DIS 07 BUS 5116 - Discussion Unit 07 PDF

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Discussion Unit 07...

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Meador, R. (2015). Five years after Deepwater Horizon, what has the disaster taught us? Earth Journal. Retrieved from: https://www.minnpost.com/earth-journal/2015/04/five-years-after-deepwater-horizon-what-has-d isaster-taught-us/ Meigs, J. (2016). Blame BP for Deepwater Horizon. But Direct Your Outrage to the Actual Mistake. Slate. Retrieved fromhttps://slate.com/technology/2016/09/bp-is-to-blame-for-deepwater-horizon-but-its-mistakewas-actually-years-of-small-mistakes.html Read the article “Blame BP for Deepwater Horizon. But Direct Your Outrage to the Actual Mistake?” (https://slate.com/technology/2016/09/bp-is-to-blame-for-deepwater-horizon-but-its-mistake-was -actually-years-of-small-mistakes.html) and answer the following questions: ● Do you think that BP could have managed the crisis more effectively? Why or why not?

● Could the reputational damage suffered by the company been avoided by a better/more adequate response?

https://www.forbes.com/2010/08/06/bp-oil-spill-crisis-management-leadership-citizenship-gulf.h tml?sh=fa5b22d184a1 ● Do you recall when the crisis was happening? What do you recall hearing about it from the media? Was the company doing enough to respond to the public at the time the crisis was happening? On April 20, 2010, the explosion at the BP Deepwater Horizon oil rig released over 4.9 million barrels of crude oil into the Gulf of Mexico , killed 11 crews , thousands of marine mammals,

seabirds and sea turtles and contaminated their habitats which is one of the worst environmental disasters in the United States as well as in the world history. It was an unprecedented devastating consequence to marine life.The explosion triggered economic, environmental devastation, and a legal battle. $42.2 billion civil liabilities were claimed up to 2013. BP’s violation of the Clean Water Act, RESTORE Act, Oil Pollution Act and criminal statutes lead to $20.8B settlement, largest in U.S. history ,on April 4, 2016. (

According to Meigs (2016), the BP Deepwater Horizon rig authority had overconfident of safety concern - did not take proper and essential safety measures while going deep water digging at high-pressure oil and gas , and though there were a lot of advance technologies (might not work) ,the team could identify the accident early in its birth ,even to act quickly enough to contain it or save the rig while they first know it. According to Watkins (2010), BP CEO and senior team, hypnotized by greed of revenues and being # 1 in deep-water drilling ; misled by their wrong policy - viciously take deep-water drilling as a strategy of sustainable competitive advantage ignoring global policy, risk associate their move, and potential consequences of losing lives, company property and damaging the environment . Therefore, it is argued that BP could have managed the crisis more effectively if they had taken responsibility accurately and responded to the crisis accurately.

According to Meigs (2016),According to Meigs (2016), before the tragedy, the Deepwater rig was one of the most reputable in the world that had gone an extraordinary seven years without a single accident and received a special award for the rig’s excellent safety record. Just months earlier, BP and the Deepwater team had broken the record for deepest well ever completed. According to Forbes (2010), John Browne, who was chief executive before Mr. Hayward, led the company to an enviable performance record with global expansion , control over quality and safety and huge global reputations. But all these were affected by the oil and gas spill in the gulf of Mexico. But , having a culture that accepted higher risk for higher rewards, the company ignored some of the early signals of the dangers of deepwater drilling. Now, it is said that the Company could avoid reputational damage including environmental and monetary damages by taking a better and more adequate response. Completely, I can recall when this crisis was happening and one of my Professors at Berkeley college talk a few minutes about it in his class lecture. Then, newspaper and other media. published the news My classmates and I picked up Daily News and read the article published on the disaster. I heard a few days that the people known to that accident were anxious over catastrophes - the lives and other potential losses. People were blaming the management of BP for not taking the right and appropriate response to prevent the accident.

When a crisis begins to escalate, generally, then the CEO becomes the flashpoint for criticism and, in this case, outrage, it may be that a carefully timed exit is the only real option the company and carefully responsible for (Kimberly, 2010). But at that time CEO Hayward's way of using dishonored public opinion and criticism by his words. He said, "I want my life back"? That was the major gaffe and such negative comments made him insensitive to the problems of the people (Reuters Staff, 2010). Also, on the house committee hearing CEO, Hayward failed to empathize with the plight of those most immediately affected families of those who lost their lives and those whose livelihoods are threatened that has blown up an extraordinary amount of outrage (Kimberly, 2010).

Conclusion The BP Deepwater Horizon accident impacted greatly which was very daunting and catastrophic to the people , marine life and ecosystem ,still present in gulf of Mexico.The root cause of the tragedy was the technological, mechanical and organizational strategy failing. It is seen, the failure of ethical decision making in operation and crisis situations in BP management ; absence of accountability and responsibility as well as the lack of sympathy to the victims of the disaster. However, BP management was penalized by US court for violation of ethical and legal codes. Including BP, all of the business organization should be operated with adherence to corporate social responsibility , greater social welfare along with corporate main objectives. References Meigs, J. (2016). Blame BP for Deepwater Horizon. But Direct Your Outrage to the Actual Mistake. Slate. Retrieved from https://slate.com/technology/2016/09/bp-is-to-blame-for-deepwater-horizon-but-its-mistake-wasactually-years-of-small-mistakes.html NOAA. Gov. (2017 April 20). Deepwater Horizon oil spill settlements: Where the money went. Retrieved from https://www.noaa.gov/explainers/deepwater-horizon-oil-spill-settlements-where-money-went#:~: text=The%20Deepwater%20Horizon%20criminal%20case,half%20directly%20benefits%20the %20Gulf.

Watkins, M.D..(2010, June 07).How BP Could Have Avoided Disaster .https://hbr.org/2010/06/global-strategy-local-policies Forbes, (2010, Aug 6). https://www.forbes.com/2010/08/06/bp-oil-spill-crisis-management-leadership-citizenship-gulf.h tml?sh=fa5b22d184a1 Reuters Staff, (2010, June 02).BP CEO apologizes for "thoughtless" oil spill comment. Reuters. Retrieved from https://www.reuters.com/article/us-oil-spill-bp-apology/bp-ceo-apologizes-for-thoughtless-oil-spi ll-comment-idUSTRE6515NQ20100602 Kimberly, J. R. (2010, June 21).How BP blew crisis management 101 CNN. Retrieved from http://www.cnn.com/2010/OPINION/06/21/kimberly.bp.management.crisis/index.html...