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- Date Submitted: 10/23/2010 07:05 PM
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MGIM 4878 –FALL 2010
Case study – BP Oil Spill 2010
Summary
The largest accidental marine oil in the Gulf of Mexico. The spill started from a sea-floor oil gusher that resulted from the April 20, 2010 Deepwater Horizon drilling rig explosion. The explosion killed 11 platform workers and injured 17 others. The spill has caused extensive damage to marine and wildlife habitats as well as the Gulf's fishing and tourism industries. The U.S. Government has named BP as the responsible party, and officials have committed to holding the company accountable for all cleanup costs and other damage. After its own internal probe, BP admitted that it made mistakes which led to the Gulf of Mexico oil spill.
Consequences
Ecology – threatens environmental disaster because of petroleum toxicity, oxygen depletion & the use of corexit dispersant – 8 US national parks are threatened – Death of many species: 13, 4,678 dead animals collected, 400 species including endangered ones are at death risk – The sea contaminated with toxic chemicals – dead zones created because of oxygen depletion – Oil drops enter food chain Tourism – Revenue remains lower compared to 2009 – According to The U.S. Travel Association estimates, that the economic impact of the oil spill on tourism across the Gulf Coast over a three-year period could exceed approximately $23 billion Other economic affects – BP’s own expenditure reached $3.12 billion – BP’s market value reached a 52 –week low (lowest price at which a stock has traded in the past 12 months, or 52 weeks) – Total value lost since April 20 : $105 billion – Sales off 10- 40% due to backlash against the company
Solution
As an international manager, what we should do/consider in the context of international CSR: Anticipate risks assessment of overseas operation. Estimate the risks possibility and the cost of the risks arise Invest in high tech equipment Be proactive Constant care, ensure safety working environment (Team’s suggestions including :...
Case study – BP Oil Spill 2010
Summary
The largest accidental marine oil in the Gulf of Mexico. The spill started from a sea-floor oil gusher that resulted from the April 20, 2010 Deepwater Horizon drilling rig explosion. The explosion killed 11 platform workers and injured 17 others. The spill has caused extensive damage to marine and wildlife habitats as well as the Gulf's fishing and tourism industries. The U.S. Government has named BP as the responsible party, and officials have committed to holding the company accountable for all cleanup costs and other damage. After its own internal probe, BP admitted that it made mistakes which led to the Gulf of Mexico oil spill.
Consequences
Ecology – threatens environmental disaster because of petroleum toxicity, oxygen depletion & the use of corexit dispersant – 8 US national parks are threatened – Death of many species: 13, 4,678 dead animals collected, 400 species including endangered ones are at death risk – The sea contaminated with toxic chemicals – dead zones created because of oxygen depletion – Oil drops enter food chain Tourism – Revenue remains lower compared to 2009 – According to The U.S. Travel Association estimates, that the economic impact of the oil spill on tourism across the Gulf Coast over a three-year period could exceed approximately $23 billion Other economic affects – BP’s own expenditure reached $3.12 billion – BP’s market value reached a 52 –week low (lowest price at which a stock has traded in the past 12 months, or 52 weeks) – Total value lost since April 20 : $105 billion – Sales off 10- 40% due to backlash against the company
Solution
As an international manager, what we should do/consider in the context of international CSR: Anticipate risks assessment of overseas operation. Estimate the risks possibility and the cost of the risks arise Invest in high tech equipment Be proactive Constant care, ensure safety working environment (Team’s suggestions including :...