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Corporate Responsibility and the Oil Spill

Wednesday, Jun. 30, 2010

Kirk Hanson, Center executive director, reviews cases that defne" why business ethics and corporate responsibility need to be a constant concern" in an article that appeared in Entrepreneur's Foundation newsletter.

Focusing on BP and the oil spill, Hanson suggests four lessons from the crisis:

1) Corporations must invest adequately in safety.

2) Corporations must take very low probability/very big impact events more seriously.

3) The management of incentives and rewards is central to any control system. Companies cannot preach safety but reward only cost cutting.

4) Companies entering into partnerships must be clear about who is responsible for safety.

 

Tags: business ethics