Business Environments Assignment Organizations in Their Environment

BTEC HND IN BUSINESS (FINANCE)
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Trần Quyết Thắng - Joe
F05-194
Unit 1: Business Environment
Organizations in Their Environment
1 of 2
Jubred A. Peñano
February 25, 2013

I, ___________Trần Quyết Thắng - Joe_______________ hereby confirm that this assignment is my
own work and not copied or plagiarized from any source. I have referenced the sources from which
information is obtained by me for this assignment.

________________________________

Signature

_ February 25, 2013_

Date

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FOR OFFICIAL USE
Assignment Received By:

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Unit Outcomes
Evidence for the

Outcome

Feedback

criteria

Assessor’s

Internal

Decision

Verification

First

Re-

attempt

work

Identify the purposes of
different

types

1.1

of

organization

Understand
the
organizational
purposes

of

business

Describe the extent to
which

an

organization

1.2

meets the objectives of
different stakeholders

LO1
Explain

the

responsibilities

of

organization

an
1.3

and

strategies employed to
meet them

Explain how economic
systems

attempt

allocate

Understand

to

2.1

resources

effectively

the nature of
the

national

Assess the impact of

environment in

fiscal

and

monetary

which

policy

on

business

businesses

organizations and their

operates

2.2

activities
Evaluate the impact of

LO2

competition policy and
other
mechanisms

regulatory
on

2.3

the

activities of a selected
organization
Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

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Outcome

Evidence for the

Feedback

criteria

Assessor’s

Internal

Decision

Verification

First

Re-

attempt

work

Assignment
( ) Well-structured; Reference is done properly / should be done (if any)
Overall, you’ve

Areas for improvement:

ASSESSOR SIGNATURE

DATE

/

/

DATE

/

/

NAME: ..........................................................................................

(Oral feedback was also provided)
STUDENT SIGNATURE

NAME : .............................................................................
FOR INTERNAL USE ONLY
VERIFIED

YES

NO

DATE

: ...........................................................................

VERIFIED BY : ...........................................................................
NAME

: ...........................................................................

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BP p.l.c in Vietnam business Environment

Title Page

Prepared for: Professor Jubred A. Peñano
Business Environment
Organizations in Their Environment
Banking Academy, Hanoi

Submitted on November 20, 2012

Prepared by: Trần Quyết Thắng (Joe)
Class: F05-B
Registration No.: ITP- F05 - 194

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BP p.l.c in Vietnam business Environment

Executive summary

This report aims to find out the Vietnam business environment which affects the running
business of BP p.l.c. Besides, this report also finds out the influence of stakeholder to the
activities of BP p.l.c.
The find shows three types of stakeholder and their objectives to BP p.l.c. additionally, this
report presents the position of each kind of stakeholder and its influence to BP p.l.c.
furthermore, and the ways which BP p.l.c meets stakeholders‟ objectives are indicated. The
Vietnam policies and laws are also introduced such as fiscal and monetary policy, welfare
policy, competition policy…
It is clear that BP p.l.c has tried too much to meet the stakeholders‟ objectives but there are
still some sections that BP p.l.c cannot get them done. Therefore, BP p.l.c has to change the
plans and strategies to make them suitable to Vietnam business environment so that BP p.l.c
could grow well.

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Table of Contents
Evidence for the criteria...................................................................................................................... ii
Title Page ................................................................................................................................................. i
Executive summary ................................................................................................................................. ii
Introduction ............................................................................................................................................ 1
1.

Background ................................................................................................................................. 1

2.

Aims ............................................................................................................................................ 1

3.

Scope ........................................................................................................................................... 1

This research focuses on the Vietnam business environment in recently and the influence to the
activities of BP p.l.c. ........................................................................................................................... 1
Outcome 1.1: Identify the purposes of different types of organization................................................. 2
1.1.1.

The BP Global..................................................................................................................... 2

1.1.1.1.

The legal structure of BP ............................................................................................ 2

1.1.1.2.

The vision statement of BP p.l.c ................................................................................. 2

1.1.1.3.

The mission statement of BP p.l.c............................................................................... 2

1.1.1.4.

The goals of BP p.l.c ................................................................................................... 2

1.1.1.5.

The objectives of BP p.l.c ........................................................................................... 2

1.1.1.6.

The values of BP p.l.c ................................................................................................. 3

1.1.2.

The comments about the vision, mission, goals, objectives and values of BP p.l.c............ 3

1.1.2.1.

The vision of BP p.l.c.................................................................................................. 3

1.1.2.2.

The mission of BP p.l.c ............................................................................................... 3

1.1.2.3.

The goals of BP p.l.c ................................................................................................... 4

1.1.2.4.

The objective of BP p.l.c ............................................................................................. 4

1.1.3.

BP Vietnam .......................................................................................................................... 4

Outcome 1.2: Describe the extent to which an organization meets the objectives of different
stakeholders ............................................................................................................................................ 5
1.2.1.

The position of stakeholders............................................................................................... 5

1.2.1.1.

Key players ................................................................................................................. 6

1.2.1.2.

Keep satisfied .............................................................................................................. 6

1.2.1.3.

Keep informed............................................................................................................. 7

1.2.1.4.

Minimal effect ............................................................................................................. 7

1.2.2.

Evaluation of extent to which BP p.l.c has satisfied their stakeholders .............................. 8

1.2.2.1.

Internal stakeholder – Managers ................................................................................. 8

1.2.2.2.

Connected stakeholders – Shareholders .................................................................... 11

1.2.2.3.

Connected stakeholders - Local authorities .............................................................. 12

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Outcome 1.3: Explain the responsibilities of an organization and strategies employed to meet them
.............................................................................................................................................................. 13
1.3.1.

The social responsibilities ................................................................................................. 15

1.3.1.1.

Helping the community around the projects of BP p.l.c ........................................... 15

1.3.1.2.

Investing for students ................................................................................................ 15

1.3.1.3.

BP p.l.c works with the well-known organization .................................................... 15

1.3.2.

The environment responsibilities ...................................................................................... 15

1.3.2.1.

Reducing the pollution .............................................................................................. 15

1.3.2.2.

Improving the environment ....................................................................................... 16

1.3.2.3.

Protect the resources ................................................................................................. 16

1.3.3.

Ethics and business ........................................................................................................... 16

1.3.3.1.

Providing the good working conditions for employees ............................................ 16

1.3.3.2.

Providing support to help employees ........................................................................ 17

1.3.3.3.

Treating people fairly, with dignity and giving everyone equal opportunities ......... 17

1.3.4.

Management responsibilities............................................................................................. 18

1.3.4.1.

Having policies for retirement, redundancies… ....................................................... 18

1.3.4.2.

Responsibilities for competitors................................................................................ 18

1.3.4.3.

Providing the safe working condition for employees................................................ 18

1.3.5.

Public relations and corporation image ............................................................................. 18

1.3.5.1.

The position of BP p.l.c in the world ........................................................................ 18

1.3.5.2.

A good company ....................................................................................................... 18

1.3.5.3.

Corporation image..................................................................................................... 18

Outcome 2.1: Explain how economic systems attempt to allocate and make effective use of
resources available within the country................................................................................................. 19
2.1.1.

The definition of economic system ................................................................................... 19

2.1.2.

The types of economic systems ........................................................................................ 19

2.1.3.

Vietnam economic system ................................................................................................ 19

2.1.4.

The way Vietnam allocate and make effective use of resources within the country ........ 20

2.1.5.

The influence to BP p.l.c ................................................................................................... 20

2.1.6.

The effects of Vietnam economic system to BP p.l.c ....................................................... 21

Outcome 2.2: Evaluate the impact of competition policy and other regulatory mechanisms on the
activities of a selected organization ..................................................................................................... 22
2.2.1.
The definition of macroeconomic policy ( fiscal and monetary policy) ... Error! Bookmark
not defined.
2.2.2.
The impact of fiscal and monetary policy on vietnam economic ....... Error! Bookmark not
defined.
2.2.3.

The situation of Vietnam fiscal and monetary policy ....................................................... 22

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2.2.4.

The effect of global economy ........................................................................................... 23

Outcome 2.3: Evaluate the impact of competition policy and other regulatory mechanisms on the
activities of a selected organization ..................................................................................................... 24
2.3.1.

The Vietnam industry policy............................................................................................. 24

2.3.2.

The social welfare policy .................................................................................................. 24

2.3.3.

The effect of the interest group and the pressure group .................................................... 25

2.3.3.1.

Interest group ............................................................................................................ 25

2.3.3.2.

Pressure group ........................................................................................................... 25

Conclusion ............................................................................................................................................. 26
Reference .............................................................................................................................................. 27

Table 1: The stakeholder mapping of BP P.L.C ........................................................................ 5
Table 2: The satisfactions of stakeholders ................................................................................. 8
Table 3: The responsibilities of BP P.L.C ............................................................................... 14
Figure 1: The salaries of BP P.L.C‟s managers ......................................................................... 9
Figure 2: The share price of BP P.L.C ..................................................................................... 11
Figure 3: Green gas emission ................................................................................................... 16
Figure 4: The percentage of women in BP P.L.C .................................................................... 18
Figure 5: CPI growth rate of Vietnam ..................................................................................... 23
Figure 6: GDP growth rates in advanced countries ................. Error! Bookmark not defined.
Figure 7: The unemployment rate in advanced countries ........ Error! Bookmark not defined.

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Introduction
1. Background
BP p.l.c has been in Vietnam market for a long time. It brings many good ideas for
developing in Vietnam. There are many factors which affect the development of BP p.l.c in
Vietnam and the business environment in Vietnam also is different from others which BP
p.l.c has projects. However, Vietnam has been a member of WTO and it brings numerous of
attractive and supportive policies for foreign companies including BP p.l.c. Additionally, the
global economy has huge influence to the policies of Vietnam.
2. Aims
The purpose of this research is to review the BP p.l.c‟s stakeholders and how their objectives
affect BP p.l.c. Moreover, it also dedicates the Vietnam policies and laws which BP p.l.c has
to comply with.
3.

Scope

This research focuses on the Vietnam business environment in recently and the influence to
the activities of BP p.l.c.

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Outcome 1.1: Identify the purposes of different types of
organization
1.1.1. The BP Global
1.1.1.1.The legal structure of BP
BP is a public limited company. It means that BP can issue shares to the general public and
have the limited liability. Therefore, BP p.l.c has been owed by their shareholders.
Additionally, with the limited liability, it is very attractive for investors because they do not
have to be provided further capital like their houses, cars, lands… to pay company debts.
1.1.1.2.The vision statement of BP p.l.c
The vision of BP p.l.c is: “BP p.l.c wants to become a good company.”
1.1.1.3.The mission statement of BP p.l.c
“BP is making choices – value over volume, strategic assets over non-core, and new
opportunities over mature assets. We aim to build an ever stronger portfolio, upstream and
downstream, generating enough cash both to invest for the future and to reward those who
invest in us. We have made a strong start on our portfolio, we‟re building the cash generation
and, with today‟s announcement, we have begun to provide those rewards.”
1.1.1.4.The goals of BP p.l.c
In 2012, BP expects to pass several milestones as it implements its 10-point plan. In addition,
BP p.l.c wants to increase dividend to delight the shareholders, create the safety working
condition for the employees and produce the fuel that does not harm or damage the
environment…
1.1.1.5.The objectives of BP p.l.c
In 2013 and 2014, as investment continues, BP expects to see greater financial momentum.
Main developments are planned to include:


Increasing exploration activity – up to 25 exploration wells per year.



A further nine major upstream projects - making 15 between 2012 and 2014.



Unit operating cash margins from new upstream projects in 2014 expected to be double
the 2011 average (assuming a constant $100 per barrel oil price and excluding TNK-BP).



Whiting refinery upgrade expected on-stream in second half of 2013.



Completion of $38 billion divestment program by the end of 2013.



High value, focused portfolio that plays to BP‟s strengths.



Around 50% more annual operating cash flow by 2014 compared with 2011.

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

BP expects to use around half of this extra cash for increased investment and around half
for other purposes, including increased distributions to shareholders.
1.1.1.6.The values of BP p.l.c
BP has set out five values which express our shared understanding of what we believe,
how we aim to behave and what we aspire to be as an organization.



Safety



Respect



Excellence



Courage



One team
(BP p.l.c, 2012)

1.1.2. The comments about the vision, mission, goals, objectives and values of BP p.l.c
1.1.2.1.The vision of BP p.l.c
BP p.l.c is an oil company, since expanded into an energy company. A good company could
simply means legal compliance. Making profits and keeping the laws is an important goal of
business. However it seems to be irresponsible because there are many things around
business and they are affected by the business working process. Thus companies need to
promote human progress, regardless of profit. This is the reason that companies have nonprofit projects. Therefore, BP p.l.c has many plans to assure the life of people both around
their projects and wherever needs the help.


In energy: the company not only focuses on meeting demand for energy but also do this
in a way that is sustainable for the environment and addresses concerns over security of
supply as well.



In consumer goods and sector: creating products that helps to alleviate poverty and
bring the development to low-income communities.
1.1.2.2.The mission of BP p.l.c

BP p.l.c plans to attract the stronger portfolio to expand the scale of company. It wants to
make more profit to finance for the future strategies and satisfy those who invest in BP p.l.c.
This also is the yardstick to evaluate the plans. The mission statement is an announcement of
BP p.l.c to society in order to prove the abilities to supply products and services to customers.

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1.1.2.3.The goals of BP p.l.c
Like other companies, BP p.l.c also gives the specific goals to achieve the mission and
respond the requirements of those who involve to company. Moreover, goals are divided into
short-term goals and long-term goals so that BP p.l.c can conduct the various plans to run
business effectively. These goals not only are understandable but also separate the demands
for the different groups of stakeholder.
1.1.2.4.The objective of BP p.l.c
The objectives are set out more specific the goals of BP p.l.c and the aims of objectives are to
be achieved and the desired end results. Additionally, objectives could be used as standards
for measuring the performance of the organization and departments. The important factors
that create efficient objectives are specificity, measurability, attainability, realistic and timebounded. If not meet these factors, objectives are not planed because it can cause wasting or
excess resources.
1.1.3.

BP Vietnam

BP Vietnam is trying to become a good company like the vision of BP Global. BP Vietnam
has followed the Vietnamese laws. Besides, BP p.l.c Vietnam has had many non-profit
programs to help community since arriving in Vietnam in 1989.
Oil is the important fuel for the life. People cannot live without it because there are many
useful machines that are run by petrol such as cars, motorbikes, and the equipment of
factories. Furthermore, oil is used to produce electricity. BP p.l.c has a huge market and good
position in Vietnam market. Therefore, to attract the investors is not difficult for BP Vietnam
and with strong portfolio BP can make more profit and satisfy stakeholder.
One main reason for the development of BP Vietnam, there are several oil and gas fields
which centralize in the South Vietnam Sea with numerous reserves. Thus, Vietnam is a
potential market for BP p.l.c. Additionally, Vietnam joined WTO in 2007 so there are many

goodwill policies for foreign company like BP p.l.c.
BP p.l.c also applies its value to Vietnam so as to supply a safety condition for the employees
and encourage them work hard. There are various training programs to train Vietnam
managers and employees. These programs help managers have the right decisions and
employees improve their skills to reduce the risk.
In general, Vietnam has many resources and good conditions for the growth of BP p.l.c.

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Outcome 1.2: Describe the extent to which an organization
meets the objectives of different stakeholders
Stakeholders are individuals or groups who have an interest in the operations and objectives
of the business. All organization affect and are affected by different stakeholders. Each
stakeholder has the other needs about the performance of organizations. Therefore, each kind
of stakeholder has various aspirations and influences. There are three broad types of
stakeholder in an organization including internal stakeholders, connected stakeholders and
external stakeholders.
1.2.1.

The position of stakeholders

Stakeholders have very different degrees of power to control decisions that have effects on
policies and institutions, and they have different degrees of „potential‟ to contribute or
„importance‟, to achieving a particular objective (Course book). Stakeholder mapping will
illustrate the specific positions of each stakeholder.

Table 1: The stakeholder mapping of BP P.L.C
Stakeholder mapping
Types

Stakeholders

Key

Keep

Keep

Minimal

players satisfied informed effect

Internal
stakeholders

Connected
stakeholders



Managers



Employees

Shareholders



Customers




Suppliers

Community



Government



Local authorities



External
stakeholders

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1.2.1.1.Key players
a. Shareholders
Shareholders affect directly the activities of BP p.l.c. they not only invest their money but
also have the right vote for the important decisions of company. For example, an ordinary
resolution is passed by the shareholders if a simple majority of the shareholders present at the
meeting vote in favor of the proposal. Moreover, a shareholder can require a general meeting
to be called rather than simply have all decisions made through written resolutions.
Therefore, BP p.l.c has to building the reasonable plans to make them satisfied and inject
more money for activities of BP p.l.c. Besides, if BP p.l.c could develop and make more
profit, the shareholders would receive more dividends.

b. Customers
Customers have the important roles in the development of organizations and BP p.l.c is no
exception. In addition, one of purpose of business is to create customers so customers will
determine the growth of business. Customers consume the BP‟s products and services so BP
p.l.c needs to have the strategy marketing to find out what they need and satisfy them.
1.2.1.2.Keep satisfied
a. Managers
Managers are stakeholders who have a high influence on the BP p.l.c‟s projects and a
high interest in the success or failure of these projects. Furthermore, managers are people
who will affect others. For example, in the plans managers make decisions and the staffs
follow. If managers have the right choices, the companies could have more profit.
Besides, managers are people who have to understand the workers to motivate and
encourage them get job done. Managers directly discover what the strengths of each
employee and suggest the work that suit to them. If employees work efficiently, the
productivity and output will increase. This is the success for BP p.l.c.

b. Community, government, local authorities
BP p.l.c has to find out whatever the local communities need to provide and rely on it BP
can give services, products and other goods. Furthermore, the community cares about the
influence of BP p.l.c to environment so it has to have projects and strategies to protect
environment. Additionally, BP p.l.c has to comply with the laws which government
builds to ensure that company not harm or damage the environment, customers‟ safety
and the stable price of goods or services. BP p.l.c may be received penalties or fees if it

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does not act ethically or properly if company does not act ethically and properly respond
to consumer issues in the business environment.
1.2.1.3.Keep informed
a. Employee
Employees are a key part of every company and play an important role. They do not have
much power to make decisions about what BP p.l.c do, what BP p.l.c invest where BP
p.l.c expands… but they intimately work to produce goods or services. BP employees
usually work far from the family. For instance, Vietnam employees have to work at
drillings on the sea. Thus, BP p.l.c brings many benefits for employees to help them feel
comfortable.

b. Suppliers
Suppliers play a vital role in BP p.l.c‟s micro environment. The growth and the vision of
an organization depend on the value that suppliers can bring. Therefore, suppliers have
more interest from BP p.l.c but they cannot give the opinions or views about the plans,

the development strategies of BP p.l.c.
1.2.1.4.Minimal effect
Each stakeholder has a specific role in the development of organization and BP p.l.c‟s
stakeholders are no exception. The influence of various groups of stakeholder is very
different. Consequently, no one has minimal effect.

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1.2.2. Evaluation of extent to which BP p.l.c has satisfied their stakeholders
The satisfactions which stakeholders receive can be presented in this below table.
Table 2: The satisfactions of stakeholders
Types

of

stakeholders

Stakeholders

Objectives

Achieved



High salary

Internal
stakeholder

Skill
Managers

Not achieved



development
Rewards to the



business
performance
Increase



dividend
Connected
stakeholder

Shareholder

Possible capital

growth



Company‟s



growth
Not

harm

to



environment
External

Local

stakeholder

authorities

Follow laws



Bring more jobs



1.2.2.1.Internal stakeholder – Managers
a. High salaries
Managers are so intimately connected with BP p.l.c, their objectives are likely to have a
strong and immediately influence on how BP p.l.c is run. Therefore, BP p.l.c has a lot of
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policies to treat them and make them more innovative to have good decisions. These right
ways that managers choose could help BP p.l.c produce efficiently.
BP p.l.c‟s wages are calculated to fascinate and retain the highest quality employees to
help BP p.l.c keep their success as a business and to encourage employees to continually
develop their skills and enhance their contribution. BP p.l.c ensures that managers could
earn the reasonable salaries. Besides, BP p.l.c has the bonus for individuals or groups
performance. It motivates managers to work hard to obtain goals of company. It means
BP p.l.c could get more profit than expect. This table below shows the salaries of BP
p.l.c‟s managers.

(Source: />Figure 1: The salaries of BP P.L.C’s managers

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b. Skill development
BP p.l.c run a series of development programs called Managing Essentials to help our line
managers build their leadership capabilities and encourage the desired behaviors within
their teams. Each program has a specific function. BP p.l.c wants to provide for
managers a suit of courses to help them improve the skills, behavior, attitude, etc. these
programs introduce them practical tools, frameworks and access to a network of peers.
With the supports, managers could understand the purposes of courses. For example, they
are:


Management Foundations – which enables first-level managers to develop the
key skills needed in leadership roles and to understand key aspects of health,
safety, security and the environment; finance; risk; and employment law.



Effective Performance Conversations – which helps managers to have clear and
constructive discussions with staff about their performance (BP p.l.c, n.d)

Additionally, BP p.l.c offers a range of technical training programs to make the programs
becomes easier for managers. For instance, technical development in finance is supported
through a dedicated resource called the BP Financial University, providing formal and
informal learning for everyone from new joiners to our senior chief financial officers. The
curriculum extends from the disciplines of accounting, reporting and financial control,
through strategic planning and performance management, and on to commercial programs
designed to support business development and growth. (BP p.l.c, n.d). It means that BP

p.l.c has a careful prepare for these courses. With practicing more and more, BP p.l.c„s
managers could deal with any real problems.

c. Rewards to business performance
BP p.l.c has some rewards for the business performance. Managers will be entitled to the
following allowances:
 13th month payment
 Transportation allowance
 Vacation allowance
 Christmas allowance
 Lunch allowance
 Housing Loan

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For example, BP Angola helps employees build long-term financial stability by assisting
with the purchase or construction of a house. We‟ll facilitate access to a bank loan and
help finance repayments.
1.2.2.2.Connected stakeholders – Shareholders
a. Increase dividend
Their prime interest is a return on their investment, whether in short or long terms.
Because shareholders own the business, this is a commercial organization‟s prime
objective. BP p.l.c is no exception. BP p.l.c has to pay dividend to the shareholders
regularly. BP today announced a 14 per cent increase in its quarterly dividend – to 8 cents
per share for the fourth quarter of 2011 (BP p.l.c, 2011). This chart below illustrates the

share prices of BP p.l.c for 6 months in 2012.

(Source:
/>Figure 2: The share price of BP P.L.C
b. Possible capital growth
With the trust about the development of BP p.l.c, the shareholders may invest more so
company could expand scale and market. The fact that operating cash flow generated by
BP in 2011 reaching some $22bn – over 60 per cent higher than in 2010 (BP p.l.c, 2011).
It predicts about the development of BP p.l.c in the future.
c. Company‟s growth

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BP p.l.c has six major upstream projects in higher unit operating cash margin areas.
Momentum will continue through 2013 and 2014 as BP plans to bring a further nine
projects into production (BP p.l.c, 2011). It shows that BP p.l.c has the good chances to
expand the business with the amount of investments. BP p.l.c has to build the plans to
make company become stronger and have a firm markets around the world.
1.2.2.3.Connected stakeholders - Local authorities
a. Not harm to environment
The activities of BP plc have many influences to the society and environment so the
community wants BP plc to have the responsibilities to protect environment. However,
sometime the accidents still happened. On the evening of April 20, 2010, a serious
incident occurred in Gulf of Mexico. First, it impacts the living condition of species of
fish and other species because oil has a lot of toxic. Further, the collection of oil spill is

very difficult because oil is lighter than water and it can spread the surface of sea. At this
time, BP plc donated $22 million from the net revenue of sale oil recovered from the spill
to the US Nation Fish and Wildlife Foundation (NFWF) to improve sea turtle hatching
success (BP plc, n.d). Next, the economics of Mexico also need to be restored. Following
the affecting environment, people who live in Gulf of Mexico cannot capture fisheries so
they do not have money for consuming. Because of it, the economy cannot develop.

b. Follow laws
BP plc has sat on billions of barrels of proven reserves because BP p.l.c has an oil
pipeline crossing three countries: Georgia, Turkey and Azerbaijan. Each country has the
different laws and policies such as taxation policies, some requirements to protect the
local businesses, etc. in addition, the legal requirements of the government would ensure
that BP plc does not harm the environment or affect people.

c. Bring more jobs
BP plc runs business with many operations around the world. BP plc has various
investments to the countries that it has partners to give something back to the community
like funds to build schools, hospitals, help poor children... Besides, BP plc also brings
jobs to local people, give them the chances to find a reasonable working. With more jobs,
the unemployment rate would be reduced so it is very good for the development of local.

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Outcome 1.3: Explain the responsibilities of an
organization and strategies employed to meet them

Organizations are the part of human society so they need to have responsibilities to follow the
rules, take care of employees, protect environment, help people, etc. The responsibilities of
an organization include social responsibilities, environment responsibilities, ethics and
business, management responsibilities, and public relations and corporation image.
Furthermore, management responsibilities seem to be the first responsibilities that BP plc and
other organizations need to implement because businesses would not be run if not having
right management.
By conducting these responsibilities, BP p.l.c could attract customers using its products and
get the help from government. This table below will show the responsibilities of BP p.l.c in
business and community.

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Table 3: The responsibilities of BP P.L.C
Specific

Social

responsibilities

of Strategies employed to meet the

organization

responsibilities

Helping the community

Investing more than US$6 million

responsibilities

in

community

projects

across

Vietnam
Investing for students

Providing over US$620,000 in
sponsoring Vietnamese students

Working

with

well-known Supporting Save the Children's

organizations

Poverty Alleviation and Nutrition

Program

Environment

Reducing the pollution

Decrease the release of emission

responsibilities Improving the environment

Reducing energy consumption

Protect the resources

Declining

volumes

of

non-

hazardous waste disposal
Ethics and
business

Providing

the

good

working Empower employees

conditions for employees
Providing

support

to

help Having OpenTalk program

employees
Treating people fairly, with dignity Providing the jobs for people,
and

giving

everyone

equal including women,

opportunities
Management

Having policies for retirement, Have many plans to help the life of

responsibilities redundancies…

retirement and redundancies people

Responsibilities to competitors

Maybe share their learning about
new technologies, systems and
equipment

Providing

the

safe

working Training employees carefully

condition for employees
Public

The position of BP p.l.c in the BP p.l.c has a high rank in the

relations and

world

world

corporation

A good company

Having some charity programs

Corporation image

The large non-state owned energy

image

company

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1.3.1. The social responsibilities
1.3.1.1.Helping the community around the projects of BP p.l.c
BP p.l.c has many non-profit programs to help community. BP has invested more than
US$6 million in community projects across Vietnam, with particular focus in Ba Ria
Vung Tau Province where the oil and gas fields are exploited. Community is also the
customers so if customers are not satisfied, BP p.l.c will get troubles.
1.3.1.2.Investing for students
BP p.l.c help with the training for Vietnam's government employees and students, has
provided over US$620,000 in sponsoring Vietnamese students to pursue graduate studies
in the UK. Students are the future of each country so if country has high education
students; there will be many good employees. BP p.l.c is an energy company so the
technologies are very important but to use the technological equipment effectively, BP

Vietnam need high quality workers. This is one main reason explain why BP p.l.c focuses
on educating students.
1.3.1.3.BP p.l.c works with the well-known organization
One way that BP p.l.c use to help people is to donate the funds for the charitable
organization. BP Vietnam has worked with Save the Children's Poverty Alleviation and
Nutrition Program and assisted over one-million people in 13 provinces across Vietnam
(BP plc, 2000).
1.3.2. The environment responsibilities
1.3.2.1.Reducing the pollution
BP p.l.c has released a huge number of emissions like CO2, NOx…All of them can destroy the
environment and harm people living condition. Therefore, customers will deny consuming
the products of BP p.l.c. To protect the environment, BP plc direct GHG emissions were 61.8
million tons (Mt) in 2011, compared with 64.9Mt in 2010. This chart below will show the
data about the emission reduce of BP p.l.c.

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(Source: BP p.l.c, 2011)

Figure 3: Green gas emission
1.3.2.2.Improving the environment
BP p.l.c does many things to improve the environment. One of them is reduce the energy
use. First of all, it helps BP p.l.c cut down the costs of producing. Next, it is the good way
to protect environment.
1.3.2.3.Protect the resources

The volumes of non-hazardous waste disposal decreased from approximately
861thousand tons in 2010 to 550 thousand tons in 2011. It is reasonable because the
resources are limited. Besides, the expense for producers will be decreased.

1.3.3. Ethics and business
1.3.3.1.Providing the good working conditions for employees
The employees work in different conditions so BP p.l.c has to provide the good
environment to ensure employees work efficiently. To make it easily for employees, BP
p.l.c has empowered its employees to give them the abilities to make decisions about
working. If they realize that the working conditions are not dangerous and not safe,
employees can stop working.

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1.3.3.2.Providing support to help employees
BP p.l.c has created the programs to support its employees. OpenTalking program is the
popular program for BP p.l.c‟s employees. If they have any problems, employees can
contact to OpenTalking program – an independent corporation from BP p.l.c. Therefore,
employees do not worry about the retaliation of other employees, managers or top
headers.
1.3.3.3.Treating people fairly, with dignity and giving everyone equal opportunities
Now all companies hire employees based on the abilities of workers so women are not
exception. Therefore, BP p.l.c also does that to make people believe the company and use
its goods and services. It is one of the goals of BP p.l.c - increasing the number of women
on the board to three by 2013 and to work towards 25% representation by 2015 (BP p.l.c,

2011).

(Source: BP p.l.c, 2011)

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