The intent of composing this study is to measuring whether the organisation chosen is ethical in its concern determinations and actions. It is really of import rating for every organisation particularly for transnational corporations because it does endanger their organisation images and reputes if the ethical audit study shows that they have been involved in ethical quandary. However, concern moralss is a really subjective issue, reasonably much depends on many factors, such as the societal environment, the spiritual influence, traditional civilization and ethical theories that applied by the organisation. ( http: //www.corporatejourney2u.com/business/a-definition-for-business-ethics.html ) Ethical theory, one of the factors, is an of import factor in judging the concern actions whether ethical due to the definition of moralss is different for assorted ethical theories. There are many ethical theories to be used and applied in doing moral judgement such as, Kant ‘s moralss, Utilitarianism, Egoism, Virtue theory, and Moral rights and responsibility. Therefore, the organisation is chosen to measure its concern moralss by utilizing assorted ethical theories in this ethical audit study is BP p.l.c which is one of the universes ‘ largest corporations.

BP P.L.C ( Bp ) is a transnational corporation which engaged in oil and gas industry and heartquartered London, United Kingdom. It is the 4th largest energy company in the universe measured by grosss which is $ 246,138 million for twelvemonth 2009. Bp is runing in more than 80 states which have 80,300 employees and supplying fuel for transit, energy for heat and visible radiation, retail services and petrochemicals merchandises for mundane points to its clients. It produces about 3.8 million barrels of oil tantamount per twenty-four hours and has 22,400 service Stationss around the universe. Besides oil and gas, Bp has besides been puting a immense capital in researching alternate methods of fuel which including gas, H, solar and air current and the low-carbon energy has become one of the nucleus concerns of Bp. However, Bp has besides been involved in a figure of ethical quandary which related to environmental, safety and political issues during it history. So, assorted ethical theories will be used and applied to analyze the responses of organisation to the ethical quandary involved.

In the Bp ‘s past history, they have received plentifulness of unfavorable judgment for their unethical concern actions and environmental patterns such as oil spill, toxic spill of methyl alcohol, worker safety, and human right issues. In add-on, Bp was added to the list of “ 10 worst corporations ” by an fact-finding diary that “ exposes the immoralities of the corporate universe, the authorities, and the mainstream media ” from Mother Jones Magazine in both 2001 and 2005 based on its environmental and human rights records.

However, oil spill is the most common and frequent environmental issue that Bp frequently involves in. hence, Bp is used to be fined many million dollars by authorities due to the oil spill from their oil geographic expedition side. The most serious oil spill instance for Bp will decidedly the latest Gulf of Mexico Oil Spill which besides the largest inadvertent Marine oil spill in the history of the crude oil industry. On 20 April 2010, there was an detonation and subsequent fire on the Deepwater Horizon semi-submersible Mobile Offshore Drilling Unit ( MODU ) situated about 40 stat mis south-east of the Louisiana seashore in the Macondo Prospect oil field which owned and operated by Transocean and it sank after two yearss subsequently. Harmonizing the study of Deepwater Horizon Investigation from Bp, the detonation was likely caused by few chief factors that are good unity was non established or failed, hydrocarbons entered the well undetected and good control was lost, hydrocarbons ignited on the Deepwater Horizon and blowout preventer did non seal the well ( ? ? ) . As a consequence of the detonation, it had killed 11 platform workers and injured 17 others and oil leaking was found from the rig at the rate of about 8000 barrels of rough oil per twenty-four hours on the forenoon of 22 of April 2010. ( http: //news.blogs.cnn.com/2010/04/22/coast-guard-oil-rig-that-exploded-has-sunk/ ) nevertheless, the oil spill rate was announced at august 2 2010 that was 62,000 barrels per twenty-four hours harmonizing the latest functionary appraisal which provided by the Flow Rate Technical Group, in a aggregation of authorities and independent research workers and scientists. ( hypertext transfer protocol: //www.nytimes.com/2010/05/28/us/28flow.html? _r=1 ) On the other custodies, the spill has brought fatal mayhem to marine and wildlife home grounds, Gulf ‘s fishing and touristry industries and besides some impacts on planetary economic system and good health of killing workers every bit good as Bp itself. Bp was warned by White House that it face “ many one million millions of dollars ” in mulcts for the Gulf of Mexico oil spill catastrophe. Besides, ex-CEO of BP Plc, Tony Hayward told Reuters in an interview that they will take full duty for the spill and counterbalance all those affected by an oil-spill from one of its Wellss in the Gulf of Mexico. The tabular array below shows the payments of Bp for the authorities mulcts, fund, and cost of cleaning up. PaymentsA 1

Over $ 8 billion spent to day of the month

$ 20 billionA claims escrow fund

$ 100 millionA unemployed rig workers ‘ fund

$ 500 millionA set uping Gulf Coast Research Initiative

hypertext transfer protocol: //www.bp.com/extendedsectiongenericarticle.do? categoryId=9034427 & A ; contentId=7063885

Besides, Bp stock monetary value had fell by 55.32 % on the New York Stock Exchange from 20 April 2010 to 25 June 2010 due to the Deepwater Horizon Oil Spill.

hypertext transfer protocol: //asia.advfn.com/quote_BP_NYSE_BP.html

Besides oil spill environmental issues, Bp has besides been received many unfavorable judgment of human rights misdemeanor from journalists, human rights groups and politicians for the human rights effects of its oil geographic expedition activities and its security policies in Colombia since 1996. ( hypertext transfer protocol: //www.platformlondon.org/carbonweb/documents/chapter11.pdf ) Colombia authorities has been globally recognized that holding a hapless human right record and both constabularies and ground forces are held responsible for serious maltreatments of human rights. Furthermore, runing in Colombia was fraught with danger and safety hazard due to the presence of guerillas and paramilitaries that have declared war against oil companies. Therefore, Bp had hired Colombian ground forces and constabulary to patrol and protect its installations in Colombia by paying many 1000000s to the Colombia ‘s Defense Ministry. This move has been criticized to a great extent that Bp was indirectly funding rightist Colombia paramilitary because the Colombian armed forces has tied connexions with the rightist paramilitary and a bad repute for serious human rights abuses excessively. This was a portion of the narrative of human rights maltreatments of BP in Colombia. However, the most recent human rights issue for BP in Colombia is the labour and community mobilisation against Bp, in Casanare, Colombia. On 22 January 2010, a little group of workers had broken the silence and gone for work stoppage by out of use entree roads to BP installings after BP refused their right to a brotherhood and a corporate bargaining understanding. However, the actions of assailing workers by ill-famed Colombian public violence constabulary in order to stop the protest had provoked the communities and local concerns and they joined the encirclement every bit good. In add-on, The Movement for the Dignity of Casanare ( MIDC ) was born. As a consequence of the work stoppage and encirclement, BP were forced to hold a dialogue and agreed to take part in five committees on labour, environment, human rights, public goods and societal investing issues. After two months, nevertheless, a 2nd work stoppage began due to the renegade of BP to the understanding. ( http: //www.thepeoplesvoice.org/TPV3/Voices.php/2010/07/03/bp-workers-face-colombian-army-in-their- ) The human rights issues in Colombia such as indirectly funding rightist paramilitary and labour and community mobilisations are contradict to its human rights place which conspicuously shown on its web site. Therefore, this may be a tough challenge to BP who invests enormously in heightening its “ green ” image and repute. hypertext transfer protocol: //www.newint.org/columns/currents/2010/07/01/bp-casanara-colombia-oil/

hypertext transfer protocol: //upsidedownworld.org/main/colombia-archives-61/2524-colombian-army-attacks-striking-bp-workers

hypertext transfer protocol: //www.espacio.org.uk/

Both of The Gulf of Mexico oil spill and human rights maltreatment in Colombia issue have caused BP a immense loss in footings of finance, human and material resource, image and repute. However, the loss caused by The Gulf of Mexico oil spill is comparatively more serious than the human rights maltreatment issues in Colombia because BP has spent more than 30 billion for the authorities mulcts and fund, cost of cleaning up and the claims of public who affected by the oil spill. Besides, a immense capital is an indispensable demand in heightening a trade name image and repute for any organisation. Therefore, BP decidedly has to put another immense capital in order to better its jeopardized image and repute as a consequence of The Gulf of Mexico oil spill. On other custodies, the human rights issues in Colombia do non do BP being fined every bit much as the oil spill incident. Furthermore, the mobilisation of labour and community had simply set encirclement and occupied the BP installings peacefully without damaging any installations and machines, ensuing in the peculiar installings are non runing. Therefore, the cost of the mobilisation of labour and community in Colombia is comparatively lesser than The Gulf of Mexico oil spill.

One of the responses of BP towards the Gulf of Mexico oil spill is paying claims to those who affected from the oil spill. On the June 16th 2010, BP and The Obama Administration agreed and announced the creative activity of the 20 billion dolar “ Oil Spill Liability Trust Fund ” which contributed by BP to supply a faster and fairer manner to pay harm claims for persons and concerns affected by the Gulf Oil Spill. BP will pay 5 billion per twelvemonth to the fund until the 20 billion dollar is depleted, including 5 billion in 2010. hypertext transfer protocol: //www.thebpclaimsfund.com/ Besides, independent Gulf Coast Claims Facility ( GCCF ) has been created by Mr. Feinberg who is appointed to be the decision maker of the BP Claims Fund. Harmonizing to the GCCF, BP has paid the claims payment of about $ 400 million since 3 May 2010.

hypertext transfer protocol: //www.bp.com/genericarticle.do? categoryId=2012968 & A ; contentId=7064597

BP has non applied Kant ‘s moralss theory in their response of paying claims to those who affected from the oil spill. Kant ‘s ethical doctrine was that action merely can be morally right when action is guided by universalisable rules that regardless of the effects of the actions and besides carried out as a responsibility, non in outlook of a wages. ( Fisher. C and Lovell. A, pg109 ) . Harmonizing to the theory, paying claims by BP to those who affected is an unethical action because the ultimate intent of BP paying the claims is to quiet down the public choler, re-establish its image and repute and increase their portion monetary values. So, this action has no true moral worth because it has been implemented merely out of its self-interest alternatively of its responsibility or good will.

On other custodies, the moral rights and responsibilities theory has been applied by BP for their action of paying claims. By and large, a right is defined as an entitlement to move, or have others to move in a certain manner. ( Shaw W.H, Barry.V and Sansbury.G, 2009 ) There is a connexion between rights and responsibilities that is the rights of one individual connote the responsibilities of another individual. For illustration, Public who affected and authorities have the rights to inquire for claims and all right BP sing the Gulf of Mexico oil spill harmonizing to the Oil Pollution Act of 1990. The Oil Pollution Act of 1990 imposes the liability for remotion costs and amendss ensuing from an incident in which oil is discharged into navigable Waterss or bordering shorelines or the sole economic zone. Hence, BP, the duty party, has the primary duty and responsibility for cleaning up the oil spill and the claims for the cost of remotion and amendss which caused by the oil spill. The action of paying claims is viewed as ethical and morally right under the moral rights and responsibilities theory. hypertext transfer protocol: //www.epa.gov/oem/content/lawsregs/opaover.htm

Besides that, cleaning up oil is another of import measure taken by BP as one of the responses of the Mexico oil spill. BP has launched its comprehensive, pre-approved oil spill response program instantly following the April 22 sinking of the Transocean Deepwater Horizon by working in coordination with the U.S Coast Guard and other bureaus. Three cardinal schemes have been implemented by utilizing different techniques to clean up the oil ; incorporate it on the surface, off from the most sensitive countries, to thin and scatter it in less sensitive countries and to take it from H2O. Thus, many stat mis of containment roar such as 100,000 pess, 220,000 pess and 300,000 pess have been deployed for the intent of corral the oil, minimise the impact to sensitive countries and protect the seashore and Mississippi River Delta country. In add-on, a enormous sum of oil dispersant has been used and sprayed on the surface and underwater of the sea in order to speed up the oil dispersion procedure. Furthermore, firing the oil is one of the attacks of oil remotion program. The program of firing off up to 1000 barrels of oil each twenty-four hours was announced by US Coast Guard on 28 April 2010 and a little trial about the environmental harm was carried out by firing 100 barrels of oil. However, bad conditions had made the programs failed to transport on. hypertext transfer protocol: //www.washingtonpost.com/wp-dyn/content/article/2010/05/03/AR2010050302781.html? sid=ST2010050304543. On top of that, assorted of resources from different sectors besides being deployed and employed for the intent of cleaning up the oil such as aircrafts, skimmers, jerks, flatboats, commercial fishing boats, voluntaries from public and even US military.

The moralss theory of Utilitarianism is being applied by BP for their anoher response of oil spill, cleaning up oil. Harmonizing to the Colin Fisher and Alan Lovell, utilitarianism theory hold that actions are right in proportion as they promote felicity and incorrect as they tend to advance the antonym of felicity. Therefore, the rule of “ The greatest felicity of the greatest figure is the foundation of ethical motives and statute law ” by Jeremy Bentham constitutes the criterion that determines whether an action is right or incorrect. Therefore, cleaning up oil is merely right and ethical if it generates more benefits than losingss and greater sum of people from assorted grades good from the activities of cleaning up oil. There are pros and cons being generated due to the cleaning up the oil. Numerous advantages are provided by cleaning up the oil spilled from the well ; the harm to marine and wildlife home grounds will be reduced, fishing and touristry industry can be opened and operated back, and occupation chances are provided to people who impermanent lost their beginnings of income due to the oil spill. However, cleaning up oil has few disadvantages besides due to the manner of cleaning up oil. Burning off the oil has caused air pollution and utilizing oil dispersants extensively has brought side effects for environment, aquatic life and public wellness which may do familial mutants and malignant neoplastic disease. From the advantages and disadvantages analysis, the action of cleaning up oil can be concluded as an ethical action because it brings greater felicity to greater people.

For the human rights issues in Colombia, On 4 June, BP and the Colombian authorities pressured the National Oil Workers ‘ Union to name an terminal to the work stoppage, assuring that so they would re-start negotiations.A However, 200 workers involved in the mobilisation were sacked merely four yearss after the work stoppage was called off. Besides that, BP has besides renege the understanding about engagement in five committees on labor, environment, human rights, public goods and societal investings issues. From these two actions, BP can be viewed as bash non pattern the ethical theory of Kant ‘s moralss, Utilitarianism, and rights and responsibilities while covering with this issue. First, they do non follow the construct of categorical jussive mood which formulated from Kant ‘s moralss. It is a construct of universalisability which refers to a rule must be obeyed by all rational people around the universe, with no exclusions. ( colin fisher, alan Lovell ) . Besides, the first preparation of the categorical jussive mood by Kant is “ act merely on the axiom through which you can at the same clip will that it should go cosmopolitan jurisprudence ” . Thus, interrupting a promise like what BP done in their manner to settle the jobs in Colombia is decidedly incorrect harmonizing the preparation because BP do non will the axiom of their action to be a cosmopolitan jurisprudence. hypertext transfer protocol: //brindedcow.umd.edu/140/kant.html Besides, rights and responsibilities theory has non been applied by BP excessively because responsibilities which supposed to be done has non carried out decently by BP in order to esteem the rights. For illustration, proprietors have the right to acquire compensation from BP for the land they will lose. However, BP compensated the stallholders for a corridor of merely 12 metres across their land, but the existent size of land lost and occupied after the grapevine was built was much more than the size of land which compensated. ( chapter 9 ) Besides, workers who working for BP should be entitled to the right of being paid and handle reasonably and comfy on the job conditions should be provided which are BP ‘s responsibilities. These are the basic and cosmopolitan rights for every workers and, but BP do non execute their responsibilities good. Therefore, their action is incorrect and unethical for rights and responsibilities theory

On the 28 November 2005, BP announced that it plans to put 8 billion in alternate and renewable energies over 10 old ages to make a new low-carbon power concern. The alternate and renewable energies has been invested by BP are solar power, air current power, H power and biofuels. BP believed that these alternate and renewable energies concern have a growing potency to present grosss of around 6 billion a twelvemonth within the following decennary. Besides that, bring forthing power by utilizing these alternate and renewable energies is able to cut down the emanation of semisynthetic green house gas and consumers clean and safe electricity. hypertext transfer protocol: //www.bp.com/genericarticle.do? categoryId=9024973 & A ; contentId=7046913. The investing is considered as ethical and right under the Utilitarianism theory which evaluates actions harmonizing to the effects of action and how much felicity are produced. It is because more advantages are produced than disadvantages do from the investing such as C gas emanations reduced, clean and safe electricity provided lower cost in long tally, and greater net income in future. Furthermore, legion people from different countries will be good from the investing in alternate and renewable energies excessively alternatively of BP themselves merely.

REFRENCES

Shaw, WH, Barry, V and Sansbury, G 2009, Moral Issues in Business, First Asia-Pacific Edn, Cengage Learning Australia, South Melbourne, Australia.

Fisher, C. and Lovell, A. 2009, Business Ethics and Valuess: Individual, Corporate and International Perspectives, 3rd edition, Pearson Education Limited, England.