Corporate Governance of Bp

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Table of Contents

Introduction        

Corporate governance and it’s development        

Company, Industry and reasons for choose BP        

Identify corporate governance issues        

Issue 1 – Risk management        

Issue 2 – Corporate social responsibility        

Issue 3 – Board leadership        

Conclusion        

References        

Introduction

Corporate governance and it’s development

Cadbury (1992:14) ‘Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The shareholder’s role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place. The responsibilities of the board include setting the company’s Strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship. The board’s actions are subject to laws, regulations and the shareholders in general meeting’.

Corporate governance in UK has started in early 1990,as a solution for the corporate failures and scandals, which was becoming a critical problem for the business community and the stakeholders. The first publication of the UK code was Cadbury report in 1992.by publishing this he recommends that; CEO and chairman should separated, need of at least three non-executive directors, etc. then time to time this codes were developed by different contributors. Greenbury (1995), Hampel (1998), Turnbull (1999), Myners (2001), Higgs (2003), Smith (2003), Tyson (2003) Like wise various people contributed to do the amendments to the UK code. In 2010 financial report council issued new UK corporate governance code by separating issues form other reports. This is the code currently we are using. Business world is changing rapidly, there fore corporate governance codes also will have to update for the future.

Company, Industry and reasons for choose BP

British petroleum plc. or BP is a UK and US registered company. One of the biggest international oil and gas providing company. They are the sixth largest energy company in the world and operate in more than 80 countries in the world. Also employed around 90,000 people all around the world. BP also has a supermarket chain, which is running with their gas stations. BP engaged with production and sale of energy, fuel extraction, manufacturing, refining and distribution.

Therefore they are coming under energy industry. All our day today activities depending on this industry. Energy industry is essential for moving world to forward.