Weatherford International Ltd (WFT) a New York Stock Exchange (NYSE) listed company is one of the world’s leading oil and gas field service and equipment providers, its products and services span the oil/gas well’s life cycle, encompassing exploration, drilling, extraction and production of oil and gas. WFT employs more than 50,000 people and operates in more than 100 countries worldwide geographically segmented into four global regions covering all major oil and gas-producing areas, North America: Latin America: Europe/West Africa/ Former Soviet Union: Middle East/North Africa/Asia, with individual headquarters located, Houston, Moscow, Dubai, and Singapore.
The macro environment factors, political, economical, social, technological, legal, and environmental, are used by organisations to monitor and act on global trends as part of strategic management. By nature, the exploration and production of oil and gas is seen as particularly vulnerable to several of these factors and as such are further analysed in this report.
“All business activities, from the establishment of the organisation through to the sale of the product to the customer, are influenced by the law.” Worthington and Britton (2009).
Business law consists mainly of employment law, health and safety law, contract law, consumer law, and accounting law. Legal proceedings can be issued through public law and/or private law. Public law is between the state and an offender and encompasses constitutional law, administrative law, and criminal law. For example, the United States Department of Justice (U.S. DOJ) in 2001 launched a criminal enquiry into alleged fraudulent financial reporting by the directors of Enron Energy; this led to the introduction of the Sarbanes Oxley Act 2002 a state law that now audits all NYSE Companies accounts to ensure accuracy, Hannagan (2008). Private law is between individuals or private dealings between citizens and companies, and involves contract law, and tort/civil law matters. For instance, under civil law it is possible to claim
compensation for ill-health or injury at work by instituting legal proceedings for personal injury. Furthermore, WFT’s operation includes a legal team to monitor pending laws and advise on contract issues, terms conditions, and late penalty clauses that may affect the company’s operations. Nevertheless, WFT is under investigation by the U.S. Office of Foreign Assets Control regarding allegations of improper sales of products and services into Iran a country subject to U.S. economic and trade sanctions, and has since closed business there with total costs of over $100 million, (www.weatherford.com).
The UK government define Corporate Social Responsibility (CSR) as, “ Specifically, we...