Hrm 531 Week 6 Crisis Management Team

MEJRI, Mohamed, and Daniel DE WOLF. 2013. "Crisis Management: Lessons Learnt From The BP Deepwater Horizon Spill Oil". Business Management And Strategy 4 (2): 67. doi:10.5296/bms.v4i2.4950.

On April 20, 2010 off the Gulf of Mexico, there was a blowout of the Macondo well which is owned by British Petroleum also known as BP. When the blowout took place it got immediate media attention because aspects of the event were known over the world. Within events transpiring it was discovered how limited the resources and reaction to the disaster was going to be. This paper will detail aspects of the event from symptoms of the problem, the root cause, important unresolved issues, roles of the organization’s key players and stakeholders, and explain the focus of specific ethical systems. Also discussed in this paper are relevant strategies and alternatives, the effect of globalization

BP leadership along with partners did not have proper governance and process to evaluate the risk that they are willing to take. The employee at every level does not know how much risk to take nor did any corporate policy exist to guide them. Having zero risk tolerance and zero safety defects in these complex operations ensure there are no human losses. The analysis of the Deepwater Horizon Study Group (2011) (p.11) shows that the leadership was concerned about how much money was spent in excess and did not address previous violations or preventive steps. Instead of downplaying, BP could have accessed the situation, analyzed, and communicated just before and after the explosions from an organizational behavior perspective. Communication is an important tool and basic needs of any organization to effectively discuss or write to their employees, clients, external vendors, and the government to govern internal process and enhance its customer experiences.

Recently, oil spill management has become a serious concern and subsequently, it has become a big issue as it takes a large, specifically trained team effort to solve the devastating problem. It also requires consistent efforts of the workforce. The Oil Spill in the Gulf of Mexico was perhaps another major contributing factor to highlighting the need for Oil Spill Management to be addressed. The director of the US Bureau of Ocean Energy Management Regulation and Enforcement, Michael Bromwich stated that this oil spill proved that oil and gas organizations were not prepared to deal with oil spills. (Merolli, 2010).

This week’s case study, The BP Gulf of Mexico Oil Spill, examines the devastating tragedy of the Deepwater Horizon. The case study calls upon established safety protocols and evacuation plans implemented by the Deepwater Horizon. Ownership of blame was continually passed from one organization to another.

On 20 April 2010, an explosion at Deepwater Horizon oil rig in the Gulf of Mexico killed 11 workers and led to the worst oil spill in the US history. The well owner BP was found to be responsible for the leak. The report will identify the risk management issues raised by the case and discuss the firm’s actions towards those issues. Also, an analysis of its crisis management followed by the comparison with Johnson & Johnson’ Tylenol Crisis is another focus in this report. Furthermore, lessons from the oil spill will be concluded and several recommendations will be presented to develop effective risk management system. In general, this report aims to assess BP’s failures in risk and crisis management and then find proper management practices

The series of ethical issues that took place leading to the disaster are complex, and other factors such as economic and political issues arose after the catastrophe happened. The purpose of this paper is to discuss the ethical issues that took place before the disaster happened, and investigate the moral obligations, social responsibility and justice at an individual and organizational level. The ethical dilemma is broken down into three categories, which include the company’s management priority to reduce costs and time, neglecting safety issues addressed by staff, human misjudgment and errors in neglecting pressure reading; and finally, overlooking the technical design flaws that were not tested by BP before installing to use. The

This case study report examined a public relation management problem that British Petroleum (BP) faced since the oil spill accident happened in April, 2010. In addition, this thesis recommended possible solutions and implementation plans for BP to deal with the public crisis.

After the damage was done the chief executive officer Tony Hayward became a household name. His initial response to the spill was “I just want my life back.” This statement was taken with great criticism. People were outraged that the response was so selfish and that the chief only seemed to care about himself instead of the families that were involved and the ethical implementations of such a disastrous event. The chief eventually came out with a well-crafted seemingly autonomous response to the public with a very formal “I’m sorry” (Cnn.com, 2010).

The oil spill in the Gulf of Mexico in 2010 resulted in considerable damage to the environment, economy and human livelihoods. While BP, as one of the parties involved in the operation of the oil drilling on Deepwater Horizon rig, suffered huge financial loss and reputation loss, it was found to be the one to be mostly blamed due to its lack of risk management. As poor risk management can lead to an astonishing disaster like this, it appears to be necessary for every business to learn from BP’s mistakes and try the best to prevent such disaster from happening again. This report studies this case, focusing on two issues identified in BP’s risk management practices, namely its sloppy preparation for risks and its inappropriate communication strategy after the crisis happened. No evidence showed that BP had a sufficient emergency plan for the worst-case deep-water oil spill although the depth of the oil drilling was one of the deepest. BP’s unseriousness towards safety was also indicated in their attempt to shift blames to its contractors and the unaccountability shown by the words of BP’s executives during interviews. Based on the examination of BP’s deficiency in risk management, the lessons that can be learned from it are discussed. In brief, firstly, accurate risk assessment and appropriate emergency plan should be available before the operation is started. Secondly, post-crisis communication should show the world that the company cares and is accountable

The analysis in this report will include a summary of the sequence of events leading up to the disaster, analysis of the professional ethical behaviours and responsibilities that were

In the month of April 2010, Deepwater Horizon exploded, killing 11 workers and releasing oil from the well into an ocean. This paper will discuss BP management, ethical and social behavior. BP along with a few of its partners Transocean and Halliburton was involved in the gulf oil spill. The explosion of the drilling rig Deepwater Horizon was the root cause of the oil spill. This paper will focus on BP organization behavioral issues that caused the economic, environmental, and human losses. The research further focuses on what BP leadership could have done as a precautionary measure using highest ethics and management behavior.

Crisis communication is the most important aspect of external and internal organization communication. This type of communication ranges from image restoration campaigns to employee turnover. In the articles that I have analyzed, I discovered many examples of crisis communications and its importance. I will discuss the Bridgestone-Firestone Corporation's image restoration campaign and explain Benoit's theory of image restoration. Also, I will discuss how crisis communications fits into public relations models. Two examples for discussion will be how supervisors should convey bad-news to their employees, and group communication within employee turnover. My last example for this discussion will be Bill Clinton's image repair discourse.

What is a crisis management? It is an unexpected crisis that happens on the company that will affect the trust and loyalty of the stakeholder. It can be extremely costly because it will affect the company reputation and brand. For example like financial failure from poor business management, workplace violence, fires, cybercrime, computer viruses, product tampering or union strikes and other external issue like damaged economy that causes from London bombings, terrorists attacks on 11 September and others. The SHRM 2005 report indicates that only 56% organizations created or revised their disaster preparedness plans but 45% did not after the terrorist attacked on

Chief Executive Officer (CEO): CEO is ultimately responsible for ERM priorities, strategies and polices. CEO also needs to ensure ERM implementation is strategy-setting.