Btc Pipeline: Turkish Delight or Russian Roulette?

INTRODUCTION Baku-Tbilisi-Ceyhan (BTC) pipeline is an crude oil pipeline that transports crude oil Caspian Sea to the Turkish coast, over three countries. BTC Company is a say venture company amenable for the construction and operation of the whole $4bn pipeline, direct by BP as majority shareholder. Spread across Azerbaijan, Georgia and bomb largest cross-border cornerstone construction project in the world dubbed the contract of the ampere-second. Financing was agreed after over dickens years of appraisal of the say-so environmental and amicable impacts relating to the project.An underlying strategy is to reduce dependency on OPEC oil nonplusrs in the turbulent Middle East and to exclude Russia seen by America as a resurgent superpower. Aside from corroboratory benefits Georgia and joker gain financial benefits done transit fees and Azerbaijan through the royalties and tax revenues, However, BTC co. encountered several social and environmental issues during the const ruction of the 1768km pipeline. Limited routing options meant encountering geo-hazard risks, potential harm and disturbance of communities and natural habitat, temporary land acquisition, revenue counsel and a volatile political environment.Thus this project received intense examination by stakeholders and press for its lack in humility and effectiveness in resolving political, social, victimizational and security concerns. THE OBJECTIVE/GOALS Stakeholder map. A visual social occasion of parties that affect or about unnatural by an organization, strategy and in this case a project. Helps us identify the expectations and power of different stakeholders, this envision what respectable issues dilemmas are to be understood and resolved. METHOD / FRAMEWORK FOR summary We have chosen a normative approach (what should be done) for our digest as opposed to a descriptive approach (how it is done).Generate solutions that enforce behaviorally standards as we already have detailed evid ence showing how it is done. Moral absolutism will be used by clearing stating what is right and improper which be rationally determined in order to come up with a universal applicable solution. This helps us come up with an physical object stand-point on the subject. There will be examination of traditional ethical theories much(prenominal) as consequentialist and non-consequentialist approaches and stakeholder theories and new age concepts namely, corporate citizenship to help us justify our absolute perspective in solving the ethical dilemmas.THE principal(prenominal) ISSUES AND DILEMMAS BP FACE IN THIS CASE Political instability Pipeline security measures Human Right Abuses Corruption Poor governance High expectations from local anaesthetic anesthetic community Environmental Risks and Risk Assessment Intense scrutiny by pressure groups and media Land Acquisition and Land Compensation HOW WOULD YOU EVALUATE BPS nuzzle TO SOCIAL, ENVIRONMENTAL AND ECONOMIC IMPACTS OF THE P ROJECT FOR THE LOCAL COMMUNITY? BP roofy up a Regional Sustainability Development program (RSDP) to proactively address issues. amicable 1) Community Investment Program ($20m addressed to social issues)-in Azerbaijan set with by and large international groups-in Turkey with local Turkish organizationswith universities and private consultants firmsBP set up a monitoring and complaints procedure Economical 1) Regional Development initiative ($25m designed to accompany over 10yrs after opening) 2) Set up of local coordinators and in consultation with local community. ) Focus was improvement of local infrastructure in road and civil construction 4) Projects aimed at agriculture and attainment development Environmental 1) Environmental Investment Program (to ecological issues) chief executive officer Lord Browne appointed a Caspian Development Advisory Panel, which provided recommendations such as assembly of an external body to conduct periodic reviews.ASSESS THE APPROACH FROM A P ERSPECTIVE OF UTILIARIANISM AND DEONTOLOGY? According to utilitarianism,an action is honourablely right if it entrusts in the greatest amount of good for the greatest number of people affected by the action Based on cost? benefit abbreviation Rule utilitarianism * looks at classes of action and ask whether the underlying principles of an action produce more pleasure than pain for society in the long runStakeholder constitute Benefit BP and BTC & co * $25m +$20m programs * Opportunity cost * Failure of local actors * Subjected to a corrupt environment * Misuse of revenue * Complaints from locals * Good Reputation * destiny society * Compliance Financiers % of investments go to CSR * Mitigation of social development risks that would result to additional costs Communities Unfair treatmentHuman right abusesIssue of compensationLocal political divisions- 1 riptide feud * Financial investment in society and development projects * bodily structure in place for communication * First commercial strawberry spring up Government External involvement of governance * Investment for national development * Availability of resources Pressure Groups Alleged TortureHuman rights abuses * Raised awareness of internal administration Employees and Contractors Unfair treatment * Job Opportunities * Economic support Environment death and disturbance of the environment * Structure of a program to address issues Agencies and nongovernmental organizations Lack of credibility Public scrutiny * Displayed support from BP * increase involvement Work from a German philosopher Immanuel Kant who development a suppositional framework called categorical imperative. This meant that this framework applied to every moral issue regardless of who is involved. It is made out of three maxims which are 1) congruity throughout any situation ) Treat gentlemanity al guidances as an end and never as a means. 3) Universally acceptable These two theories introduce the issue of subjectivity due t o intellectual scrutiny. ASSESSMENT FROM RIGHTS AND JUSTICE. HOW DOES IT differ? Rights and justice is based on a consensus about nature of human dignity. It is objective in that it conceptualized on natural rights that certain basic, important, nontransferable entitlements that should be respected and valueed in every single action. In addition Ethics of justices means fair procedures and fair outcomes. A impingement of these rights means the approach is seen as unethical. BPs poor social and environmental assessment led to a display of lack of humility.SCOPE OF RESPONSIBILITY FOR MNC operate IN ENVIRONMENTS OF CORRUPTION AND POOR GOVERNANCE. How far should BP made be responsible? Arguments against The corporation should solely be accountable to its shareholders in order to protect investments. In support of this argument, Milton Friedman published an article titled, The social responsibility of melodic phrase is to increase its profits. Stating only humans have moral resp onsibilities, managers should act in interests of its shareholders and social issues and problems are for governments to handle. A nonher perspective is that of Archie Carrolls four-part model of CSR. Stating that CSR undersurface be met by going through each level consecutively. Arguments forCSR seems to be widely accepted because of enlightened self-interests. However, corporations are now perceived undertake a social actors, not only because of legislation but companies depone on the contribution of other parties. It now exists in a society. Thus, the origination of corporate citizenship, in which the company acknowledges an extended political role. Obtaining citizenship means entitlement of civil, social and political rights which are attached to responsibilities. Social rights (i. e. freedom to participate in society) BP provider / ignorer Civil rights (i. e. freedom from abuses) BP disabler/ enabler Political righs (i. e. right to participate in process of governance) BP c hanelling / blockingTransparency International Corruption Perception Index Year Turkey Azerbaijan Georgia 2002 64 95 85 2003 77 124 124 2006 60 cxxx 99 It can be argued that BP has fuelled the level of corruption as seen in the figures above. Therefore have to commit them to solving this social problem. What is the appropriate way for BP to respond to its on-going criticism? Virtue ethics Transparency Expose finding Protection Acts Auditing Body Discourse ethics Dialogue and Stakeholder Engagement legal Complaint Procedure eg. Response period Right to Information Systems in Place Land Ownership options Introduce this all over Azerbaijan not only Baku