2. Compare the risks that BP, Exxon, and the fracking industry continue to face in providing an adequate supply of energy?
3. How can ethical leadership help the oil and gas industry to manage risk
The risks that BP, Exxon, and the fracking industry continue to face in providing an adequate supply of energy are leaks, oil spills, explosions, pollution and the risk of a health, safety or environmental incident, and in ensuring regulatory compliance. These hazards continue to make headlines and demonstrate the risks of hydraulic fracturing and water pollution results from the dumping of raw sewage and toxic chemicals into rivers and oceans, from oil and gasoline spills.
Also, political risk increases the cost of doing business, especially in foreign territories. Oil and gas company must paying for testing, additional safeguards, and environmental degradation in both short and long term.Another issue is government regulations on the exploration of oil and gas. If regulations post restrictions on exploration, this could harm the company’s supply, thus diminishing it profits.…show more content… Companies with strong talent management in place will be the most competitive. Restoring reputation in oil and gas companies required ethical leadership and effective ethics and compliance program that reach all employees. The employees need to be trained andeducated on the importance of managing environmental risks at everystage of oil and gas operations. The company relies on internal units like the CorporateEmergency Response team to develop response systems and to teach employees properresponse techniques in the event of a severe incident. These training initiatives arecritical to developing employee attitudes and skills that are necessary to mitigate theimpacts of environmental incidents and hopefully prevent these incidents from