Sunday, June 20, 2010

BP: Barrels O' Problems

It’s no secret that there is a giant oil spill in the Gulf of Mexico and that British Petroleum, among others involved, has taken a lot of heat on the issue. They have been all over the news and the stories that are popping up are hard to ignore, even if you are as weary as I am about the controversy. The truth is, this isn’t just an environmental problem, it is a PR problem as well. Along with less than reassuring statements made by BP and with Obama getting involved, there are now questions of ethics being dragged into the mix. To go along with the apparent lack of crisis management employees working on the case, there also seems to be a lack of ethics standardization.

An article in The Guardian informs us of the potential lie that BP told Congress about the extent to which oil is pouring into the ocean. Allegedly, there was a document that states that the oil spewing into the ocean could reach up to 100,000 barrels a day which “when the company handed the document to Congress, it was claiming the leak was only 5,000 barrels a day, and that at very worst the figure could rise to 60,000”. The document isn’t only disturbing in the sense that our environment is under a much higher threat than we thought, but that large companies with oodles of power are lying to the public to save face. Any good public relations company knows that when dealing with a crisis, or with the public in general (especially in regard to stake-holders), transparency is key.

People appreciate the truth, even and probably especially when it shows that big conglomerates are in the wrong. It reminds us that such powerful forces are run by actual people and not machines. When companies make huge mistakes and then proceed to point the finger or water-down the problem to remain in good light it doesn’t bode well for a positive public view. Public companies especially need to be aware of this as many of their key stake-holders are people who have stock in the company.

Global companies especially need to invest in transparency as more than one nation is generally involved. The article explains that while Hayward has taken much criticism on turning his back on the Gulf, “Hayward will spend more than half his time in the US and will continue to oversee the effort”. This, thankfully, is a step in the right direction. BP is recognizing, way too late, that its international status gives them more responsibilities and even greater need for transparency.


To read this article please click the following link: http://www.guardian.co.uk/environment/2010/jun/20/gulf-oil-spill-bp-lying?CMP=AFCYAH

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