What are some examples of ethics challenges that industry players have experienced?
In April 2010, the consequences of the BP Oil Spill proved the damage that can result from the risks of the energy industry. Players in the industry face some of the most serious ethical challenges. Their decisions can effect the world’s environment and the entire population. While companies want to make sure they run a profitable business, they must highly consider how their wrongdoings will disrupt innocent lives and permanently damage the environment. The oil and natural gas industry have clearly demonstrated the risks of their businesses.
After an accidental explosion during an oil-drilling project, oil leakage caused billions of dollars of damage in the Gulf of Mexico. Thousands of animals’ lives were destroyed while their natural habitat became infiltrated by petroleum. The damage from the BP Oil Spill proves that ethics must be an essential priority in the energy industry. A small accident or miscalculation can devastate the global environment. Therefore, oil companies and other players within the energy industry must invest in the most advanced technology to prevent disasters. When energy companies decide to cut corners and make short-term profits, it can easily cost them more money in the long run and destroy the environment. Not to say that BP is an unethical company, but their oil transactions destroyed an enormous habitat in the Gulf of Mexico. Energy companies must foresee how their mistakes can lead to terrible results in the environment.
The energy industry is one of the most heavily subsidized industries in the U.S. economy. Therefore, a company’s failures can potentially waste government spending and limit federal revenue. One of the largest U.S. solar technology firms, Solyndra, recently declared its bankruptcy. In 2009, the federal government’s Department of Energy guaranteed a loan worth $535 million ensure the company’s success. Now that the firm will be going bankrupt, American taxpayers are going to have to carry to burden for the financial losses at Solyndra. While unable to compete with its foreign competition, the failure of Solyndra, among other solar tech providers in the U.S., has directly cost the American people. Their bankruptcy wasn’t necessarily expected in May 2011, when Solyndra publicly announced that their finances were in good hands. Were there financial executives telling the truth despite months from going under? It doesn’t seem “fair” that average Americans should have to cover for the losses acquired by a solar energy company.
The BP Oil Spill and the bankruptcy of Solyndra demonstrated the ethical challenges energy companies face. When they don’t perform well, the financial costs can be significant. However, the case with BP demonstrated how risky business could destroy the environment and natural habitats. Spending more money to prevent disasters is necessary with energy companies. New sources of energy technology will be they key to preserving our environment in the future.
BP Oil Spill: http://www.usatoday.com/news/nation/environment/2010-10-21-pelican21_ST_N.htm
Solyndra Bankruptcy: http://finance.fortune.cnn.com/2011/08/31/what-went-wrong-at-solyndra/?iid=EL
The energy industry is the perfect example of "the greater the risk the greater the profit." Everyone living in the modern world needs energy almost constantly and they will pay for it. But if an energy company screws up they have lots to lose and can be held responsible for the well-being of so many innocent lives.
ReplyDeleteBeing ecologically mindful and efficiency based is a difficult balance for an energy company. The "TBL" strategy also known as "people, planet, profit" is the most commonly followed ecological footprint guideline. An idea not often thought of when deforesting, is the existence of a long term supply of trees: Is the company cutting down so many trees, that they wont grow back by when a new supply is needed?"
ReplyDeleteI agree with the last paragraph. "Spending more money to prevent disasters is necessary with energy companies" After several nuclear plants in japan was damaged in the earthquake, the Japanese energy industry suffered a tough time. Everyone lost confidence in the government.
ReplyDeleteI agree that the BP oil spill is a good example of how important ethics is in an energy industry company because of all the people and animals it can affect if something goes wrong. You never said whether BP is an ethical company with regards to this incident or if they are not which is a really interesting question to me. I think this would be a very interesting topic to explore with regards to the importance of ethics in the energy industry. If I remember correctly wasn't there some controversy about BP's response plan to the spill and how it was affecting animals, not to mention it affected many fisherman and companies located around the gulf so the response to whether BP is ethical or not can be skewed depending on who you talk to.
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