Sustainability Challenges in the Gas and Oil Industry Ethics in Business Questions For Discussion How does managing ethical risk in the oil and gas industry relate to reducing accidents? Managing ethical risks in the oil and gas industry relate to reducing accidents because in conducting ethical business practices a company goes about improving safety conditions helping the workers as well as improving the environment by reducing the impacts and chances of catastrophic events. Safety issues often come from a businesses core safety culture, which is influenced by the way, a company responds to ethical risks, by altering this there will be a further effect in improving the overall quality of the work environment. Compare the risk that BP, Exxon, and the fracking industry continue to face in providing an adequate supply of energy? BP, Exxon ad the fracking industry all face similar risks since their operations are conducted in the same space of industry. These risks include leakage, spills, explosions, accidents, and reputation with their customers. In order to avoid these risks the companies need to provide good options for the best interests of their stakeholders however, this is often times difficult because to do so they have to take risks in production which then in turn can cause issues. The challenge of these comes in meeting the requirements and balancing the outcomes to best act ethically and within safety guidelines of operations. In addition to these safety risks and reputation balancing issues these groups also deal with outside pressure of the press and national lobbying groups. This adds both a financial and political aspect to the risks associated in this industry. How can ethical leadership help the oil and gas industry to manage risk? Ethical leadership can help the oil and gas industry manage risk because it provides the company with guidelines on how to act. Additionally ethical behavior looks favorable in the eyes of the public and the consumers, which is a major risk that they have to be conscious of. Ethics also align with risks so ethical behavior will innately lead to a mitigation of risk and an overall better operation.