Essay on System Thinking and Constraint Management Approach

Economically companies profits are measured by the consumption of its goods by its consumers where balancing profit and measuring policies that affect its management help the company run more efficiently (Shireman, 1999). Abraxas Petroleum Corporation is a publicly traded independent exploration and production company founded in 1977 and based in San Antonio, Texas. The company follows a strict operational policy accepted by its board that has utilized system thinking to a significant level to have a greater social impact in the community it operates around. As an oil and gas company, its policies in the production line and work environment have been able to reduce effects on the environment and allow for racial and cultural diversity. There are environmental reclamation and rehabilitation programs in the areas it does exploration and mining that lead to protection of the Rocky Mountains, wetlands, rivers and basins as well as fiscal measures such as cover against pollution liability meant to hedge against environmental risks. It has adopted policies that provide equal opportunities in all aspects of employment, protection against discrimination of any kind which promotes diversity and racial inclusion in its workplace. ("Code of Business Conduct and Ethics - Abraxas Petroleum Corporation", 2017)

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Shiremans system approach has worked for Abraxas since it is able to access a wider and more diversified pool of human resource irrespective of race and gender in and around the community it operates in, and in doing so, has been able to bring a sense of community and inclusion for the people that work and live in such areas. Goals and performance measures are needed by a company to evaluate itself, and thus get possible actions and assumptions to help guide the company. (Krogh, 1987) In its exploration and production activities that could have led to degradation and pollution of the environment are inclusive of programs that protect, rehabilitate and beautify the environment and thus maintain and increase ecological diversity in the Mountains and basins it is exploring for gas and oil. It is also covered for environmental risks and liabilities such as spillage and has adopted that technology that reduces emissions, recycles wastes which could have led to pollution of the environment. Hedging against such risks that would also have led to huge losses and the new technology it now uses in its operations have reduced operational costs, all lead to increased profits for Abraxas

In the current business climate, just a few corporations have been able to adopt and integrate systems thinking as proposed by Shireman, but should more companies be included, in addition to having a greater social and economic impact for the communities they operate around, they would also play the crucial part in protecting the environment and maintain ecological diversity existing in their areas of operations and yet be still able to reduce costs, increase earnings and make more profits.

Reference.

Shireman, W. (1999). Business strategies for sustainable profits: systems thinking in practice. Systems Research And Behavioral Science, 16(5), 453-462. http://dx.doi.org/10.1002/(sici)1099-1743(199909/10)16:5<453::aid-sres336>3.3.co;2-0

Code of Business Conduct and Ethics - Abraxas Petroleum Corporation. (2017). Abraxaspetroleum.com.

Retrieved 26 February 2017, from http://www.abraxaspetroleum.com/about-code-business-ethics.aspx

Krogh, F. (1987). Making hard constraints soft. ACM SIGNUM Newsletter, 22(1), 11-11. http://dx.doi.org/10.1145/24680.24683