Btc Pipeline: Turkish Delight or Russian Roulette?

INTRODUCTION Baku-Tbilisi-Ceyhan (BTC) production line is an oil pipeline that transports crude oil Caspian Sea to the Turkish coast, over three countries. BTC Company is a joint venture company responsible for the construction and operation of the whole $4bn pipeline, led by BP as majority shareholder. Spread across Azerbaijan, Georgia and Turkey largest cross-b couch infrastructure construction project in the instauration dubbed the contract of the century. Financing was agreed after over two years of appraisal of the electric potential environmental and hearty impacts relating to the project.An underlying strategy is to reduce dependency on OPEC oil producers in the stung Middle East and to avoid Russia seen by America as a resurgent superpower. Aside from verificatory benefits Georgia and Turkey gain financial benefits through transit fees and Azerbaijan through the royalties and tax tax revenues, However, BTC co. encountered several social and environmental figures durin g the construction of the 1768km pipeline. Limited routing options meant encountering geo-hazard risks, potential harm and flounce of communities and natural habitat, temporary land acquisition, revenue management and a volatile political environment.Thus this project received intense scrutiny by stakeholders and closet for its lack in humility and effectiveness in resolving political, social, growingal and security concerns. THE OBJECTIVE/GOALS Stakeholder map. A visual mapping of parties that affect or about affected by an organization, strategy and in this fount a project. Helps us identify the expectations and power of different stakeholders, this understand what ethical issues dilemmas are to be unsounded and resolved. METHOD / FRAMEWORK FOR ANALYSIS We have chosen a normative approach (what should be done) for our outline as opposed to a descriptive approach (how it is done).Generate solutions that enforce behaviorally standards as we already have expand evidence showi ng how it is done. Moral absolutism will be used by clearing stating what is proper(a) and wrong which be rationally determined in order to come up with a common applicable solution. This helps us come up with an objective stand-point on the subject. There will be interrogatory of traditional ethical theories such as consequentialist and non-consequentialist approaches and stakeholder theories and new age concepts namely, corporate citizenship to help us absolve our absolute perspective in solving the ethical dilemmas.THE MAIN ISSUES AND DILEMMAS BP FACE IN THIS CASE semipolitical instability Pipeline Security Human Right Abuses Corruption Poor governance High expectations from local anaesthetic community Environmental Risks and Risk Assessment Intense scrutiny by pressure groups and media Land encyclopedism and Land Compensation HOW WOULD YOU EVALUATE BPS APPROACH TO SOCIAL, ENVIRONMENTAL AND ECONOMIC IMPACTS OF THE PROJECT FOR THE LOCAL residential area? BP set up a Region al Sustainability Development program (RSDP) to proactively address issues. Social 1) Community enthronement Program ($20m addressed to social issues)-in Azerbaijan set with largely international groups-in Turkey with local Turkish organizationswith universities and semiprivate consultants firmsBP set up a monitoring and complaints procedure Economical 1) Regional Development Initiative ($25m intentional to accompany over 10yrs after opening) 2) Set up of local coordinators and in consultation with local community. ) cogitate was improvement of local infrastructure in road and civil construction 4) Projects aimed at agriculture and acquirement development Environmental 1) Environmental Investment Program (to ecological issues) CEO Lord Browne institute a Caspian Development Advisory Panel, which provided recommendations such as assembly of an external body to conduct weekly reviews.ASSESS THE APPROACH FROM A PERSPECTIVE OF UTILIARIANISM AND DEONTOLOGY? According to utilitari anism,an action is morally right if it results in the greatest fall of good for the greatest number of people affected by the action Based on address? benefit analysis 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 Cost Benefit BP and BTC & co * $25m +$20m programs * Opportunity toll * Failure of local actors * Subjected to a corrupt environment * Misuse of revenue * Complaints from locals * Good Reputation * fate society * Compliance Financiers % of investments go to CSR * Mitigation of social development risks that would result to additional costs Communities below the belt treatmentHuman right abusesIssue of compensationLocal political divisions- 1 blood feud * Financial investment in society and development projects * Structure in place for communication * First commercial strawberry farm Government foreign involvement of governance * Investment for national development * Availability of resources Pressure Groups Alleged TortureHuman rights abuses * Raised awareness of internal politics Employees and Contractors Un modal(a) treatment * Job Opportunities * Economic support Environment Destruction and disturbance of the environment * Structure of a program to address issues Agencies and NGOs Lack of credibility exoteric scrutiny * Displayed support from BP * Increased involvement Work from a German philosopher Immanuel Kant who development a hypothetic framework called categorical imperative. This meant that this framework applied to every moral issue regardless of who is involved. It is make out of three maxims which are 1) Consistency throughout any situation ) Treat humanity unendingly as an end and never as a means. 3) Universally acceptable These two theories introduce the issue of subjectivity due to intellectual scrutiny. ASSESSMENT FROM RIGHTS AND JUSTICE. HOW DOES IT DIFFER? Rights and justice is based on a con sensus about nature of human dignity. It is objective in that it conceptualized on natural rights that certain basic, important, unalienable entitlements that should be respected and protected in every single action. In addition Ethics of justices means fair procedures and fair outcomes. A violation 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 OPERATING IN ENVIRONMENTS OF CORRUPTION AND unequal 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 business is to increase its profits. Stating totally humans have moral responsibilities, managers should act in interests of its shareholders and social issues and problems are for governments to ha ndle. Another perspective is that of Archie Carrolls four-part model of CSR. Stating that CSR can be met by going through each level consecutively. Arguments forCSR seems to be wide accepted because of enlightened self-interests. However, corporations are now perceived assume a social actors, not whole because of legislation but companies rely 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 inclined to responsibilities. Social rights (i. e. freedom to go into 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 chanelling / blockingTransparency International Corruption Perception Index Year Turkey Azerbaijan Georgia 2002 64 95 85 2003 77 124 124 2006 60 130 99 It can be argued that BP has fuelled the level of putrescence as seen in the figures above. Therefore have to commit them to solving this social problem. What is the appropriate way for BP to react to its on-going criticism? Virtue morality Transparency Expose finding Protection Acts Auditing Body Discourse ethics Dialogue and Stakeholder Engagement Effective Complaint Procedure eg. Response period Right to Information Systems in Place Land Ownership options Introduce this all over Azerbaijan not only Baku