Looking at how BP initially handled the Gulf oil spill when the Deepwater Horizo
ID: 391464 • Letter: L
Question
Looking at how BP initially handled the Gulf oil spill when the Deepwater Horizon drilling platform exploded in April 2010. Specifically, note how the company dealt with the clean-up process, those directly impacted by the spill (individuals, businesses, local and state governments), the federal government, and its own shareholders and employees. Answer the following questions. You should recognize that your answers to these discussion questions should be well reasoned and supported with evidence. Make certain that you use chapter material and theory as the basis for your answers. 1. Question: Evaluate BP’s crisis response. 2. Question: What did the company do right? 3. Question: What should it have done differently? 4. Question: What ongoing obligations does BP have to the environment as a stakeholder? 5. Question: What has BP learned from this incident that can be used to formulate future event planning.
Explanation / Answer
Evaluate BP’s crisis response
The oil spill crisis in the Gulf was getting worse and BP found it difficult to handle the crisis. BP did not acknowledge the problem immediately; it was slow in admitting the Gulf crisis. The CEO, Tony Hayward did not empathize for the people who lost their lives in the crisis and for the people whose livelihood is a big question. Additionally, the oil spill was underestimated while the actual scenario was that there was huge loss. This created anger and outrage on the CEO.
What did the company do right?
The company then published a print ad empathizing for the people who were affected. The print ads also state that the company would be committed to set things right. It has now started to show compassion on the people whose lives were affected by the spill.
What should it have done differently?
As soon as the CEO knew about the oil crisis, the CEO should have apologized for the incident and give assurance to the people on the steps that would be taken. The company should be swift in making decisions in times of crisis and empathize with the people rather being shoddiness.
What ongoing obligations does BP have to the environment as a stakeholder?
As the stakeholder, BP has huge obligations in protecting and maintaining the environment. The company’s Corporate Social Responsibility is to put the environment first rather than the profits. Additionally, the company has the prime responsibility of protecting the lives of its employees and their families. The people who were affected by the Crisis should be provided any compensation and their livelihood should be revived in other ways.
What has BP learned from this incident that can be used to formulate future event planning?
In the case report submitted for the BP oil spill crisis, it has been observed that poor quality cement and other materials have been used. Also, the oil was in peak which caused the spill and explosion. From the report, the management should learn that they should continuously monitor the quality of products used in such oil plants. The energy director should be vigilant at all times to ensure that the company maintains its standards in their products and services. This can avoid any future crisis.
Additionally, the CEO should know what is happening in the base line. When the crisis occurred, the CEO should have taken a stand in front of the people and empathized for the people who were affected. This would not create any outrage in the people and the CEO behavior would show that the company has the Corporate Social Responsibility in protecting the environment and show compassion towards the people.
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