical organizations believe in these tactics not realizing that ethical and honest companies tend to be more profitable, reputable and operate amongst less stress from employees to managerial position. Social responsibilities are Just as important as ethics but pertain to a greater scale; it’s an organizations obligation to make a positive impact rather than a negative one on society and the environment.
An example of a company that overstepped ethical and social responsibility boundaries s the oil and gas company BP p. l. c. In 2010, a massive oil spill broke out in the Gulf of Mexico that was caused by oil drilling conducted by this Company and its key contractors. This oil spill caused the death of eleven individuals and cost the company and its partners tens of billions of dollars in order to contain a blowout of the well, mitigate the damages caused and compensate all the individuals and businesses impacted by the spill. The Telegraph). As a result of this oil spill, the US Government established an Oil Spill Commission hich was put in place to investigate the reasons for this disaster. The report concluded that a number of separate factors contributed to the spill which included oversights and outright mistakes from BP and its contractors, Halliburton and Transocean, however that the underlying reason was a failure from management (National Commission).
Management, in an effort to minimize the loss of returns, made concessions for a series of cost-cutting measures that included the quality of the materials used, short cuts in testing processes and the reliance on fewer esources which ultimately contributed to the oil spill. The Commission also concluded that the overall industry nad deficiencies in its internal controls; decision making protocols, training and corporate culture.
As a result, the short falls in this disaster were a combination of oversights and negligence from multiple parties thus extending the ethical and social responsibility among internal and external stakeholders (National Commission). As part of the remedy process for the disaster, BP was required to take actions to urther enhance the safety of its drilling operations in the Gulf of Mexico.
These actions included improved risk management processes such as auditing and verification from third-parties, improved training for its employees, and the implementation of more efficient and safer equipment for well drilling (BP, Investigations and Legal Proceedings). Additionally, the company’s sustainability report for 2012 includes a letter from the Group’s Chief Executive which states that the Organization’s strategy going forward is to create value for its shareholders and upply energy throughout the globe in a safe and responsible manner.
The statement goes on to use other key phrases such as becoming a safety leader in the industry, a responsible corporate citizen and a good employer. The strategy also emphasizes the need to enhance safety and risk management and earn back the trust and value of the Organization (BP, Sustainability Review 2012). All indications are that the Company’s behavior pre oil spill was irresponsible and negligent and was potentially driven primarily by a focus to provide strong returns on heir investments while compromising the integrity and internal controls of the operations.
Post oil spill, the Company has had to learn from the consequences of a very costly disaster in order to stay in business and thrive. The Organization appears to understand now the need for effective communication, transparency and detailed due-diligence in all their efforts. In collusion ethics and social responsibilities’ within an organization take on an imperative role to the success of a corporation or company. Society must also be ware and educate themselves from scams, aggressive business tactics and do their part to prevent these unethical organizations from preying on vulnerable consumers.