MGMT 640 Week 7 BP Texas Case Study.docx - Dana Self MGMT 640 Week 7 Assignment BP Texas City Case Study 1 The textbook defines ethics as “the

MGMT 640 Week 7 BP Texas Case Study.docx - Dana Self MGMT...

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Dana Self MGMT 640 Week 7 Assignment BP Texas City Case Study 1. The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. To what extent do you believe that what happened at BP is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion? The breakdown in the company’s ethical systems as it is in its safety system is one of the core major reason of explosion in the industry. The global management was aware of the problems with maintenance, spending and infrastructure well before the explosion. According to Chemical safety board unsafe and antiquated equipment designs were left in place and unacceptable deficiencies in prevention maintenance were well as the according to the internal audit by CSB found that the potentially explosive situation inherent in the depreciating machinery remained. There exists a tradeoff between profit maximization and safety, and thus that becomes an ethical issue. What happened at BP was that the CEO, who is responsible for setting up a company’s values, beliefs and instill a culture, he was unable to understand that the safety culture should not be something separate from or in addition to the organizational culture; rather safety is a fundamental part of the organizational culture. In any company CEOs are the ones who have the power to shape the corporate culture and in any organization, corporate culture is safe cultures. In this case, BP’s CEO had a checkbook mentality and clearly even knowing about the shortcomings in the BP’s safety process, he never gave due attention to it instead initiated even a further budget cut. Every organization is supposed to give utmost importance to its workforce safety and that being an ethical obligation, but BP neglected the issue despite the increasing number of accidents over the years 2. Are the Occupational Safety and Health Administration’s standards, policies, and rules
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