Social Performance of Organizations

Social Performance of Organizations British Petroleum (BP) Different organizations set up perform different functions. Some of these organizations operate locally while others are multinational-corporations. This paper delineates on the social performance of British Petroleum (BP), a multinational company. BP is a British multinational company that deals in oil and gas and has its headquarters at London. The company operates in more than 80 countries across the globe. It is ranked as the sixth largest energy company in terms of market capitalization and the fifth largest in terms of revenue generation across the world (BP, 2014). A chief executive officer who oversees the overall operations heads the company. It has senior managers who are in charge of the various branches distributed across the world. These managers ensure the smooth running of the company and report to the chief executive officer. The company is therefore vertically integrated. It mainly deals in areas of gas and oil industry including production, exploration, refining marketing and distribution power generation, petrochemicals, and trading. It also deals in renewable energy in wind power and biofuels (Bamberg, 2000). The two key factors in the company’s external environment that can affect its success include putting in place measures to protect the environment and adhering to the legal systems of various countries where BP operates. Environment conservation has become an important issue in the world because of the risks of global warming because of the activities. The company must be committed to protecting environment to appeal to the customers. The company also operates in different countries that have different laws with respect to trade, labor and many others that it must respect to get support in their business operations. The company has various stakeholders that play a significant role in its operations and the achievement of its objectives. The most important stakeholders of the company include the government, the employees and the consumers. Government is important because is the authority that gives licenses and regulates its activities. Therefore, if the relationship between the government and the company is positive, the company has higher chances of achieving its objectives. The company employees are also important stakeholders as they are the ones that help it achieve its goals. Employees have requisite skills and knowledge that helps the company to meet its goals. Consequently this relationship is essential for the company to ensure that it provides its services and products to the consumers. Another group of important stakeholders for the company are the consumers. These people use the products produced. Consumers include individual persons and corporations. They are important because they buy the products allowing the company to continue producing and operating. Primary stakeholders in the company play significant role and can influence the company’s financial performance in various way. One of the ways the stakeholders can influence the financial performance of BP is through charging of high taxes. These taxes reduce the company finances affecting its total finances (Noble, 2011). Other ways include penalties and fines, stiffer regulatory measures, increased salary demands from the employees, high regulatory fees to conserve the environment, increased competition from other companies leading to higher costs of advertising to sustain the competition among many others. For instance, when the level of competition increases, the company will have to lose some of its customers to the competitors that may be offering lower prices. To mitigate this, the company will be required to take various measures such as reducing the prices or intensifying its advertisements, which will increase the costs of operation that will affect the finances of them company. Highly skilled and experienced employees can affect the finances in a negative way if they demand higher salaries. Similarly, because of the high level of expertise, they will also help the company accrue or generate higher profits improving the finances of the company. Every organization has a corporate social responsibility that it needs to carry out. The community that the company operates need to benefit from the activities of the business. One controversial corporate social responsibility concern associated with this company was the 2010 explosion that caused release of crude oil in the Gulf of Mexico (Encyclopedia Britannica. 2014). The spill caused a lot of damage to the individuals business and posed a health risks to many people. The company failed to put in place sufficient measures to protect the exploration. As the leader of the most influential group and charged with the responsibility of forming a stakeholder coalition to address this concern, I must consider various issues carefully so as to succeed (Noble, 2011). The first thing is to identify the members of the coalition. In identifying the members, they should be individuals who have enough skills and knowledge concerning exploration and functioning of the machines. This will help to investigate the issue of concern well and chances of establishing the problem and the solution to future dangers reached. To foster collaboration, among the various groups that I target, I will use effective communication to unite them and communicate the agenda of the coalition. As a leader, there are various challenges that one might encounter in encouraging stakeholders to form a coalition to help achieve the desired goals. One of the challenges is lack of cooperation of some of the members (Noble, 2011). This will derail the process of achieving the objectives. Another challenge is lack of financial support to facilitate the process. Members may require financial rewards to be motivated and incase this is absence it may hinder achievement of the goals. Lack of effective communication is likely to hamper the attainment of the organizational goals. These challenges can be overcome by providing motivations such as final rewards, ensuring that effective communication is used to persuade and unite the members. In conclusion, organizations have various issues that affect their operations. Understanding mechanisms put in place to solve these challenges is essential and helps a company achieve its goals. BP is an example of an entity that has challenges but because of the ability to solve them, it has remained one of the more competitive and profitable multinational corporations. References Bamberg, J. (2000). The History of the British Petroleum Company: British Petroleum and Global Oil, 1950“1975: The Challenge of Nationalism. vol. III. Cambridge: Cambridge University Press BP.(2014). Company information. Retrieved from: Encyclopedia Britannica. (2014). BP PLC. Retrieved from: Noble, M. (2011). Perilous Leadership, MWorld, 10(1): 3-4.

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