Board of Governance Principles Case Study Example | Topics and Well Written Essays - 3250 words

Board of Governance Principles - Case Study Example This is the manner, with which the Board ensures revenue for the shareholders' investments with consistent and regular review of long-term plans, decision-making achievements, and replacements for Board members and executive management personnel. At British Petroleum public limited company, the members of the Board entrust their decision-making management authority to the company's Group Chief Executive led by Tony Hayward, the Group Chief Executive, member of the BP board of directors, head of the BP executive management team, and steered by the Board of Governance Principles. Prior to efficient management, the company's Group Chief Executive Tony Hayward must have understood the business ethics of British Petroleum Plc prior understanding the company business, as theoretically, trade is directly related to ethics. In comparison, a good number of commercial executives recognize article of trade-based type of business ethics. This is well-liked by the communication industry, the courses offered in business schools, colloquiums, and educational prose. But, the other type of business ethics called sense-based has been overlooked by the majority in the industry. These two different types of business ethics are supposedly inseparable duo (Pava, 1999). ... Nonetheless, British Petroleum Plc Group Chief Executive Tony Hayward clearly implements article of trade-based and sense-based types of ethics as an indivisible pair which is clearly invoked in the Board of Governance Principles. "The power and success of business are ultimately dependent on manager's beliefs about life's meanings" (Pava, 1999) Corporate success then that is driven by moral code collectively practiced among managers, employees, and shareholders (Pava, 1999) seamlessly fits into these principles. At the British Petroleum Plc, corporate governance structure style is underpinned by the concept of the approach the company manages the business. First, the Board and the executive management of British Petroleum public limited company led by Peter Sutherland, the Chairman of the chairman's and the nomination committees benchmarked image of prominence as the driver of the primary aspiration of the British Petroleum Plc, together with the idea that the company has built through time market edge and asset for advancements. Second, the company is anchored on the conviction that its existence will assists in crafting better opportunities for the human race. For instance, the company will in some way lend a hand to humanity by providing access to heat, light, and transport. All these are achievable with low cost of ener gy production that is safe for mankind and ecosystem friendly (BP plc, 2009). This is being mindful of the chief responsibility of commerce to civilizations. While the business concerns are those of the material needs of a society of people, the corporate company likewise embraces what is beyond substantial wants and desires. In fact, this is the most significant aspect of the company. It is within this realm that company