Insurance of Techno-Organizational Ventures and Procedural Ethics: Lessons from theDeepwater HorizonExplosion

Journal of Business Ethics · 2011 · Volume 103 · Issue 1

Abstract

Hazardous operational consequences of unethical behavior in high-risk projects can be traced back to inadequate relationships between businesses and the insurance industry. The communication of blame, as a consequence of major industrial accidents like the explosion of theDeepwater Horizondrilling rig in the Gulf of Mexico in April 2010, and the relevance of this communication of blame for subsequent insurance litigation, show that the awareness of the relationship between unethical behavior resulting in irresponsible procedural action and deficient loss-prevention practices is a significant component of risk consciousness. The awareness of ethical origins of project risks could alter the methods of design and monitoring of insurance contracts for risky techno-organizational ventures.

Keywords

Deepwater oil drilling, Insurance innovation, Insurance underwriting, Procedural ethics, Techno-organizational risks

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