Disasters keep on affecting people and families around the world. While some are natural disasters, others are man-made. This is apparent in the BP Gulf Coast oil spill, a preventable man-made catastrophe. From April to July 2010, in excess of 185 million gallons of unrefined petroleum spilled into the Gulf Coast. This crushed the indigenous habitat including wild life and the lifestyle for Gulf Coast people group. As a corporate realm speaking to the biggest oil organization on the planet, BP must be practice dependable business morals. This is the exercise learned for BP. It is likewise the exercise learned for government and endeavor with respect to essential precautionary measures against wellbeing. Security turns into a key topic in preventable fiascos. By executing methodologies in security BP can improve social duty, ethical strategies, and ecological effect of unrefined petroleum extraction and refinery.

Safety is a key strategy to address issues of social and moral obligation. Not only BP ought to improve security practices, the legislature should screen these safety procedures. It attempts to decrease hazards and limit dangers. This isn’t just basic to avert mishaps it is additionally a principal system for business progression. The raw petroleum that spilled into the Gulf and destroyed the earth speaks to a considerable misfortune in oil supply and benefits. Furthermore, BP lost specialists, hardware, stock, honesty, and open regard. Taking basic measures to improve security and diminish dangers to coherence is proposed by experts and researchers around the world. Be that as it may, BP neglected. They give an exemplary case of what can happen when to associations dismiss security, morals, and social duty.

“BP – The Cost of Ignoring Corporate Social Responsibility.” Cara MacMillan. Accessed April 05, 2019.

“BP Leak the World’s Worst Accidental Oil Spill.” The Telegraph. August 03, 2010. Accessed April 05, 2019.

Evaluating the opportune moment to scale up a business is essential but equally paramount to the success of a business operation is knowing when to scale down. The case for multinational companies operating out of Venezuela – a country despite having the world’s largest oil reserves, has an economy in complete shambles – is a great example of this quandary. This has been exacerbated by recent U.S. economic sanctions which prohibits any American institutions from lending more money to Venezuela. MNCs such as Clorox, Kimberly-Clark, General Motors, Harvest Natural Resources and General Mills have removed their operations from Venezuela entirely, abandoning their assets or selling them for cheap. While walking away from an unpredictable landscape is often regarded as the safe choice, these cases are also where high risk, high reward opportunities could be hidden.

MNCs that have chosen to remain in Venezuela are slowly scaling back their operations due to a scarcity of raw materials and decreased demand for their goods and services. This is complicated by strict labor laws in Venezuela that forbid mass layoffs. MNCs usually work around this by giving many of their employees a paid leave of absence or incentivizing their voluntary termination. With reduced schedules and cutbacks in production as well as a limited selection available in the market, Colgate, Ford, Johnson & Johnson, Fiat Chrysler are among 150 other MNCs that have stayed back in Venezuela. In certain instances, these companies have attempted to support their employees and provide assistance.

Other places in Venezuela, MNCs have struggled to adapt to other government commands, including strict cost guidelines on products and services that the Venezuelan government deems as necessities such as milk and soap. The prices cannot keep up with constant inflation. Colgate recently adapted to this with the production of a price-controlled toothpaste that is packed in brown cardboard that is more cost-effective than its normal red packaging.

If Venezuela ever were to recover from its current economic frenzy, the MNCs that have continued to be present there will be in position to benefit strongly. The ability and freedom to adapt to changing circumstances of a high-stakes economic landscape are dominant.

Bibliography:

Valerio, Pablo González AlonsoAlejandro. “When Should Multinationals Move Back into Venezuela?” Harvard Business Review. September 01, 2017. Accessed April 04, 2019.

Pons, Corina. “From Unilever to Ford, Companies in Venezuela Cling on by Cutting…” Reuters. August 31, 2018. Accessed April 04, 2019.