BP (British Petroleum), the world’s one of the well known and largest companies in the field of Oil & Gas, very recently came across an unforeseen event – the massive oil spill in U.S Gulf of Mexico area. BP’s this incident led into shattering events with major environmental and financial implications. This further led to the series of questions being raised by the experts and the corporate citizens of the world, about the long term repercussions from BP’s oil spill crisis. This theme is further elaborated with detailed findings and conclusion in the said paper.
Table of Contents
1. Introduction
2. BP’s Oil Disaster
3. BP’s Crisis Management Cell
4. Could the BP’s Disaster Have Been Avoided?
5. BP’s Communication With The Press And Other Stakeholders During The Crisis
6. Were Reactions Made By BP Reasonable?
7. Possible Good Crisis Management for BP
8. BP To Go Beyond Petroleum To Rebuild Its Image
9. Conclusion
Target and Objectives
This essay examines the corporate governance and communication challenges faced by British Petroleum (BP) following the 2010 Deepwater Horizon oil spill. It aims to analyze the company's crisis management strategies, its communication with stakeholders, and the underlying failures in safety procedures and regulatory oversight.
- Analysis of the environmental and financial impacts of the oil spill.
- Evaluation of BP’s crisis management and communication strategies.
- Investigation into potential preventive failures regarding safety equipment.
- Assessment of the corporate rebranding efforts versus actual safety performance.
- Discussion on the role of government regulation and corporate accountability.
Excerpt from the Book
Could the BP’s Disaster Have Been Avoided? :
Firstly, as stated in Murphy’s Law, “Anything that can go wrong, will go wrong”. Crisis is inevitable for corporations; BP was not an exception to this, as BP has had seen major disasters, events, crises even earlier. Then BP had set up internal and external investigation committee for analysing its earlier disasters. These committees were responsible to come up with set of advices that the organization is required to adopt with to avoid such events in future. But unfortunately, BP had not really implemented these given recommendations across the board. Had these recommendations been taken into consideration severely, BP may never have had such event. Furthermore, BP should have concentrated more on designing its system, operating for high reliability and safety rather than having more and more procedures, policies and regulations in place.
Secondly, as a part of the procedure, when the ex CEO of BP (Tony Hayward) had joined the company, he was briefed about significant safety incidents that they had already occurred in BP's earlier exploration facilities. As a result of these briefings, the then CEO had recommended and authorized changes to the BP's safety policies and practices. But there was no much consideration given to one of the major safety devices i.e. BOP (Blowout Preventers). Since, it is evident from the recent reports published by experts about cause of BP's current crisis that, BP should have considered rigorous testing procedures of BOP. Result of which could have prevented the current disaster.
Summary of Chapters
Introduction: Provides an overview of the massive oil spill in the U.S. Gulf of Mexico and the resulting environmental and financial implications for BP.
BP’s Oil Disaster: Details the timeline of the Deepwater Horizon disaster and discusses the immediate financial impact on the company’s stock and pension funds.
BP’s Crisis Management Cell: Discusses the priority framework of BP during crises, emphasizing the balance between people, environment, property, and business.
Could the BP’s Disaster Have Been Avoided?: Analyzes failure points, including the lack of implementation of past safety recommendations and the absence of mandatory safety devices.
BP’s Communication With The Press And Other Stakeholders During The Crisis: Reviews the effectiveness of BP's public relations efforts, including apologies and the creation of relief funds.
Were Reactions Made By BP Reasonable?: Critically assesses whether BP’s response strategies were effective in regaining stakeholder confidence despite earlier misleading safety claims.
Possible Good Crisis Management for BP: Outlines a comprehensive framework for future crisis management, focusing on prevention, ethics, intervention, and planning.
BP To Go Beyond Petroleum To Rebuild Its Image: Critically evaluates BP's previous rebranding efforts and the discrepancy between the "Beyond Petroleum" theme and its actual safety record.
Conclusion: Summarizes the necessity for BP to focus on "Walking the Talk" regarding safety rather than prioritizing corporate image and rebranding.
Keywords
BP, Deepwater Horizon, Oil Spill, Crisis Management, Corporate Governance, Communication, Environmental Disaster, Blowout Preventer, Safety Regulations, Stakeholder Relations, Beyond Petroleum, Corporate Social Responsibility, Financial Impact, Risk Management, Sustainability.
Frequently Asked Questions
What is the central focus of this essay?
The essay explores the corporate governance, communication strategies, and operational failures of BP during the 2010 Gulf of Mexico oil spill.
What are the primary themes discussed?
Key themes include crisis management, corporate responsibility, safety failure, stakeholder communication, and the role of government regulation.
What is the main objective of this research?
The objective is to understand how BP managed the crisis, why the disaster occurred, and how the company's communication affected its reputation.
Which scientific or analytical method is used?
The author uses a qualitative analysis approach, reviewing incident reports, media statements, and expert findings to critique BP's internal and external processes.
What does the main body cover?
It covers the timeline of the disaster, the effectiveness of the response, critiques of safety protocols, and the role of leadership in crisis situations.
Which keywords characterize the work?
The work is characterized by terms such as Crisis Management, Corporate Governance, Environmental Disaster, and Sustainability.
What specific issue regarding safety devices is highlighted?
The essay notes that the failure to mandate and install specific remote-controlled devices, such as the Acoustic Switch, contributed to the inability to trigger the Blowout Preventer.
How does the author evaluate BP's "Beyond Petroleum" brand?
The author argues that the rebranding was well-intentioned but misguided, as there was a significant mismatch between the green branding and the reality of BP's safety record.
What is the author's stance on government responsibility?
The author concludes that governments must share responsibility by implementing stricter regulations to prevent corporations from privatizing profits while socializing risks.
- Quote paper
- Vijayakumar HONNUNGAR (Author), 2010, British Petroleum Oil Spill Crisis and Aftermath, Munich, GRIN Verlag, https://www.grin.com/document/173454