ETHICAL ISSUES INVOLVING INTERACTIONS
BETWEEN THE ENVIRONMENT AND INDUSTRY
Management Philosophy:
As managers, we strive to develop
sustainable and efficient uses of
environmental resources provided us. We
also strive to mitigate any negative effects
our production has on the global
environment or community through prudent
planning and responsible operation.
Looking forward, we will continue to invest
in our future through the implementation of
sustainable technologies, waste reduction
innovations, and development of
renewable energy sources.
Group Members:
• Stephen Lilly
• Business Management:
Finance
• Expected Graduation: 2011
• Jason Smith
•Business Management:
Finance
•Expected Graduation: 2012
• Jonathan Hill
•Business Management:
Marketing
•Expected Graduation: 2011
BP Oil Spill, Environmental Dilemma
Deepwater Horizon oil rig experienced an
explosion and fire.
11 presumed dead; 17 injured.
Spill estimated at 1,000 barrels of oil per day
(bpd) to 62,000 bpd.
Bp’s hesitant with implementation of clean-up
plan due to poor planning and spill
magnitude
An estimated $40 billion in damages, 4,000
square miles of Gulf waters, and millions
of people were affected.
Another Environmental Approach…
“Consideration for the
environment is a fundamental
part of Vestas’ business
concept. Vestas wishes to make
all its activities
as sustainable as possible,
and to persuade its business
partners to do likewise. Vestas
commits to: complying fully
with legal requirements for
environmental protection;
considering the environmental
consequences of all new
products; improving the
utilization of resources;
reducing waste and
emissions in all its activities.”
“Vestas seeks to be
as transparent as possible in its
operations and will openly engage
in dialogue with anybody that has
reasonable interest in Vestas’
operations, such as nongovernmental organizations and
local communities. Vestas will, at
a minimum, comply with
national law. When the Vestas
standard is stricter, this should be
followed.”
Using Vestas’s Ethics Policy to guide BP
To ensure future success in preventing
catastrophic events effecting the
environment, BP should use excerpts
of Vestas’s code of conduct to
provide:
 Sustainability of future operations.
 Prevention of environmental harm
 A plan of action to counteract any
operational mishaps that may harm
the environment.
 Transparency in all business activities.
Advantages to New Ethics Policy
.

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Preparation focus rather than reactionary
focus helping to mitigate costly accidents
Development of emerging sustainable
technologies to gain market share and
increase profitability in the future
Positive Brand identification
Avoidance of costly fines and lawsuits
Preservation of an invaluable asset, the
EARTH
Disadvantages to New Ethics Policy
.


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Delayed returns on sustainable investments
Decreased margins due to the increase of
costs associated with active prevention and
planning activities
High upfront costs to implement new
technologies
Innovative sources of renewable resources
lack scalability in their current state
Strategic Recommendations


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Target possible investors or private equity firms that finance
sustainable or waste reduction technologies
Target customers who are favorable towards “green” policy
and the environment; the resulting revenue could offset the
upfront cost of implementing the new infrastructure and
compliance.
Align the organization with governmental entities that have
large R&D budgets to subsidize the barriers to entry
associated with renewable energy and catastrophe planning.
Implement a R&D strategy to make renewable energy more
scalable
Works Cited
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Hosmer, Larue T. Brief Summary of Ten Ethical Principles. The Academy Of Management
Review. 11 Jan. 2011.
ISO 14000 Essentials." ISO Standards. International Organization For Standardization, 2011.
Web. 10 Apr. 2011. <http://www.iso.org/iso/iso_14000_essentials>.
Vesta Wind Systems: Corporate Governance Code Of Conduct. Web. 10 April. 2011.
<http://www.vestas.com/Files/Filer/EN/Investor/Corporate_governance/Code_of_Conduct_U
K.pdf> .
"Bp Oil Spill Timeline." Guardian.co.uk. Guardian Research, 22 July 2010. Web. 9 Apr. 2011.
http://www.guardian.co.uk/environment/2010/jun/29/bp-oil-spill-timeline-deepwaterhorizon>