Businesses to Comply With Environmental †Myassignmenthelp.Com

Question: Discuss About the Businesses to Comply With Environmental? Answer: Introduction In the era of twenty-first centuries, the businesses have gone to another level of success as the various business operations of the organizations have evolved significantly. However, the environment of the earth has been paying for this evolution. One just cannot ignore the fact the business operation of the organizations have adverse effects on the environment, the societies and the people of the societies. These effects can be divided into two terms; they are Direct Effect and Indirect Effect. The present report is based on the provided case study of British Petroleum Limited, commonly known as BP. The provided case study indicates that BP is responsible for the damages they have brought to the environment and ecosystem (synergiz.fr 2017). Three major issues are there related to the BP. They are the effects of oil spill on the ecosystem of the oceans, lack of effort of the organization regarding the aquatic ecosystem and biodiversity of the control of risks and the lack of the str ucture of regulation for the barriers of renovation cost. Purpose of the Report A crucial factor is that BP harms the environment, society and ecosystem of the oceans and the company is unable to determine its renovation cost. Hence, the organizations have measured all the damages done by them on monetary basis. Major attention is put on the calculation of the worth of oil spill, as oil spill is a non-marketed product. For this reason, the government has held BP responsible to provide clean-up cost of the oil spill. A major aspect is that BP has not pictured the harm to the ecosystem caused by the company. Thus, the purpose of the report is to make BP alert about their various activities to damage the environment along with the oil-spill. Issues to be discussed and their significance The issues are as follows: The effects of oil spill on the ecosystem of the oceans The lack of effort of the organization regarding the aquatic ecosystem and biodiversity of the control of risks The lack of the structure of regulation for the determination of renovation cost. Research Method With the help of primary and secondary data, the above-identified problems can be analyzed. Researcher can go for telephonic or face-to-face interview in order to collect the primary data and to conduct qualitative analysis. On the other hand, the researcher can adopt the method of arranging online or offline questionnaire survey in order to conduct quantitative analysis. The various sources of secondary data are company websites, journals, articles, books and others. Limitations and Assumptions In order to make the analysis more effective, the researcher has to visit the place where the oil spill took place to gather correct information. For this, the researcher has to collect the data from the residents of Gulf. Another dependable source for collecting the data is the employees of BP with the help of questionnaire survey. It may happen that some of the participants will be reluctant to answer the question because of the nature and topic of the research. Hence, the researcher may have to face issues regarding the process of data collection. Literature Review Effects of Oil Spill on the Aquatic Ecosystem Oil spill can be refereed as pollution caused by various human activities (Avel 2014). Oil spills can be of two types. They are accidental oil spill and intentional oil spill and the type is determined based on the reasons of the oil spill. Different kinds of reasons are associated with accidental oil spill and hence they are called accidental oil spill. However, carelessness, negligence and ignorance are responsible for intentional oil spill. Both kinds of oil spills affect the aquatic ecosystem in a negative and adverse manner. BP is solely liable for the oil spill in Gulf region and it is the duty of the company to recognize the clean-up costs (Brennan 2013). However, the company is unwilling to disclose the amount of damage they have done in the oil spill. Due to the cause of the damage is oil spill, it is not easy to calculate the worth of the damage. It has been found that BP has calculated the worth of damage on the basis of money and time. Moreover, the company has not taken enough initiatives to appraise and assess the harm (Silliman et al. 2012). Lack of Service of Ecosystem for the Control of the Risks The faith of the stakeholders towards the company is noticeable as per the moral and ethical standard of BP (Gray, Adams and Owen 2014). Thus, it is the responsibility of the company to conserve the social wealth along with the ecological wealth. In addition, BP needs to introduce various kinds of important accounting standards regarding the environment in order to make the organization more responsible to the stakeholders of the company (Leifer et al. 2012). The customization of the environmental accounting standards is required as there is a relation among the ecosystem, environment and corporate agent. Every business operation of the organizations has adverse effect on the environment. For this reason, it is the responsibility of the organizations to introduce environmental accounting standards for healthy and balanced ecosystem (Passow et al. 2012). Lack of Regulation Structure to Determine Renovation Cost Most of the petroleum companies all over the world have to face severe level of penalty for damaging the ecological and social wealth by helping in the process of political bargaining (Kheroubi et al. 2016). This is not considered as the perfect process as it does not help in the process of recovering the damages done by the companies to the environment. In the process of evaluation of the associated risks, one cannot ignore the significance of process-oriented framework and it is for the betterment of the environment. The development of plans and the improvement of the security barriers are its main functions (Issacharoff and Rave 2013). In case of the oil spill, it has been found that the breakdown in the dictatorial agency is responsible for the oil spill. In addition, to judge the level of efforts that an organization is putting to restore the ecological assets, the divulge data of the organizations play an integral part. Hence, the lack in the regulation structure has an adverse effect on the determination of the renovation cost by the organizations. For this purpose, the process oriented environment framework is needed to protect the environment (Allan, Smith and Anderson 2012). Method Procedures In this particular research process, the researcher will adopt both types of methodologies and they are primary process and secondary process. Therefore, the researcher will distribute both online and offline questionnaire among the employees of BP and the residents of Gulf region. On the other hand, the researcher will gather the secondary information from various books, journal articles and the company website. Sample Size For this research process, the researcher will gather the primary data on a random basis from sample size. The Sample will consist of 200 residents of the Gulf region along with 70 employees of BP. The aim is to make the study simple and short. Selection Criteria In this research process, the researcher will adopt the simple techniques for the sampling process. In addition, in case of the selection of fixed samples, the random process technique will be applied. Hence, the researcher will incorporate the probability sampling technique. Discussion and Analysis of Data Effects of Oil Spill on the Aquatic Ecosystem Based on the data band information provided by the employees of BP at the time of questionnaire survey, it can be seen that various reasons exists behind the Gulf oil spill. The figure shows the different types of oil spills along with the percentage of occurrence. Figure 1: Oil Spill Types and their Occurrence Percentage (Source: bp.com 2017) The above pie chart shows that all the oil spills have their negative effect on the aquatic ecosystem. In addition, this process also increases the morality rate of the aquatic animals. Lack of Service of Ecosystem for the Control of the Risks Among the different kinds of oil spills, the occurrence of the accidental oil spills is common in the oceans. The lack in the adoption of the ecosystem services is considered as the main reason behind it. Ecosystem services are main tools to control the risks. Hence, it is the utmost priority of BP to implement these kinds of services in their business operations. Based on the provided information from the residents of Gulf region, it can be said that the oil spill significantly affected the deepwater suspension. Apart from this, other problems are also there. They are as follows: Figure 2: Effects of Oil Spills (Source: Fingas 2016) Lack of Regulation Structure to Determine Renovation Cost At the time of the survey of the employees of BP through questionnaire, the employees indicated that with the consistent rise in the demand of oil, the supply of oil also increased. With the increase in the demand and supply of oil, some of the related factors also increased like the number of employees, the number of contracts and many others. On the other hand, with the increase in the demand of oil, the instances of oil spills also massively increased. The data and information collected from the employees of BP can be used to know the projected budget of Deepwater Horizon Oil. Figure 3: Oil Budget of Deepwater Horizon (Source: McNutt et al. 2012) The following chart is a helpful tool to understand the lack of environmental regulation structure of BP. Figure 4: Lack of Environmental Regulation Structure (Source: Cainelli, Mazzanti and Zoboli 2013) Reliability and Accuracy of Data This total research process will be performed based on the collected primary and secondary data. The researcher will not disclose any of the information of the employees. Hence, the respondents can consider that researcher is trustworthy. Conclusion Based on the above discussion, it can be said that BP need to be alert about the negative effect of their business operation on the environment. Hence, the company should employ accurate measures to make the business eco-friendly. With the help of this strategy, the number of incidents of oil spills can be reduced. The fined paid by BP in relation to the oil spill is not sufficient and hence, they need to pay the exact fines. Recommendations It is recommended that BP should adopt the environmental accounting standards in order to measure the exact effects of their business operations on the environment and the ecosystem. It is recommended that BP needs to be more thoughtful about biodiversity. For this regard, the company needs to incorporate remedial measures to protect biodiversity. References Allan, S.E., Smith, B.W. and Anderson, K.A., 2012. Impact of the Deepwater Horizon oil spill on bioavailable polycyclic aromatic hydrocarbons in Gulf of Mexico coastal waters.Environmental science technology,46(4), pp.2033-2039. Avel, D., 2014. Positive accounting theory: theoretical and critical perspectives.International Journal of Critical Accounting,6(4), pp.396-415. Bp.com. 2017.Bp.com. 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Degradation and resilience in Louisiana salt marshes after the BPDeepwater Horizon oil spill.Proceedings of the National Academy of Sciences,109(28), pp.11234-11239. synergiz.fr. (2017).THE FINANCIAL IMPACTS OF BPS RESPONSE TO THE DEEPWATER HORIZON OIL SPILL. [online] Available at: https://www.synergiz.fr/wp-content/uploads/2011/04/Case-study-BP-gulf-oil.pdf [Accessed 23 May 2017].