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Sustainable Management Futures

University: Blackburn College

  • Unit No: 6
  • Level: Post Graduate/University
  • Pages: 15 / Words 3713
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 15748
Question :

This sample will guide you through:

  • Introduction to Sustainable management future
  • Ethical Issue As Oil Spill Disaster
  • The theory of justice
Answer :
Organization Selected : N/A

Introduction to Sustainable management future

Sustainable management future is the most imperative aspect wherein management of corporation need to ensure that all resources are utilized optimally. It assists corporation to determine long run growth and success in the marketplace (De George, 2011). Sustainable management future enables management to make use of limited resources effectively and determine future growth of firm with increased rate of return. It facilitates to cater need of different stakeholders who are directly or indirectly engaged with company. This is the most imperative aspect to determine long run growth with increased customer base. It is also connected with corporate social responsibilities thereby company can ensure smooth flow of production in the marketplace. This contribute towards increasing flow of production and meet expectations of different stakeholders in an effectual manner. This is because stakeholders affect business of any organization to a great extent as they ensure inclusion of their views and ideas in the decision making process of corporation.

Present report is based on British Petroleum which is one  of the world's seven supermajor oil and gas companies. Further, it is the sixth largest energy company by market capitalization. This operates across different areas of the world with vertical integration in exploration, production, distribution and marketing. Along with that power generation, trading and refining are also included. Furthermore, report covers ethical issues faced by corporation. In addition to this,  ethical theories have been applied at workplace which affect performance of corporation. Similarly, critical analysis has been done for an activity of corporation in form the perspective of two different stakeholders. Here are some of the sustainable supply and procurement explanation.

Furthermore, theories of ethical issues and related issues have been explained one by one. It facilitates to describe overall issues which create hurdles in the long run growth of organization. It has been observed that stakeholders of BP have been facilitating direct monitoring in operational processes which in turn leads the business to include several new aspects in operations management. In addition to this, two stakeholders general community and shareholders are selected. Accordingly theories have been specified. In addition to this, two issues related to ethics and organization problem has been identified. Under this, ethical issue as oil spill disaster and challenge of supply are considered which has direct impact on the performance of company. In this regard focus has been laid on ethical issues of corporation so as to address the same in an effectual manner. It enables corporation to bring improvement in the future performance and meet expectation of customers in the same manner. Apart from this,  discussion of this issues shed light on negative aspect of organization through which management can bring improvement by selecting the appropriate measures. It also proves to be effective in creating competitive edge in the marketplace. Therefore, both issues are explained with propose justification as well as its its impact on overall performance of British Petroleum. At last, discussion and findings have been stated clearly thereby valid conclusion can drawn from the collected information. Apart from this, this section also highlight the actions which could be or taken by the corporation at present time.

Ethical Issue As Oil Spill Disaster

It is the foremost issue which create barriers in the long run success of the firm. It is because of oil spill disaster, the Gulf of Mexico oil spill. Here, the sea floor oil well flowed for near about 87 days till the time it was capped. It was the largest accidental marine oil spill in the history which affected petroleum industry to a great extent. It is estimated  that it was 8% to 31% larger larger in volume than previously occurred incident. However during this incident total 4.9 million barrels released from the well (Velasquez and Velazquez, 2012). It was great loss of both corporation as well as environment. This has not only affected reputation of the firm but US tourism industry was also highly affected. In this regards following theories are explained-

The theory of justice

The theory of justice is based on two approach such as justice as fairness. Here it is considered that justice is the prime focus for the corporation and management should identify the problems which are being faced by society. For example, employees who worked for British Petroleum lost their existing during their work (Brookes, Altinay and Ringham, 2014). However, they were not aware of such kind of incident. It was found that during oil spill disaster 11 people were missing.  Similarly, marine life was highly affected because infant dolphins dying at six times the normal rate and rest of the marine life continued to die. At this juncture, it is very important for management of British Petroleum to ensure fair justice with affected parties or employees. It is because these parties take risk on the basis of mutually exclusive terms so that corporation will provide job security to them. However, these issues affected majority of society people like employees of tourism industry, people connected with sea water and consider it as their earning. In this regard, these parties have right to get justice after occurrence of oil spill disaster (A.O. Santos and Svensson,  2013).

The justice as the core concept of theory consists of two main principles such as liberty and equality. Here, first principle of liberty state that employees or citizen of country a placed with fair conditions. Thus he or his family member can claim for the damages caused by the corporation. All stakeholders engaged with corporation has right to gather information for their own well being. It is because is directly engaged with different stakeholders who contribute towards determining long run success of the firm with increased rate of return.

The second principle is of equality that further segregated into fair equality of opportunity and different principle. Under this, all people of society has equity right to get good job and do their business wherever they are interested (BP Sustainability Report, 2014). But here British Petroleum created barriers for many of the people by creating such kind of oil spill disaster. It decreased profitability of tourism industry. On the other hand, difference principle is applicable on those who own inborn qualities. The same way, corporation recruit skilled and experienced workforce who can effectively contribute in the direction of growth and succes (Chiware, 2010). This way level of motivation as well as satisfaction among employees can boosted.

Furthermore, justice theory depicts that corporation should be ensure that there is consistency of justice with every one who is directly or indirectly engaged with it. It facilitates to resolve ethical issues of corporation (Dettwiler, Lindelöf and Löfsten, 2006). This theory also provide to be effective for management of British Petroleum to retain workforce for longer time span. It enables management to create goodwill of the firm in the marketplace with high rate of return. Furthermore, justice theory generate productive behavior at workplace and support. Apart from this, corporation need to ensure that all stakeholder's needs are satisfied in an effectual manner. It leads to deliver good quality of services to large number of buyers and create competitive edge of the firm. The aspect of justice is appropriate in term of determining long run success of the company in the marketplace (Corporate Responsibility, 2013).

Right theory of ethics

This the foremost theory of ethics wherein management of British Petroleum can easily cope up with changing scenario. This is because emphasis is laid on several methods to resolve the ethical issues which are being faced by British Petroleum. Here, there are two types of human rights such as positive and negative (Dressler, 2012). The positive right generally focuses on management to provide good quality of products and services to others. It assists corporation to work with integrity and meet expectations of employees in an effectual manner. It is because employees are treated with respect and provided opportunities to perform better. This in turn company need to support employees and customers both and accordingly bring modifications in the current business environment.

On the other hand, negative rights are those through which employees are forced to do certain task. It imposes obligations on people to stop them from interrupting  with other people's freedom action. It leads to create sound environment at workplace by which personnel can pay attention on work allotted to them. Furthermore it depicts that all employees have right to take legal action in case corporation is not behaving in an appropriate manner. Furthermore, company set the ethical standards in accordance with policies and government (Murthy, 2012). Owing to this, current scenario shows that right theory must exist at workplace thereby all personnel can work with integrity. It is also helpful to resolve the ethical issues which are taking place just because of negative impact of firm on environment. With this, corporation consider right of each individual who are directly or indirectly engaged with firm. It can also be said that all employees need to focus upon their right and accordingly they can ensure their own well being at workplace. It is another foremost aspect for determining long run success of the firm.

Furthermore, right theory depicts that all personnel involved in the business have right to free consent, free speech and freedom of conscience. Similarly, management of British Petroleum need to consider this aspect and provide opportunity for employees to incorporate their views in decision making process. It facilitates to  create competitive edge and met expectations of all related practices (Pollard and Hotho, 2006). In addition to this, right theory is the effective aspect thereby management can easily resolve ethical issues like oil spill disaster.

Challenge Of Supply

Supply chain management is termed as most important element in the context of oil production and distribution company. In this regard, British petroleum has addressed several issues associated with the supply chain management that have great impact on different stakeholders of business. While managing supply chain management, the management of BP is mainly considering the specific interests and needs of different stakeholders such as consumers and suppliers. In this regard, the public authorities of different countries are imposing different kinds of restrictions and regulation associated with the production and supply chain management that has direct impact on the cost of crude oil production and its impact over profitability and interest of suppliers (BP details supply chain response to oil spill, 2012). It has created huge impact on market supply of different oil products that have created direct impact over the cost and pricing the goods. Therefore, consumers have to pay extra money for different oil products due to increase in the cost of supply chain management.

For lowering the impact of different issues associated with supply chain management such as oil leakage and other disasters, the management of BP has developed an appropriate team that makes efforts to develop various strategies to maintain continuity in supply of oil products. In this context, the the management of BP is trying to increase the monitoring of high risky suppliers (Winter and Knemeyer, 2013). Therefore, BP has raised the safety and quality standards. This approach has been found very effective in order to lower the restriction of public authorities. In addition to existing monitoring processes such as internal audits, third-party verification and executive visits, BP is trying to introduce some new safety performance that provides significant assistance in 70 categories for suppliers performing high-risk activities (Galpin, Whitttington and Bell 2015).

Apart from that work collaboratively with suppliers has been found very approach for establishment of long term relationship with different supplier. This approach enables BP for taking appropriate business decisions to achieve better performance. This tactic provide significant assistance for maintaining the continuity in supply different elements of oil in market By applying this approach, the management of BP is getting significant success for accomplishment of specific needs of consumers (De George, 2011).

In this context, The company’s plans also include reducing agency staff in critical procurement and supply chain management roles, with the aim of bringing expertise that will boost capacity and capability across the company. By following wide range of safety and operational risk considerations, BP is focused on assuring quality of supply to avoid an operational interruption with the help of local and diverse suppliers. By using a team of experts, the management of BP is able to optimize the cost of different kinds of oil gants that would provide significant benefits to consumers (Lenssen, Dentchev and Roger, 2014).

For managing an interrupted supply of crude and other energy products, BP engages with governments on many fronts. By developing relationship with public authorities, BP is able to  maintain dialogue with all relevant government agencies, ministries and regulatory departments at every stage of our presence in a country.  This approach is termed as most important aspect of business management through which business entity will be able to establish financial transparency, security and human rights and control carbon emission while handling supply chain. This element creates significant impact on efficiency of supply chain management and perception of consumers.

In the context of consumers. BP serve about 8 million customers each day. In this regards, the business entity tires to understand consumer expectations and to deliver quality products to our customers throughout our retail network. For assessment of perception of consumers about different business operation such as supply chain, pricing and quality, more  than 55,000 consumers in over 16 countries have participated in our global tracking research program that have been conducted in 2014 for the answering questions ranging from how they rate BP on customer satisfaction in relation to its competitors (Ian Yeoman and et. al., 2015). As per the views of consumers, the management of BP has tired to improve supply chain management for facilitation of best quality products and services. This assessment of different aspects of supply chain has determined that British Petroleum which is one of the leading petroleum firm of world is providing wide range of transitioning program to suppliers and contractor as per the requirement of sustainability management futures that have significant impact on efficiency of supply management of oil products along with satisfaction of consumers.

British Petroleum has been facing issues related to supply of refinery products; further several challenges have been affecting the interest of stakeholders in adverse manner. The major issues have been arising in supplying of refinery products to other suppliers and this has been hampering the interest of stakeholders. Apart from this, having such issues in management impacts business capability and value of products is also getting impacted. British Petroleum. Being UK’s largest petroleum company, it is essential for the business to maintain stakeholder’s interest so that all the operations can be managed in adequate manner (Murthy, 2012). The supply chain challenge was the near and offshore response to British Petroleum; however this has been recorded due to increased wastage in resources. Operational risks are also increasing which affects the quality aspects and this further increases the overall costs of the business activities.

The oil and natural gas supply chain can be complicated and sometimes it affects the associated products and services. British Petroleum has been using all the organizational resources in adequate manner since they are scare in nature. Furthermore, the prices of crude oil and petrol has been increasing which in turn affects internal operations of British Petroleum (Kolk and Buuse, 2012). Government has been imposing several duties and taxes on supply of oil and petrol; thus this affects operations of BP and as a result, the business entity is unable to meet the current needs of business suppliers. At the same time, the increased amount of subsides leads the business to consider economies of scale. This subsequent issue has been hampering the profitability aspect of British Petroleum. Supply of products affects the business on higher extent and this also changes the way of manufacturing plants in the same concern.

One of the weaknesses of a supply chain aspects is that British Petroleum is likely to act in its best interest to optimize its profit. The goal of satiating the ultimate needs of customers is easily lost and opportunities that could arise from other suppliers could also be lost at the same time. Since the goal of supply chain management is to provide maximum customer service at the lowest possible cost, it has also been advocated that the supply chain be managed as an integrated and coordinated system (Nomura and Abe, 2010). This could further reduce costs by eliminating unnecessary use of materials.

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On the basis of above assessment, it can concluded that success of business entity is greatly depending on sustainability management of various business operations that have direct impact on productivity and efficiency of business entity. This report has addressed that different ethical issues such as oil disaster and challenge of supply are creating huge impact on management of various business operations. The considerations of different business operations associated with safety of environment and supply chain management provides significant assistance in handling of different stakeholders.  British Airways has been experiencing issues related to environmental imbalance due to the activities involved in it. Thus, having all such issues affects the shareholders and this simultaneously also impacts community. Apparently, community always support those organizations that sees the best interest for the society by managing their business activities. Thus, both right theory and justice theory play significant role in promoting ethical conduct of business and meet expectations of employees who are working for British Petroleum. This proves to be effective for optimum utilization of limited resources so as to reduce cost of production. Thus, ethical aspect need to be considered by focusing on needs and prospects of parties involved with British Petroleum corporation in an effectual manner.

Here, appropriate compensation to environment and general community can be given. Likewise, right theory defines the work areas for the company so that management can follow the same guideline for sustainable management future. In this regard, several activities of corporate social responsibilities are formed through which company can be able to address issues of customers as well as general community. In addition to this, management must ensure that management need to incorporate with changing scenario. By this way corporation can be able to resolve ethical issues which are being faced by general community. British Petroleum needs to work with integrity, commitment and truth so as to ensure well being of customers as well as employees. Thus, it is the prime responsibility of management of British Petroleum to save life of those experienced man power which contributed towards success of their organization. In this regard corporation should pay attention on justice which is the right of normal human being where it is the operating

The main challenge facing in the oil and gas industry is not the availability of oil and gas resources; but it is more related to reserves in production and delivering the final products to consumers at the minimum cost possible. Likewise, other business, British Petroleum also desires to manage all the operations in minimum costs; thus to perform the same facet, it is essential for the company to consider use of different systems in operations (Hernández, 2012). The business has been showing great concern towards safety and security aspects so as to protect the environment. More concern of business towards environmental aspects helps British Petroleum to acquire assistance from the community and this further can enhance the brand value of the business. However, improper supply of the products is another issue raising from unavailability of raw materials; thus this also impacts the shareholders as it restrains their profit margin.

It can also be said that management of British Petroleum need to compensate for the losses occurred by it. For example, expenses can be incurred to save marine life. Similarly, organization arranged for clean up activities and tried to give positive response to environment. Apart from this, company also tried to blowout preventer valves on the wellhead with different techniques so as to reduce its further impact on marine life. Ultimately they sealed the well in order to protect the marine life and maintain the growth of tourism industry of US (Singer and et. al. 2008.).


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  • A.O. M., Santos, D. and Svensson, G., 2013. Indicators of sustainable business practices: Woolworths in South Africa. Supply Chain Management: An International Journal. 18(1). pp.104 – 108.
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  • Singer, D. and et. al. 2008. Management innovation and cultural adaptivity in international online banking. Management Research News. 31(4). pp.258-272.\
  • Winter, M. and Knemeyer, M., 2013. Exploring the integration of sustainability and supply chain management: Current state and opportunities for future inquiry. International Journal of Physical Distribution & Logistics Management. 43(1). pp.18 – 38.
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