Reference no: EM13231597

Newquist, and Schatz analyzed media coverage of BP from 2003 to 2006 in the United States and Europe and categorized whether it was negative or positive. They found that in 2003 and 2004, there were twice as many positive stories as negative ones. This changed in 2005: for every positive story, there was approximately one negative story. This reflected a variety of events that dented its corporate reputation, including an explosion in its refinery in Texas, downsizing in Europe, and questions in Russia about tax evasion. By 2006, the balance shifted so that negative stories dominated, fueled by a number of issues, in particular an oil leak in its Alaskan pipeline.

What do you think of Lisa reponse: BP has attempted to employ numerous tactics to build up its reputation after the Gulf oil spill. They have attempted to make themselves look like they have made many environmental changes through advertising campaigns and generous donations. After billions of dollars paid in fines and even more on full-page advertising spreads promising change, a brand management specialist noted, "after spending millions in communications saying, ‘I'm sorry,' from a reputation standpoint, it's done nothing in terms of their financial performance." (Buford).The company is currently under fire, as strategists notice that BP is seemingly paying more in campaigns than in actual environmental cleanup. Unfortunately, I do not think that it is possible to completely change BP's image. The Deepwater Horizon spill is something that most of the population knows about and it is something hard to forget -- the Gulf of Mexico was flooded with oil, killing many wildlife creatures and causing irrevocable damage to the area. Even though BP has made positive changes, with its efforts to cleanup and its donations, it would be difficult to measure how their change will help the company in the long run.

Buford, Talia. "BP's traveling a different road to redemption." Politico. Politico, LLC. 10 Sep. 2013. Web. 02 Dec. 2013.

Swanson, Emily. "Poll Finds BP Public Image Still Tarnished 3 Years After Gulf Spill." Huffington Post. TheHuffingtonPost.com, LLC. 20 Apr. 2013. Web. 02 Dec. 2013.

What do you think of Hilda response: From the research I have done on BP, I feel that they have changed back from the overwhelming number of negative responses since the Gulf oil spill back to the positive side. Since 2010 BP has made every effort to improve its corporate image globally in a variety of ways. First, they announced a multibillion dollar plan to clean up the damage the oil spill did not only to the ecosystem of the Gulf of Mexico; but, to reimburse the thousands of businesses that rely on the fishing and tourist industries in that region of the United States. "...more than $1.4 billion and 70 million personnel hours on responsive and clean-up activities..."were spent by BP. The company blanketed the airwaves with commercials that used employees from the area explaining all of the efforts being used to bring back aquatic life to the region and assist local industries dependent on the Gulf. It was their way of making their story more acceptable to the country in general and the Gulf States in particular. When BP recognized their culpability for the Gulf disaster they opened the door to reconciliation with Federal, State and local governments and the people who live in the region most directly and profoundly affected by the spill. It made BP more honest in the eyes of the American public. It showed how honest they became since the oil spill. By accepting responsibility for the spill and then demonstrating how they planned to repair the problem, BPs popularity rating increased. While it did cost BP huge amounts of money in damages, lawsuits, and public relations troubleshooting, it was money well spent because, in the long run, the positive outcome will only increase its value as a global energy power. BP took the high road, admitting guilt and responsibility for the catastrophe. Today with the negative experience behind it, BP has prevailed and is a stronger company. BP's public relations strategy of complete honesty and transparency has helped to improve its public image.

Although the "...market value has dropped since the explosion..." BP has maintained its place as one of the leading competitors in the global market. I believe that as the years go by memories of the Gulf oil spill with dim and their reputation will grow stronger and more positive. The Gulf catastrophe has been for BP, and for companies around the world, how to act and react when negative circumstances happen. Part of what was learned by BP is to immediately own up to being the cause of the problem; or, at least to be willing to take ownership and responsibility to look into the cause. The most important lesson learned is communicating openly and honestly with all those involved to keep negative feelings at bay which can and do have a direct impact on a company's marketability on the global stage.
Work Cited:

The International Magazine of the BP group. "BP MAGAZINE, issue 3 2013.

Scheck, Justin, and Selina Williams. "BP: The Makeover --- Oil Giant Ramps Up Drilling After Billions in Asset Sales, Legal Costs." Wall Street Journal. Oct 25 2013. ProQuest. Web. 1 Dec. 2013.

What do you think of Larry response? I don't think BP has changed really. They have had issues in the past and when it gets to the point of being publicized, then they handle the "current public relations" issue. I think that if the oil rig had not exploded and it was just an oil leak we would have never found out about it. When the oil started washing up, that would have been the first clue there was something wrong and we would have been spending money to try to find an issue that was just being covered up.

"BP has a reputation in the industry as an aggressive company tackling the deepest and most difficult oil prospects." (White), this tells me that they are willing to take risks, which is dangerous because the oil industry in itself is a business filled with risks from the start. What really bothers me is that Transocean the actual owner of the rig was pretty boastful about their position in the market and how much work they have waiting for them. "Transocean is "the world's largest offshore contract driller, and we have the largest presence in all asset classes. We are in fact more than twice the size of our nearest competitor, and we operate in all the significant offshore markets worldwide," Ricardo H. Rosa, company senior vice president and chief financial officer, said in a presentation to investors earlier this year. At the time, the company boasted that it was in so much demand that it had a backlog of contractual commitments collectively worth $31 billion, equivalent to roughly two and a half years' activity." (White)

Some unhonorable mentions of BP history:

* BP has a checkered record of worker safety and corporate conduct. Here are some major incidents, compiled by nonprofit news organization ProPublica.

* A Texas refinery explosion killed 15 and injured 170 in 2005. BP paid a $50-million fine.

* In 2006 after an oil spill, BP paid a $12-million fine for failing to repair a pipeline in Prudhoe Bay even though it had been warned in 2002 that repairs were needed.

* BP was accused of manipulating the market price of propane and in 2007 agreed to pay $300 million in fines.