British Petroleum Corporate Strategy

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British Petroleum Strategy British Petroleum’s has stated its corporate strategy after 2006’s performance. According to the 2006 Annual Review (BP Annual Review, 2006), the corporate strategy can be summarized into four steps: a. Place the health and safety environment as an essential priority in the corporate and continue improving the three dimensions of safety (Personal safety, process safety, and the environment). b. To deliver and execute quality operations and projects in an ever complex business environment. c. Forming investments for the future, while also generating returns for shareholders. d. Increase response, sustainability, and diversity of energy by applying developments in science and engineering. BP’s top priority in its corporate strategy is the health and safety environment, this is also supported by the huge number of investments in this area, according to BP’s 2006 annual review, BP spent $7 billion to upgrade safety aspects and infrastructure in US refineries and Alaska respectively (BP Annual Review, 2006). BP has been criticized and put under pressure by critics regarding corporate social responsibility, as Mother Jones Magazine listed BP as one of ten worst corporations in 2001 regarding environmental and human rights issues (Mokhiber & Weissman, 2001). Such accidents cost BP millions of dollars and corporate’s image distortion. For example, in 1999 BP paid approximately $22 million as charges in relation to illegal dumping of hazardous waste in Alaska (EPA, 1999). BP’s ‘Green’ image is supported in its corporate strategy as they follow proved technologies to enhance productivity with less impact on environment. According to BP’s 2006 annual review, 1.2 million tonnes of greenhouse gas reductions have been delivered in a number of projects during 2006. In 2005, the BP Alternative Energy was

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