BUSINESS ENVIRONMENT Assignment 1

A BUSINESS ENVIRONMENT REPORT FOR BRITISH PETROLEUM IN
VIETNAM

Prepared for: Lecturer, Mr. Jubred A. Peñano
The unit 4: Business Enviroment
The Banking Academy

Prepared by:
Phạm Hải Yến - Alice
Student No: F05-261. Class: F05A
No of words: 8890
Submission date: 23 November, 2012


Phạm Hải Yến – Alice

Executive summary

After joining the WTO, Vietnam expanded integration with other countries in the region and
the world. As a developing country, Vietnam offers many opportunities for multinational
companies to invest in Vietnam. BP - the world leading oil and gas company - is one of them.
Founded in 1908, today BP operations in over 100 countries around the world, with 29 facilities
exploration and exploitation of oil and gas, 17 oil facilities with a total staff of up to 92,000
people. Before, BP had oilrigs in Ba Ria Vung Tau, in 2009, after the oil spill. BP had to sell
50% stake to TNK. Their business now Vietnam is focused on the production and distribution
of lubricants through Castrol BP Petco. The purpose of this report is providing some
information about BP and their operations in the world and in Vietnam. Furthermore, it also
focuses on the economic environment in Vietnam that influences BP’s business.

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Phạm Hải Yến – Alice

Contents

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List of table

List of figure

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Introduction

The economic growth of Vietnam has increased markedly in recent time. Besides that, Vietnam
is also a potential market with the unlimited demand. After joining WTO in 2007, Vietnam has
more incentive policies to attract foreign companies investing in Vietnam. BP came to Vietnam
in 1989 and after 23 years, BP has some particular achievements in Vietnam that meets their
worldwide purpose.
The aim of the report is to show the vision, mission, value, goals, and objectives of BP
worldwide and how it meets them in Vietnam. Then, writer indicated the influenced of
stakeholders in BP and how BP satisfies them. Following this, the responsibilities of BP in
Vietnam and in the world is described. In the second part, the writer gave information about the
economic system and the allocation resources in Vietnam. Last but not least, the impact of

fiscal, competition policy and competition policy on BP was evaluated.
Source of information comes from the course book BBP Learning Media and Internet.
This report still has shortcomings because the limited knowledge and experience of writer, the
language barriers.

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Phạm Hải Yến – Alice

1.1 Identify the purposes of different types of organization:

1.1.1 Type of organization:
The legal structure of a business decides the way it operates. There are three types of
organization, which are sole trader, partnership, company.
According to case study (BRITISH PETROLEUM, UK – PUBLIC LIMITED
COMPANY , 2012), BP is a multinational public limited company whichcompany, which is
owned by a large number of investors from all over the world. They have more than 83,000
employees in 70 countries. Their upstream and midstream are active in 30 countries.
Additionally, BP is FTSE 100 listed on London Stock exchange with the ticker BP PLC
(Londonstockexchange, 2012). Therefore, its shares can be acquired by anyone. When buying
shares from a public company, shareholders are not responsible for company’s debts or
liabilities so they only possible lose all money that they pay for shares. The more shares they
hold, the more power they have. They also receive dividends according to number of shares.
The dividend paid to shareholders in 2011 was $4,072.
1.1.2

The vision, mission, goals, values and objectives of BP:

a. Vision, mission, goals, values and objectives of BP:

Vision:
“To be a stronger and safer company”. (BP, 2012)

Mission:
“To deliver energy to the world, to be held to high standards in what they do and
to be a safety leader in their industry, a world-class operator, a good corporate
citizen and a great employer” (BP, n.d.)

Goals:

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Phạm Hải Yến – Alice
“No accidents, no harm to people and no damage to environment” (BP, 2012)
Value:
“Safety, respect, excellent, courage, one team” (BP, 2012)
Objectives:
“To create value for shareholder by helping to meet the world’s growing energy
needs safely and responsibly”. (BP, 2012)
b. Explanation:
- The vision of BP is brief, clear and concise. It describes what company intends to be in
the future. In each period, company can change it vision to be suitable with the situations at that
time. For example, Lord John Brown (1995) set his vision in restructuring BP and making it to
become one of the most profitable companies in the world (Energy intelligence, n.d.). However,
at that time, British Petroleum was considered as one of the worst companies related to
environment. Therefore, when Tony Hayward replaced the former CEO, he set out his vision
includes intensifying safety efforts, improving performance and adhering “even more strongly
to BP values” (McNulty, 2007). In 2012, because of the consequences of the oil spill in the
Gulf of Mexico happening in 2010, the vision of BP focus on change the bad image in public’s

eye and want to be considered as a safe and strong company. With this vision like that, the
management system of company must be concentrated on safety. Furthermore, employees of
company have to put the safety of themselves and their colleagues on the top. The employees
also determine to contribute to make BP stronger.
- The mission of BP is specific, focused and easily to understood. BP's mission focuses on the
need of customers. They understand that energy is essential for everyone, every process and
everywhere for heat, light and mobility. Therefore, they provide energy products such as fuel,
which are affordable, secure, and does not damage to the environment. Their main strength is
oil and gas. They also supply renewable energy sources. Their target market of BP is the whole
world. It is a big market that needs a lot of effort to carry out. Besides, BP put a high standard
for them to operate to be the leader in the industry. This also requires a great performance from
their workers to meet the world standard, Moreover, BP continues to aim to be safer so it is
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related to the vision. In the mission, British Petroleum also shows their concerns to the
community, environment that they run in.
- The goal of British Petroleum is short and concise. There is three clear parts in the goal.
The first one is “No accidents” for their employees. They committed to ensure the safety, the
security and health of their people. The next one is for the safety of community. The final one is
the commitments to the protection of environment. To achieve this goal, BP runs their business
compliance with HSSE system (Health, safety, security and the environment).
- The value of BP is detailed. It is also the environment that company runs, the interaction of
the boss and the attitudes for customers. BP set its value with 5 elements as follow:
 Safety: They want to create a safe working environment for their worker. They also care about
the safety of the communities around company. Their product must meet the safe requirements.


Respect: All of their operations follow the respect. They respect the community so their

performance must be ethical and trustable. They respect the world in which they operate so they obey the laws and
regulations. They respect their partners and their employees’ thought. Finally, they respect the environment by
caring about their decisions’ consequences.

 Excellent: Because of the hard conditions, BP’s operations are following the system and
disciplined. They are willing to learn and do not mind to correct mistakes.
 Courage: They are not afraid of difficulty and dare to express what they believe. BP wants to be
creative and ready for asking for help. They accept their own mistake and want the feedback from other to improve
them because they want to run the business lastingly.

 One team: They try to run a unified whole. They put the benefit and success of company ahead.
Firstly, their success comes from safety and excellent. They put safety on the top and try
to protect employees and the community. They also make effort to protect the environment
where they work. Furthermore, because of the hard conditions, British Petroleum’s employees
must be excellent and follow the discipline. They are always willing to learn and correct the
mistake. Secondly, their behaviors base on how they respect each other and are they courage to
do the right thing? Every one trusts each other. The basic of equality is respecting people’s
right and no discriminations. Everybody is protected by laws. Most importantly, they work as a
team. The strength of company contains individual capability.
- The objective of BP is to pass several milestones by setting a 10- point plan for 2012 and to
have greater financial investments in 2013 – 2014:

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Three of their objectives (BP, n.d.) are:
 Drilling 12 exploration wells double the 2011 total in 2012.
Specific: Carry out to explore more wells.
Measurable: 12 exploration wells double 2011

Attainable: attainable by implementing their main projects in Angola, Gulf of Mexico and
the North Sea
Results – oriented: to find more energy
Time – bounded: in 2012
 Completing payments into the Deepwater Horizon oil spin trust.
Specific: pay compensation money for the oil spill.
Measurable: No specific number
Attainable: by selling business or earn more revenue
Results – oriented: to earn back the trust and show the responsibilities
Time – bounded: 2012
 Completion of $38 billion divestment programme by the end of 2013.
Specific: to reduce the capital
Measurable: $38 billion
Attainable: selling business
Results – oriented: to have capital for other programme
Time – bounded: 2013
c. Summary:
In summary, BP is a multinational published company which operating in oil and gas
field. All of their vision, mission, goals, values and objects are based on three priorities of
safety, earning back trust and growing value for shareholders.
With the first priorities, BP sets their mission to be a safer company. Their mission
also related to safety when they want to be a safety leader in their industry. To
implementing these vision and mission, their goal direct to the safety of their employees
and the communities that they operate in.
The second priority shows clearly in the value of company. To earn back trust, they
must show their respect to other people. Their performance must be ethical and trustable.
They also have to be courage to accept their mistake and fix it. Additionally, they need to
show the responsibility by completing the payment for the oil disaster.
The last priority can be seen in the vision “to be a stronger company”. To make it
come true, BP has set several objectives to earn more profit such as explore more wells,

carry out some major project.
As a part of BP worldwide, BP in Vietnam has been following the vision, mission,
goal, value and objectives. BP arrived Vietnam in 1989 and after 23 years investing in
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Vietnam, their operations focus on exploring and exploiting oil, gas; producing and
consuming lubricants, crude oil. They also contribute to Vietnamese power industry.
In recent years, BP in Vietnam has implementing some business activities to meet the
BP worldwide purpose.
BP creates a safety working environment for their workers. They prohibited all the
illegal behavior or activities that are hostile, fighting and doing harm with each other. To
protect workers in drilling platforms, BP put safety instructions everywhere. Workers
have to follow the strict rule and wear protective clothing.
Additionally, they have many programs to protect and conserve environment. For
example, they have program to train their staff how to minimize, recycle and reuse waste.
They also helped to replant 20-hecta of trees for the environment conservation.
Moreover, they also earn trust of customers in Vietnam by producing and supply
high quality products and good services. Their products have been accredited ISO 9001
quality standard. Beside this, their image in Vietnam is good when they contribute to the
social education or social heath. BP cooperated with UK's Foreign and Commonwealth
Office and Leeds University to award scholarships for Vietnamese student and
government employees. In 2012, they sponsored 1 billion VND for cancer patients.
However, in 2010, BP sold its assets in Vietnam and Venezuela to TNK – BP (a
Russia‘s third largest oil company). It was a part of BP objectives to earn $38 billion
divestment and have money to pay for the oil spill.
In conclusion, all of activities of BP in Vietnam are not separated from their
worldwide purpose.

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1.2 Describe the extent to which an organization meets the objectives of different
stakeholders:
1.2.1 Overview of stakeholders and stakeholders mapping:
Stakeholders are individuals or groups who have an interest in how the enterprise
performs because it affects them in some ways – that is they have a stake in the organization.
(BBP Learning Media, 2010)
There are three broad types of stakeholders: Internal stakeholders, connected
stakeholders and external stakeholders.
Each stakeholder has different influence and interest in the company. The purpose of
stakeholders mapping is to identify the impact of stakeholders on the company.
Interest/aspirations

Low
Power/influence
High

Low

High

Minimal effort

Keep informed

Keep satisfied

Key players

Figure 1: Stakeholders mapping (BBP Learning Media, 2010)

 “Minimal effort” stakeholders have low influence and low interest. It is expended in
this segment
 “Keep informed” stakeholders are who have high interest but low influence. Their
views can affect more powerful stakeholders.
 “Keep satisfied” stakeholders have low interest but high power. They must be treated
with care.
 “Key players” have high power and high influence. The strategy must be acceptable
with them. (BBP Learning media, 2010).

1.2.2 The influence of stakeholders:
Types

Stakeholders

Stakeholders mapping
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1. Internal
stakeholders
2. Connected
stakeholders
3. External

stakeholders

a. Management
b. Employees
a. Suppliers
b. Shareholders
c. Customers
d. Bankers
a. Community
b. Government

Key

Keep

Keep

Minimal

players


satisfied

informed

effort










Table 1 Thethe influence of stakeholders

1. Internal player:
a. Management – key player:
Management plays an important part in the company. First of all,
management is the person who makes decision. Each of their decision influences directly on
every aspect of the company and staffs at all levels. A good decision can lead to the success of
company. However, the bad decision may push the company to bankruptcy and other terrible
consequences. For example, Mr. Hayward, the former CEO of BP had to leave BP because of
his missteps. His mistakes made an oil disaster in the Gulf of Mexico which destroyed
ecosystems in Horizon and killed 11 people (BBC, 2011). Secondly, the leader style may
decide the success of company. A positive organization culture can encourage creativity and
innovation which is necessary to employees’ satisfaction and productivity. It is very important
for company. Last but not least, the manager cares a lot about company. A responsible leader is
the person who can understand that all business operations belong to them. In BP, there are
more than 83,000 people. Therefore, CEO has to be responsible for the jobs of them.
b. Employee – Keep informed:
BP has more than 83 million employees in over 70 countries with different ages.

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Figure 2 BP employees by region

Figure 3 BP employees by ages

Source from (BP, 2011)
Employees are the necessary part of company; however, their influence is quite
low. They do not have any power to make decision, just follow the guide of manager and get
the job done. On the other hand, employees have high interest in the company. Employees are
interested in the success and growth of the company. If the company went bankruptcy, they
would lose their job. Additionally, they care about their wages, their salary, their satisfaction,
security. BP takes the job of managing their employees seriously by training them, providing
safety working environment, promoting their strength. BP keeps their employee informed and
engaged by internal communications channels such as employee survey, targeted email or face
to face communications and so on. For example, BP conducted the 2011 survey to understand
the levels of employee engagement and identified where to improve. The survey includes 10
questions asking about the satisfaction of employee and showed that their employees
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understand BP standards and procedures. (BP, 2011). The below chart give information about
employee satisfaction index:

Figure 4 The employee satisfaction index

Source from (BP, 2011)
2. Connected stakeholders:
a. Suppliers – minimal efforts:
Because BP’s materials directly comes from their work in exploring and exploiting
oil, gas, suppliers seems not be important for BP. Therefore, suppliers have a low influence on

BP. However, the price and the quality of materials can affect the price and quality of products.
If suppliers put the price high, the price of products must increases. If the quality of materials is
bad, it affects the quality of products. On the other hand, supplier has low interest in the
company. They only care about the quantity and the price that they would gain.
b. Shareholders – keep satisfied:
Shareholders do not care much about the company. The only thing they care is the
dividend they have. In BP, shareholders have two options to receive dividend: by cash or by
scrip dividend program. On the other hand, shareholders impactaffect strongly on business’s
operations. They are the ones who invest money in BP. Although they do not have power to
make decision but their influence is strong. If they do not invest money anymore, perhaps the
company cannot operate. Therefore, BP needs to communicate with investors by providing
information through annual report or sustainability review or through BP’s websites

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www.BP.com. BP also holds the roadshow for shareholders sending feedback to the company
and host investors briefing sessions and webcasts.
c. Customers – Keep satisfied:
Customers are one of the key points of any company. A business can live without
customers. Thus, customers have a strong influence on company. Customers’ choice can affect
the direction of the company. BP said that “Our customers’ satisfaction with our products and
awareness of the BP brand are key indicators of whether we are going in the right direction as a
group.” (BP, 2012), When the bargaining power of customers is high, BP has to sell their
products at any cost. If products cannot be sold, there is no revenue, following this, no profits.
Therefore, BP needs to satisfy customers and meet the demand. BP communicates with
customers through interviews, surveys, feedback tools or marketing programs and so on. The
feedback of customers is important because it points at what BP need to improve. On the other
hand, their interest in company is low because they just care about their need, want. If they do

not find them in BP’s product, they will buy from competitors.
d. Bankers – Key players:
Bankers play an important part in BP because they lend BP money for investment
in projects. They also care about BP’s business because they want to make sure that BP is able
to pay back the money. Therefore, before borrowing money, BP needs to send all the
information about projects and their ability to pay back the money. Banks depend on that to
decide whether they lend them or not.
3. External stakeholders:
a. Community – keep satisfied:
Every operation of BP impact directly or indirectly on the community around them.
This impact can be positive or negative. Therefore, community cares about what BP does and
the impact of it. Community has high impact on BP. If community sees that BP’s operation
impact negatively on them, they can force and make them stop working. Therefore, BP has to
care about the community. In Vietnam, BP had done a lot of work to satisfy the community.
When first coming to Vietnam, BP talked to the local community what they intended to do in
Vietnam to have the right to run their business.
b. Government – key player:

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BP is a multinational company so it runs in many different countries. Each country
has a range of policies that BP must follow if they want to run there. Company must care about
the monetary policies, fiscal policies that have in Vietnam such as the cooperate tax, VAT or
the exchange rate. Government makes policy for company to follow. On the other hand,
government also pays attention about what company contributes to the economy, society, their
business legal or illegal. For example, BP created jobs for many people so it helped to reduce
the unemployment rate.
1.2.3 The extent to which an organization achieves the objectives of three

stakeholders:
Types

Stakeholders

Internal
stakeholder
s
Connected
stakeholder
s
External
stakeholder
s

1. Employees a.
b.
c.
2. Shareholdera.
s
b.
c.
3. Governmenta.
b.
c.

Objectives
Training and developing
Job security
High salary

Dividend
Increase profits
Continuation of business
Protect environment
Reduce unemployment rate
Social campaigns

Achieved

Not
achieved











Table 2 Stakeholders’ objectives

1. Employees:
a. Training and developing – achieved:
There are many programs for training and developing employees in BP. BP focuses
on equip employees at any levels skills that they needed. BP has Operations Academy for
senior management in Massachusetts Institute. There are also engineering course and project
management training in University of Manchester, UK. 11,800 managers, superiors, technicians

attended in Operations Essentials programme to train about the process of safety and managers
for front line leaders. Furthermore, there are also 35,000 ELearning modules (BP, 2010).
According to that, BP aims to build capabilities of its employees.
b. Job security – achieved:
Being a multinational company with 83,400 employees, BP takes job security
seriously. In 2006, Dan Sajkowski, BP Whiting Refinery Manager and Vice President of BP
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Phạm Hải Yến – Alice
Products North America Inc., invested $3 billion to expected creates jobs for approximately
2,500 workers and 60 to 80 permanent full-time employees. (BP, 2006).
c. High salary - achieved:
The average salary of BP employees is around £55,000 per yer. This is a high salary
compared with other companies. The bar chart gives information about the average salary in
each function:

Figure 5 average salary in BP

Source from (PayScale, 2012)
2. Shareholders:
a. Dividends – Achieved:
In the third quarter of 2012, the quarterly dividends for shareholders increases by
12, 5% to a 9c a share. Although, in 2011, BP lost profits, in 2012 with the strong process, the
right management, BP can increase the dividend again. It is dividend payment in September
2012:

Figure 6 Dividend payment

Source from (BP, 2012)

b. Increase profits – achieved:
According to annual report (BP, 2012), Total revenues and other income in 2012
was $388,463, increasing in profit of $79, 535 and $142,325 in 2010 and 2009 respectively.
Therefore, the profits also rise following revenue. In 2010, because of the oil disasters, BP lost
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profits of $3,324 and shareholders lost $ 3,719. However, in 2011, BP earns profits of 26,097
and shareholders earn $25,700.
c. Continuation of business– achieved:
With the increase in profits and revenue, there is no doubt that BP continues to
grow in the future. Therefore, shareholders no need to worry about this.
3. Government:
a. Protect environment – not achieved:
Deepwater Horizon was considered as the biggest oil spin in the world so far. More
than 19 million to 39 million gallons of crude oil leaked from the oil rig of BP in the Gulf of
Mexico spreading out, threatening the mangrove ecosystem of Louisiana, along the Gulf of
Mexico. Furthermore, 11 worked died in this disasters. This oil spill lasted 87 days with an
estimated volume of oil to 4.9 million barrels. The consequence of this disaster affect was huge.
Thousands of birds, fishes, trees were destroyed. Commercial services, local industry was
stagnant. People were threatening health and life. BP had to pay over $40 billion for this
disaster.

Picture 1 Oil spill in Mexico Gulf

b. Reduce unemployment rate – achieved:
The number of workers in BP is over 83,000 people. This contributed to reduce the
unemployment rate in many countries. BP continues to create jobs for many other people all
over the world. It also raises the living standards for many people.

c. Social campaigns – archived:
In 2010, BP spend $115,2 million (BP, 2012) to do social and community
campaigns. It is divided into different countries:

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Figure 7 Money spend on social campaigns

All of these money for building business skills, supporting education and other
community needs. There are also programs Analysis of Resource – Rich Economies to teach
countries use their resources of oil and gas for successful development and Voluntary Principles
Security and Human Right..
In summary, BP has different stakeholders with different interest and influence. “Key
players” group includes: management, bankers and government. “Keep satisfied” group
contains: shareholders, customers and community. “Keep informed” group consists of
employees and the rest is suppliers belonging to “minimal effort” each stakeholder have a
range of objectives.

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1.3 Explain the legal responsibilities of the BP and strategies employed to meet objectives
of stakeholders:
1. Social

a.

Specific responsibility
Create jobs for residents

responsibility

b. Social education
2. Environmental

c. Social welfare
d. Prevent pollution and the impact

responsibility

3. Ethnics and
business

e.

Protect environment

f.

Environment conservation

g. Obey the law
h. Transparency in operations
i. Protect health and safety for
employees

4. Management

j. Ensure staff development

Strategies employed to meet them
Provide a large number of jobs for local
force, especially in Ba Ria Vung Tau and
neighborhoods.
Open international training program in Da
Nang
Do charity
Determine the impact of operations
Understand how its effects
Implement environment programmers.
Plant trees, establish a national marine
environment center and conserve Cuc
Phuong National Park.
Paying tax regularly
Public statement of operations
Forbid illegal behaviors.
Provide health service.
Providing training course for staffs

responsibility

k. Meet customers’ expectations
l. Engage with the local community

Ensure about the quality and safety of

products.
Talk to local community

in Hochiminh City in Vietnam.

5. Public relations
and corporate
image

m. Build up a good corporate image
n. Social media
o. Protect the rights of employees

“Beyond Petroleum”
Build and develop public relation department
Applying HSSE

Table 3 the legal responsibilities of the BP

1. Social responsibility:
A lot of companies understand that doing business not only earn profits for themselves
but also enrich for country. They earn money from society so they need to be responsible for
the community and environment in which they operate. Moreover, doing charity is a good way
to build the image of organization. Therefore, BP has been investing in the development of
Vietnam.

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a. Creating jobs for residents:
Since coming to Vietnam, British Petroleum has provided many jobs with different
positions to the local force in Ba Ria Vung Tau and other provinces in Vietnam. Those jobs
have brought stable salary to help residents be survival. It shows the responsibility to society
when reducing the unemployment rate, raising the standards of living.
b. Social Education:
BP cooperated with Danang University to open a training program about modern
accounting and business skills. This business management course was named in memory
Marcel Loos – the first person to find the potential Danang gas field. Both of subjects are
critical to Vietnam economics. Furthermore, they also awarded scholarships for Vietnamese
people to study in the UK. BP worked with Leeds University and spent about $620,000 in order
to train Vietnamese government’s employees and students.
c. Social welfare:
In 2012, British Petroleum sponsored 1billions VND for cancer patients to help them
operated before too late. In the past, BP also donated US$ 300,000 to buy equipment for
provincial hospital. In 2004, it gave 75 million VND to the Red Cross to help the victims of
floods in the Central Vietnam. BP's charities have helped a lot of the poor overcome their
difficulties. When people have better income, the market for BP expands. These charities also
help Vietnamese government solve the immediate problem.

2. Environmental responsibility (Tung, 2007):
As mentioning in the vision to become a safer company, British Petroleum takes
environmental responsibility seriously. BP in Vietnam does many things to implement their
goals” No harm to environment”.
d. Prevent pollution and impact:
Firstly, Nam Con Son Pipelines (NCSP) wanted to understand what the impact of their
activities on environment according to their routine operations, abnormal operations and
emergency events. They made a list of their operations, which can affect environment and then
identify how these impact directly and indirectly. Following this, NCSP evaluate how important

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their impacts are to help them manage the influence. Their managing process includes
operational controls, specific objectives and quantifiable targets and investigation or research.
With this process, NCSP gained many achievements such as a reduction of CO2/GHS of 20%
compared to 2004. It means that they reduce the factors caused climate change. Therefore, this
process is effective.
e.

Protect environment:
During 2006, NCSP supported many environment programs. The first program was

training their staff about environment. NCSP also train them how to minimize, recycle and
reuse waste. For example, in order to reducing waste paper, they encourage to print both sides,
use electronic document. Another one was encouraging over 14,000 children in this area to be
aware of the importance of protecting environment by grating waste bins to 12 schools and
providing information through Quiz and posters. All of the above programs contributed to
change bad behaviors about environment.
f.

Environment conservation:
NCSP helped to replant 20-hectare site of fruit trees on Con Dao Island and around the

city. They also cooperated with the Ministry of Agriculture and Rural Development and Fauna
and Flora International to conserve Cuc Phuong National Park where thousands of endangered
species live and survive. Additionally, they supported to found a national marine environment
center. It is significant effort of BP to conserve Vietnam resources.

3. Ethnic and business responsibility:
A company wants to be sustainable unless its operations have to comply with business
ethnics, ethnical principles and moral problems happening.
g.

Obey the law:
British Petroleum always pays tax on time. According to annual reports, the taxation

rate of British Petroleum raises year by year. Thus, there is no tax evasion. BP understand that
paying tax is the right and obligation of each business.

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h. Transparency in operations:
BP publishes their operations and financial of statements. All of this information will
help the shareholders making right decisions to invest or not. Furthermore, with the
development of Internet, if the activities are not transparent and obvious, the public especially
customers may misunderstand about the company and create conditions for competitors make
rumors.
i.

Protect health and safety for employees:
In Castrol BP Petco, all of illegal behaviors are forbidden. BP prohibits activities,

which are hostile, fighting or doing harm to employees. BP wants to make a safe environment
for their employees. Furthermore, British Petroleum also cares about the health of their
employees because they believe that healthy employees can be more productive. In the first day
of work, employees can have a premier health care coverage. The service consists of medical,

dental, prescription drug. They also try to reduce the occupational risks such as infection
disease, fatigue or stress.
4. Management responsibility:
j.

Ensure staff development:
British Petroleum realizes the benefit when their employees continue to grow and

develop. Therefore, it offers education and training programs for staffs build relevant skills. Mr
Tô Vỹ Hùng (n.d) – Director of Finance and Control BP Vietnam - said that the training and
developing programs in BP is excellent. All of the employees have opportunity to enhance
professional skills and English because BP wants to replace foreign staffs into Vietnamese
staffs in the future. Thus, CEO BP Vietnam creates maximum conditions and provides
unconditional fund for employees to study in the best training center. For example, all of
accountants are encouraged to study ACCA (the Association of Chartered Certified
Accountants) at FTMs.
k. Meet customers’ expectations:
With the advanced technology, all products of Castrol BP Petco meet international
standards. Furthermore, before selling out the markets, BP strictly checks the quality of product

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to ensure the maximum requirements. Moreover, Petco also do research and constantly
innovate products to produce the most superior products. Castrol goods achieve the ISO 9002
quality certificate. Therefore, more and more customers choose to use.
l. Engage with the local community in Ho Chi Minh City in Vietnam:
When they intended to invest in Vietnam, one of the main things they had to do first was
to talk to the local community. Therefore, they could understand the outside impacts on their

work. When running in Vietnam, their operating management system requires the engagement
between BP and communities. British Petroleum talks to local stakeholders through mass media
communications, public meeting or workshops to receive the feedback from them how its
activities affect the public, negative or positive.
5. Public relations and corporate image
m. Build up a corporate image:
Before creating “beyond petroleum”, BP was considered one of worst organization
related to the environment and rated as causing the most pollution in US. This affected and
damaged the image of company. In 2000, with “beyond petroleum” strategy, the image of BP
connected with the continuous innovation and eco-environment. Thanks to that, BP's image
improved in customers’ mind and the profits increased markedly. Thus, a good corporate brings
BP customers loyalty.
n. Social media:
The social media is not effective if company do not communicate well. British
Petroleum communicates not only by advertisements on TV or newspaper but they also create a
website, blog, Facebook pages or Twitter account. Therefore, their PR professionals are
required to have knowledge of technology. BP also pays attention to develop PR department
because the company service, sales and image depend much on PR department.
o. Protect the rights of employees:
Employees are the people who directly make profit for company. If the rights of
employees are not guaranteed, business is ineffective. Therefore, BP focuses on HSSE policy
(health, safety, security and environment). Their success in a big market like Vietnam is due to
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applying good business strategies and especially aiming to the health, safety and security of
their staffs.
All in all, BP has a lot of strategies to show their responsibility of management, social,
environment, public relations and corporate image, business and ethnics.

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