Home / Article: Under Circumstances, BP PR Not So Bad
Under Circumstances, BP PR Not So Bad
May 18, 2010 | 10 Comments
Finally, BP released video last week of the deep-sea leak. Withholding the footage was one of the company's PR mistakes.
We”re watching one of the most overwhelming public relations challenges in the modern history of American business unfold around the BP oil spill in Louisiana.
And under the circumstances, the team there isn’t doing half bad.
Yes, the oil is still gushing into the Gulf of Mexico at the rate of over 5,000 barrels per day. And yes, the financial and environmental damage are already devastating and will grow.
But those results were guaranteed April 20, when the disaster first made news. Even the best public relations strategy can’t change the facts.
Since then, BP has kept its executives visible, shared information with its broad constituencies and even ponied up cash to support tourist bureaus in the region.
Daily opportunities to communicate
As is always the case in a situation like this, BP has been given a daily forum in the major media. Though the company has made some mistakes, its spokespersons have used the spotlight effectively to convey the company’s commitment to clean up the mess and to demonstrate that commitment with action.
BP has portrayed the spill as the enemy, and itself as the protagonist.
Contrast its behavior with companies in previous situations, large and small, that relayed limited information and demonstrated no action. The silent approach is not safe, but creates a dangerous vacuum that sucks into the spotlight every opponent, from the credible to the crackpot.
BP is filling the vaccuum, not only by taking advantage of the media limelight but more importantly by updating regulators, members of Congress and local communities.
“It seems like almost on a daily basis somebody has sort of checked in or called or come by the office providing information, being available to answer questions,” Senator Thad Cochran, a Mississippi Republican, told Business Week (read the full article).
Signs of optimism
Last week, TheStreet.com polled its readers on whether BP would halt the catastrophic leak in time to avert a disaster as massive as the Exxon Valdez leak in 1989. Some 58 percent of respondents thought BP would.
The investing public seems more optimistic. Although BP’s stock price has declined almost daily since last month’s explosion, and closed Monday at $46.57, it’s still far above the $35 it hit early last year. That suggests the spill is less a drag on BP’s value than the 2009 economic catastrophe from which stocks have generally recovered.
The story is not over, and there’s only so much PR can do amid a disaster like this.
At least BP’s doing that.
10 Comments
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Good points, I think you’re right. This will probably be remembered as the most momentous event of 2010, and it is bound to affect many careers in many ways. The BP PR people will probably have their careers affected positively.
Comment by Ron Petrie — May 18, 2010 @ 12:19 pm
Dan -
I think BP is doing a great job on the PR side; their only misstep seems to be low balling the the well output. They still don’t know how much oil is being dumped and they should not guess. I just wish they were doing a great job of stopping the leak and remediation. The best thing that will come out of this will be mandatory response plans to deal with deep well accidents – think requisite double hulls for tankers.
Obviously, BP already has PR crisis response plans. I think it’s impossible, though, to practice a major disaster complete with variables of weather, current, government posturing and the variances of expert opinions.
Ultimately, each of us is responsible for demanding the vehicles, clothing, coatings, medicines and thousands of other comforts of life that rely on oil. So long as we insist these things be delivered for the lowest possible price and that the companies providing them return a profit, we should be prepared for the occassional, inevitable disaster. After all, nothing is free.
Jim
Comment by Jim Cartwright — May 18, 2010 @ 12:30 pm
Sorry Dan, but for me, BP’s PR approach has been a mixed bag. I do give them credit for convincing their upper level execs to appear regularly in what has become an obvious media shooting gallery, but management’s answers clearly have been scripted not by their PR people, but by the lawyers–and it’s hurting them in the long run.
Here are two examples: BP’s obviously unnerved COO’s futile effort to evade Matt Lauer’s question on “Today” whether BP owes an apology for this disaster or, even worse, the statement from BP CEO Tony Hayward who described this incident as “a relatively small leak in the Gulf of Mexico,” which led to Fox’s Shepard Smith’s response in a subsequent commentary: “At least act like you care.” These are far from the lasting impressions envisioned in anyone’s PR strategy.
Yes, BP has a lot on the line and the lawyers are trying to minimize potential damage in the form of lawsuits, which Hayward in another interview tended to dismiss as “frivolous.” Any PR type who suggested that comment ought to be fired (my guess is that it was probably a lawyer; at least, I hope so). Try telling Louisiana fishermen who are unable to ply their trade that their efforts for recovery are frivolous.
Comment by Jordan Cohen — May 18, 2010 @ 2:07 pm
I think BP PR is doing a marginal job at best to address the magnitude of a global environmental disaster that the planet is just beginning to comprehend. This is much more than PR. It’s about social consciousness raising, calling for an entirely new way to “relate to and engage with the public” on situations that wreak such monumental havoc. BP knows the huge severity of this situation and it appears that they really haven’t figured out how to solve the problem- billions of gallons of oil spilling into the Gulf and threatening an entire coastline. This well is spewing oil for nearly 30 days!
This in my views calls for new communications strategies and actions. Real action. Not the same old, same old. I’m not seeing enough of it.
The allegations that they skirted critical safety guidelines and compliance regulations is biting them and the entire industry where it hurts. That is a subject I’d like to see the actual players (with BP leading) address proactively rather than putting their tails between their legs and let it rip from Capitol Hill.
And isn’t it time to really see some real substantive dialogue on how and when we will lessen our reliance on oil and gas?? To my fellow respondent who said that we have to learn to live with the occasional environmental disaster if we demand low-priced petroleum-based goods, I say that’s an irresponsible comment. If your livelihood depended on the Gulf Coast, I’ll bet you wouldn’t be saying that. Nor would you if one of your family members perished in the explosion which allegedly occurred because one the most profitable oil corporations on the planet may have skirted critical safety guidelines.
Instead all we’ve seen is a lot of finger pointing (who in their right mind would perceive that it’s either Transocean’s or Halliburton’s fault when they are merely subcontractors? Regardless of culpability, it the BP brand that being associated with the disaster. Period.
The real redeeming commitment that I believe works to their favor is their commitment to pay for the clean-up. But how far-reaching will that be?? What would benefit them is to see them not only commit to clean up this gross mistake but to mitigate the horrendous impact on wildlife, provide restitution to the Gulf fishing and tourism industries for a period, AND make a pact to accelerate a course to quickly bring to market new innovative, cleaner energy – before the end of this decade. Let BP lead the way. That is what it’s going to take to restore faith in the company. That is effective PR. That’s leadership.
Comment by Jen S — May 18, 2010 @ 2:47 pm
Sorry Dan,
BP’s strategy to make the spill the culprit and itself as the protagonist trying to clean up the mess reminds me of the chestnut about the doctor, architect and lawyer arguing about whose profession was the oldest. The doctor cited the Bible and pointed to God’s creation of Adam. That makes being a doctor the oldest profession, he said.
No, said the architect; go back to the beginning of Genesis and God creating order from the chaos.
And the lawyer asked, “And who do you think was responsible for that chaos?
At least the lawyer had the integrity to not evade responsibility. And you can be sure the BP lawyers will seek to weasel their company’s way out of assuming full financial responsibility. Their statements so far all have a lawyerly ring to them about BP reimbursing those expenses it deems have merit. The Louisiana courts will be clogged until the 22nd century with suits against BP seeking redress. When it’s all over, BP will end up paying only a fraction of the price it should pay for the damage caused. The lawyers who defend Big Tobacco will serve as BP’s role model.
Comment by Dennis from Youngstown — May 18, 2010 @ 3:33 pm
Many great points here so far.
Yes, BP could step forward after the cleanup and use the attention to unveil a more complete clean-energy program. But if BP leaders start crusading now for policy changes and world peace, they would appear less than fully focused on plugging that leak and cleaning up their mess.
They’ve promised to pay legitimate claims and have coughed up millions already for tourism promotion without any evidence of being asked. By refusing to pay unwarranted claims, and signaling early along those lines, they’re fulfilling their obligations to their investors while preserving their capacity to pay legitimate claims in full.
Comment by Dan Pecchia — May 18, 2010 @ 4:14 pm
I agree that BP is doing the best to play the very public hand they are dealt. Unfortunately this situation now involves some passionate (and vocal)stakeholders who see an opportunity to leverage the crisis/disaster as evidence for their own agendas – i.e, offshore drilling; development of alternative energy resources; etc.
The unfortunate truth to this is that we are ALL very much dependent on oil for our daily lives. I think this spill is obviously quite devastating not only to the environment, but also to anyone living in that region. However, do we as Americans really want to make the necessary lifestyle changes that would lessen our dependence on oil? I doubt it. Accidents such as these, while obviously unfortunate, are just a price we have to occasionally pay as an over indulging society.
Comment by John Gonda — May 18, 2010 @ 7:56 pm
Jen S -
I still believe that BP is doing a great PR job. The key words being “PR job”. They are not going to cure cancer, find other employment for the shrimpers (many of whom they already employ in the off season), end poverty or finally own up to having killed Cock Robin.
They are, however, doing a great job of making their top people available to explain what they know about how this tragedy occurred and what they intend to do about it. That is good PR doing what it can do which is pretty much limited to giving the rest of us a reason to hear them out before sending in the torch and pitchfork crew.
If many of their responses sound lawyerly, it’s because they are fully aware that legions of lawyers are waiting to kick them while they’re down – a distraction that won’t help plug the gusher in the Gulf or solve the myriad of problems that will result from it.
I believe my comment is more pragmatic than irresponsible. Of course, I plastic bag my garbage, pour pills, water, and detergent from plastic bottles, own and use several internal combustion engines,
occassionally travel by air,and own many pieces of clothing that rely on synthetics (read oil) to remain relatively wrinkle free.In one way or another, all of these activities rely on oil so I suspect representatives of the Holier Than Thou Party will soon come calling to correct my errant ways. Meanwhile, I expect BP to clean up the
mess they have made for my convenience; to formulate plans to avoid future disasters and to keep me informed of their progress through great PR.
Comment by Jim Cartwright — May 18, 2010 @ 11:27 pm
[...] post. In the meantime, we’d like to know what you think about this: how bad is it? Or, are we wrong? Is BP et al handling it well? Leave us a comment–we may include your thoughts in our [...]
Comment by Alex G — May 19, 2010 @ 1:13 pm
Not seeing too much innovative thinking here – lots of pontificating. Lots ‘o navel gazing. While you folks continue to glug oil, some of us are thinking of a life that is much less ‘oily’!!!
Comment by Jen S — May 20, 2010 @ 2:13 am