Political and Legal Systems

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differs from the English legal system as it does not incorporate unemployment laws in the Constitution, and enforces more strict laws on environmental protection as well as on personnel and labor laws than the English system. The Brazilian legal system developed a series of laws included in a guide for foreign investors who regulate company formation and the type of business organizations, foreign capital, regulation on local capital markets, foreign work and acquisition of real estate, privatization, public bidding at concession, etc. This set of laws could bring benefits, or create many obstacles for foreign companies that will like to start developing operational activities in the country, even though Brazil developed policies to promote trade and investment.

Challenges and Opportunities

The England-based BP Company faces some political and legal challenges in their home country. Most recently BP has had many political and legal challenges from their home country England with the Gulf of Mexico oil spill. The United States President Obama called the Prime Minister of England to state his frustration with the oil spill in the Gulf of Mexico and ensured that BP must do everything possible to respond effectively to the situation (Morgan, 2010). The Prime Minister agreed with President Obama that BP should to “work intensively to ensure that all sensible and reasonable steps are taken as rapidly to deal with the consequences” of the oil spill catastrophe (Morgan, 2010). The Gulf of Mexico oil spill from the BP oil rig caused some political challenges for the BP Company. The BP company not only had the English government but also the U.S. government putting pressure on BP company and chief executive officer (CEO) to come up with solutions and compensate many businesses halted because of the oil spill.

The BP Company has also faced some legal challenges in England due to the Gulf of Mexico oil spill. BP has sued Transocean Limited, Halliburton Company, and Cameron International Corporation for an estimated $42 billion dollars seeking damages for the company’s part in the oil rig catastrophe. BP alone met the cost of the oil clean-up and paying compensatory damages to the fisherman, property owners, and others affected by the oil spill. BP submitted these suits to spread the liability to the other companies and to remind the world BP was not the only company that had a part in the oil rig’s bad outcome. The companies are in litigation because they have not spent one dime to pay for the oil cleanup or to compensate the Gulf coast victims.

BP Company faces some political and legal opportunities in their home country. England legal system has changed in the world, the deployment of many governments and large around the world.

With BP being the only major player in England’s oil industry it has a huge impact on the market. Along with a huge impact on the market it has a general impact on the economy. BP is undergoing a fundamental change. BP has a new organization, an organization based on existing assets and non-functional. This is not a simple remix of packs of cards, and this change is that any company will go through in these circumstances. The group BP expansion operates crisis management, and public interest groups with expertise in plan relations and perhaps more in the hope that trust as a result quite different.

Bowing to pressure from the Obama administration, the company agreed to establish a compensation fund of $ 20 billion, and the postponement of the payment of dividends to shareholders (The Telegraph).

Ethical and Social Responsibility Issues

The success of BP in England and Brazil is dependent on possessing the highest standards when pertaining to ethical and social responsibility. Although Brazil and England are separate countries divided by oceans, similar standards need to be upheld regardless of the region or country. These ethical responsibilities include fair labor practices, respect for the environment, and conservation of natural resources. In 2010 BP had an oil pipe rupture in the Gulf of Mexico that was reported as the worst environment disaster in the United States History (Grunwald, 2010). The reaction time of BP to this disaster was subpar and much of the detrimental damage could have been avoided. After a disaster of this magnitude it is important that BP learns from this and history does not repeat itself.

The social responsibility of giving back to the societies that BP encounters is just as important as their ethical standards. Nations such as Brazil the labor wages are much lower than those of England. This is why it is important for BP to remain consistent with their wages and labor practices. By offering this type of consistency BP can help build a solid reputation within a country making it possible to thrive. If BP chose to enter a country and take advantage of the people and treat them poorly, the company would not be accepted by the international community. Through the practice of positive social responsibilities BP can have the opportunity of acceptance worldwide.