The company did well in the competitive energy industry with players constantly

The company did well in the competitive energy

This preview shows page 2 - 4 out of 26 pages.

The company did well in the competitive energy industry with players constantly on the lookout for new sources of hydrocarbon to satisfy the needs of an expanding global economy. They had also managed their way through the ‘great financial crisis’ of 2008 with its rollercoaster ride in the stock markets, producing earnings comparable to their peers in the industry. So BP condoned sensible principles of employee safety and environmental concerns in pursuit of sustainable corporate developments. But in spite of the good intensions and efforts the company faced environmental incidents that had severe impacts on the wealth of company stockholders. It seemed obvious that sound management practices and values imposed by top management would influence corporate outcomes and the way the organization deals with risky situations and unforeseeable events. To accomplish this, corporate leadership imposed formal guidelines with stringent policies on corporate practices expressed in an official code of conduct sending a clear message to employees and external stakeholders. BACKGROUND The company was founded in 1908 as the Anglo-Persian Oil Company when it struck an oil well after eight years of search in a remote area of Persia and it was the first company to extract oil in Iran. In 1935 it was renamed the Anglo-Iranian Oil Company and eventually became the British 1 The Report of the BP U.S. Refineries Independent Safety Review Panel, 2007. 2 The BP Code of Conduct. 714-017-1 Please note that you are not permitted to reproduce or redistribute it for any other purpose. You are permitted to view the material on-line and print a copy for your personal use until 24-Mar-2021. Purchased for use by Alan Owen on 24-Mar-2020. Order ref F378754. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F378754
Image of page 2
3 Petroleum Company in 1954. The company developed from these modest but venturous beginnings and continued to grow through exploration and development of new oil fields under demanding geopolitical and physical conditions. After the 1973 oil crisis where the Organization of Arab Petroleum Exporting Countries 3 imposed an oil embargo , BP started exploration in new locations, such as, Prudhoe Bay in Alaska and the North Sea off of Scotland. This reduced dependency on the Middle East but also represented technical challenges to rein in the crude oil from remote regions. Being short of facilities in North America, BP worked with Standard Oil of Ohio (Sohio) to refine the Alaska oil and the company was subsequently acquired to become part of BP. This was followed by mergers with US-based Amoco and ARCO and acquisition of the Castrol brand to steadily increase the size of the company. In less than half a century it managed to grow into one of the largest global corporations with over 100,000 people employed in more than 100 countries around the world.
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 26 pages?

  • Spring '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors