Crisis Communication Failures: The British Petroleum Case Study (Done by Jakhongir Ubaydullaev)

Summary

This presentation covers the case study of British Petroleum (BP) and its crisis communication failures, focusing on the Deepwater Horizon oil spill of 2010. The speaker discusses key events in BP's history, the company's crisis communication strategies, and its failures in managing public perception and stakeholder relationships. BP's lack of preparedness, failure to express empathy, and inadequate crisis management are highlighted. The presentation concludes by emphasizing the importance of transparent and timely communication during crises to protect a company's image and maintain trust with stakeholders.

Takeaways

• 📑 The presentation covers the 'Bridge Petroleum Case Study' with a focus on crisis communication.
• ⛽ The Deepwater Horizon oil spill on April 20, 2010, marked the largest oil spill in the maritime history of the petroleum industry.
• ⚠️ Crisis communication is critical, defined as the organization's response to sudden events that impact its performance and potentially its survival.
• 🧠 Various researchers define crisis communication differently, but it generally involves managing outcomes, public perception, and organizational response.
• 📉 British Petroleum (BP) has a history of major accidents, including a 1965 oil rig collapse and a 2005 refinery explosion, both resulting in fatalities.
• 🌍 In 2000, BP rebranded itself as 'Beyond Petroleum,' focusing on environmental awareness and renewable energy to fight climate change.
• 📊 The presentation analyzes BP’s crisis communication failures, particularly in handling the Deepwater Horizon disaster.
• 👎 BP’s CEO admitted the company was unprepared for the Gulf oil disaster, lacking a crisis communication plan and failing to manage media scrutiny effectively.
• 💔 BP also failed in expressing empathy towards victims and in maintaining strong stakeholder relationships during the crisis.
• 📝 The conclusion emphasizes the importance of communication before, during, and after a crisis, as it greatly impacts the company’s image and stakeholder trust.

Q & A

What is the focus of the presentation?

The presentation focuses on crisis communication within the context of the British Petroleum (BP) case study, particularly during the Deepwater Horizon oil spill and other crises.

What was the Deepwater Horizon oil spill, and why is it significant?

The Deepwater Horizon oil spill occurred on April 20, 2010, and is significant because it was the largest maritime oil spill in history. The explosion killed 11 people and led to significant environmental, financial, and reputational damage for BP.

How does the presentation define crisis communication?

Crisis communication is defined as a response to an unexpected event that requires quick reaction and can impact an organization’s performance, image, profitability, and possibly its survival.

What are some key historical crises BP faced before the Deepwater Horizon spill?

BP faced several crises, including the collapse of an oil rig in 1965, killing 13 crew members, and the explosion of its Texas City refinery in 2005, which killed 15 workers and injured over 1,000 people.

How did BP try to differentiate itself after previous crises?

BP attempted to differentiate itself by rebranding as 'Beyond Petroleum' in 2000, promoting environmental awareness and renewable energy efforts, including biofuels, hydrogen, solar, and wind power.

What were some key communication failures by BP during the Deepwater Horizon crisis?

Key communication failures included not having a prepared crisis communication plan, inadequate media responses, lack of empathy towards victims, and poor stakeholder relationship management.

What role did NGOs play in BP’s crisis communication strategy?

BP had previously built strong relationships with NGOs, giving donations and working with environmental groups like the Nature Conservancy. However, these relationships did not prevent negative NGO reactions during the Deepwater Horizon crisis.

What does the presentation suggest is crucial in managing a crisis effectively?

The presentation emphasizes the importance of early and effective communication, timely and transparent reporting, and maintaining dialogue with stakeholders before, during, and after a crisis.

How much did BP spend on public relations efforts to improve its image after crises?

BP spent $200 million on advertising and public relations campaigns to improve its image following environmental and safety-related crises.

What are some theoretical frameworks used in the analysis of BP's crisis communication failures?

The presentation references the SCCT (Situational Crisis Communication Theory), which suggests that a company's past performance can intensify the impact of a crisis and influence its crisis management and communication decisions.