CSR SWOT Analysis
After a thorough examination into BP’s numerous strategies, further analysis into the company’s strengths, weaknesses, opportunities, and threats (SWOT) provides an overall performance level regarding the outcomes of their CSR and sustainability goals. Drag and Zimnol (2014) stipulated a SWOT analysis can provide structure to the internal and external factors affecting the company’s current and future outlooks. Additionally, a SWOT analysis can generate context regarding the company’s current relationship with the environment, which can portray the ways to both reduce environmental impact and regenerate damaged communities (Drag & Zimnol, 2014). Therefore, evidence suggests that although BP displays admirable strengths capable …show more content…
For instance, Griffin (2015) stated that BP’s comments regarding the dramatically improved environmental health within their report on sustainability are highly disputed and labeled as premature observations by environmentalists. Additionally, their lack of presence within numerous sustainability indices since the oil spill reflects a lack of confidence in their sustainability initiatives from external organizations. Moreover, BP’s continued depletion of natural resources and greenhouse gas emissions continue to portray the characteristics of an environmentally irresponsible company. Despite the fact profits are essential to a company’s long-term success and funding of both social and environmental initiatives, the utilization of freshwater reserves within nations that have scarce access remains highly controversial. While BP states only 18% of freshwater withdrawals are in communities where water scarcity is present, no tangible evidence regarding the improvement of these statistics is mentioned except for the company’s support of water risk research and water treatment investments (BP, 2015e). In addition, BP’s commitment to improve operational efficiency by decreasing greenhouse gas emissions played only a minute …show more content…
The findings of the examination expose the company’s potential to create long-term sustainable growth and their ability to create shareholder value. Yet, considering the nature of the oil industry and the negative connotations associated with their environmentally damaging practices, it remains difficult to determine the amount of CSR and sustainability performance required to be labelled socially responsible. In addition to the decreases in oil prices and global demand, an increased awareness of fossil fuel damage and trend towards alternative energy denotes the immense hurdles and threats oil companies are forced to overcome. Therefore, BP’s alignment of their internal strategies to their CSR and sustainability initiatives indicates their capability to successfully overcome these issues and remain one of the world’s most profitable companies. On one hand, BP’s presence in numerous sustainability indices before the Gulf of Mexico oil spill signifies the company’s capability of becoming an industry leader in sustainability. Additionally, their responsiveness and ensuing costly improvements to their internal processes following the event signify a recognition of responsibility and admirable level of CSR legitimacy. Furthermore, their commitment towards enhancing local
After a thorough examination into BP’s numerous strategies, further analysis into the company’s strengths, weaknesses, opportunities, and threats (SWOT) provides an overall performance level regarding the outcomes of their CSR and sustainability goals. Drag and Zimnol (2014) stipulated a SWOT analysis can provide structure to the internal and external factors affecting the company’s current and future outlooks. Additionally, a SWOT analysis can generate context regarding the company’s current relationship with the environment, which can portray the ways to both reduce environmental impact and regenerate damaged communities (Drag & Zimnol, 2014). Therefore, evidence suggests that although BP displays admirable strengths capable …show more content…
For instance, Griffin (2015) stated that BP’s comments regarding the dramatically improved environmental health within their report on sustainability are highly disputed and labeled as premature observations by environmentalists. Additionally, their lack of presence within numerous sustainability indices since the oil spill reflects a lack of confidence in their sustainability initiatives from external organizations. Moreover, BP’s continued depletion of natural resources and greenhouse gas emissions continue to portray the characteristics of an environmentally irresponsible company. Despite the fact profits are essential to a company’s long-term success and funding of both social and environmental initiatives, the utilization of freshwater reserves within nations that have scarce access remains highly controversial. While BP states only 18% of freshwater withdrawals are in communities where water scarcity is present, no tangible evidence regarding the improvement of these statistics is mentioned except for the company’s support of water risk research and water treatment investments (BP, 2015e). In addition, BP’s commitment to improve operational efficiency by decreasing greenhouse gas emissions played only a minute …show more content…
The findings of the examination expose the company’s potential to create long-term sustainable growth and their ability to create shareholder value. Yet, considering the nature of the oil industry and the negative connotations associated with their environmentally damaging practices, it remains difficult to determine the amount of CSR and sustainability performance required to be labelled socially responsible. In addition to the decreases in oil prices and global demand, an increased awareness of fossil fuel damage and trend towards alternative energy denotes the immense hurdles and threats oil companies are forced to overcome. Therefore, BP’s alignment of their internal strategies to their CSR and sustainability initiatives indicates their capability to successfully overcome these issues and remain one of the world’s most profitable companies. On one hand, BP’s presence in numerous sustainability indices before the Gulf of Mexico oil spill signifies the company’s capability of becoming an industry leader in sustainability. Additionally, their responsiveness and ensuing costly improvements to their internal processes following the event signify a recognition of responsibility and admirable level of CSR legitimacy. Furthermore, their commitment towards enhancing local