BP’s Ethics a Concern for Investors
The devastating outcomes regarding the April 2010 oil spill in the Gulf of Mexico were made clear shortly after the devastating incident occurred. We were aware that the disaster cost the lives of eleven men. We were aware that it was the worst offshore spill in U.S. history. Were you aware, however, that the shares of BP – the oil and gas company – decreased by more than half as a result of its misleading statements in regards to the severe size of the spill and the company’s ability to respond to the incident?
Six investors who bought BP shares right before or right after the incident are now suing for common law fraud and negligent misrepresentation and for statutory fraud, claiming that after the spill, the company had issued statements that neglected to inform investors of both the unmanageable size of the accident and of BP’s substantial wrongdoings. The investors also noted that BP’s safety regulations and statements were deceptive and flawed. BP’s injudiciously false statements were said to entice investors to purchase more shares.
This incident begs the question, what is the extent to which companies will commit moral wrongdoings for the sake of unethical profit? The sacrifice of safety for the sake of financial gain is clear in this particular case. BP should be held accountable not only for the environmental destruction it caused, but also for its seemingly inconspicuous, yet unprincipled disregard of the truth.
Sources:
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.html
http://www.upi.com/Business_News/Energy-Resources/2012/09/04/BP-sued-over-safety-issues/UPI-74091346755890/
http://www.thisblogrules.com/2010/06/contest-opened-to-give-bp-logo-a-new-deserved-look.html (photo)
Link for background information on the BP Gulf of Mexico oil spill: