Tuesday, June 15, 2010

BP Nees Less PR and More Operational Correction

A recent USA Today article provided insight into the advise that a number of PR executives would give BP on ways to build back its reputation. Among the suggestions are: 1) to become a "green company"; 2) to highlight and celebrate the contributions of those who are cleaning the Gulf; 3) to be more transparent and honest in its communications; 4) to admit its mistakes; etc.

As one can see, all of the suggestions are superficial to the problem that BP created and the reasons for it. They are what one might consider the worst PR spin on a very bad and complex problem. The suggestions sound more like those from a group of undergrads rather than from those who profess to be corporate counselors.

BP got into this mess because it spun its reputation rather than really living it. It got into this mess because its former CEO, Lord Browne, wanted to establish BP as a leader in environmental activism, yet he cut costs to an extent that BP could not live up to its hype. BP did not put into practice what it preached. It lived one way and talked another.

What these PR executives are advocating is to talk more and not to really change. What BP does not need is more PR. It needs operational change. It needs to get back to basics and discover if its values are really environmental leadership, safety and sustainability, or are they to articulate these values because it helps them look different in the perspective of key stakeholders.

But, while we're talking about PR, let's try to get BP to at least get its PR activities in line with what it claims it is trying to do. BP claims it is being transparent, yet at the same time it blocks reporters from covering the spill. It is taking out advertisements touting its actions to correct the problem while at the same time short-changing the payments to Gulf residents.

Enough is enough. This is a disaster of unprecedented proportions. I understand that British investors are concerned with the future of BP and, as a result, the future of their pensions. Screw their pensions. An entire region has been destroyed for at least another generation. Why should we worry about pensions when a company does such damage? It would be akin to being asked to not send to jail a known killer because he/she gives such large amounts to charity and the good of society.

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