The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu


Wednesday, August 24, 2016

Strategic CSR - Welcome back!

 
Welcome back to the Strategic CSR Newsletter!
The first CSR Newsletter of the Fall semester is below.
As always, your comments and ideas are welcome.
 
 
The Newsletters this semester begin with the article in the url below, which contains a stunning number that emerged over the summer:
 
"BP PLC said its costs from the deadly 2010 Gulf of Mexico oil spill would rise by an additional $5.2 billion and ultimately cost $61.6 billion to put one of the worst environmental disasters in U.S. history behind it."
 
Acting according to the expectations of stakeholders is a surprisingly difficult message to convey to large corporations. But, if there is ever a compelling argument to focus on building an ethical organizational culture that encourages investment in the short-term in order to create broad-based value over the medium to long-term, BP would seem to be it:
 
"The British oil giant said on Thursday the pretax charge for its second quarter likely would be the last from the Deepwater Horizon accident to have a 'material impact' on its financial performance, signaling an end to six years of mounting costs that humbled one of the world's largest energy companies."
 
To put this number of $61.6 billion into some kind of context:
 
"BP's costs are much larger than the fines levied on individual banks involved in the subprime mortgage crisis last decade or the 1989 Exxon-Valdez spill, which cost the U.S. company $4.3 billion."
 
The graphic accompanying the article (https://si.wsj.net/public/resources/images/BT-AJ867_BP_16U_20160714181507.jpg) compares BP's penalty to those of other firms that caused environmental disasters in the US. While these fines are not inflation-adjusted, the contrast remains striking:
 
- Three Mile Island (1979): $1 billion
- Hudson River PCB contamination (1970s): $1.6 billion
- Exxon-Valdez oil spill (1989): $4.3 billion
- Deepwater Horizon oil spill (2010): $61.6 billion
 
Hope you all have a good semester.
David
 
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler4e
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/


BP's Gulf-spill Tab Hits $62 Billion
By Michael Amon and Tapan Panchal
July 15, 2016
The Wall Street Journal
Late Edition – Final
B3