Week 3 Assignment: Evaluate the Price of Unethical Behavior

The Price of Unethical Behavior: A Focus on BP Oil Company Spill
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Introduction
Ethics involves learning what is right and what is wrong. Particularly, ethics in business is a lot more than the straightforward notions expressed in business ethic. For instance, most ethical problems in businesses are not just a matter of stealing and lying; the core ethical dilemma in a business setting is the social responsibility the business has about its external and internal environment (Jeurissen, 2007). This responsibility determines the kind of relationship the business has with its customers and the external environment as well as the relationship the business or rather the management of the business has with its employees and workers. To maintain ethical behaviors in the business setting, social responsibility must be at the top of the business management’s checklist. In essence, the decisions made and the business strategies employed by the business management need to reflect the management’s desire to be responsible to both its employees and the external environment (Kaplan, 2009). In this regard, the BP Oil Spill that led to the most brutal oil disaster in the history of America has raised some ethical issues. As such, this paper seeks to analyze the decisions made by the BP Oil management, the ethical issues surrounding the conduct of the company, the evaluation of the unethical behaviors and the outcome surrounding the disaster as well as the cost and punishment of the unethical behavior and if the punishment was justified.

Summary of the Historical Scenario
BP Oil Spill disaster occurred on 20th April 2010 when the spill released close to 4.9 million oil barrels into the ocean (Gulf of Mexico) and led to severe damage to the adjacent areas both economically and environmentally. Immediately after the spill, BP Oil Company organized The Gulf Coast Claims Facility (GCCF) that was soon after considered not independent and after that substituted by a court to supervise the settlement program (Thomas, Et. al, 2010). This court took the prejudice of the eligibility from the equation. Three years after the oil spill, the BP Oil Company announced that they were running low of the damages fund, but they would carry on with the payment from their proceeds and profits. Bp attempted to curtail the flow of the claims against them using some methods which included taking legal action against the administrator appointed by the court and also appealing claims. In 2013, January, BP Oil Company pleaded guilty and took responsibility for their actions, and as a result, they were sentenced to pay damages $4 billion as fines and compensations.
The Occurrence of Unethical Behaviors in the Historical Scenario
This case highlights the ethical issues involved in the disaster and the cost of unethical decisions made by companies that act in self-interest rather than considering the effects their decisions would have on the internal and external environment. In this regard, despite more blame pointing to the government on their failure to tame or enact legislations to prevent companies from acting in their selfish interests, I believe there are some ethical issues that were left unaddressed. For instance, before the disaster, BP Oil had benefited, for a long time, from their decision to cut the costs of production at the expense of their worker’s safety and the safety of the external environment (Thomas, Et. al, 2010). In fact, the company had put profit and benefits before the safety of the workers and development which is a great breach of the business ethics and is an unhealthy business culture. As such, the company’s decision and behavior had gone for a long time because of the benefits they were getting from the decision to cut production costs. The profit they got from this decision ensured very high profits to the company.
However, the BP Oil crisis has taught us one thing about ethical behavior and business ethics; the center of the relationship and association between society and business does not rest with the benevolent deeds companies and businesses do but rests on whether they are performing their responsibilities and duties with care and the business decisions they make do not hurt the rest of the member of the society. In essence, businesses are socially responsible for the welfare of both the internal and external environment (Jeurissen, 2007). This is to mean that the decisions they make must be those that ensure the welfare of their workers and the society at large. Companies that make decisions that only serves to profit them while putting the life of their employees and other people at risk practice unethical behavior and unhealthy business culture. As such, the decision by the BP Oil Company to cut the costs of production whiles putting the life of their workers and the society at risk was unethical and a gross violation of the standards of business ethics. The decision was one that only served their selfish interests of making maximum profit out of their production rather than considering the safety of their workers and the external environment and also frustrating the development of the company.
The Outcome of the Events and the Relations Internal and External Stakeholders
As a result of the oil spill, eleven workers died with fifteen others incurring serious injuries as a result of the explosion that occurred. Also, the rig sank almost 5000 feet to the floor of the ocean and since the disaster happened, at least 210,000 oil gallons every day have leaked into the Gulf of Mexico (Jacobson, 2013). The consequences of this oil spill led to the worst ever environmental calamity in the history of the United States caused by the unethical behavior of BP Oil Company. In this regard, BP Oil Company’s decision to cut the cost of production had great effects on both the internal and external environment. First, the internal stakeholders affected by this disaster were the workers who died as a result of the explosion as well as those that were injured as a result of the same explosion. This is a demonstration that the unethical decision made by the company was only in the self-interest of the company and did not consider the welfare of the workers when making their decision. In business ethics, decisions made must not expose the workers to danger and must be in the interest of every stakeholder within the business. Secondly, the external stakeholders affected by the unethical decision that led to the catastrophe were the environment, the Oil industry, tourism-driven businesses and the fishermen (Jacobson, 2013). The effects on the environment were grave considering the 210,000 oil gallons leaked into the Gulf of Mexico. The oil polluted the water and the environment endangering the lives of both the wild species and the human beings. These consequences were very grave and were as a result of unethical behavior within the BP Oil Company.
Punishment and Justification
Essentially, companies that pay no attention to ethical dimensions when making decisions leave themselves vulnerable to serious risks that can lead to the loss of lives and the collapse of the company (Jeurissen, 2007). The consequences experienced as a result of the BP Oil spill demonstrated what happens when a business fails to make decisions based on a set of ethical principles such as, responsibility, trustworthiness, caring, respect, citizenship and fairness (Stephens, Vance, & Pettegrew, 2012). Failure to comply with these ethical principles amounts to an unethical behavior which comes at a cost. In the case of BP Oil Company, having taken responsibility for the damage and losses that occurred as a result of their negligent and unethical behavior, they were sentenced to pay a fine of $4 billion as damages and penalties. This was a big punishment on their part considering the fact that they were running out of compensation funds and were paying the fines from their profits. It was a big burden on their side. However, I believe the $4 billion fine was justifiable. This is because such kinds of unethical behaviors; the unethical behaviors that have severe and serious consequences on both the internal and external environment should be deterred. Companies and businesses must comply with the principles of ethics and ensure that their decisions are within the code of ethics and are in the interest of all the stakeholders (Stephens, Vance, & Pettegrew, 2012). As such, the big fine acted as a deterrence preventing other firms who prioritize on making profits while putting the lives of their workers and the external environment in danger from making such unethical decisions.
Difficulty in Identifying the Ethical Breaches
Finally, for businesses, it is difficult for them to identify the ethical breaches that they commit when making decisions. This is because human beings are naturally selfish and every decision we make either in life or for our businesses have a beneficial value attached to them. In essence, every business makes decisions that ensure they make maximum profit and in most cases, they do not notice or identify the dangers and consequences that are attached to these decisions since they make a profit from the unethical behavior. As such, it is difficult for us to identify the various ethical breaches we commit since our decisions are made out of self-interest.

References
Jacobson, M. (2013). By the Numbers: The Oil Spill and BP’s Legal Troubles.
Jeurissen, R. (Ed.). (2007). Ethics & Business. Uitgeverij Van Gorcum.
Kaplan, D. A. (2009). OPINION KOZ MAKES HIS CASE.
Stephens, W., Vance, C. A., & Pettegrew, L. S. (2012). Embracing Ethics and Morality. CPA Journal, 82(1), 16.
Thomas, P., Jones, L., Cloherty, J., & Ryan, J. (2010). BP’s Dismal Safety Record. ABC News, 27.