Public administrators experience ethical dilemmas involving confronting conflicting responsibilities. According to Cooper (2012), organizational leaders feel torn between expectations and inclinations. Although the dilemmas may pose practical problems, they have ethical implications. The Deep-water Horizon spill, commonly known as the British Petroleum (BP) oil spill, is one such event that provides an understanding of how public opinion values ethical principles, responsibility, and accountability in crisis communication. It remains the most significant marine accident in history. According to Schwartz (2020), the incident occurred in the Gulf of Mexico and had devastating impacts. It killed 11 crew members, posed severe health risks to thousands of people, created massive damage to wildlife habitats, and affected fishing and tourism. Although many years have passed and the spill disaster faded from the headlines, ethical failures lie at the heart of the disaster. This review addresses the ethical factors associated with the BP oil spill from an organizational perspective. The paper provides contextual overview, ethical obligation and decision, operational implications, and lessons.
Context of the Ethical Dilemma
The incident occurred on April 20, 2010. The wellhead on BP’s Deepwater Horizon oil drill exploded in the Gulf of Mexico nearly 40 miles southeast of the Louisiana coastline, resulting in widespread environmental disaster and devastation to the shoreline communities (Schwartz, 2020). Oil and methane gas spewed from an uncapped wellhead for at least 87 days. The federal government estimated the gusher of oil to be about 5 million barrels, ranking the most massive offshore spill in U.S. history. Although BP provided $20 billion compensation, the event continues to generate heated debate on the shared legal and moral responsibility between the stakeholders: BP, Transocean (rig owner), Halliburton (the subcontractor cementing the well), and the U.S government (regulator) (Schwartz, 2020). Several ethical issues underline the oil spill. The rush to complete the drill in record two-days caused the tragedy. Notably, BP breached safety precautions in its quest to complete the project hurriedly.
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From an ethical egoism perspective, acting to further personal interest is ethically appropriate. BP was losing $1.5 million daily because it was late at the Maconda site (Schwartz, 2020). Within the lens of ethical egoism, defining BP’s self-interest around profit maximization would justify the risks surrounding the safety of the oil rig. The deep-water reserves would salvage BP’s deteriorating revenues. Any savings on time and finances was critical. Nonetheless, the pursuit of ethical egoism is not an excuse for carelessness, incompetence, and complacency.
In utilitarianism ethics, BP’s conduct can be evaluated on whether the action focused on the good of the majority (Ismail & Benlahcene, 2018). The utilitarianism principle justifies the oil drill venture as a risk worth taking if the overall benefits accruing to the beneficiaries outweigh the harm. Thus, BP had to balance the risks and the benefits to decide on whether to pursue the oil drill.
Decision and Obligations
Within the lens of trustworthiness, BP’s actions were inconsistent with its principle of integrity. According to Schwartz (2020), BP’s failure to meet its professed commitment to safety is evident in the number of disastrous or potentially disastrous workplace incidences preceding the oil spill. Moreover, BP’s initial response lacked a sense of responsibility. It shifted blame to Halliburton and Transocean rather than taking responsibility for the damages. BP’s actions also fail the test of caring. Although firms ought to demonstrate non-malfeasance, BP could not install necessary safety equipment despite its high revenue potential. The company was unable to meet ethical standards.
Operational Implications
After the incident, BP’s share price on the London Stock Exchange dropped significantly. This aspect raised concerns among the shareholder who felt that the firm might fail to meet the financial costs associated with the disaster. The rig explosion and oil spill also affected people physically and mentally. Other than the trauma to the survivors and families of those killed, the incident led to depressive illnesses.
Lessons from this Event
BP oil spill presents valuable lessons. First, it points out the significance of leadership integrity. Organizations should focus on training ethical leaders who perform their responsibilities within the cultural influence and environmental policies. Secondly, BP’s case signifies the importance of corporate governance. Corporate boards should utilize available tools to ensure their organizations respect ethical standards. For instance, there is a need for a useful code of ethics that allows employees to report unethical behavior without fear of intimidation and victimization. Additionally, the BP oil spill emphasizes the role of regulatory authorities and government leadership. Adequate regulatory standards are critical for ensuring industry compliance with ethical requirements.
References
Cooper, T. L. (2012). The responsible administrator: An approach to ethics for the administrative role. San Francisco: Jossey-Bass.
Ismail, N. S., & Benlahcene, A. (2018). A narrative review of ethics theories: Teleological & deontological ethics. IOSR Journal Of Humanities And Social Science, 23 (7), 31-38. doi:https://dx.doi.org/10.9790/0837-2307063138
Schwartz, M. S. (2020). Beyond petroleum or bottom line profits only? An ethical analysis of BP and the Gulf oil spill. Business and Society Review, 125 (1), 71-88. doi:https://dx.doi.org/10.1111/basr.12194
