$10 billion reasons that new BP CEO’s job just got tougher…
BP’s new CEO may be getting more than he bargained for. It seems that he doesn’t just need to clean up a spill in the Gulf….he needs to clean up a culture that accepts, or even encourages cutting safety corners, downplaying problems and only communicating when you get caught.
Apparently, lack of transparency may be a “corporate value” at BP, as is taking shortcuts that shortchange safety. BP’s most recent “gotcha” is happening in Texas, where local families are experiencing respiratory problems after the release of toxic fumes into the air, and a failure to notify residents. These families have filed a $10 billion class action lawsuit. And while BP is denying any wrongdoing – they aren’t exactly starting from a position of strength.
Sounds like something out of a Michael Moore documentary, doesn’t?
If a single event can damage a reputation, what does a pattern of deception, cover up and disregard for safety do? I am waiting for the pundits to start talking about BP’s “PR Problem.”
This is much bigger than a PR problem… I’ve said it before – good communications can’t compensate for bad decisions or bad policies. And believe me, that isn’t an easy thing to tell a client who wants to hire you for PR…
However, the new CEO has an opportunity…while he is responsible for the mistakes of the past and making them right – he isn’t “to blame” – at least not yet.
If BP wants to avoid being the next Enron or WorldCom, it needs to make some changes, and quickly:
• Leadership should immediately launch a review of safety standards and operating standards, and make changes quickly. While some of their operational decisions may be “by the book” – failure to take the most aggressive response to protect safety after these two events will only exacerbate the problem.
• Engage the environmental groups…make them part of the solution – an in the process make it more difficult for them to be critical.
• Engage your employees. They know where the problems are. And they know how to fix them. Use that dialogue as an opportunity to send a signal that BP is upping its game, and elevating its standards, and that there will be zero tolerance for failing to comply.
• Put people before profits. I know that this is difficult for a public company to do. But a few dollars spent on the front end will save millions in legal fees, fines and penalties on the back end.
Once they’ve done these things, then BP can start to think about communications. Otherwise, it is just talk.