BP's mishandled response to the 2010 Deepwater Horizon oil spill had severe financial and reputational consequences. The spill released 200 million gallons of oil into the Gulf of Mexico over three months as various containment attempts failed. BP's CEO downplayed environmental impacts and shifted blame, damaging trust. While BP quickly created a website about the spill and compensated fisheries, misallocated funds undermined credibility. The spill cost BP over $65 billion and saw its stock price drop over 50% as the company struggled to address stakeholders and restore trust through its crisis response.
Deepwater Horizon Oil Spill: A Study of Behavioural Decision MakingJerome Dauvergne
This report analyses the genesis of the Deepwater Horizon disaster from a behavioural decision making perspective. In order to write this original paper I borrowed from the investigative work of the environmental journalist Abrahm Lustgarten, and from concepts developed by behavioural finance and emotional finance academics such as the Canadian Hersh Shefrin, the American John Nofsinger, and the Britons Richard Taffler and David Tuckett.
I hope you'll enjoy the read!
Deepwater Horizon Oil Spill: A Study of Behavioural Decision MakingJerome Dauvergne
This report analyses the genesis of the Deepwater Horizon disaster from a behavioural decision making perspective. In order to write this original paper I borrowed from the investigative work of the environmental journalist Abrahm Lustgarten, and from concepts developed by behavioural finance and emotional finance academics such as the Canadian Hersh Shefrin, the American John Nofsinger, and the Britons Richard Taffler and David Tuckett.
I hope you'll enjoy the read!
Philippe kunz – global operation – george kastner emba london - dickens cohort, This case try to explain the miss-function and give some theoretical advice
BP Deepwater Horizon oil spill's impact on the us economy, Jonah Guo,Queen's MBAJonah Guo
This presentation is prepared in the Macro-economy class to analyze the macro economic affect of the BP Deepwater Horizon oil spill. All the photos are found via Google search, copyright belong to the original authors. Logos came from the GreenPeace Logo contest
Deep Water Horizon Oil Spill (B. P. Oil Spill)Syed Ali Roshan
This presentation contains information about the massive tragedy that took place near the Gulf of Mexico, which took the lives of 11 crew members.
Let me know in the comments if you want me to upload a video of myself presenting this presentation.
A Report On British Petroleum [Case Study : Deepwater Horizon Oil Spill]Navitha Pereira
The report talks about various aspects of British Petroleum. It highlights the company's corporate crimes and violations against human rights. It then focuses on the Deepwater Horizon Oil Spill.
British Petroleum [Case Study : Deepwater Horizon Oil Spill]Navitha Pereira
The presentation talks about various aspects of British Petroleum. It highlights the company's corporate crimes and violations against human rights. It then focuses on the Deepwater Horizon Oil Spill.
BP Oil Spill and if the BP Oil Spill had happened in India and Comparative study between India and States with respect to Oil SpillBP Oil Spill .What if the BP Oil Spill had happened in India and Comparative study between India and States with respect to Oil Spill.
Deepwater Horizon BlowoutRehabilitating a Reputation after a C.docxvickeryr87
Deepwater Horizon Blowout
Rehabilitating a Reputation after a Catastrophic Spill
BP, formerly known as British Petroleum, is an oil and gas company based in the United Kingdom, with global operations and 84,000 employees in 2012. It finds, extracts, transports, refines, and sells oil and gas products and has been a highly profitable company with pre-spill profits of $14 billion in 2009. Headquartered in London, BP is the second largest company in the U.K. and its brand was ranked 83rd in the world according to industry firm Interbrand. It owns oil and gas exploration rights, oil and gas fields, refineries, pipelines, large crude carrier ships, and gas stations and other oil-based products all over the world. Its chief executive officer, Tony Hayward, a geologist, was appointed from within BP’s administrative ranks in 2007.BP’s Safety Record
Before the Deepwater Horizon oil spill there were a number of U.S. safety and environmental incidents involving BP operations that caused some to question whether BP put profit ahead of other considerations.
BP was held responsible for a 2005 Texas City, Texas, oil refinery explosion that killed fifteen workers and injured 170; the company agreed to pay $21 million in federal fines for more than 300 safety violations. The Occupational Safety and Health Administration found more than 700 violations in a follow-up inspection in 2009, and BP agreed to pay $50.6 million for safety violations it had failed to correct following the 2005 refinery explosion. BP paid $13 million for 409 new safety violations discovered in 2009. As a result, the company invested $1 billion on safety and infrastructure improvements. One investigative report said that the Texas City disaster “was caused by organizational and safety deficiencies at all levels of the BP Corporation.” Just weeks before the Deepwater Horizon disaster, the news media reported the same Texas City refinery plant accidentally released 500,000 pounds of toxic chemicals into the skies over a forty-day period before the mistake was discovered by workers.
A number of negative environmental incidents involving BP-owned oil wells and pipelines had occurred in Alaska. In 2006 the biggest Alaskan oil spill ever happened after a section of the 800-mile Trans-Alaska pipeline corroded and leaked more than 5,078 barrels (267,000 gallons) of crude oil into Prudhoe Bay, Alaska; another smaller leak was discovered a few months later. As a result of the leaks, BP paid $25 million in fines and was ordered to correct the problems. A smaller oil– water mixture leak occurred in 2009 during a pressure test of a pipeline at BP’s Lis-burne Processing Center. A 2010 investigation by ProPublica revealed various parts of the Alaskan North Slope pipelines were in such bad shape that 148 sections were labeled as in “imminent danger” of rupturing.
Deepwater Horizon Explosion
Technological advances in oil drilling and climbing oil prices made the Gulf of Mexico an attractive source for oi.
Philippe kunz – global operation – george kastner emba london - dickens cohort, This case try to explain the miss-function and give some theoretical advice
BP Deepwater Horizon oil spill's impact on the us economy, Jonah Guo,Queen's MBAJonah Guo
This presentation is prepared in the Macro-economy class to analyze the macro economic affect of the BP Deepwater Horizon oil spill. All the photos are found via Google search, copyright belong to the original authors. Logos came from the GreenPeace Logo contest
Deep Water Horizon Oil Spill (B. P. Oil Spill)Syed Ali Roshan
This presentation contains information about the massive tragedy that took place near the Gulf of Mexico, which took the lives of 11 crew members.
Let me know in the comments if you want me to upload a video of myself presenting this presentation.
A Report On British Petroleum [Case Study : Deepwater Horizon Oil Spill]Navitha Pereira
The report talks about various aspects of British Petroleum. It highlights the company's corporate crimes and violations against human rights. It then focuses on the Deepwater Horizon Oil Spill.
British Petroleum [Case Study : Deepwater Horizon Oil Spill]Navitha Pereira
The presentation talks about various aspects of British Petroleum. It highlights the company's corporate crimes and violations against human rights. It then focuses on the Deepwater Horizon Oil Spill.
BP Oil Spill and if the BP Oil Spill had happened in India and Comparative study between India and States with respect to Oil SpillBP Oil Spill .What if the BP Oil Spill had happened in India and Comparative study between India and States with respect to Oil Spill.
Deepwater Horizon BlowoutRehabilitating a Reputation after a C.docxvickeryr87
Deepwater Horizon Blowout
Rehabilitating a Reputation after a Catastrophic Spill
BP, formerly known as British Petroleum, is an oil and gas company based in the United Kingdom, with global operations and 84,000 employees in 2012. It finds, extracts, transports, refines, and sells oil and gas products and has been a highly profitable company with pre-spill profits of $14 billion in 2009. Headquartered in London, BP is the second largest company in the U.K. and its brand was ranked 83rd in the world according to industry firm Interbrand. It owns oil and gas exploration rights, oil and gas fields, refineries, pipelines, large crude carrier ships, and gas stations and other oil-based products all over the world. Its chief executive officer, Tony Hayward, a geologist, was appointed from within BP’s administrative ranks in 2007.BP’s Safety Record
Before the Deepwater Horizon oil spill there were a number of U.S. safety and environmental incidents involving BP operations that caused some to question whether BP put profit ahead of other considerations.
BP was held responsible for a 2005 Texas City, Texas, oil refinery explosion that killed fifteen workers and injured 170; the company agreed to pay $21 million in federal fines for more than 300 safety violations. The Occupational Safety and Health Administration found more than 700 violations in a follow-up inspection in 2009, and BP agreed to pay $50.6 million for safety violations it had failed to correct following the 2005 refinery explosion. BP paid $13 million for 409 new safety violations discovered in 2009. As a result, the company invested $1 billion on safety and infrastructure improvements. One investigative report said that the Texas City disaster “was caused by organizational and safety deficiencies at all levels of the BP Corporation.” Just weeks before the Deepwater Horizon disaster, the news media reported the same Texas City refinery plant accidentally released 500,000 pounds of toxic chemicals into the skies over a forty-day period before the mistake was discovered by workers.
A number of negative environmental incidents involving BP-owned oil wells and pipelines had occurred in Alaska. In 2006 the biggest Alaskan oil spill ever happened after a section of the 800-mile Trans-Alaska pipeline corroded and leaked more than 5,078 barrels (267,000 gallons) of crude oil into Prudhoe Bay, Alaska; another smaller leak was discovered a few months later. As a result of the leaks, BP paid $25 million in fines and was ordered to correct the problems. A smaller oil– water mixture leak occurred in 2009 during a pressure test of a pipeline at BP’s Lis-burne Processing Center. A 2010 investigation by ProPublica revealed various parts of the Alaskan North Slope pipelines were in such bad shape that 148 sections were labeled as in “imminent danger” of rupturing.
Deepwater Horizon Explosion
Technological advances in oil drilling and climbing oil prices made the Gulf of Mexico an attractive source for oi.
Case Study 9Running head BP & THE GULF OF MEXICO OIL SPILLC.docxmoggdede
Case Study 9
Running head: BP & THE GULF OF MEXICO OIL SPILL
Case Study: BP & The Gulf of Mexico Oil Spill
Central Michigan University
Organizational Dynamics & Human Behavior – MSA 601
Abstract
This paper will focus on the monumental disaster and ensuing public relations nightmare of British Petroleum (BP). This disaster of course was brought about by the oil rig explosion and fire in the Gulf of Mexico. BP is a multinational conglomerate of gargantuan proportions. They have molded and perfected their public image over decades. This paper will take a look at the lapses in BP’s management and public relations efforts and what measures the company should have taken.
BP & the Gulf of Mexico Oil Spill
The reason that the authors selected to evaluate British Petroleum (BP) for a case study was due in no small part to the endless media attention given to the oil spill in the Gulf. BP is an extremely popular brand that everyone in this country undoubtedly is effected by in one way or another. One of the initial reasons for choosing BP was the unmitigated disaster put forth on the public relations front in explaining the company’s efforts at dealing with the Gulf of Mexico oil crisis. The authors were further intrigued at this assignment for the poor leadership and decision making acumen of the former CEO Tony Hayward (CMU, 2009, p. 227). With this multi-focal approach, the study will highlight the conflicting messaging presented to the public and the lackluster and ultimately ineffective leadership within the organization.
BP is a huge multinational conglomerate whose primary focus is the petroleum industry. The company does business in over 30 countries around the globe. Its annual operating income is $239 billion dollars with over $14 billion dollars in profit in the year 2009. The company employs over 80,300 individuals and owns 16 refineries worldwide. BP operates several subsidiaries under the names AM/PM markets, BP and ARCO gas stations, Aral gas stations in Germany, Wild Bean Café, and Castrol Motor Oil (BP at a glance, 2010).
The competition within the petroleum industry is not as plentiful as one might think. There are actually very few players in the game. Due to the limited number of refiners of crude in this country the oil from various sources are blended prior to coming to the consumer. BP doesn’t have much use for the service station business anymore. In 2007, it announced plans to sell the last 700 stations that it hadn’t already sold to franchisees. The company chose to focus on finding and collecting oil. Once companies make a discovery, it comes out of the ground and ends up at a refinery. There, it can be mixed with oil that a variety of companies have poured into the tanks. This is further evidenced by BP’s plans to divest itself of its remaining 700 gas service stations. The highest percentage of income is made from oil exploration and extraction and not in the selling of gasoline at its stations (Lieber, 2010).
BP.
THE FINANCIAL IMPACTS OF BP’S RESPONSE TO THE DEEPWATER HORI.docxcherry686017
THE FINANCIAL IMPACTS OF BP’S RESPONSE TO THE
DEEPWATER HORIZON OIL SPILL
COMPARING DAMAGE VALUATION APPROACHES & HIGHLIGHTING THE NEED
FOR MORE RELIABLE ENVIRONMENTAL ACCOUNTING AND REPORTING
JOËL HOUDET & CHARLES GERMANEAU
SYNERGIZ
www.synergiz.fr
[email protected]
THE DEEPWATER HORIZON OIL SPILL :
THE KEY POINTS
he Deepwater Horizon oil spill, also known as the
Gulf of Mexico Oil Spill or the BP Oil Spill, is the
largest marine oil spill in US history. It was caused by an
explosion on the Deepwater Horizon offshore oil platform
about 50 miles southeast of the Mississippi River delta on
April 20, 2010. After a series of failed efforts to plug the
leak, BP said on July 15 that it had capped the well, stop-
ping the flow of oil into the Gulf of Mexico for the first
time in 86 days. Though the rate of oil release rapidly be-
came the subject of intense debate, the current consensus
is that roughly five million barrels of oil were released by
the Macondo well, with about 4.2 million barrels pouring
into the waters of the Gulf of Mexico (Cleveland 2010).
Estimates of the extent of the surface oil slick vary widely
(derived from data on wind / ocean current forecasts, aerial
photography and satellite imagery): for instance, Skytruth1
has estimated the total oil-slick footprint at 68,000 square
miles.
BP was the principal developer of the Macondo Prospect
oil field where the accident occurred. The Deepwater Ho-
rizon, owned by Transocean Ltd., was under a contract
with BP to drill an exploratory well. At the time of the
explosion, BP and Transocean were in the process of clo-
sing the well in anticipation of later production, while
Halliburton had recently completed cementing of casings
in the well. The U.S. Government named BP as the res-
ponsible party in the incident and will apparently hold the
company accountable for all cleanup costs resulting from
the oil spill. Though BP has accepted responsibility for it
as well as the ensuing cleanup costs, it has recently in-
dicated that Transocean and Halliburton both deserved
considerable blame for the disaster (Cleveland 2010).
THE FINANCIAL IMPLICATIONS OF BP’S
RESPONSE TO DEEPWATER HORIZON OIL SPILL
n February 1 2011, BP released its group income sta-
tement for the fourth quarter of 2010. It reflects a pre-
tax charge of US$40.9 billion related to the Deepwater
Horizon oil spill, which includes US$17.7 billion of costs
effectively incurred for 20102. All charges relating to the
incident have been treated as non-operating items and were
deduced from taxable income. This includes a US$20-
billion escrow account BP has agreed to establish over the
next 3.5 years by the sale of US assets. The escrow account
will be available to satisfy legitimate claims adjudicated
by the independent Gulf Coast Claims Facility (GCCF),
final judgments in litigation and litigation settlements, sta-
te and local response costs, and costs related to natural re-
source dama ...
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
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What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
3. z
Market Information
BP Oil is a top competitor in the oil & gas industry
$303.7 in global revenue (2018)
2nd largest competitor in 2010 (13% market share)
Exxon Mobil
Chevron
Corporation
Valero Energy
$241 billion
$129 billion
$117 billion
4. z
Deepwater Horizon Oil Spill:
What Happened?
Macondo oil well ruptured
Natural gas blasted through concrete
core
Gas traveled up the Deepwater rig’s riser
to the platform and ignited, killing 11
200 million gallons of oil released into
the Gulf of Mexico over three months
6. z
Financial
Fallout
2010 Income statement shows a
pretax charge of $40.9 billion
$20 billion escrow account BP had
agreed to establish
Found guilty of gross negligence
leading to the catastrophic spill
Adjusted their outstanding claims to
$65 billion in 2018
7. z
Oil washed up onto more than
1,300 miles of shoreline
~ 10 million pounds of oily
residue was removed from
Louisiana
As climate change pushed
tides higher onto low-lying
shorelines, land erosion
ensued
Tens of thousands of birds,
sea turtles, fish, marine
mammals died.
Environmenta
l Impact
9. z
Stakeholders
Stakeholder Role Need
Environment Devastated by spill - Plan for cleanup
Fisheries Fish population
devastated by spill
- Compensation
- Apology
BP oil rig workers Work on rigs similar to
one that exploded
- Detailed explanation
- Promise of safety
US population Happened on their turf
(or surf)
- Accurate info
- Assured it won’t
happen again
10. z
Addressing the Stakeholders
Environment
•Initiated plan
to create well
•Other
immediate
actions
Fisheries
•Provided
compensation
“where people
can present
legitimate
claims”
•“This is
America—”
Workers
•Apologized to
families
affected
•Attended
funerals of
those lost
US pop.
• Dedicated
section of
website to
Deepwater
Horizon
•Titled “Gulf
of Mexico Oil
Spill”
11. z
Stopping the Leak
Blowout protector (BOP) failed
Activating this mechanism would ideally pause the channel through which oil was
drilled
Two more failed attempts to slow the leak of oil
Containment dome was thwarted by the buoyancy of gas
“Top kill” method failed as well
Lower Marine Riser Package (LMRP) cap
Fit loosely over the BOP
Allowed to siphon oil out of the rig
12. z
Stopping the
Leak Cont.
“Static kill”
Similar premise to “top kill”
approach
Inflow of mud was at a much
lower pressure
“Bottom kill”
Pumping cement through another
well that later intersected the
original well
Construction began in May; they
announced the well was
completely sealed in September
13. z
Containment
and Cleanup
Petroleum extending over
more than 57,500 square
miles of Gulf
National Response Team
coordinated cleanup efforts
1.8 million gallons of dispersants
were pumped into the leak
Massive booms were constructed to
corral the oil
Oil removed manually as it reach
the shore
BP and others were held
liable
15. z
PR Disaster
Tony Hayward, CEO of BP Oil
Date
(2010)
Statement Right or
Wrong?
Effect
May 3 “Well, it wasn't our
accident… it was their
[Transocean’s] rig and their
equipment that failed, run
by their people and their
processes"
• Shifting blame away from
BP
• People want action not
accusation
• This behavior hurts your
brand
May 20 "I think the environmental
impact of this disaster is
likely to be very, very
modest”
• Downplaying the effects of
the spill
• Ignorant, naive
May 30 “There's no one who wants
this over more than I do. I
would like my life back."
• Bringing self-pity into his
company’s response
• Only worried about himself
June 4 BP spends $50M in
dividends and other business
expenses one day after
• Misallocation of money
• PR control is huge as CEO
17. z
Lukaszewski’s 7 Dimensions
Operation
Decisions
Act fast and
alleviate
anguish
Successful,
creation of
website
section
Victim
Management
•Acknowledge
victims,
recognize
needs
Successful,
condolences
and attended
funeral
Credibility &
Trust
Do everything
to restore
credibility/trust
Unsuccessful,
inaccurate
data voiced to
public
Corporate
Behavior
•Eliminate
behavior that
works against
rebuilding
credibility
Unsuccessful,
shifting blame
Professional
Expectations
•Adhere to
standards set
by community,
government
Successful,
compensation
of fisheries
Ethical
Standards
Act with
•sensitivity,
honor, truth
Unsuccessful,
misallocation
of money
towards
dividends
Lessons-
Learned
Approach
Learn lesson
about
communication
Unsuccessful,
Hayward’s
actions
carried
through June
1) 2) 3) 4) 5) 6) 7)
18. z
Conclusion
• Website used as
information outlet
• Paid respect to workers’
families
• Moved fast in
mitigating leak
• Misallocating money
• PR, PR, PR!!
• Shifting blame away
from BP
• Downplaying effects
• Self-pity
19. z
What Should Management Have
Done? Construct a joint press release with the other companies
involved (Transocean, Halliburton) where they would:
Collectively take blame
Explain exactly what happened, why
Articulate compensation for cleanup efforts
Deliver promises to compensate small business
Apologize, without self-pity involved
All parties involved should have come together and created a
plan like this one, instead of pointing fingers at each other
20. z
Current State
Stock price dropped over 50% by June 2010
Currently traded at $23.33 as of 4/22/20
Market cap as of 2019 placed them as 6th largest company
Compared to 2nd largest in 2010
The fallout was not brief
22. z
References
Amadeo, Kimberly. “Costs of the Deepwater Horizon Oil Spill.” The Balance, The Balance, 20 Nov. 2019,
www.thebalance.com/bp-gulf-oil-spill-facts-economic-impact-3306212.
BBC Staff. “BP Boss Tony Hayward's Gaffes.” BBC News, BBC, 20 June 2010,
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