RELATIONSHIP AND RESPONSIBILITY

Relationship and Responsibility: British Petroleum Oil Spill Case

Executive Summary

We have discussed the Relationship between Responsibility and Reputation in the context of BP oil spill case in 2010. We have divided the assignment into six parts. We have mainly focused on the process model throughout the assignment. Part one covers the background of the company, the case of oil spill, and how the situation is relevant to the topic. Part two covers the values and vision of the company, which are trust, safety and creating value, analyses of values in the light of Schwartz's values dimensions. Part three covers the involvement of stakeholders, their importance and degree to which they were affected by the oil spill, it also throws light on the level of trust and distrust from stakeholders. Part four explains the approaches to measure the reputation, which are Reputation quotient model, RELATE, and RepTrak, and determines the factor affecting the reputation of BP. Part five discusses the importance of corporate social responsibility in the context of BP and role of business in society. Lastly part six shreds light on corporate reputation strategy and recommendations regarding BP's failures in achieving stakeholder's trust and confidence in crisis situation

Table of Contents

Executive Summaryi

Table of Contentsii

Part 1: Mapping The Situation1

BP Company Background1

BP Oil Spill Case1

Process Model2

Mapping the Situation2

Part 2: Visions and Values of the Company2

Schwartz's values dimensions2

Current Values and visions of the BP3

Analyses of the Values of BP3

Ethical decision-making4

Part 3: Engaging with Stakeholders5

Stakeholders5

Stakeholders affected by BP Oil Spill5

Stakeholders Mapping5

Dependence on Stakeholders6

Level of Trust and Risk-Taking6

Part 4: Models of Reputation Measurement7

Reputation Quotient model7

BP's reputation analyses7

The RepTrak Framework8

Reputational Dimensions affected by BP Oil Spill8

Implementation of Reputation Measures8

Part 5: Embedding Corporate Responsibility9

Corporate Social Responsibility9

Analyses of BP oil spill case10

Business in Society and BP Oil Crises11

Business in Society and BP Oil Crises11

Part 6: Linking Reputation and Responsibility to Strategy11

Reputation at a Strategic Level11

Relationship between Reputation and Responsibility at a strategic level12

Recommendations13

References14

Appendices16

Relationship and Responsibility: British Petroleum Oil Spill Case

Part 1: Mapping the Situation

BP Company Background

BP is one of the leading oil and gas companies in the world. BP operates in more than 80 countries in the world including US, Europe, Russia, South America, Canada, Australia, Asia and some places of Africa. BP discovered oil for the first time in Persia in 1908 and began a prosperous journey. Today, the main products of BP are oil refining and marketing, exploration, manufacture and other operations. It is also engaged in producing cheap sources of carbon energy in form of solar and wind business. BP's sales stood at $375,517 million and the net profit was $25,700 million in 2011 (BP. 2012, n.d.).

BP oil spill

The incident occurred on 20 April 2010, one of the BP's Deep-water Horizons rig busted and contaminated the ocean with the crude oil (Gerstein, 2010, n.d.). BP had already been penalized for $20 million for disregarding the leaks in their pipelines in Alaska's Prudhoe Bay. BP had the capacity to explore and preserve 127000 barrels of oil within 9 days, but it has been evident that 60000 ...