Archive for the ‘BP Case Study’ Category

CSR Is No Crisis Management

In times of the disaster in the Gulf of Mexico it is important to realize that CSr does not equal crisis management. As this article states, CSR needs to be seen as follows:

„CSR policy is to identify environmental, social and governance risks and prevent disasters from happening in the first place.“

So this means in the case of BP they should now treat the problem in a way it will avoid further problems in the future. Transparency is a big and important word in this context. And if you think about the fact that BP used be in some major CSR rankings and called it a company that takes care of its environment, I found this video quite interesting. Especially if you keep in mind the earlier mentioned definition of CSR. Prevent disaster. Identify environmental, social and governance risks.
The oil spill in 1979 could have been a warning fort he oil drilling industry. Back than they tried the same technology to try to stop the oil spilling out. Nothing of what BP has tried so far worked back than. Why would it today?
And as this website shows and argues, BP is a great example fort he fact that CSR is no optional thing for companies. It is a must.
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Cleaning up a PR disaster with Corporate Social Responsibility?

During the past year, one PR disaster followed another. In spring, Toyota’s cars seemed to have developed their own will. Soon after Goldman Sachs was accused of fraud and now BP has turned the Gulf of Mexico into a sea of oil. How did these corporations deal with the crises?

For the most part companies have surrounded themselves with crisis-management teams and public-relations hired guns to deal with their short-term problems. But if they are smart troubled companies will also review their policies around the emerging field of corporate social responsibility  to discover why things went so wrong, states Jason Kirby.

But can this be the solution to all Public Relations problems companies face today? Using CSR only for the benefit of the corporate image? That CSR is misused as a marketing ploy happens more often than most would like.

In the case of BP, company CEO Tony Hayward has apologized to Gulf residents. But the company could take further steps, say experts, such as establishing a transparent grievance process through which locals can file claims.

I believe that it is valuable that organizations benefit of Corporate Social Responsibility as well (see previous post on benefits). It is the only way that organizations use CSR, without regulations. But of course, using CSR only superficially to prevent bad PR is not what is intended by the idea of acting responsible.

BP and CSR: A Myth?

With the oil spill in the Gulf of Mexico getting worse and worse every day, criticism is getting more and more.

This week news were talking about that the U.S. government could hold BP back from paying giant dividend to its shareholder. 12 % of dividends paid to pensioners in the UK are from British Petroleum, showing which awful affect this would have in Great Britain. But on the other hand all the cleaning needs to be paid, people who lost their jobs need to get paid and the oil spill needs to be stopped. So the decision was to be made between BP will help the US or the UK. After a talk between Primeminister

But today Barack Obama had his speech declaring, “we will make BP pay for the damage their company has caused”. It was a speech that a lot of people were hoping it would make a big change in the way the government has dealt so far with the ongoing disaster. Shortly after the speech, the first critism arose. This is a comment by a BBC reporter:

“He pledged that BP would pay for the damage; that the Gulf Coast would be restored; that an offshore drilling moratorium would be kept in place while lessons were learnt; and that the body charged with regulating the oil industry would be reformed.

The president did not stop there. He spoke in lofty terms about moving away from fossil fuels, embracing a clean energy future and shaping the country’s destiny.”

It once again feels like that politicians and BP are overwhelmed by the extent of the disaster. But not only politicians are expressing their opinions. People have now found some platforms to express their feelings about this disaster in a creative way.Greenpeace has started a contest for a new logo for BP. Not only have they handed over the “Greenwashing-Award” to BP, but they also make an effort to “degreen” their logo with this contest.These are some examples:

This website shows you how your home would look like, if the oil spill would be were you live. It recognizes where you are and puts the oil field over your “home”. It is quite shocking…

BP’s unresponsive response

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Both Images by AP Photographer Charlie Riedel from Caught in the Oil

Deepwater Horizon oil rig exploded on April 20, 2010 and killed 11 workers.
46 days or more than a month later, BP has yet to find an effective solution to salvage the situation.
As the surface oil spreads out, birds are the first to feel its weight.
You can also visit http://www.ifitwasmyhome.com/ to see the extent of the oil spill in the Gulf of Mexico.

The Tentacles of Responsibilities.

Immediately after the unprecedented oil spill from Deepwater Horizon explosion, many discussions have been centered around the question of responsibilities. In response to the accident, Barack Obama demanded for BP to take responsibilities and “pay for all the damages caused”. It seemed like BP must be the main (and sole) culprit because they are the one which has the means to pay for the damages and resolve the situation.

BP and CSR: A Tragedy?

The oil spilling in the Gulf of Mexico has been going on for about two month now and still we have not heard about any significant steps towards a solution of this problem.

BP is one of the biggest companies and also was one of the companies that really made an effort in CSR and, as say claimed, were doing some good work concerning social and environmental aspects.

“BP Plc has spent up to US$125 million annually on its corporate social responsibility CSR campaign to enhance its socially responsible image in its transition from British Petroleum to Beyond Petroleum since 2000. BP Plc made monumental investments in solar energy and after a string of acquisitions BP Plc even became the largest maker of solar panels in the world.” Furthermore they allow shareholders to get information through their online performance about sustainability.

Today criticism is everywhere and BP and its CSR strategy have experienced a mayor downfall if it comes to its success. Today with the current oil spill in the Gulf of Mexico „The speculation that this could result in a collapse of the company is becoming warm in recent days. BP have been removed from the Dow Jones Sustainability Index this week. The index exists as a benchmark stock measurement for the companies that excel in CSR.“

Tuff times are ahead for BP. But at least they still proclaim to be engaged in a lot of social and environmental topics. But somehow this seems a bit contradicting and makes their CSR efforts look very inefficient and dubious.

Sources:

http://news.suite101.com/article.cfm/bp-goes-from-beyond-petroleum-to-big-polluter-in-csr-setback-a235924#ixzz0qLx2zU00

http://www.miratelinc.com/blog/has-bp-mismanaged-their-csr-down-to-the-deepest-depths/

The Causes Behind the Gulf Disaster

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BP pinpointed seven factors contributing to the accident that cover the gamut of operations on the rig. In short, this wasn’t a case of one company or employee dropping the ball at an inopportune time. This was a case of repeated mistakes by lots of folks, as well as a breakdown in procedures, testing, equipment and how the well was sealed.

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