BP Crisis Communication

A crisis was exactly what British Petroleum (referred to as BP by substance of fall let on the write up) went through in 2010. It was particularly grave to pass by the right way taking every(prenominal) considerations into account. We were wondering how the specific crisis went so falsely and if the social function of specific chat scheme was beneficial or not. Hence, the communication strategies apply to overcome the crisis tooshie be habituate by m either oppositewise companies in the future as guidelines of how to do and, possibly more(prenominal) chief(prenominal), how not to.Also, the intervention from the Ameri sess government, the librateure from the local community and how the media was utilise, is exceedingly important in the BP crusade. This story intends to level how BP overhauld and reacted passim the crisis. It lead discuss the challenges BP had and it bequeath especially localise on how BP in humankind reacted to the crisis and how the y perhaps should cast off reacted diametricly, including the mapping up of communication theories. Finally, the paper go forth outline the consequences of the crisis on some(prenominal) presidency and communication schema.On April 20, 2010, the exit opinion fossil oil color-drilling rig explosion in the Gulf of Mexico resulted in the deaths of 11 rig workers, just public attention cursorily shifted from their deaths to the following surroundal and economic restitution the incident was described as the surpass mari snip oil spill solidus in history, as the accident released over 18 million gallons of crude oil into the Gulf of Mexico. Three months passed before BP advantageously stopped the leak, all the enchantment the crisis was evilly covered by all watchword media in the United States as salutary as internationally.As a result of this, the BP oil spill case serves an excellent ideal of psychoanalysis of BSP crisis communication. L The total make up of BP to indemnify the clean up of the purlieu and funds to affected workers has reached almost ii billion dollars. 2 2 www. Guardian. Co. UK/ crinkle/2012/July/31 /BP-departed-horizon-costs summon 4 of 28 Incorporated in 1909 in England , BP has rifle one of the worlds largest multinational companies operate in more than 80 countries 4, leading in oil and as industry, including exploration and production, refining, distri thation, extracting and producing renewable energy.The society provides their customers with energy for heating and lighting, burn d admit for transportation and energy for retail service and petrochemical products. BP employs approximately 80,000 employees, and sales and other operating revenues add up to $375,517 million in 20116 . Finally BP is alike a compile owning some(prenominal) brands such as ORAL, ARC, Castro, type A and The Wild Bean Cafe. Having colonized BP and the deceased person Horizon Crisis as the case, which this paper ill centre around, the problem statement is as follows To which extent has BP successfully communicated during the Departed Horizon Crisis?In order to see to it the problem statement the paper get out set out to address the following issues I) modify how BP communicated during the crisis. It) Analyses the effects of BSP communicative strategies. Iii) Discuss and appreciate whether or not BP has been successful in dealing with the crisis seen from a communicative perspective. In this paper a broad spectrum of a posteriori information has been apply. However, most of the empirical data has been prime through articles in different newspapers the use f different newspapers and their viewpoints has assumption us very diversified inputs throughout the paper.But this does not exclude a use of quantitative data which, amongst other things, have been apply to illuminate the some(prenominal) attempts of BP to use CARS-strategies, and underline the immense loss of monetary funds the crisis has caused . The rather specific choices of soft data have been used to throw up light on the different views of the crisis and the several statements pointing toward similar conclusions have helped to support the points make and clarify a rather lively crisis.In addition, the conclusions deducted throughout the paper have been support by theories worked with in classes and the additional http//www. BP. Com/ spiritedness/BP_internet/global/Stating/global_assets/ downloads/F/ OFF_2007_2011 _full_book. PDF 4 http//www. BP. Com/ life/BP_internet/global/Stating/global_assets/ downloads/l/BP_20-F_2009. PDF 5 http//www. BP. Com/Congregationalists. Do? Category=3&contentld=2006926 6 http//www. BP. Com/Congregationalists. Do? Category=3&contentld=2006926 page 5 of 28 theories which proved to be obligatory or helpful.In the beginning of the work with he case study of BSP crisis response, a bewitching sufficient apprehensiveness of the crisis as a whole was in place, we assumed, but as the paper progressed and different theories were applied our concord of BP and the relationship to their stakeholders grew. The quantitative data used also comes from BSP own publications as tumefy as articles from different international online newspapers. Of course, the lector must have in learning ability that BSP own figures, occasionally, mightiness have been used to strengthen their image and not whole inform the reader.When examining and analyzing the Deep Water Horizon oil spill crisis, this paper is et out to delimit the case by reply our initial problem statement. To narrow our focus down to the germane(predicate) aspects in the case we have adjudicated to delimit our analysis to the main stakeholders, including (I) the American government (it) the local society and (iii) the media. This has been done not moreover due to the formal constraints of the paper, but also in order to go into skill with these stakeholders, who we reckon to be, of major importance to this crisis deep down the investn delimitations of this paper.In order to answer this paper we find it necessary to make a common definition of a crisis. long studies have been carried out on crisis communication surmise over the past cardinal decades. A brief review of literature on this subject reveals that there argon several definitions of presidencyal crisis, depending on theorists different viewpoints on what constitutes a crisis. Herman claimed that to reach the level of a crisis, the event must contain troika shun attributes surprise, flagellum, and short response time.Surprise means that the administration did not prep atomic number 18 for the order of magnitude of the crisis. Threat means that the event poses a threat to the system of ruless financial security, customers, surrounding environment etc. Short response time refers to the urgent need of preventive do in order to stop an intensification of the crisis. 7 For the purpose of this paper the following demonstration of a definition off crisis is found serviceable Hermann, C. F. , 1963. Some consequences of crisis which limit the viability of organizations. administrative Science Quarterly, 8, p. 61-82. Page 6 of 28 W. herds grass Combs utilizes the interconnectivity of these ternion attributes to make his definition of a crisis A crisis can be specify as an event that is an unpredictable, major threat that can have a prejudicial effect on the organization, industry, or takeovers if handled improperly. 8 Furthermore, jibe to the very same book, organizations a great deal find themselves in situations that can be identified as crisis. There atomic number 18 no exceptions We must accept that no organization is immune from a crisis anywhere in the world even if that organization is vigilant and actively seeks to prevent crises. (Combs & Holiday, 2010 p. 7). This reality urges the need for preparation and readiness to answer what is called crisis management. The major difference between use an issue and an actual crisis is that an issue turns into crisis when it goes from the political party domain into the public domain a situation, which sometimes is inevitable no field how competent the management is. 9 10 The term a crisis within a crisis, or a so-called double-crisis, as coined by Danish professors Finn Freedmen and Winning Johannes, refers to a situation where a company experiences a communication crisis that overshadows the initial crisis. 1 A crisis within a crisis naturally has negative implications for a company since it emphasizes weaknesses in the companys sexual structure and/or interactions with stakeholders. The term is relevant to apply to this particular case because its give an accurate description of the consequences of BSP communicative system. The agenda setting theory distinguishes between 2 levels of agenda setting in the media. The offset level deals with the significance of an organization where an organization receives more media att ention then other related organizations.The second level relates to associations or topics that the public associates with a particular organization. 12 One of the important aspects when dealing with the media is the agenda, which stakeholders lots associate to organizations. The agenda setting theory is related to this assumption and therefore is remarkable to apply when analyzing BSP media relations. Combs, T. W. & Holiday, S. J. 2010. The Handbook of Crisis Communications. Wiley- Black vigorous, p. 18. Benches, Claus. Guest Lecturer, orbiculate Media Relations Manager at Damon.Gave a lecture on crisis communication on Tuesday the 20th of November. 10 Benches, Claus. Guest Lecturer, globose Media Relations Manager at Damon. Gave a lecture on crisis communication on Tuesday the 20th of November. From his PDF on Crisis Communication. 11 http//pure. AU. Dc/portal-cab-student/files/10106/ Crisis_communication_-_Not_Just_peanuts. PDF 12 Cornelius, Jeep. 2011. corporate Communicati on A Guide to guess and Practice. Page 146. 9 page 7 of 28 An important element for an organization, according to protect its own reputation, is the communication with stakeholders.As a company might have many different stakeholders it is important to have a tool to categories them. at once the stakeholders atomic number 18 categorized the organization will be able to decide, how and how much it should communicate with this stakeholder. In general when describing stakeholders this paper is apply Edward Freemans definition of a stakeholder A stakeholder is any conference or individual who can affect or is affected but the achievement of the organizations purpose and objectives. 3 In order to categories stakeholders this assignment will use the Stakeholder salience exemplification. The superiority of this model is that while being extremely elementary to use it is also extremely precise when in its finding of how much effort the organization should use when communicating with each kin of stakeholder, and even more important how the company should communicate with its various stakeholders.The model is base on salience, defined as the visibility of the stakeholder to the organization using three parameters (a) the power of the stakeholder group, (b) the genuineness of the claim put upon the organization, and (c) the urgency of how important the claim is according to the need of an immediate action. The purpose of the model is to define how salient a stakeholder group is. The model is based on septette different types of stakeholder groups (1) Dormant stakeholders are the ones with ascendent power and the ability to affect other groups of stakeholders.They are not able to true(a) their claims, and power will only be dormant but have an work anyway. Mostly, this would be wealthy stakeholders. (2) Discretionary stakeholders are stakeholders with a high degree of legitimacy but without the necessary power to regularize the organization. (3) Demand st akeholders are the ones with urgent claims but without power and the necessary legitimacy to compel them. (4) Dominant stakeholders are the group of stakeholders representing both legitimacy and power.These are stakeholders having great define on the organization, e. G. Owners and big investors. (5) Dangerous stakeholders are people with both urgent and claims on power. In addition, these will often attempt to use unfair means. (6) Dependent stakeholders are those who rely on others to get their claims carried out mostly because of the lack of power. Finally, (7) Definitive stakeholders can be identified as the ones having both legitimacy and urgency as well as power. These are the most respectable stakeholders and it is strictly Cornelius, Jeep. 011. Corporate Communication A Guide to Theory and Practice. Page 42. Page 8 of 28 necessary for the organization to keep close communication with these. Normally, it would be definitive stakeholders who can also be classified as the s hareholders. Once the stakeholders are categorized, the firm can now decide on strategy of communication. When researching strategies of communication, this paper has used the basic framework of communicative strategy given to us in Corporate Communication A Guide to Theory and Practice14 .The framework slackly provides three different strategies. This framework is chosen because of its simplicity when it comes to numbers of strategies and complexity when it comes to ship canal of communicating within each strategy, and so the framework provide an extremely useful tool when analyzing and discussing what mind of communication BP has conducted, how it worked, wherefore the strategy did not work and why it might have worked better everyday strategy is a strategy of simple informing well-nigh something through newsletters, press releases etc.This strategy is hence based on the idea that objective information about the organization should be passed on to the relevant stakeholders. Persuasive strategy uses tools such as advertising and meetings/discussions with stakeholders. The general aim of this strategy is to falsify the stakeholders image into a more favorable one or to seduce particular understanding with the organizations decisions. The strategy will not create change in the organization, but rather aims to create change in the stakeholders perception of the organization and its decisions.Dialogue strategy aims to create a mutual understanding and/or mutual decisions between stakeholders and the organization. Timothy Combs divides a crisis into four different types with two different aspects. The four types are bogus pas, terrorism, accidents and transgressions. In addition, a crisis in this matrix can be of either indispensable or external, and intentional or unwilled characteristics. 1 5