Management Exploration of The Concept of Social Cost Discussion – Description
In this topic, we’ll be discussing the readings from Week 4.
Post 1 – The first discussion board post of the week should lay out your initial reaction to the reading you’ve done so far, including critical comments and thoughtful analysis.
Post 2 – This post should be a response to another student’s post, either directly to that student, or in response to another student’s response.
Post 3 – This post can either be a further response to the reading or a continuation of a conversation with another student from class.
READINGS
http://blog.practicalethics.ox.ac.uk/2010/06/ethic…
TAYLOR KESSINGER
As I reflect on the BP oil spill, I realize I didn’t understand the full magnitude of its impact. I knew the BP oil spill stood as one of the largest environmental disasters in history, but now I have a better understanding of the profound effects it had on our world. Viewing the BP oil spill from a religious, ethical, and human response lens we can have a better understanding of how religion often plays a significant role in shaping ethical frameworks and guiding human behavior, as we discussed in week one.
Various religious traditions emphasize the stewardship of the Earth, underscoring the interconnectedness and sacredness of all life forms. For instance, Catholicism inspires ethical obligations towards the environment, promoting responsible resource management and emphasizing the importance of compassionate action. From this perspective, religious believers may denounce the careless actions that led to the oil spill, viewing it as a violation of their ethical and religious commitments. Moreover, religious teachings advocate for compassion, justice, and accountability. The harm caused by the BP oil spill to ecosystems, marine life, and coastal communities resulted in immense suffering.
BP faced criticism for appearing more concerned with profit than devoting major resources to oil cleanup, resulting in lasting reputational damage. This highlights the need for businesses to respond proactively to environmental crises, demonstrating a true commitment to environmental rehabilitation and accepting responsibility for their actions.
Religious ethics demand that individuals and institutions take responsibility for their actions, make amends, and work towards rectifying the damage caused. These teachings encourage believers to engage in restorative practices, both practical, such as clean-up efforts and compensation for affected communities, and spiritual, such as prayers for healing and reconciliation. In addition to the religious dimensions, the BP oil spill has become a significant case study in ethics classrooms worldwide. It raises crucial questions about corporate responsibility, environmental risks, safety management, wildlife conservation, and government regulations. The spill reminds us of the importance of organizations, especially those in the oil and gas industry, adopting a broader sense of responsibility and prioritizing environmental stewardship over profit. For these reasons, businesses must prioritize proactive monitoring and maintenance to reduce the likelihood of leaks and minimize environmental risks.
The discussion surrounding the BP oil spill has deepened my understanding of the complex issues organizations face when balancing profitability and environmental stewardship. It serves as a reminder that we must continually learn from past incidents and make conscious efforts to prioritize responsible resource management and environmental care.
I remember hearing about the BP oil spill without fully comprehending its true effects. Now, with a broader understanding of the ethical dimensions and consequences, I feel more equipped to understand and consider past and future PR issues in the future. For me personally, this case study made me more aware of the ethical concerns one must consider when running a company, whether big or small. I run my own branding and marketing company and have always tried to approach everything I do from an ethical standpoint, but as my business grows it will be important to remember to stay cognizant of keeping the company ethically just.
Sara Towle
I really enjoyed the concepts of our responsibility and individuals and business persons to the environment. I have been waiting for nature and stewardship of earth to come into the conversation because I do believe it’s a moral imperative to keep this planet alive and better than we found it. I was very moved by something Pope Francis said in his speech about climate change, “We must do everything we can to meet the needs of the present generations, including everyone, without compromising the possibilities for a future generation.” I really felt that encompassed our collective fight for a future world and the “practical urgency” that comes with it.
I also found a lot of good, practical solutions in the Pope’s speech. He summarized simply the main goals for climate justice. One that stuck out to me was when he mentioned sustainable farming practices and clean water. The lack of access to clean water, in this day and age with all our advancements, and still no clean drinking water… It’s condemnable. He said in his speech, “Clean water and adequate nutrition through non-destructive farming methods should become the main purpose of the entire cycle of food production and distribution.” This rang out as a clear mission of something I could work towards in my lifetime. I felt he mentioned a few things that need to change that cover a lot of economies and businesses. We all have a part in this fight for climate change, no matter your job, station or location.
The book Good Business discussed some of the challenges of globalization stating that we don’t have as many universal truths as would make it easy to come to universal consensus. But.. we do all share this planet and its resources and that’s a good a place to start real, collective change is for a common goal.
The word I learned this week: Subsidiarity. It is exactly how I think the approach should be when offering help to someone and it applies to our globalized world. Those closest to the issue should be the ones deciding how to address the issue, not someone who has never stepped foot in that community. In order for us to reach our best as a society (human dignity, stewardship, common good), the “participation of those at the most local level must occur” (Good Business pg. 195) This principle applies to a large range of corporations and nonprofits that want to help and are trying, but failing to ask the local community what they actually need to help conditions.
The case study about Toyota was eye opening because it really goes to show what it looks like what a company values your input on how to make your life easier and business to run more smoothly. By employing subsidiarity mindset and asking the workers directly how to improve their life, they were able to also improve their work-flow. It benefits everybody for the jobs to be safer and easier and respecting their input makes for a community and loyalty. The “Suggestion” System was a success in my eyes and shows what can be done by caring about the input of those the problems directly affect. Turns out, they’ve been thinking of the problem for a lot longer than even you! And they have solutions! Just ask!
Kyra Magafas
This week’s material was super exciting and eye-opening for a lot of different reasons. It was super interesting to learn about the ethical questions posed during the BP oil spill. It really makes you question how much companies and businesses are hiding. It mentioned in the article that the company has continually denied admitting how much oil is sitting on the ocean floor. This is really interesting because many companies (as we all know) hide important information that should be exposed to the public. In previous modules, we talked about the connection between companies and the government, as well as, the role that the government should play with them. Meaning, corporations should or shouldn’t be treated differently. It is a tough question to unpack.
Another interesting aspect was the discussion surrounding social cost and what it means for society as a whole. In short, it helps decide and distribute the responsibility that the economy has caused to the different parties and people that were affected. It was really interesting to hear about the example they gave with the fishery and the factory. I believe that not many businesses and companies understand how they are affecting other businesses, as it is all a chain reaction. It mentioned that this fishery really relies on clean water to help raise the fish and give them a good life, but the factory across the street has been dumping their pollutants into the same river. Which, therefore, would increase the cost of all players involved. The biggest takeaway I got from this piece of writing is essentially that someone is always going to end up losing. Meaning that if the factory is held responsible (which it should be) it would have to be liable for the fishery’s loss. They would have a cost imposed on them. But let’s say the government decided to be involved, they would have to allocate responsibility on the source of pollutants. But it also said that “in practice, such governmental interventions are often less than optimally efficient, and are looked at askance by many economists, particularly those of the more libertarian persuasion.”
Moving on, one of the main themes in this module is the government’s power and responsibility in the role of corporations. One of the sections in the book “Good Business” talks about the unknown, hidden costs that globalization carries. It elaborates on how many United States companies have overtaken manufacturing jobs and has put them in poorer countries with “few environmental regulations.” It also says that “consumers in the United States are often unaware of the pollution caused by some production facilities and the suffering it causes people living in the vicinity of these places.” It is really scary to think about all the companies that do not follow these rules. More so, it makes me think about all the good companies that I try to buy from, but even then we still do not know how good their company actually is. It is no secret that across the board there is an inadequate form of supervision and oversight that companies need to follow.
Unnati Patel
The BP oil disaster is frequently discussed in ethics classrooms and has acted as a case study for ethical debates. As the world’s largest environmental disaster, it presents various ethical considerations. Corporate responsibility, environmental risks, safety management, wildlife conservation, and government laws are among them. While the spill was inadvertent, it is the business entity’s responsibility to resolve such an environmental calamity and take all required precautions. BP, in particular, has been chastised for prioritizing materialistic pursuits over their responsibilities as environmental stewards within their corporate aims. In my opinion, the BP oil spill is a useful lesson for all organizations, particularly those in the oil and gas industry. During such situations, it emphasizes the significance of continual learning from previous instances and prioritizing environmental stewardship over revenue. Businesses’ reputations are established not only by the occurrence of such incidents but also by their response and conduct in such instances. BP’s reputation suffered because it appeared to be more concerned with profit than with devoting major resources in oil cleaning. While preventing spills is often out of a company’s control, it is still the company’s responsibility to do frequent equipment inspections and assure correct operation to reduce the likelihood of spills.
Reflecting on the BP oil spill and its ethical consequences, I find it amazing how this catastrophe has become a major topic of discussion in ethics classes. It is an effective case study that raises crucial issues regarding corporate responsibility, environmental dangers, safety management, animal preservation, and government restrictions. The fact that this calamity, the largest of its type, is still being studied in educational contexts attests to its tremendous influence and the lessons it contains.
One component that struck me was the concept of corporate responsibility, as well as the criticism leveled at BP for prioritizing materialistic desires over environmental care. This emphasizes the importance of firms, particularly those engaged in areas with potential environmental dangers, adopting a broader sense of responsibility. The oil and gas industry, in particular, should take a lesson from the BP oil catastrophe and prioritize environmental stewardship over profit. It is critical to recognize that a company’s reputation is decided not only by the occurrence of such catastrophes but also by how they respond and act in the aftermath.
The reflection on BP’s reputation being harmed as a result of their apparent concentration on profit rather than devoting major resources to oil cleanup resonated with me. It emphasizes the need for businesses to go above and above in responding to environmental crises. Businesses must demonstrate a true commitment to environmental rehabilitation and accept responsibility for their activities, rather than simply addressing the immediate effects. A key conclusion is that while preventing spills is often beyond a company’s control, regular equipment inspections and maintenance are critical preventive measures. This emphasizes the significance of proactive monitoring and maintenance of equipment to reduce the likelihood of leaks.
It emphasizes the importance of firms investing in frequent inspections and ensuring good operation to avoid environmental disasters. Overall, my thoughts on the BP oil spill and its ethical dimensions have deepened my knowledge of the complicated issues that organizations face in balancing profitability and environmental stewardship.
Alexandria Abraham
The BP oil spill was something I had heard about once briefly but not much after that, it was interesting to learn more about something I have only heard about briefly. The BP oil spill, one of the largest environmental disasters in history, offers a thought-provoking lens through which to explore the intersection of religion, ethics, and the human response to such catastrophic events. Religion often plays a crucial role in shaping ethical frameworks and guiding human behavior. In the case of the BP oil spill, people from the outside can examine the ethical dimensions influenced by religious perspectives. BP as an organization should have taken that opportunity to implement better protocols and measurements after the oil spill happened, yet they didn’t.
Various religious traditions emphasize the stewardship of the Earth, emphasizing the sacredness and interconnectedness of all life forms, especially in Catholicism. These teachings inspire ethical obligations towards the environment and call for responsible resource management. When examining the oil spill from this perspective, religious believers may feel compelled to denounce the careless actions that led to the disaster, considering it a violation of their ethical and religious commitments. Additionally, religious teachings frequently advocate for compassion, justice, and accountability. The BP oil spill resulted in significant harm to ecosystems, marine life, and coastal communities, causing immense suffering. Religious ethics demand that individuals and institutions take responsibility for their actions, make amends, and work towards rectifying the damage caused. Such teachings encourage believers to engage in restorative practices, both through practical measures, such as clean-up efforts and compensation for affected communities, as well as spiritual actions, like prayers for healing and reconciliation. Also, religious communities often serve as moral watchdogs, challenging societal norms and advocating for greater environmental stewardship. The BP oil spill sparked debates within religious circles, inspiring discussions on the ethical implications of corporate negligence, the prioritization of profit over the well-being of the Earth, and the responsibilities of individuals and governments in preventing such disasters. These dialogues foster greater awareness and activism, promoting ethical engagement with environmental issues. Religious communities often serve as catalysts for change, mobilizing their followers to advocate for greater environmental awareness and action. In the wake of the oil spill, religious groups have used their influence to raise awareness about the ethical implications of environmental degradation, prompting discussions on responsible resource management, corporate accountability, and sustainable practices. When analyzing through the Coase Theorem, BP, and the affected parties could have negotiated a mutual solution, based on the theory that if transactional costs were reasonable and property rights were defined. Yet, the Gulf property rights are difficult to define because it is a body of water with surrounding land.
The BP oil spill connects well with religion and ethics, drawing attention to the moral obligations embedded in religious teachings. It highlights the need for responsible resource management, compassion for all beings affected, and the pursuit of justice and accountability. By exploring the religious dimensions of such environmental catastrophes, we can deepen our understanding of the ethical imperatives that underpin our relationship with the natural world and inspire positive change for a more sustainable future.
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