Using Ethical Theories, To What extent Does BP plc Act Ethically To All Of Its Stakeholders? And To What Extent Is Its Corporate Social Responsibility Image Consistent With Its Practises?
BP plc is one of the largest Oil and Alternative Energy companies in the world. It has set confident and meaningful targets with regard to reducing its CO2 emissions and development of alternative sources of energy such as solar power. However, in recent years BP’s environmental image has been tarnished. However, whether BP has acted unethically is certainly ambiguous, indeed, to define ‘ethics’ is itself problematical. Thus, to look at BP’s business practises from contrasting theoretical stand points allows for juxtaposing arguments over the ethics of its business practices. Within the normative ethical theories, the traditional theories of Consequentialist ‘Utilitarianism’ and the Non-Consequetialist ‘Ethics of Duties’ are exemplary theories to demonstrate the contrasting nature of business ethics and to identify whether BP acts as a an ethical MNC or a ethically vacant imposter.
Procter and Gamble (henceforth P & G) is one of the largest manufacturers and distributors of consumer products in the world with a global reach for it 300+ brands of 180 countries. During the 1990’s the company made some significant alterations to its corporate strategy; it aimed to reduce its cost structure and develop its differentiated business-level strategy, in an attempt to increase revenues and profits. The rapid development of international markets and globalisation demanded a corporate “shake up”. Moreover, the reduction of trade barriers and tariffs indicated that to retain a competitive advantage globally the company had to develop an effective International strategy, whilst benefitting from economies of scale. Cross-functional integration and speed of innovation increasingly became imperative to corporate strategy. In this article I will look at the key development that took place in thus process and turned P&G into such a powerhouse. Continue reading
Of the world’s top twenty brands, Virgin is the only one to “challenge” and diversify away from its core competencies. The company has businesses in banking, telecommunications, transport, and so on; whereas, compared to the CocaCola company, their product line, successful as it is, doesn’t stray far from beverages. Therefore, the question that must be addresses is how can Virgin do this? How can it be so prolific in comparison to other giant brands of the world? Surely, one man’s endearing personality cannot turn branding on its head to such an extent that the company’s customers will follow him anywhere!? Continue reading
Private Equity (henceforth PE) is a vital component of any economy. PE has been integral to the growth of some very famous companies in recent decades; these companies include Federal Express (now FedEx), Oracle, Intel, Apple Computer (now Apple). The asset class provides the opportunity for entrepreneurs the asses to capital, and in return PE firms can make significant returns for shareholders of their investment fund. Continue reading
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Coca Cola (henceforth CC) is the most recognisable brand name in the world; with further accolades for the company including owning 4 of the world’s top 5 brands, and currently operating in just over 200 countries. CC has faced market stagnation and in some countries, and even a decline in market share in the North American market. The consumer needs in these developed nations have been changing; further, these markets have become very saturated and possess low growth prospects; thus leaving the existing incumbent companies and any others that enter the market to fight for small scraps of market share. Statically, ‘40,000 new consumer package goods are introduced into the United States each year.’This is further emphasised by Vanilla Coke having been launched in 30 countries only 1 year after initially launching in the US. Therefore, indicating exactly how crowded the markets in developed countries are. Continue reading