As the horror unfolds in and throughout the Gulf of Mexico region I see a bigger issue that permeates business in general that goes to the core of how and why there are millions of gallons of toxic oil and gas flowing into the planet’s oceans. BP is not alone. Most businesses, including the one I work for, act in the same way. How? To deliver a product or a service, one uses vendors, suppliers and outside consultants to patch together all the necessary pieces and parts and processes needed to come up with the end product or service delivered. BP is the consumer facing entity. In their case, with the Deepwater Horizon drill rig calamity (I won’t call it an accident because it was an accident waiting to happen), they utilized products and services from:
- Transocean – offshore drilling operator (owner of the oil rig)
- Cameron – manufacturing of oil/gas industry equipment – including the blowout preventer that failed to close the well head
- Halliburton – oilfield services operator – including cementing the drill hole walls
- Hyundai – builder of Deepwater Horizon rig in 2001
BP bears the brunt of the scrutiny because they are at the top of the product food chain. The dilemma they face is shared across the business world. That dilemma is counting on the consortium of third party entities to provide products and services, which are integral to the production of the resource they bring to market. How do you, as the company that provides a product that relies on myriad of third parties, hold those parties accountable? This is a question at the forefront of my mind. Blame this question on my mindset. How one goes about obtaining the objective trumps obtaining the objective itself, (see my earlier post about The Ends JUSTIFIABLE by the Means at http://bit.ly/chzxAD2).
Now, this question assumes, as an executive in a multinational corporation, or any company for that matter, you believe the buck stops with you. The buck being the results or performance of the third party product or service needed for you to bring your product to market. This question doesn’t compute in mainstream modern day capitalism. When the oil hits the water, finger pointing emerges. Safety, including backup systems cost money. Is safety, which includes redundant backup systems to cut off oil at the well head during an emergency, a design specification of the Leasee of the oil rig? Apparently not.
If you only do what you have to be told to do to protect the biosphere from unintended consequences, you are not doing the right thing, you are doing the expedient thing. Backup systems are insurance. 99.9% of the time, insurance is not relevant. BUT, one can’t claim on an insurance policy that is NOT in place. At the end of the day, it is a gamble. This calamity proves the point that the mindset running mainstream enterprise today is fatally flawed and not in tune with the realities we find ourselves going into the second decade of the 21st century.
Capitalism is an economic system, plain and simple. It lacks morality, and any sense of focus on the bigger picture of the greater good. So, it is by design we are experiencing a massive oil leak in the Gulf of Mexico, in day 67 as I write this. In the event of an emergency, it only takes one time for the single threaded safety shutoff system to fail to wreak significant havoc. The gamble was taken, and everyone is losing.
Conscious Capitalism, as it is called, brings deeper purpose along with a sense of expanded stakeholders lead by conscious leaders. It is a new way forward. It is evolution of the human spirit and the spirit of creation. Creation and commerce with purpose.
If not your company, who- if not now, when?