Respond to the following: Flammable liquids overflowed at BP’s Texas City oil refinery in 2005, creating a cloud of vapor that ignited, killing 15 workers and injuring 170. This was not the only fatal accident at BP during the last 30 years, yet OSHA had made only one full safety-management inspection at the refinery, in 1998. (Nationally, OSHA had only enough resources to do nine such inspections in targeted industries between 1995-2005.) However, a U.S. Chemical Safety and Hazard Investigation Board report, headed by former Secretary of State James A. Baker, put most of the blame for the blast on the company. Cost cutting, weak leadership, and a “decentralized management system and entrepreneurial culture” which left safety processes to the discretion of managers all contributed. Overworked employees did not report accidents and safety concerns for fear of repercussions. Internal company audits were more concerned about compliance with the law than ensuring safety.

• Explain which of these problems can be changed with voluntary actions by BP.

• Explain which may require changes in the law or allocation of tax revenues.

• Explain how a socially responsible corporation would respond to this report.