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Oxford Brookes University

Research and Analysis


Project
Presenter Name
Registration no
Topic
AN ASSESSMENT OF AN BPS CORPORATE SOCIAL
RESPONSIBILITY POLICIES, INCLUDING BUSINESS
ETHICS, AND THEIR IMPACT ON BUSINESS PRACTICE
AND KEY STAKEHOLDERS

Organization: British Petroleum (BP)


Reasons for Choice of Topic
Corporate social responsibility has become a
core concept among organizations
Commercial banks in US and UK face an ongoing
criticism for not being active in society welfare
CSR has evolved from a social concept to
strategic input
Diverse range of activities including risk
management, change management and
behaviors, changing corporate governance
Increasing awareness of global warming and
carbon foot print have caused the companies to
go through stringent regulations
Reasons for Choosing Company
BP is a multinational company in the oil and gas
industry operating in eighty countries
The history of the company is back dated to 1909
The relation of BP with the society; be it with humans,
environment and wildlife is observed via corporate
social responsibility activities
At first the financial performance and number crunching
was given importance
With the passage of time non quantitative or ethical
performance has grabbed equal attention
Research Objectives
To study the importance of CSR by the Oil & Gas
Industry in todays world
To find relevant literature related to CSR theories
To analyze the degree to which targeted
companies practice CSR approach (BP and
Chevron)
To study the effectiveness of companies for
practicing their CSR activities and its impact on
profitability and stakeholders
To recommend possible future initiatives which
can be adopted by BP to promote strong CSR
culture
Research Questions
How important is the CSR for organizations in
recent era?
Which theories and models are dominant in
evaluation of CSR?
To what extent BP practice the CSR initiatives
compare to Chevron?
How CSR has impacted BPs profitability and
stakeholders? And which important events
have questioned BPs efforts related to CSR?
What is the way forward for BP to promote
CSR into companys overall culture?
Research Strategy
Only Secondary sources for data collection are used
to carry out research
Secondary data collection source is already existent
and referred to as second hand information
Inductive approach is applied to find out answer to
corporate social responsibility questionnaires
Inductive approach is the use of specific cases and
the response of the company to that issue
Articles, books, journals, corporate reports,
corporate websites, documented information and
case studies
Case Study Method
This research consists of qualitative
framework for complete understanding of
problem
Case study approach for research purpose
will enable to focus on the organization and
their relationship to the functions performed
The subjective and objective regimes of the
problem through available source
Educational, evaluative, action research and
ethnographic this research mainly adopts the
evaluative method
Application of Models
The Carrolls CSR Pyramid Model
CSR model is more applicable to oil industry
Legal, philanthropy, economic and ethical aspect of
the company over society and the extent to which
they have complied with the criteria are shown
To evaluate corporate social responsibility of the
organization
The pyramid gives the balance of all the factors
needed for business to survive internally and in the
external environment
Organizations should take initiative in terms of
educating the society, building schools and
hospitals
Research Ethics and
Limitations
Research ethics including written consents of audience
as well as the target company, data protection, secrecy
of respondents, use of copy right material
Use of authorized work of scholars has been clearly cited
and referred
Approval from the target company has been obtained
Results provided are presented with full integrity without
any fake assumption or plantation
Limitations
Time consumption due to its vast constituency
A personal biasness is also dominantly criticized in
qualitative research
Limited financial resources needed to conduct the
research study
Analysis and Review of Corporate Social
Responsibilities
Corporate Social Responsibility
Dimensions
Differentiation CSR Strategy
CSR is as important as other strategies implemented by the
business to attract investors such as institutional investors
Business resorts to product differentiation
A differentiation in strategy must be implemented in CSR
approach of the company to make it stand out from the
competitors
Value Statement Analysis
BPs aim is to find cost efficient method to cater for energy
demand for the world
BP is focusing on research and development for which it
established partnership with 13 top notch universities to
enhance energy efficient program
Continued
Brand Loyalty by CSR
Establishing efficient CSR standards in regards to
improved product quality leads to greater customer
retention in return
Ethical Training and Ecological Development
Ethical training is involved in educating the employees
regarding the core values and ethics of the organization
BP is focusing extensively on research and development
to cater for safety and health matters
Corporate Governance
Risk management should be incorporated to achieve
good corporate governance
BP has resorted to differentiation in CSR strategy
enabling it to secure reliability in terms of safety,
security, integrity, operations
Continued..
Evaluation of BPs Score Using EPS
BP has focused mostly on the areas affected by its negligence and
carelessness
Community
Events like oil spills, gas pipeline leakage, illegal waste dumping
has led to carelessness towards the environment
Employees
BP has spent around $ 13 billion on employee welfare
BP is working in conjunction with the government and local
authorities so that it rightly abides by the labor laws
Customers
BP has published elaborate disclosures relating to various
products and techniques it uses or intends to use in future to
educate the customers
Suppliers
BP has been reported to pressurize it suppliers to cut prices and
renegotiate contracts
Continued
The Carrolls CSR Pyramid Application
PHILANTHROPIC
BP- is involved in fundraising and giving donations to improve
life
Community investment in Angola to bring about educational and
health reforms
ETHICAL
Initiative on human rights relating to workforce: labor laws,
workers abuse and installing suggestion boxes
Efforts to develop local suppliers by sharing information and
guiding them
LEGAL
Legal proceedings against oil spill in Gulf of Mexico in 2010
which killed 11 workers and injured 17
ECONOMICAL
The profitability and return on capital employed has also
reduced to about half the value than a year before
Conclusion
BP is a very strong organization and it has maintained its

position in the industry for the longest time


BP accepted the responsibility of social irresponsibility and

paid both civil and criminal damages.


CSR reporting suggests that BP needs to be more proactive

in philanthropic work
Environmental cleaning and governance is strategic issue at

BP as stakeholders are distrusting the BP.


BP has managed to satisfy its shareholders by giving out

more dividend than last year


BP is spending on training and development
Recommendations
Measures should be taken to identify risks and their
mitigation should be plan like it happens in Chevron
Spending should not only limit to giving donations
but initiating programs leading to empowerment to
local people
BP should work on research and development of
technologies leading to low carbon emission products
BP needs to work on community development and
environmental conservation projects