BP learns the hard way the economics of CSR

Corporate Social Responsibility is not just about being a socially responsible citizen. It has tangible market implications too. The recent oil spill disaster one of its worst in the history, has pulled down BP's shares more then 40% on widespread concerns amongst investors that it may not be able to survive the disaster. Recent decision by BP to award its shareholders with liberal bonus notwithstanding no strong reief measures going to the effected residents in the Gulf, caused great concern. The Congress in the US was pulled up for action and the Obama Government was put to the litmus test with the ensuing disaster. BP on its front , which is one of the biggest players in the industry, now faces a struggle for survival and its future hinges on legilative and regulatory decisions going forward. The tremors of aftereffects can be felt across the entire oil industry. There is a six month moratorium on deep water offshore drilling followed by a call for more stringent safety regulations. Other possible implications may include search for alternative sources of energy and more legislative intervention on environmental aspects at a global level. The call for CSR resonantes not only with ethics but revenues too.