Deepwater Horizon Oil Spill Gulf Of Mexico â€Myassignmenthelp.Com

Question: Discuss About The Deepwater Horizon Oil Spill Gulf Of Mexico? Answer: Introducation With the increasing ramification of economic changes and complex business functioning, BP organization has grown very drastically and implemented various eco systems to reduce the negative impact of hazardous substance and emission. The deep water Horizon Oil spill is the biggest tragedy and resulted to high amount of loss of money and individual lives in Gulf of Mexico. This report reflects how well BP had responded to the deep water Horizon Oil spill. It has been observed that government has put high amount of penalties and traits on company to increase the overall eco system in determined approach. It is evaluated that company has destructed its financial implication throughout the time after deep water Horizon Oil spill case. Point of discussion In this article, it is given that BP has responded to the deep water Horizon Oil spill by installing various eco system and cleanup all the hazardous substance and emission in Gulf of Mexico. However, government had implemented various rules and regulations to reduce the impact of hazardous substance on society in Gulf of Mexico (Lamendella, et al. 2014). The financial implication of BPs responses to deep water Horizon Oil spill has shown the negative financial strategy. The point of discussion in this article could be why deep water Horizon Oil spill has occurred and government policies and rules and BP responses to mitigate the negative impact of deep water Horizon Oil spill on the people living in Gulf of Mexico. All the investment and expenses made by BP in response to deep water Horizon Oil spill has been charged as operating expenses. This will not only reduce the tax burden of company but also decrease the overall profit to offset its tax burden from other units (Jaggi, et al. 2017). The main point of discussion in this report is related to tax burden and reducing the negative impact of the deep water Horizon Oil spill in gulf of Maxico. However, BP had used various financial implications to reduce the tax burden and increasing the effectiveness of deep water Horizon Oil spill saving eco program. BP should have deposited whole penalties amount in escrow account for the betterment of the people living in Gulf of Maxico. Moreover, BP needs to install various eco system to reduce the negative impact of its hazard substance in social and environment. Interest theory and motivation to regulators The financial implication of BPs responses to deep water Horizon Oil spill has been used as deduction from the tax payment. As per the interest theory, eco system installed by BP in Gulf of Mexico was for reducing the negative impact of its hazardous substance. Therefore, BP should have not be allowed these expenses used as factors of reducing its social responsibility to pay off tax to government. Company should have charged these expenses as capital expenses instead of charging the same as operating expenses (Powers, et al. 2017). As per the interest theory, BP should have deposited all the penalties and traits amount in the escrow account to discharge its social and environmental liabilities. BP had used its investment in the eco systems to reduce its tax burden and other investments to reduce the overall tax burden. If company wanted to increases its brand image then it should have installed eco system and invested in escrow account for the betterment of lives. Motivation of politician as regulators As per the interest theory, regulators of Gulf of Mexico could have asked company to pay off all the imposed penalties and tax amount in determined approach. In addition to this, company had also failed to deposit the amount of penalties which are uncertain in its escrow account. Therefore, it is observed that BP should have deposited the entire penalties amount in its escrow accounts (Michel, et al. 2013). The main motivation for politician is development of society and environment at large. It is observed that if political party could strengthen the rules and regulations for the eco system implementation and oil spill case then it will reduce the occurring of events like deep water Horizon Oil spills cases in Gulf of Mexico. If government strengthens the social and environmental policies then it will increase the effectiveness of business functioning of BP. Therefore, it is given that if BP wanted to rebuild its brand image in Gulf country of Maxico then it should have invested its capital in establishment of eco system, reducing the negative impact of its hazardous substance and providing benefits to other associated persons. The main motivation for political party is to save the people from the hazardous substance in social and environment and providing best possible benefits to society at large. Conclusion After evaluating all the details and BPs responses to deep water horizon Oil spill, it is considered that if company emerges hazardous substance in the society due to its business then proper level of eco system and mechanism to reduce the negative impact of these hazardous substance should be installed. In this case, BP had failed to perform its duty as per the best interest theory in the Gulf of Mexico. After evaluating the case study given, it could be inferred that if BP wants to deliver good result to society and economic at large then it should better off to provide financial assistance and other benefits to society. BP instead of charging its investment as revenue expenditure should treat this amount as capital expenditure. It will increase its tax burden to discharge its social responsibilities. This deep water Horizon Oil spill has set up a good example for other organization to reduce the negative impacts of their hazardous products in Gulf country of Maxico. References Jaggi, A., Snowdon, R. W., Stopford, A., Radovi?, J. R., Oldenburg, T. B., Larter, S. R. (2017). Experimental simulation of crude oil-water partitioning behavior of BTEX compounds during a deep submarine oil spill.Organic Geochemistry,108, 1-8. Lamendella, R., Strutt, S., Borglin, S., Chakraborty, R., Tas, N., Mason, O. U., ... Jansson, J. K. (2014). Assessment of the Deepwater Horizon oil spill impact on Gulf coast microbial communities.Frontiers in microbiology,5. Michel, J., Owens, E. H., Zengel, S., Graham, A., Nixon, Z., Allard, T., ... Rutherford, N. (2013). Extent and degree of shoreline oiling: Deepwater Horizon oil spill, Gulf of Mexico, USA.PloS one,8(6), e65087. Powers, S. P., Peterson, C. H., Cebrian, J., Heck Jr, K. L. (2017). Response of nearshore ecosystems to the Deepwater Horizon oil spill.Marine Ecology Progress Series,576, 107-110