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The environmental crisis within the Gulf of Mexico is making an associate degree psychological state of BP's poor handling company. The distinction between its apparent commitment to environmental responsibility and its slow and lurching response to the devastation of oil emissions exposes its prime management and seems on the face of it indifferent to the profound injury to the company's whole. Is. 2 management professors - Hamid Bochikhi of the ESSEC grad school in France and John R. Kimberly of the writer faculty - wrote in their book The Civil of the Corporation regarding the 2005 explosion at the Lone-Star State town, Lone-Star State works. Wrote regarding equivalent misconduct: the way to manage your company's identity. Here area unit six steps that BP ought to have taken to cut back losses at that point - and people alternative corporations ought to contemplate once it's their intercommunicate touch upon the crisis.
Its brand suggests beauty, sunshine, looking after "green" and a love of nature. Recent events off the coast of the American state, however, raise serious questions about BP's commitment to the setting and its commitment to its stress on social and environmental responsibility. In 2007, we have a tendency to write regarding how BP coped with the 2005 explosion at works in Lone-Star State town, Lone-Star State town that killed fifteen employees, a corporation that created the image of an inexperienced and socially accountable corporation. Was in conflict with the efforts of 3 years later, we discover ourselves writing regarding BP once more.
Here's how we glance at things today: BP's response to the catastrophe has created matters worse. the corporate has not solely did not stop the flow of oil to the shores of the Gulf of Mexico and American states and alternative states, however, has additionally steadily reduced the scope of the matter. And in doing, therefore, he has caused outrage among the Yankee individuals.
The company's leadership has apparently been oblivious to the actual fact that each company has an associate degree identity, a group of things that distinguish it additional or less clearly from its competitors. and that they appear oblivious to the actual fact that once there's an extended thanks to going between rhetoric and reality, once a company paints an image of the United Nations agency it's and the way it behaves, there is a backlash.
When times area unit smart, once profits area unit rising, a company will produce a picture for the skin world that may truly be somewhat unreal. this is often once BP is facing a crisis like this after we realize verify the identity of the organization - United Nations agency it very is - by the method, it behaves. To the extent that the made image conforms to the style within which it's treated, we will speak of credibleness. however once there's a spot between the 2, despite how massive, queries inevitably arise, each within and out of doors of the organization, regarding United Nations agency the organization very is. In this regard, BP itself is excavating an enormous pit.
An explosion sinking BP's Deepwater Horizon rig on Gregorian calendar month twenty killed eleven individuals and left various gallons of oil within the bay, damaging marine life and lots of miles of outline. thus far the company's answer has light-emitting diode USA to raise a central question, "Who is that the real BP?n The company's ab initio slow response to the crisis, its CEO's relative invisibleness, and its persistent serious lack of severity regarding the unfold have definitely taken a significant toll. BTS in mind: BP staff, environmentalists, coastal businesses that rely on the Gulf, coastal dwellers, and officers within the affected states and federal governments, say nothing regarding the various shoppers United Nations agency fill their stomachs. area unit Gas tanks with BP product a day.
Playing Down the harm
In this crisis where has the company been led? Tony Hayward, chairman, and CEO of BP did not appear at the May 11 hearing of the Senate Energy and Natural Resources Committee. Instead, BP sent a representative to US President and Chairman Lamar McKay.
On May 19, Howard sought to mitigate the damage to the environment in a statement on Sky News: This may indicate that the overall environmental impact will be very, very small. More recently, he has denied that there is any substance in the oil, which is in direct conflict with researchers at three universities. Some are working on this spread.
In addition, BP managers have repeatedly ignored warnings about the dangers of deep-sea oil drilling and possibly, according to an official report, neutralized drilling regulators with gifts and other ethics. Suspicious use of questionable tactics. The image is becoming more and more ugly, and the company's attitude is only making things worse.
So what can we learn from this tragedy so far? According to this article, BP managers have certainly been very sympathetic in explaining the impact of the shock and the damage to human and marine life, or in acknowledging the real and potential suffering of the communities affected by the outbreak. Not revealed Rotating settlement agreements between coastal residents that allegedly offer کمپنی 5,000 in exchange for not suing the company could hardly be seen as a sign of sympathy (the company has stopped the process). sympathy, no matter how much BP pays. Be ready and able to
In the heat of the moment, BP managers may have forgotten that the sole purpose of investing independently is to build emotional relationships with stakeholders, internal and external, and with those stakeholders in building a corporate identity. Religion has to be transferred purely. An airplane tool for the emotional. When corporate branding efforts are linked to the corporation's actual behavior, its claims about it are validated internally and externally, and its stakeholder understanding in times of crisis, even Forgiveness can create enough trust and goodwill.
Is BP showing this kind of reaction? The evidence so far does not suggest a positive answer, thus jeopardizing years of branding efforts. Meanwhile, public outrage is mounting, as seen by former Labor Secretary Robert Reich's call for a receipt for BP, which cast doubt on the future of both Tony Hayward and the company.
What should have happened
How can BP managers deal with a crisis that is more consistent with the government's emphasis on BP as a socially responsible and good environmental citizen and has saved the company from the devastation of public relations it now faces? - or at least -
With the obvious benefit of backlight, we will suggest the following lessons, not only for BP executives but, more importantly, for leaders of other companies who may face their own crisis at some point.
Top managers should have taken note of the fact that in this time of high public scrutiny, whatever they say (and don't say) and do (and don't do) they send messages about who BP is.
Second, they should have reacted immediately. As Toyota has recently learned the hard way, it needs to be activated immediately. Sends an unfortunate message with almost any delay.
Third, they should appreciate the symbolic value of being physically present on Earth, as soon as possible to be close to those affected by the spill. It is not clear what the real message of concern is.
Fourth, they should try to balance legal/economic language with an emotional/sympathetic tone in their public statements.
Fifth, they should have acknowledged the company's moral responsibility before dealing with legal obligations.
And finally, they should be encouraged to put the interests of the company's shareholders and managers after the environment and the communities affected by the outbreak.
An example is a product that Pierre recalled in 1990 in the United States, shortly after the discovery of traces of benzene in some of its water bottles. Although the FOD and Drug Administration found no immediate threat to consumers, the company's managers decided to recall them worldwide, because a premium brand like Perrier could not afford to do otherwise. Although the return severely damaged the company's sales and market share, its extensive and dramatic process showed that it cared more about the health of its customers and its reputation than its immediate sales and profits.
When are BP managers going to show that they care about the environment and communities as much as they care about profit? Only if they do there will be consistency between the image they present and who the BP really is, and then there will be a long-term return on the company's significant investment in photography.