Business reputation is a very important aspect in today’s competitive world.Some of the most successful businesses are the ones that have been able to uphold their first impression, the impression that made it stand out among others…
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A crisis refers to an undesirable and unfortunate position that a business finds itself in, and which poses a great threat to the organization (Benoit, 1995). The value of communication in any company is very important, and this importance cannot be understated. The major concept of this work is crisis management, and will employ a special focus on the BP oil company, and the oil spillage crisis of 2010. It shall take keen interest on how well, or otherwise, the crisis was handled by the company. Two theories are important in this work. First is the structural function systems theory which provides an in depth insight in crisis management. It implies that those companies that have a very effective information and communication model are more likely to succeed in crisis management (Lightstone and Driscoll, 2008). The second theory, the diffusion innovation theory, which is a widely applied theory, helps to structure the framework of this work, theoretically. It shows how businesses communicate and disseminate information through specified networks, or after a period of time which results to consistency (Hooghiemstra, 2000). Accounting theories lay great value in communication, and sets up assumptions, methodology and frameworks, to ensure timely, reliable, efficient and consistent information (Islam and Deegan, 2010). The crisis that BP found itself in was a great test to the company’s reputation, which has taken many years to build. The case The case study chosen, in this context is about BP oil spill in the Mexican Gulf in 2010. BP Ltd has operation sin over eighty companies. Statistics reveal that in 2012, it was the fifth largest company in terms of market share, and has over 87, 000 employees globally (BP, 2010). According to this report, on the morning of 20th April 2010, there was a huge explosion at the Macondo Prospect. A drilling rig had exploded, which resulted to the death of eleven people and seventeen others being injured. This was the worst marine accident in the oil industry, which put the reputation of the company at stake. The BP Company addressed the issue through several press releases, interviews, updates via new media including Facebook and Twitter and also through their annual financial report. The use of these means can be attributed to several accounting theories including the stakeholders and legitimacy theory, the systems oriented theory and the positive accounting theory, which will be discussed in the methodology section. Data After the accident, the company CEO, Tony Hayward, was interviewed by several media houses. In the interview, he consoled the family of the bereaved and the injured. The company also issued press releases regarding the accident. The press releases thereafter were released after a period of time, and each of it gave updates about the accident. For instance, between the day of the accident and the beginning of the year 2011, the company had released about thirty or more press releases on the same issue (Landau, 2001). New media has also boosted communication. The company therefore took its chances and continued to communicate via Facebook and twitter, updating all recent developments and photos of the progressing work. The other disclosure vehicle chosen was the annual report of 2010. In this, the chairman, Carl Henric Sanberg addressed the issue. In the same report, there is a summary of the accident, and a detailed explanation of what has been done, and what continues to be done (BP, 2010). The vehicles chosen for corporate analysis in this particular crisis were effective, though not fully. Methodology The
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The spill had immediate ramifications and even greater long term ramifications. It resulted in the death of at least eleven crew members. In addition, thousands of fishermen were left without fishing ground and thousand of fish and other living organism in the sea were killed (Biello, 2010).
The groups that were affected by the BP Oil spill disaster in the Gulf of Mexico
It has impacted all walks of life, has prompted thought provoking questions in the mind of concerned as well as unconcerned parties. The BP Oil Spill can serve as a warning to all organizations who are careless on safety measures on the smallest issues; showing even the smallest carelessness can lead to such a big catastrophe that can haunt organizations and the concerned parties in the long run.
This can be attributed to the fact in 2007 the western and central Mexican gulf gave contributed to 14% of the United State’s natural gas and 25% of the country’s oil in federal leases. Ever since the industry was started in the 1940s, it has grown steadily as more capitalists have invested and developed it.
Exhibit 3 of the case gives us three parties: BP, Halliburton and Transocean (Roberto 19). However, the regulators too are culpable. Nevertheless, one thing stands out. The entire off-shore drilling process is complex, as is reflected by the US$ 1 million per day cost of leasing the Deepwater Horizon rig (Roberto 8).
Reported to have originated with an Englishman, William Knox D’Arcy, whose proceeds from a fruitful oil exploration enabled him to establish the Anglo-Persian Oil Company (APOC), BP went through phases which included selling 51% of its shares to the British government; becoming privatized; becoming nearly bankrupt twice, and regaining its organizational strengths through a series of mergers with other oil companies (Ingersoll, Locke and Reavis, 2011; BP, 2012).
British Petroleum Oil Spill, 2010 Student Name Instructor’s Name Course University Date of Submission Table of Contents 1. Introduction 1.1 Discussion of concepts and theories used to analyze the case 2. The case 2.1 Context Background information about the case 2.2 Data Description of corporate disclosure vehicles chosen for analysis 2.3 Methodology Discussion of the categories of analysis used to analyze the corporate texts 3.
The air pollutants were made up of hydrocarbon fumes, for example, naphthalene, toluene, and benzene, and smoke. On the other hand, the water pollutants were made up of the oil which leaked out of the rig and the extinct creatures which trashed the Gulf after the oil spill.
Accounting Theory: British Petroleum Oil Split in Mexican Gulf 2010 Table of Contents Table of Contents 2 1. Introduction 3 2. The Case 3 2.1. Case Study 3 2.2. Data 4 2.3. Methodology 5 3. Findings 5 4. Conclusion 7 References 9 1. Introduction With the intention to decode the operations of businesses and their consequences, various accounting theories have been brought into use (Elsbach, 2000).
e oil spill is considered to be the largest marine calamity in history in relation to petroleum spillage and led to immense repercussions for Bp, the company that was running this particular oil rig. Apart from the environmental repercussions, the accident also resulted in the
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