BP Managing the Stakeholders
The British Petroleum Company experienced a hard time in 2010 when an undersea BP well of oil exploded in the Gulf of Mexico and the process killed 11 workers while leaving an environmental disaster (Sherwell, 2015). The company’s chief executive was later replaced after this disaster paving the way for Bob Dudley, an American chemical engineer. The chief executive officer has helped the company up to its assets with deals continually increasing with the company planning expansion over the years (Katakey, 2016). The company went through a hard time, but it took a turn to rectify that.
There has been criticism of BP Oil Company over environmental factors, political lobbying, and health issues among their workers, among others. However, the company has tried to rectify this and give the stakeholders a company they can associate with. The company devised a crisis management call, which required culture transformation to ensure that people trusted in the company once again (Arnold & McKay, 2013). A company best succeed when its stakeholders are satisfied, well-served and well treated. Therefore, after the oil spill in 2009, the company had to regain the trust of the stakeholders and it started by replacing the CEO perceived as uncaring and an erring leader (Arnold & McKay, 2013). This showed that the company was willing to change and bring in someone who had regard for the people.
BP ultimately agreed that more could have been done in a bid to prevent the crisis that had occurred and thereby trying to win the people back to the institution (Somaiya, 2010). The cost of the spill may have threatened to destabilize BP, and the Financial Times predicted the cost would only increase (Chasan & Crooks, 2013). However, the company has created stronger ties and ultimately managed to make it through that rough patch.
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Chasan, G & Crooks, E 2013, Claims may push BP’s spill bill to $90bn, Financial Times. Available at: https://www.ft.com/content/097ca8f4-6f6b-11e2-b906-00144feab49a
Katakey, R 2016, BP piles up oil assets as CEO Dudley says worst over for company. [Online]
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Somaiya, R 2010, The road to deepwater horizon, The New York Times. Available at: http://www.newsweek.com/road-deepwater-horizon-74871