Case Analysis: Lehman Brothers And British Petroleum ✓ Solved

Case Analysis: Case Studies: Lehman Brothers, British Petroleum, Monsanto, Merck, Goodyear, Perdue Farms

In this written assignment, you will present your work on a case analysis selecting a current business problem from categories such as Banking, Fuel and the Environment, GMOs, Factory Farming, Pharmaceuticals, or Gender Discrimination. The paper should employ components of an argumentative essay, including an introduction that identifies the issue, provides background on the economic system and laws affecting the business, a clear thesis statement, an ethical theory supporting your position, two premises supporting your thesis, and a comparative analysis of your ethical approach versus another. The essay must be approximately 1000 words, include proper APA citations and references, and be thoroughly researched using credible scholarly sources. You should revise your initial work based on feedback to develop a compelling, well-supported argument demonstrating how your chosen ethical perspective offers the most moral solution to the case problem.

Sample Paper For Above instruction

Introduction

The case of British Petroleum’s (BP) handling of the Deepwater Horizon oil spill exemplifies a critical business ethics issue intertwined with environmental responsibility, corporate accountability, and legal compliance. The disaster, which occurred in 2010, resulted in massive ecological damage, loss of human life, and significant financial repercussions for the company. This incident underscores the broader conflict between economic pursuits and environmental stewardship within the petroleum industry operating under federal, state, and international regulations. BP’s operations are embedded within a capitalist economic system that emphasizes profit maximization, often leading to cost-cutting measures with potential environmental risks. Several laws, including the Clean Water Act and OSHA regulations, govern BP’s activities, but lapses in safety protocols and regulatory oversight contributed significantly to the catastrophe. Understanding the complex legal and economic environment is essential to evaluating the ethical dimensions of BP’s corporate conduct and the moral obligations it holds toward the environment and society.

Thesis Statement

BP’s negligent safety practices and environmental misconduct are morally unjustifiable, and adopting a duty-based ethical approach highlights the moral imperative for corporate accountability and responsible environmental stewardship.

Ethical Theory

Duty ethics, or deontology, asserts that moral actions are grounded in adherence to duty and obligations, regardless of outcomes (Kant, 1785/2012). This ethical framework emphasizes the intrinsic rightness of actions such as honesty, safety, and respect for life and the environment. Applied to BP’s case, duty ethics mandates the company to uphold legal and moral obligations to prevent harm, prioritize safety, and respect ecological integrity. According to Kantian principles, BP had a duty to ensure safe operations and to avoid negligent practices that could lead to disasters. By failing to meet these moral duties, BP’s actions violate fundamental ethical principles, making its conduct morally indefensible.

Premise 1

BP’s cost-cutting measures and safety lapses compromised the integrity of the rig’s safety systems, breaching the company's moral duty to prevent environmental harm (Friedman, 1970). The economic pressure to maximize profits led BP to neglect rigorous safety protocols, indicating a failure to prioritize moral obligations over financial gains. Under duty ethics, the obligation to safeguard employees and the environment is paramount, and neglecting this duty constitutes moral wrongdoing.

Premise 2

The legal violations committed by BP, including negligence in safety oversight, reflect a breach of moral duties prescribed by environmental and safety laws (Sneeded & Bocken, 2017). Laws serve to codify society’s moral standards, and compliance is integral to moral responsibility. BP’s disregard for these regulations demonstrates a moral failure to uphold its duties under the law, exacerbating the ethical culpability for the disaster.

Comparative Analysis

If one considers utilitarianism, the moral solution would prioritize actions that maximize overall well-being, potentially accepting some safety compromises if economic benefits outweigh environmental harm. Under utilitarianism, BP might justify cost-cutting if it results in higher profits and shareholder value, possibly minimizing environmental damage through remediation efforts post-disaster. However, this approach risks neglecting long-term ecological damage and social costs. Duty ethics, by contrast, emphasizes inherent moral duties—such as environmental protection—not as means to an end, but as moral imperatives. Therefore, duty ethics offers a more consistent moral framework by forbidding negligent practices that cause harm, regardless of economic outcomes. Its strength lies in honoring moral obligations unequivocally, making it superior in fostering corporate accountability and environmental responsibility.

References

  • Kant, I. (2012). Groundwork of the Metaphysics of Morals (M. Gregor, Trans.). Cambridge University Press. (Original work published 1785)
  • Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine.
  • Sneeded, V., & Bocken, N. (2017). Ethical frameworks in corporate sustainability. Journal of Business Ethics, 152(1), 123-137.
  • Foster, C., Hardy, J., & Zàºà±iga y Postigo, G. (2015). With Good Reason: A Guide to Critical Thinking. Cengage Learning.
  • Jones, T. M. (1991). Ethical decision making by individuals in organizations: An issue-identity model. Academy of Management Review, 16(2), 366-395.
  • Hartman, L. P., & DesJardins, J. R. (2018). Business Ethics: Decision Making for Personal Integrity and Social Responsibility. McGraw-Hill Education.
  • Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience. Academy of Management Review, 22(4), 853-886.
  • Stevens, A. (2013). Corporate social responsibility and legal compliance: A duty ethics perspective. Business and Society Review, 118(2), 213-230.
  • Schneider, M. (2014). Corporate ethics and social responsibility: The Kantian perspective. Business Ethics Quarterly, 24(4), 551-581.

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