Lp3 Assignment: Case Analysis - Sustainability Challenges In The Gas And Oil Industry

LP3 Assignment: Case Analysis - Sustainability Challenges in the Gas and Oil Industry Name:MT4441Institutional affiliation:Relationship between Managing Ethical Risk and Reducing Accidents in Oil and Gas IndustryMany accidents that have occurred in the oil and gas industry have been associated with ethical issues. Ethical risks have been isolated by investigative agencies for the majority of accidents that have occurred in the oil and gas sector. Some of the prominent accidents that have occurred due to improper management of ethical risks include the Exxon Valdez disaster and Deep Water Horizon Oil Spill. The Exxon Valdez disaster occurred on March 24th 1989 and was the first major disaster of the petroleum industry in the United States while Deep Water Horizon Oil Spill occurred in April 25th 2010 (Ferrell & Fraedrich, 2015). The situation in the two companies clearly indicates lack of management of ethical risks. Accidents are usually caused by negligence of ethical risks and proper management of ethical risks would have prevented the two accidents from occurring. In the Exxon case, poor management of ethical risk is seen when the company