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BP and the Gulf of Mexico Oil Spill
The oil spill keeps on expanding and affecting other areas. Various measures to control it have not had the desired effects, as they have not been able to reduce the seepage or control the spread of the oil. Estimates indicate that between 35,000 and 60,000 barrels of oil are released daily from the spill (InPage). It is not clear what actions the company will take to speed up the cleaning process and to ensure that such incidents do not happen again. The symptoms of this are that some of the stakeholders do not have any confidence with the company’s management of the disaster and this has affected business. The company is facing lawsuits because of the spill (InPage). This is likely to reduce its earnings and profits because of all the legal costs involves. Moreover, the share prices have fallen (AFP). The investors are worried about the economic and environmental cost of the oil spill. The company has to spend a lot of money to clean up and to pay the government.
There are several stakeholder groups. The shareholders are concerned with the company’s ability to resolve the problem quickly and to spend as less money as possible doing so. The environmentalists are concerned with the company’s rate of response in cleaning so that it can reduce the impact of the spill on the marine life. Other stakeholders are the people who fish in the region. They are affected by the spill because they cannot get fish, as it has been destroyed by the oil spill. Other stakeholders are the oil companies and the federal and state governments. The government is focused on ensuring that the company clears up and at the same time, it is drafting rules and regulations aimed at preventing the occurrence of such incidents. Other oil companies are also interested and involved in the case as well. They understand the repercussions that the incident will have on the industry, as it will require a careful review of the systems and processes.
A main stakeholder is the company itself. It has to find ways of cleaning up the mess it has made and at the same time convince the shareholders and other people interested in investing in the company that it is still worthy of their investment. At the same time, the company has to deal with the legal cases pending from the spill. Over two hundred lawsuits were brought forward against the company after the oil spill. Other stakeholders are the employees working on the rig. When the spill occurred, eleven people died and others were injured. The spill affected the community. The people living in the region no longer have the benefit of a clean and clear coastline. The tourism industry has been affected as well since the spill affected marine life. Other groups of stakeholders are the organizations that the company was working with at the time of the disaster.
BP has already started communicating with the different stakeholders through Howard, who is the CEO. This gives credibility to the information received. The company has avoided situations where different people are relaying information. This has reduced misunderstanding and miscommunication. It has ensured that the stakeholders receive the intended facts. The company communicates different messages to the stakeholders because they are interested and focused on different issues. Shareholders and investors are interested in the company’s financial performance. This requires the participation of the company’s financial department. The government, environmentalists, and the community are interested in the company’s efforts and progress concerning the clearing up of the spill. The CEO will have to check with the people working directly in the field so that he can determine the progress made. He can use press conferences for most of his communication. He can also call for meetings with the shareholders to discuss the company’s future and progress.
Works Cited:
AFP. “BP Share Price Dives on the Oil Spill Concerns.” The Sydney Morning Herald. 5 May 2010. Web. 22 May 2014
InPage. BP Oil Spill Gulf of Mexico-The Facts and Figures. 14 June 2010. Web. 22 May 2014