Business Ethics for Practices and Processes-myassignmenthelp

Question: How managing ethical risk in oil and industry relate to reducing accidents. Answer: One of the industries prone to risks and accidents is the oil and gas industry (Gardiner, 2011). Ethical considerations while operating in this industry is highly fundamental because a simple mistake can lead to mass destruction and even loss of lives (Danielle, 2015). While operating oil and gas organizations, the management should know that the company has the responsibility of ensuring everything goes as expected to prevent environmental pollution, and accidents which result from fire and other aspects associated with these products. Corporate Governance One of the ethical risk management in oil and gas industry includes reducing the chances of oil leaks, spillage and explosion. Corporate governance aids in reducing accidents in the fact that managers emphasize on ensuring there is safe working environment for all employees (Iqba, 2015). Through working in a system of rules, practices and processes, employees as well as the management considers avoiding accidents which result from negligence. Corporate governance in oil and gas industry helps in balancing the interest of different stakeholder and working based on the law (Humphrey etl., 2016). This help in minimizing accidents because the employees and the management work for the benefits of not only the organization but also for the wellbeing of all stakeholders. Certification and Training Managing risks includes certification and training employees on how to reduce accidents from happening (Wicksten, 2015) managers should empower employees through allowing them to play a role in developing policies, procedures and incentives. The major importance of empowering employees to develop policies is that they will be able to understand and follow them while undertaking their day to day duties. When employees are trained concerning their responsibilities while handling oil and gas products, they understand it is unethical to let living things perish because of negligence. Training employees is important because it improves workplace safety productivity and satisfaction. It also provides them with skills which enable them to handle the products with keenness to ensure the chances of accidents are minimized. Managing risk relates with reducing accidents in the fact that taking risk prevention measures leads to the reduction of accidents. Code of Conduct Establishing code of conduct for employees is vital for the organization because it plays a significant role in outlining the organizations expectation and guiding principles for appropriate workplace behavior (Kihyun, 2016). The code of conduct in the oil and gas industry is vital because it provides legal and ethical guidelines which strengthen the relationship between clients, service users and employees. With this type of relationship, accidents are minimized because the company manages risks to improve the wellbeing of all stakeholders. Provision of Incentives There should also be provision of incentives to improve the safety culture. This should start by training employees on risk management techniques and also letting them know that managing risks in this industry contributes to reduction of accidents (Danielle, 2015). The three incidences provided in the case study shows managing risk is related to reducing risks because all accidents resulted from not taking the required measures to manage risks. How ethical leadership assist the oil and gas industry to manage risk. Ethical Culture Performance of every organization is always determined by the kind of leadership exercised by the senior officials. Ethical leadership in gas and oil industry can aid in managing risk in a number of ways (Cardenas, 2015). First, if the people in charge of the companies practices ethical leadership and understand the risks of neglecting things which can lead to accidents, they will always ensure all procedures required during production, transporting and storing these products are followed (Kihyun, 2016). The major cause of most accidents which occur in oil and gas industry is lack of valuing ethics in leadership. A leader who leads a company which operates in is industry should always understand that the products which the firm deals with risk the lives of human beings, animals and plants (Banerjea, 2010). Therefore, they should lead the organizations in a manner which allows everyone to understand that it is unethical to risk lives because on negligence. This can be obtained through leading by example, training, setting rules and regulations and so forth (Danielle, 2015). Ethical leadership leads to making other people in the organization to be ethical. If a leader understands doing a particular thing will lead to a particular risk, he/she will also make other people in the organization understand that (Iqba, 2015). Through enabling everyone in an organization understands doing a particular thing is wrong or wring, there will be reduction of risks because people will be doings things which can ensure maximum safety of environment and living things. Respecting Human Rights The characteristic which define ethical leadership are the ones which assist in managing risks in this industry (Iqba, 2015). For example, ethical leaders know it is unethical to neglect doing what can prevent accidents from happening. The fact that they exercise kind of leadership which is directed by respecting ethical beliefs, dignity and the rights of other people will always prioritize minimizing risks which can harm others. Ethical leadership will also reduce risks in oil and gas industry through informing other staff members that every living thing has the right to live, and neglecting to prevent things which risk other peoples lives is unethical (Kihyun, 2016). Ethical leaders direct organizations to do what is right for not only the benefits of the organization but also for the benefit of other people. Ethical leaders respect the rights of individualism, dignity and opinion of other people. This kind of leadership does not force its viewpoints on subordinates but seeks to understand and accommodate the positive differences and standpoints of other people (Kihyun, 2016). Respecting other peoples rights assist in minimizing accidents in this industry because the management understands human beings have the right to live, and therefore manages all risks in their organizations. Culture of Responsibility and Transparency Ethical leadership encourages the culture of responsibility and transparency (Gardiner, 2011). In all industries, oil and gas is among the industries which require the essence of accountability because lack of taking responsibilities may lead to serious risks. Ethical leadership makes all the people in the organization to understand that they are accountable for whatever lack of managing risks (Aaron etl., 2017). Practicing ethical leadership reduces risks in the fact that it assists the management and other employees to know the importance of including corporate social responsibility and obeying the law in their operations (Iqba, 2015). The other reason why ethical leadership can help in managing risks in gas and oil industry is that ethical leaders do not encourage culture of corruption and greed. In some cases, some of the accidents which occur in this industry result from leaders entertaining greed and corruption in their organizations (Banerjea, 2010). A good example from the case study is the kind of leadership associated with Enron case of the 90s. Quality Management The other way which ethical leadership can assist in managing risks in oil and gas industry is through quality management and safety control. Ethical leaders understand that organizations should ensure there is safety for not only the employees but also for other stakeholders (Douglas, 2010). Ethical leaders ensure no deaths, injuries or environmental pollution which results from lack of following the required guidelines during production and transportation of these products. ensuring quality management also plays a significant role minimizing risks in this industry because ethical leaders emphasizes on regular inspection of pipes, storage tanks and other facilities to ensure they are of good quality. According to Iqba (2015), oil and gas industry is one of the industries prone to accidents and therefore quality of not only the oil and gas but also for all equipment involved in production, transportation and storage should be prioritize. Compliance with Law, Policies and Procedures Ethical leaders direct organizations to operate based on rules to attain their objectives (Kihyun, 2016). Operating based on the law means the organizations does the right thing and follows the required procedures during production, transportation or storage of the oil and gas products. Ethical leaders make employees understand the consequences of breaking not only the national law but also the company rules and regulations. This makes every person in the company to do the right things even when the results do not benefit them. Ethical leaders direct organizations to adhere to the required policies and procedures of doing things. In some cases, accidents in this industry because of using shortcuts while handling the products (Banerjea, 2010). Following procedures during transportation, production or storage of oil and gas products aids in minimizing risks because people do not neglect doing what is right. Empowerment According to Julie (2015), ethical leaders empower employees through trust and encouraging open communication. Through empowerment, leaders who practice ethical leadership manage risks because employees have an input and control over their work. They also openly share ideas about how to minimize risks. According to Iqba (2015), empowered employees commit themselves to the tasks they undertake and ensure they mind the wellbeing of their counterparts and that of the society. Conclusion Ethical leadership can help in managing risks in gas and oil industry through various ways. Some of these include encouraging culture of responsibility and transparency, environmental risk management, and through quality and safety management. Ethical leaders do what is right for the benefits of not only their organization but also for the benefits of other people. This means if all leaders in oil and gas industry adapt this kind of leadership, risks which arise from various aspects like spillage, bursting and leakage can be managed. Bibliography Aaron W. Tustin, 1 Annemarie G. Hirsch, 2 Sara G. Rasmussen, 1 Joan A. Casey, 3 Karen Bandeen-Roche, 4 and Brian S. Schwartz, 2017. Associations between Unconventional Natural Gas Development and Nasal and Sinus, Migraine Headache, and Fatigue Symptoms in Pennsylvania. Envorimental Health Perspectives https://ehp.niehs.nih.gov/EHP281/ Banerjea, P. K., 2010. Wholesome Ethical Leadership[dagger]. IUP Journal of Corporate Governance, 9(1/2), pp. 45-57. Cardenas, G. J., 2015. 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