The Principal—Agent Problem and Transocean

Abstract

Corporate responsibility lies in three realms — the economic, the ethical, and the legal. Much of the posturing between half a dozen entities, BP, Transocean, Halliburton, Cameron International, the regulatory agencies, and even first responders, are all based on fears of legal liability. However, there are greater principles invoked by the disaster and the responsibility of various interested parties who could have helped avoid it.