Oil & Gas Industry: Overcoming Ethical Challenges in a Vast Domain - Essay Sample

Introduction

In most cases, the oil and gas industry operates in some of the most challenging environments, which at times, some ethical consideration are violated. Despite some challenges faced by these industries, they should as well be responsible for their operations as far as ethical issues are concerned. Business ethics covers the areas of moral principle and decision making, codes of conduct, and governance issues (Goel & Ramanathan, 2014). The oil and gas industry is massive and vast. Therefore clear rules must be drafted to govern its practices lest the people closely associated with these firms will suffer the consequences of unethical behaviors conducted by these firms.

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Over the years, oil and gas firms have engaged in unethical practices to gain undue benefits and profits. This issue has remained controversial with many studies indicating that vices such as; corruption, environmental degradation, poor working conditions of the workers, and human rights violation. Oil and gas firms operating in non-competitive industries are more likely to engage in such unethical practices (Gupta, 2017). In particular, developing countries need to review and formulate contemporary ethical codes of conduct that will apply to all oil and gas. This move will aid protect and promote the human rights and standards for sustainable development, and this responsibility lies in both the national government and the international community.

There are numerous instances in the corporate world of how huge business firms like the oil and gas firms have assumed responsibilities, disregarded ethics, and moral standards in their quest for wealth. This condition increases business risk due to the breaking of the laws and compromising with human rights and the degradation of the environment. This called upon codes of conducts to be put in place to prevent further violation of human rights, degradation of the environment and upheld moral behaviors in the corporate world. The codes of ethics which extensively means ethics of management are essential elemental instruments for integrating ethical principles and norms of ethics into day to day corporate practice (Raufflet Cruz & Bres, 2014).

Bribery and corruption are examples of the widespread unethical vices in the oil and gas industry. It has now become a concern. Some companies and company officials may not have meet recommended standards and equipment necessary for the operation of their business. They, therefore, opt for bribery and corruption a shortcut means to get things done and reap huge profits. Enforcement agencies are responding to the increasing pressure from the public and private sector' organizations to take steps to eliminate corruption and bribery by pursuing prosecutions and imposing sanctions (Goel & Ramanathan, 2014). Laws and policies should be formulated to subject severe penalties on companies violating the codes of conduct.

Oil and gas industries are also facing challenges within their working environments. Generally, the situations of the oil wells and refining centers have challenging working conditions. This means that the companies need to invest heavily in protective gears for the people working on such conditions to conform to the set standards and ethical issues. Some companies, more so in the developing nations, tend to assume that fact hence subjecting their workers to risk working conditions. Such environments are usually non-ethical and unfit as far as human rights are concerned. Therefore, it is of utmost importance to set codes of conduct that will represent such issues as since human rights are complex. It should be noted that strict ethical measure needs to be taken on such companies. Violation of human rights can put the workers and the communities adjacent to the company's operational base at a greater danger and risk their lives to a greater extent. Such actions should not be tolerated at any cost.

Over the years, unethical environmental behaviors by oil and gas companies were frequently reported over the media. Such environmental challenges raise stress, especially the dumping of petroleum waste products, leakages of crude oil, gas flaring, and the escape of other chemicals from the production processes. The governments and other environmental management agencies should establish laws for the protection of the environment from oil exploration. Furthermore, such laws should be made effective by terms of enforcement, implementation, and monitoring. The agencies should fully have accounted in overseeing the rules put into practice by the said agencies. This is evident in recent years. Numerous efforts from the oil and gas industries have been merged with the regulatory agencies, and have greatly reduced many environmental effects, though they have not eliminated them.

All the same, the issue of oil and gas companies acting ethically still needs much emphasis and continuous reminders to the companies. Recently the companies have been put under more pressure from activists, consumers, non-governmental organizations, and governments who are concerned about the impact of the unethical behaviors on the society. On the other hand, the oil and gas industries are continuing to grow, and these pose an increasing challenge to curb the rising unethical behaviors. Unethical business practices in the oil and gas industry will be repressed only if all the involved parties will embrace teamwork. More partnership and cooperation between the government and other law enforcing agencies is needed to curb this menace.

References

Goel, M., & Ramanathan, M. P. E. (2014). Business ethics and corporate social responsibility-is there a dividing line?. Procedia Economics and Finance, 11, 49-59.

Gupta, K. (2017). Are oil and gas firms more likely to engage in unethical practices than other firms?. Energy Policy, 100, 101-112.

Raufflet, E., Cruz, L. B., & Bres, L. (2014). An assessment of corporate social responsibility practices in the mining and oil and gas industries. Journal of Cleaner Production, 84, 256-270.