Discuss about the Organizational Operation Environment and Society.
It has been found that every organizational operation has effect on the environment and the society and this can be of two types, i.e. direct and indirect effect. This report has been prepared based on the provided case study of “British Petroleum Limited”. On the basis of the case, BP Global has found to be accountable for causing direct harm to the ecosystem. There are three issues related to BP Global, these are – influence of oil spill on aquatic ecosystem, lack of services regarding ecosystem along with biodiversity in controlling risk of the corporation. Lastly, lack of regulation structure of the corporation creates barrier in determination procedure of renovation cost (Deegan 2013). Thus, intention of this project is to review the damage done by BP Global to the ecosystem.
It has been noted that BP Global causes damage to the society, environment and the aquatic ecosystem directly and it is unable to detect its renovation cost. Thus, BP Global measures all the damages done by it in terms of worth of money. Oil spill is a non-marketed product, so key attention is provided for calculating its worth. Thus, the particular government of the nation considers the firm as liable to provide cleanup cost for causing oil spill (Avelé 2014). However, it has been noted that BP Global did not picture the harms it caused to the ecosystem. Therefore, the aim of this report is to make the firm alert about its doing like oil spill that causes damage to the environment.
The detected problems can be studied and analyzed through collection of primary and secondary data. In order to collect primary data and perform qualitative analysis, researcher can arrange for either telephonic or face-to-face interview (Mitchell et al. 2015). On the other hand, for performing quantitative analysis, researcher can arrange for either online or offline questionnaire survey for better analysis. Secondary data will be gathered from company websites, journals, related books and articles.
For better analysis, the researcher has to gather data from the place where the oil spills take place, so the researcher will collect information from the residents of Gulf. Additionally, data will also be gathered from the employees of BP Global for collecting data that are more accuracy through questionnaire survey. However, due to the nature of the research topic, some of the participants might not agree to fill up the survey paper, thus, researcher might get face issue in the method of collecting data (Kheroubi et al. 2016). Moreover, some of the staffs might also hesitate to give the information.
Dyckman and Zeff (2014) stated that oil spill is a pollution that is caused due to human activities and this might be of two types. These are named accidental and intentional based on its reason for causing. Accidental oil spill occurs due to various reasons and thus occur accidentally, but intentional oil spill takes place due to carelessness, negligence and ignorance of the people. According to Hiebl (2014), these both kinds of spills affect the aquatic ecosystem adversely and directly. It has been found that BP Global is liable for causing oil spills, thus it should recognize the cleanup cost, but it has been found that the firm does not wish to disclose the damages done by it. Opined to Roberts (2014), the damages that are occurred to the environment are difficult to calculate, as the cause of damage is oil spill. It has been found that BP Global measures the damages caused by it through the worth of money and time. Finally, it can be said that all these occur as no truthful appraise have been detected yet for accessing the harm.
In the ethical standard and moral of BP Global, the trust of the investors towards the company can be noticed. Therefore, it should take the responsibility regarding conservation of the social wealth as well as ecological wealth. Furthermore, BP Global should implement accounting standards regarding environment to make itself more reliable towards the stakeholders. As per Bedford (2014), the accounting standards of environment should be customized because it assists to impend the relation between corporate agent and the ecosystem as well as the environment. Every organizational operation has negative upshot on the ecosystem, therefore, each corporation should implement the accounting standards of environment for maintaining a healthy and balanced ecosystem.
Gray, Adams and Owen (2014) stated that most of the petroleum companies crack the level of penalty as it damages the social as well as ecological wealth by the help of political bargaining. However, this process is not considered as a perfect method as it does not recover the damages done by the firm to the environment. A process-oriented framework helps to evaluate the associated risks, as it makes mandatory for the firm to take measures for the betterment of the environment. This helps to make plans and also to improve the barriers accurately. According to Henderson et al. (2015), the particular method helps in moving from regulators to the method. It has been found that the accidental oil spills mainly occur for breakdown in the dictatorial agency as it serves featured account in the environment. Additionally, the divulge data of an organization is an important factor that helps in judging the level of effort for the method of restoration of ecological assets. Thus, short of regulation structure negatively impacts the corporation for determination of renovation cost and thus, it can be said that a process-oriented framework is required for implementation in the firm.
In this research study, the researcher will incorporate both the types of methodologies i.e. primary and secondary processes. Therefore, the researcher will distribute the questionnaires online or offline for survey among the employees of BP global and occupants of Gulf. Moreover, secondary information will be gathered from the related books, journals, articles and the company websites.
In order to keep this particular study simple and short, the research will gather primary data randomly from a fixed sample size of 150 occupants of Gulf Coast and 50 employees (BP Global).
In this research, simple technique of sampling and random process of selecting fixed sample will be applied for keep the study simple. Thus, “probability sampling technique” will be incorporated here.
As per the information provided by the BP Global employees, there are various kinds of oil spills. The various types of spills and the percentage of their occurrence have been provided below:
Based on the pie chart, it can be said that all these spills adversely affect the aquatic ecosystem and this has also increased the mortality rate of the marine animals.
There are various types of spills but it has been found that the accidental oil spills are more common in the oceans and all these occur due to short of using ecosystem services. It has been found that the ecosystem services help in controlling risk. Therefore, the firm should incorporate this service within its operations. According to the information provided by the occupants of Gulf, the oil spills mainly affect the deepwater suspension. However, there are also other affects to environment. These include:
Based on the data collected from the employees of BP Global, the demand of oil increased constantly and thus its supply increased with time. In addition to this, with the increase in the supply and demand of oil, the numbers of contracts, staffs and workforce also increased (Bebbington, Unerman and O’Dwyer 2014). However, as with the increase in the oil demand, oil spills increased, the workforce of BP Global also reduced. The projected budget of Deepwater Horizon Oil can be better understood through the data collected from the staffs.
On the basis of gathered primary and secondary data (accurate), this research will be performed. In addition to this, the participants can keep trust on the researcher, as he will not disclose any information to others. Thus, the respondents can keep trust on the researcher.
Conclusion
BP Global should become alert about its adverse effect on the environment and thus accurate measures it should take for running the business eco-friendly. The numbers of accidental oil spills that occur due to negligence and carelessness should be reduced. Finally, it can be said that the fines that are paid by BP Global is not sufficient for recovering the loss of environment.
BP Global should adopt and incorporate accounting standards of environment. Moreover, the firm should be more thoughtful and should take remedial measures for protecting the biodiversity.
References
Avelé, D., 2014. Positive accounting theory: theoretical and critical perspectives. International Journal of Critical Accounting, 6(4), pp.396-415.
Bebbington, J., Unerman, J. and O’Dwyer, B., 2014. Sustainability accounting and accountability. Routledge.
Bedford, N.M., 2014. Reviewer’s Corner: The Foundations of Accounting Measurement. The Development of Accounting Theory, p.272.
Bp.com. 2017. Bp.com. [online] Available at: https://www.bp.com [Accessed 18 Jan. 2017].
Deegan, C., 2013. Financial accounting theory. McGraw-Hill Education Australia.
Dyckman, T.R. and Zeff, S.A., 2014. Some methodological deficiencies in empirical research articles in accounting. Accounting Horizons, 28(3), pp.695-712.
Gray, R., Adams, C. and Owen, D., 2014. Accountability, social responsibility and sustainability: Accounting for society and the environment. Pearson Higher Ed.
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU.
Hiebl, M.R., 2014. Upper echelons theory in management accounting and control research. Journal of Management Control, 24(3), pp.223-240.
Kheroubi, B., Benzair, A., Tounsi, A. and Semmah, A., 2016. A new refined nonlocal beam theory accounting for effect of thickness stretching in nanoscale beams. ADVANCES IN NANO RESEARCH, 4(4), pp.251-264.
Mitchell, R.K., Van Buren, H.J., Greenwood, M. and Freeman, R.E., 2015. Stakeholder inclusion and accounting for stakeholders. Journal of Management Studies, 52(7), pp.851-877.
Roberts, J., 2014. Testing the limits of structuration theory in accounting research. Critical Perspectives on Accounting, 25(2), pp.135-141.
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