April 20, 2010 marked the largest oil spill ever, creating a worldwide environmental scandal. BP public limited company was responsible for an oil spill that flooded the Gulf of Mexico for three months. An investigation showed that the cause of the oil rig’s explosion, which triggered the oil spill, was due to cost cutback decisions and data misreadings. BP’s mistakes resulted in 11 worker deaths, over 6000 dead birds, and over 1.4 billion barrels of waste.
BP’s current reputation is due to the cause of declining professional ethics of a business. The damaging reputation that BP inherited was not only harmful for the company itself, because of all the negative media publicity, but also for their clients who did not support the practices of the company and had to look elsewhere for a new supplier. This disastrous event also caused many environmental issues ranging from problematic activist groups to stricter drilling procedures and laws for other oil companies. From a business standpoint, the recovery expenses from such an event are massive compared to the cost cutback decisions because a new marketing approach to re-establish a respectable reputation is essential.
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