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Running head: CRISIS COMMUNICATION CASE STUDY; BP OIL SPILL.

Crisis Communication Case Study; BP Oil Spill

Author: richmkk@gmail.com

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CRISIS COMMUNICATION CASE STUDY; BP OIL SPILL

Introduction

Crisis Communications.

A crisis can be defined a substantial threat to reputation or operations to a government, a

company of a person that could lead to negative impact if they are not properly handled on time.

The specific threats likely to be associated with a crisis are a loss of reputation, financial loss,

and public safety. Financial losses originate from operations disruptions leading to a loss of

market share or laying litigations from the crisis occurrence. Crisis communications, on the other

hand, is an established institution or program within a system that functions to protect the status

of a person or an organization and upholding a proper public image of the entity. It involves the

development of an action plan, communication channels and appropriate training with the

important workforce to enable them to respond efficiently and quickly to the occurrence of a

crisis to reduce the possible harm (Walker, 2012). Various sensitive occurrences for instance

felonious attacks enquires from Media and investigations on government agencies on various

issues that are sensitive to the public concerns are likely to tarnish the reputation of an entity.

Crisis being a threat to an organization reputation crisis communication plays an integral

part in preventing the possible harm it might cause. To an organization, the employee is

recognized as the most crucial stakeholders in the event of a crisis and therefore organizations

have to ensure that an efficient internal communication system is established within the business

(Walker, 2012).
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CRISIS COMMUNICATION CASE STUDY; BP OIL SPILL

BP Oil Spill Case Study.

Crisis Overview.

BP Oil Spill also referred to as deepwater horizon oil spill is among those tragedies

considered the worst ever to have happened in the human history because of the great damage it

caused to the environment, humanity, and the general economy. It was approximated that past

200 million gallons of the crude oil find its way to the Gulf of Mexico during the spill. During

this incident, there were 11 deaths and 17 critical injuries reported. The spill lasted for roughly

87 days marking it the worst spills that lasted the longest in the history of the U.S. operations in

the oil industry, travel industry, and fishing industry was brought to a standstill for days

impacting the economy negatively. Choice of this crisis was influenced by the massive damage it

caused to the environment, humanity, and the general economy (Freudenburg & Gramling,

2011).

BP Company.

British Petroleum (BP) is among the biggest oil and Gas Company headquartered in

London, England. By December 2013, the company was operational in approximately 80 States,

and it is growing geographically. The company is run by a CEO supported by the board of

directors and executive management. The company enjoys a responsible, progressive,

performance and innovative, driven culture. Being a multinational company, BP also relishes a

diversity of employees who are highly skilled and efficient (Scherer, 2012). The company over
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the years have established strong alliance through a merger with other strong businesses which

have been a plus for the company’s profitability. In April 2010, the company was involved in a

massive oil spill loss in the Gulf of Mexico. Investigations done after the crisis indicated that

management was disorganized and unprepared for any crisis of any kind (Freudenburg &

Gramling, 2011).

Key Publics.

Travel and Tourism. The Gulf being a tourist destination, tourism activities was

severely affected because of the great damage the spill caused to the ecology and environment at

large. The unappealing situation of the Gulf no longer attracted individuals and so many

businesses was brought to a standstill.

Environmental Agencies. Massive damage was caused to the environment. BP had to

come up with an appropriate plan of attending to concerns issues that were raised by

environmental agencies. Environmental agencies were provided with grants to facilitate

financing of short-term as well as long-term concerned that affected the agencies (Freudenburg

& Gramling, 2011).

Fishing Industry. The residents in the Gulf of Mexico who practiced fishing were

among the victims largely affected by the crisis (Benoit, 2011).

Organizational Preparedness for Crisis.

The report of the investigation issued in 2011 by the US federal government indicated

some concerns that were behind the occurrence of the crisis. Among the concerns raised were

poor practices in risk management, management change of decisions at the last minutes,

management failures to effectively observe and timely respond to the crucial signals identified

earlier, few established control responses and employees responsible had not install sufficient
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emergency bridge response when the crisis occurred. All these factors that were investigated and

concluded as primary cause indicated the unpreparedness and disorganized state BP was in at the

time of the crisis (Benoit, 2011).

Relevant Crisis Theory: Agenda Setting Theory.

Situational theories as well communication strategies established in the event of a crisis

are essential in determining the appropriateness of management responses in the event of crises.

The knowledge obtained a framework within which BP’s situation can be assessed. Agenda

setting theory outlines that the presence of media in the event of crisis have a significant impact

on audience perceptions and belief of what choices to make as well what extend to rely on the

selected choices. The style of which a subject is depicted via the media and the prominence

attached to it through space and salience shapes the public perception of the significance and

relevance of the subject matter. The theory can be applied in the examination of BP’s crisis

specifically how the management represented the crisis in the media particularly the newspaper

in respect to salience, prominence and the general public wide perception of the company

capabilities and reputation (Serbina, 2015). The theory is relevant in this context in that it was

helpful providing updated real-time information on the situation and the various efforts directed

towards the crisis to contain it. In the modern world, it’s evident that crises attract a wide media

coverage because of the possibilities of unpreparedness and the implications the crises comes

along the way with. With the huge public influence modern media relish on, it’s important for an

organization to maintain an affirmative media reportage because its status is under scrutiny in the

event of a crisis (Benoit, 2011).

The theory was also helpful in analyzing the crisis communication of Exxon Valdez Oil

spill that occurred in 1989. Seven months after the crisis the company C.E.O attributed the crisis
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to human imperfections. Media fashioned the whole concern into an irresponsibility act,

scapegoating and denial upon which a majority of inhabitants in the coast of Alaska live to

believe.

Explanation and Examination of the Crisis Using the 5-Stage Approach.

Prodromal Stage.

This stage covers the period between when a crisis is forecasted and the time when

indicators of a crisis first appear. Being an organization operating in the current uncertain

environment, BP anticipates risks that could easily lead to a crisis. This provides the reason why

the company established a control response team as well emergency bridge response. These are

clear indications that the firm knew the existence of risks in their operations. When the threats of

oil spills first appeared the company was involved in last minutes decision changes thus

rendering the vulnerability of the threat to a crisis (Benoit, 2011).

Prevention/Preparation Stage.

In this stage, possible measures to minimize the current, as well as future hazards caused

by the crisis, are institute as well as to hinder the establishment influences. Since the occurrence

of the oil spill BP has invested over 675 million sterling pounds in cleaning up as well as

compensations to the various parties affected. The company approximated that over for a

completed cleanup additional 2 billion sterling pound was necessary.

Containment Stage

The containment stage provides a possible way to indicated how well the crisis was put

under full control. Among the many containment programs initiated by BP was a compensation

initiative whereby whoever was affected by the crisis financially were restored back to their

initial financial status. Also, the company used the media frequently give updates on how better
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they were working contain the situation as well as to ensure public safety. For cleanup, the

company invested huge capital to ensure that all was well within the shortest time possible.

Recovery Stage.

Having undergone a crisis that possibly damaged a company reputation, recovery stage

denotes that period when a firm is moving toward regaining the lost trust of its consumers and

market share. Up to this day, BP has never fully recovered from the reputation lost as a result of

the oil spill crisis. The environmental damage the followed the crisis is there to be felt for years.

People lost their lives in the process, and several injuries were reported. The company estimated

that additional two billion sterling pounds are required to completely clean up the place which

means that until this is done affected victims especially those near the Gulf will have a negative

perception on BP (Freudenburg & Gramling, 2011).

Learning Stage

The possible lessons learned from the crisis are analyzed under this stage, and future

recommendations are noted. It was learned that the BP oil spill was the most destructive spills

ever to have been recorded in the history of U.S. the federal report in 2011 indicated some issues

attributed to the aftermath destruction caused by the spill. It was realized that among the

highlighted concerns insufficient control response as well as last minutes decision. For future

recommendations and controls, it’s necessary for any other organization to take the highlighted

attributes seriously (Benoit, 2011).

Lessons Learned From the Crisis.

The study of the BP Oil Spill in 2010 have a great contribution to the field of public

relations and crisis communication. Individual persons, as well as organization, need to

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understand that crises are unforeseen and unavoidable. The unexpected characteristics of crises

demand pre-crisis strategy and training. The quick and effective response of an organization

during a crisis is imperious in protecting and repairing if any reputation damage. During the

actual crisis, crisis management is extremely complex and therefore it calls for crucial, quick but

considerate actions (Scherer, 2012).

While it was good for the company to use media in updating the public on how best they

were putting the situation under control, in a more concise and clear manner, various media

coverage reported an instance of unethical responses during the crisis. Such responses were those

to do with scapegoating, denial and evasion of some of the responsibilities. This signaled that the

company was unprepared, unorganized and were not professional in handling the crisis. While at

the end were able to put the bigger part of crisis under control, they failed in their initial response

and thus they received a high media criticism (Benoit, 2011). Lessoned learned is here that crisis

communication specialist is crucial in the management of crisis communication coupled with

proactive actions that are quick yet thoughtful.

Recommendations.

While this paperwork covers Agenda Setting Theory to illustrate the influential aspect

media enjoys during the crisis it quite subjective to understand the actual people’s perceptions

and opinions of BP. Unlike media, it’s likely that a primary consideration of public opinions will

reveal more accurate and reliable perceptions on the general effectiveness of the efforts BP

employed to put the crisis under control. Therefore for making a difference, future research

should make more use of public perception than media coverage to understand how well BP

tackled the crisis.

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References.

Barrage, L., Chyn, E., & Hastings, J. (2014). Advertising, reputation, and environmental

stewardship. Cambridge, Mass.: National Bureau of Economic Research.

Benoit, P. (2011). The BP oil spill. New York: Children's Press.

Freudenburg, W. & Gramling, R. (2011). Blowout in the Gulf. Cambridge, Mass.: MIT Press.

National Commission report on the BP oil spill. (2011). Washington D.C.

Scherer, L. (2012). The BP oil spill. Farmington Hills, MI: Greenhaven Press.

Serbina, G. (2015). The role of the Internet in shaping news agenda: a critical analysis of the

agenda-setting theory. Vestnik Tomskogo Gosudarstvennogo Universiteta, (397), 56-59.

http://dx.doi.org/10.17223/15617793/397/10

Walker, D. (2012). Mass notification and crisis communications. Boca Raton, FL: CRC Press.