Bp corporate governance. Corporate governance 2022-10-17
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BP is a multinational oil and gas company with operations in more than 70 countries. As a global corporation, it is essential that BP maintains strong corporate governance practices to ensure the company is managed in an ethical, transparent, and accountable manner.
BP's corporate governance framework is based on the UK Corporate Governance Code, which sets out the principles and best practice recommendations for the governance of listed companies. The Code is designed to promote the long-term success of companies and to enhance their reputation.
One key aspect of BP's corporate governance is the separation of the roles of chairman and CEO. This ensures that there is a clear division of responsibilities at the top of the company and reduces the risk of conflicts of interest. The chairman is responsible for leading the board and ensuring that it is effective in discharging its duties. The CEO, on the other hand, is responsible for the day-to-day management of the company.
BP also has a number of committees that help to support the board in carrying out its duties. These include an audit committee, a remuneration committee, and a nominations committee. The audit committee is responsible for overseeing the financial reporting process and ensuring that the company's financial statements are accurate and reliable. The remuneration committee is responsible for setting the pay and benefits of the executive directors and senior management. The nominations committee is responsible for making recommendations to the board on the appointment of new directors.
BP has a diverse board of directors, with a mix of skills and experience. The company is committed to promoting diversity and inclusion at all levels of the organization and believes that this is important for the success of the business. The board has established a diversity and inclusion policy and targets to ensure that the company is representative of the communities in which it operates.
BP is also committed to sustainability and has established a number of initiatives to reduce its environmental impact. The company has set ambitious targets to reduce its greenhouse gas emissions and is investing in clean energy technologies such as wind and solar power. It has also established a program to manage the environmental and social impacts of its operations.
In conclusion, BP has a strong corporate governance framework in place that is designed to ensure the company is managed in an ethical, transparent, and accountable manner. The separation of the roles of chairman and CEO, the establishment of key committees, and the commitment to diversity and sustainability all contribute to the overall strength of the company's governance.
Code of ethics
As stated before, quicker response and appropriately trained employees and informed management could have avoided the spill and the explosion that followed. The report includes comparison of the position as shown in its 2016 and 2006 annual reports. It is essential to recognise the "bad apples" in an organisation in order to avoid disasters. The board recognizes the importance of effective engagement with shareholders and other stakeholders and encourages participation from these groups. BMC public health, 17 1 , 381.
It was found that BP still lacks a reward system for speaking up and that a dual-tier board would be more efficient in handling this large and high-risk organisation, thus proposing a change in the board structure of the company. However, despite the same, no new safety legislations were passed in order to safeguard such activities. The FT made clear what it believes BP should do: "There is no question that top management will have to be changed following the Gulf of Mexico oil spill. Using the British Petroleum case, we develop a model of efficient corporate governance addressing all facets of the society in which corporations exist such as economic, ethical, political, and social. This is a lack of Corporate Social Responsibility.
BP also believes that sustainable and ethical business practices are strongly associated. Overall, the responsibility of a company to abide by its societal expectations through the implementation of internal control systems can be stated as its social responsibility. Karen has brought exceptional knowledge of technology, start-ups and cybersecurity, and a digital mindset honed during a career in Silicon Valley. Our formal engagement programme allowed the board to meet people based in the tropical rainforests of West Papua, the Abu Dhabi desert, our US retail stations, our refinery in Spain, and our Indian offices — to highlight just a fraction. Chairing the board is their responsibility alone p.
The BP Gulf oil spill: public and corporate governance failures — Monash University
In 2010 financial report council issued new UK corporate governance code by separating issues form other reports. Effective communication throughout an organization must be available to ensure the right people are informed about the right risks on a timely basis. Apart from these, BP abides by the following US laws in order to operate in the United States: a. Corporate Governance Corporate Governance Case Studies Edited by Mak Yuen Teen Foreward Strong corporate governance and transparency are critical for business success. During 2016, the chairman was Carl-Henric Svanberg, and there was no deputy chairman.
Role of the Chairman The Chairman will the leader of the board and act as facilitator, and has authority to act and speak for the board meeting on matter relating to the board principle. Social role conceptions and CSR policy success. The Energy Policy Act 2005 e. The report also reveals that BP has a strong stance against bribery and corruption. British Petroleum Plc board governing principle is as fallows. BP engaged with production and sale of energy, fuel extraction, manufacturing, refining and distribution.
As discussed earlier, incomplete disclosures have been made by the company in its annual reports with no trace of complete information coming directly from BP. Despite the requirement to release a sustainability report every year since its incorporation and having a reduction in oil spills as its crucial non-financial performance indicator, BP has failed to confirm its principles as a practice many times. Different governance structures in different countries are a glaring example of the effects of cultural differences in behaviors leading to change of governance systems. The effect on the share price in the UK during the said days is shown in Figure 1 below. Oil Spills and Human Health: Contributions of the Gulf of Mexico Research Initiative. The executive team is separated from the board, which is headed by the Chief Executive Officer "CEO" , who forms one of the executive directors in the board team. Taking responsibility for one's action, and working upon improving the same is a vital part of business ethics.
Corporate Governance at BP (British Petroleum) (300 Words)
Hence, BP should work better towards actually improving its internal affairs in order to achieve the expectations of society rather than just marketing the same. Corporation work with governance framework which is first set by law and then by regulation emanating from the regulatory bodies to which they are subject. Business world is changing rapidly, there fore corporate governance codes also will have to update for the future. It tells investors that that the company is made up of conscientious employees who respect the rights to ethics of care, justice, rights and utility. An excellent corporate structure leads to better sustainability practices and vice versa Galbreath J.
As part of the governance structure and in accordance with the Corporate Governance Code the board has documented the responsibilities of the chair of the board, the CEO and the senior independent director. BP, therefore, remains exceptionally cautious about disclosures they make. BP has well-established governance policies related to employee governance, managing different types of risks etc. Any Covered Officer who becomes aware of any existing or potential violation of this Code will notify the Company Secretary promptly. Shareholders rights and ownership rights 5. The terms have been tailored to support the board and to enable more detailed, deeper-dive reviews to be undertaken in particular areas when required. GeoHealth, 3 12 , 391-406.
CORPORATE GOVERNANCE FIASCO CAUSING THE BP GULF OIL SPILL
For example, none of the major projects by BP are located inside or near world heritage sites declared by UNESCO; BP has also encouraged other companies to follow a similar fashion while establishing new production facilities in new areas. Corporate governance by Alan Calder 2008. Nokia connects HR policy with company success. The Chairman is empowered to make any decision, establish any policy, take any action or enter into any obligation which is consistent with the Board Principles. Considering the same, BP took responsibility and announced adherence to voluntary performance standards that go beyond legislative restrictions and set internal standards for deep-water oil and gas drilling in the US Gulf of Mexico BP announces enhanced drilling standards in the Gulf of Mexico, 2011. A recent Compliance Week article discusses answers to this question. Hence although BP settled all the claims, the disaster cannot be undone.
Essay About: Corporate Governance Of Bp And Corporate Governance Issues Issue
BP further spent about 45 Billion USD as cleaning costs, totaling a loss of more than 65 Billion USD Vaughan, 2018. The Chairman is empowered to make any decision, establish any policy, take any action or enter into any obligation which is consistent with the Board Principles. BP Oil Spill: Safety Breaches Revealed. From the above discussion, the main issues recognised behind the oil spill and explosion were untruthful reporting and lack of internal control in safety procedures. Therefore, a system of reward can be introduced in the company wherein a whistle-blower is rewarded for stepping forward and speaking up in case the result of the actions being reported to relate to operational safety.
