A Critical Examination of How Crisis Management Fits In With Corporate Public

Relations and Reputation Management. A Critique of British Petroleums (BP) Use of

Corporate Relations to Manage Negative Perceptions Stemming from the Gulf of Mexico
Oil Spill

Gerald Ogoko

September, 2014

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ACKNOWLEDGEMENTS

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TABLE OF CONTENTS
EXECUTIVE SUMMARY..
CHAPTER ONE: Introduction...............
1.1
Background of Study
1.1.1 British Petroleum (BP) & The Gulf of Mexico
1.2
Research Aim
1.3
Research Methodology: Overview...
1.4
Structure of the Research..
CHAPTER TWO: REVIEW OF LITERATURE...............
2.0
Introduction...
2.1
Public Relations: Definition.
2.1.1 Theories Underpinning Public Relations Practice....
2.2
Impression Management..
2.3
Role of Public Relations in Reputation Management...
2.3.1 Corporate Communication
2.4
Crisis Management...
2.4.1 Role of Corporate Communication in Crisis Management..
2.5
The Gulf of Mexico Oil Spill
2.6
Conclusion
CHAPTER THREE: RESEARCH METHODOLOGY.............
3.0
Introduction..
3.1
Research Approach...
3.2
Research Design...
3.3
Data Collection Methods.
3.4
Validity, Reliability & Generalizability...
3.5
Limitations of the Research.
3.6
Ethical Considerations.
CHAPTER FOUR: ANALYSIS & INTERPRETATION OF RESULTS..
4.1
Introduction..
4.2
Gulf of Mexico Oil Spill..
4.3
BP Oil Spill & Anti-Capitalist Sentiments..
4.4
BPs PR Response to Reputation Horizon Disaster
4.4.1 Risk Analysis...
4.4.2 Crisis Management..
4.5
Analysis of Press Release by BP During Oil Spill..
4.5.1 Press Release I: British Petroleum Initiatives Response to Gulf of Mexico...
4.5.2 Press Release II: BP Offers Support to Transocean After Drilling Fire.
4.5.3 Press Release III: BP Offers Sympathy to the Families of the Lost in the Accident..
4.5.4 Press Release IV: BP Pledges US$500mn for Independent Research....
4.6
Impact of the Deepwater Horizon Oil Spill in BPs Reputation.
4.7
Summary of Main Research Findings.
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CHAPTER FIVE: CONCLUSION & RECOMMENDATIONS.............

5.1
Introduction.
5.2
Conclusion..
5.3
Recommendations.
5.4
Directions for Further Research
References.
Annex 1: BP Press Release-April 21, 2010..
Annex 2: BP Press Release-April 21, 2010..
Annex 3: BP Press Release-April 23, 2010..
Annex 4: BP Press Release-May 24, 2010...
Annex 5: Personal Development Plan..

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EXECUTIVE SUMMARY
In this research, attention was devoted to exploring how crisis management fits into
public relations and corporate reputation management. In order to do this, the following issues
were discussed: public relations, crisis management, crisis communication, reputation and
impression management. Discussing these issues contributed to the development of a theoretical
understanding of the underlying subject matter of the research.
In order to achieve the objectives developed for the research, the case study design was
used. In selecting the case study for the research, the following criteria were used: scale of the
crisis; diversity of stakeholders impacted; and the availability of data. The case study selected for
this research was British Petroleums response to the deepwater horizon oil spill. In other words,
attention was devoted to critiquing BPs public relations (PR) response to this disaster. In
critiquing BPs response, critical discourse analysis (CDA) was used to analyze BPs press
releases and statements by BP executives.
One of the key findings of this research was that when faced with organizational crisis,
transparency and honesty in communication is critical. Honesty and transparency in
communication can help reduce the apprehension of stakeholders affected by a crisis. In crisis
situations, organizations are supposed to be open about the situation or crisis. Furthermore,
organizations should equally be open about measures being taken by the organization to mitigate
the effects of the crisis. Being open, in this regards, supports the public information model of
public relations. The analysis conducted in this research suggests that BP was not honest about
the true picture of the quantity of oil being released into the Gulf. This did not do BP any favours
as it intensified anti-capitalist sentiments and the publics outrage against all that BP stands for.
In communicating during crisis, press releases while important- are not the only channel
of reaching out to stakeholders. Television interviews and press conferences are also useful
channels for communicating to stakeholders during crisis. Empathy in communication
irrespective of the channel utilized- is critical for effective management of organizational crisis.
Demonstrating empathy in crisis response whether through communication or actions- can help
reduce the tension and apprehension among stakeholders affected by a crisis. Some of Tony
Haywards statements in the days and weeks following the crisis were put under the spotlight in
this research. As observed, his statements lacked empathy especially as it concerned specific
publics directly impacted by the deepwater horizon accident- and made BP appear aloof and
unconcerned about the environmental degradation to the Gulf. This was, in part, responsible for
his ousting as BP CEO.

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CHAPTER ONE
INTRODUCTION
1.1 Background of Study
In the current marketplace, which is intensely competitive, corporate reputation can be a
commercial organizations most significant asset. Corporate reputation can be the factor that
makes a company stand out from its rivals and give it a competitive edge. This is the reason why
many organizations see public relations management as a critical organizational function (Glenn,
2009). Public relations (PR), as an activity or subject matter, is concerned or closely associated
with reputation management (Spaulding & Correa, 2005). For Leary & Kowalski (1990), public
relations is concerned with impression management. Impressions, whether positive or negative,
can form a reputation about a person or organization. Impression management can also be
construed as self-representation a process by which individuals or organizations make an
effort to control or manage the impressions that others have of them (Leary & Kowalski, 1990).
From an organizational standpoint, Leary & Kowalski (1990) are of the view that public
relations play a critical role in ensuring that companies make a positive impression about
themselves in their interactions with external stakeholders, i.e. their customers and the public at
large. Based on this position, public relations can be viewed as a tool for managing the
relationship between an organization and its immediate external environment. This perspective
was reinforced by Spaulding & Correa (2005) who indicate that public relations presents an
avenue for companies to manage their reputation or image in a positive or well-received manner.
This research seeks to explore the role of public relations in crisis management. Crisis,
which can occur in diverse forms, is an element that organizations cannot ignore. This is because
crisis reflects poorly on a company and has the potential to damage reputation to a certain degree
(Dilenschneider, 2000). Furthermore Jaques (2007) notes that for corporate organizations, crisis
is inevitable as it can occur through conscious and unconscious actions and decisions. From an
organizational context, Dilenschneider (2000:22) notes that a crisis can be viewed as an event
which poses a significant threat to company operations, and can have negative consequences if
not treated properly. Furthermore, Jaques (2007) indicates that a crisis can generate three main
threats: (1) financial loss; (2) public safety concerns; and (3) damage to reputation. Jaques (2007)
notes that a crisis can lead to financial loss if it disrupts operations. Given the threat of financial
loss and the other aforementioned threats, there is reason not to ignore crisis. Jaques (2007) and
Coombs (2007) note that public relations present a useful tool for managing organizational crisis.
This is largely what has contributed to the popularity of crisis management both as a subject
matter and a profession (Coombs, 2007). For Coombs (2007:3), public relations is a vital tool in
the arsenal of crisis managers. This is somewhat ironical especially considering that public
relations is often presented as a means of relationship building based on shared interests while
crisis management is presented as a strategy to decrease the effect of negative publicity. Given
this observation, PR can be perceived as all-encompassing with regard to supporting
relationship-building and managing crisis at the same time. Furthermore, Coombs (2007) noted
that public relations play a role in crisis management especially given the threat of a crisis to a
companys reputation.
Some of the studies already discussed in this chapter are of the view that companies
cannot ignore crises whenever they arise. Crisis management presents a framework for
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addressing these crises sequentially and properly; in a manner that brings about limited damage
to a companys reputation (Dilenschneider, 2000; Coombs, 2007). Jaques (20070 notes that crisis
management offers a useful framework for protecting a company and its stakeholders from
threats or reduce the effect from the materialization of such threats. While crisis management can
help to limit the damage emanating from crisis, it should equally be noted that crisis can present
an opportunity for good public relations (Girboveanu & Pavel, 2010). In investigating the role
that public relations, some of the discussions in this research look at the issue of crisis
management closely. Given that crisis management can be categorized into three main phases
(Girboveanu & Pavel, 2010) pre-crisis; crisis response; and post-crisis- added attention is
devoted to the crisis response and post-crisis phase. In so doing, data collected for the
research examines BPs response to the Gulf of Mexico Oil Spill in both phases of crisis
management.
As alluded to by Coombs (2007) and Jaques (2007), the perceived role that public
relations play in crisis management is reinforced by the increasing attention to media relations as
a tool for managing corporate reputation. Spaulding & Correa (2005) note that one of the most
critical factors in crisis management is working with the media. The array of media
communications especially as we increasingly live in a digital landscape- has given credence to
crisis, whether organizational or national, as a newsworthy item. This is evident by the global
media attention to the Gulf of Mexico oil spill. Most global news channels, such as CNN, BBC
and Al Jazeera, devoted a significant amount of time to broadcasting heart wrenching images of
the effects of the massive spill on aquatic life. In investigating the role played by PR in crisis
management, British Petroleum (BP) formed the case study for the research. It is important to
note that the Deepwater Horizon oil rig, the rig responsible for the spill, was owned by BP. Thus,
the research critiques BPs media response to the negative perceptions emanating from the oil
spill disaster. Before providing an overview of the Gulf of Mexico oil spill, as the background
context for the research, it is important to provide a brief understanding of what public relations
entails. In the second chapter, added attention is devoted to exploring some theoretical models
underpinning public relations practice.
What is public relations? Glenn (2009) note that public relations is about reputation the
consequence of your actions, what you say and what others say or think of you. From an
organizational perspective, Girboveanu & Pavel (2010:3) define public relations as, the
management function that establishes and maintains mutually beneficial relationships between a
company and external stakeholders on whom its success or failure depends. Looking at PR as a
management function does reinforce its importance in corporate relations as alluded to by
Glenn (2009). The cause of divergence in definition of PR can be traced to the possibility of
viewing it from multiple dimensions. Glenns (2009) views PR from the perspective of the
individual. Girboveanu & Pavel (2010) view PR from the perspective of the corporate
organization. Furthermore, PR can be seen as an all-encompassing concept involving crisis
management. In any case, how PR is defined can be influenced by the perspective from which it
is considered. In essence, PR is critical to managing the relationship between a company and its
diverse range of stakeholders. Allen et al., (2008) defines public relations as the profession or
activity that is concerned with reputation management, with the objective of gaining
understanding and support and influencing public opinion and behavior. Furthermore, Allen et
al., (2008) indicate that public relations entail a planned, structured and sustained effort to create
and maintain goodwill and mutual understanding between a company and the public. PR
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management applies to or can be used by a broad spectrum of stakeholders such as, private
sector organizations, public sector organizations, non-governmental organizations, development
agencies, and even individuals (i.e. celebrities) (Glenn, 2009). Having presented and discussed
some of the definitions of PR, I shall now provide an overview of the Gulf of Mexico Oil Spill
and how this event affected BP. This is done in the next section.
1.1.1 British Petroleum (BP) and the Gulf of Mexico Oil Spill
The Gulf of Mexico oil spill, also known as the Deepwater Horizon oil spill, started on
20th April 2010 in the Gulf of Mexico on the BP-operated Macondo Prospect. The spill was the
result was the result of an accidental gas release and subsequent explosion. In the addition to the
massive oil spill, the accident claimed eleven lives. The Gulf of Mexico oil spill is regarded as
the largest accidental marine oil spill in the history of the petroleum industry with an estimated
10% to 32% rise in volume when compared to the previous largest, the lxtoc 1 oil spill (BBC
News, 2012). Following the explosion and sinking of the Deepwater Horizon oil rig, a sea-floor
oil gusher flowed for a period of 87 days. In fact, the United States Government contended that
an estimated total discharge of 5 million barrels flowed from the leak (Weber, 2010). The effect
of the spill on marine in the area was both palpable and incalculable. Juhasz (2012) notes that as
a result of three-month long spill, along with the adverse impacts of response and cleanup
efforts, large scale damage to marine and wildlife habitats, fishing and tourism industries, and
human health concerns have continued through to 2014 (see Figure 1).
The Gulf of Mexico oil spill led to national and global outrage, most of which was
directed at BP, the company responsible for the Deepwater Horizon rig. This event significantly
disrupted BPs operations which ultimately resulted in significant financial loss. In 2012, BP and
the US Government came to a settlement for federal criminal charges with BP pleading guilty to
11 counts of manslaughter, 2 misdemeanors, and a felony count of lying to Congress. The
Environmental Protection Agency (EPA) banned BP from new contracts with the US
Government (Thompson, 2012). In the same year, BP and the US Department of Justice agreed
to a record-setting US$4.25 billion in fines and other penalties (Muskal, 2013). In addition, as at
February 2013, BP incurred a cost of US$43 billion as a result of criminal and civil settlements
and payments to a trust fund (Fontevecchia, 2013). The financial loss also includes the cost of
BPs response to the crisis. In fact, BP (2013) notes that the cost of sealing the oil rig
permanently and for cleanup activities was about US$14 billion. In the crisis response phase, BP
conducted a series of press conferences to update the public on the status of efforts as regards the
complex activity of curbing the leak; this was in addition to being involved in the cleanup effort,
i.e. containment, collection and the use of dispersants.
When it comes to critiquing BPs PR response to the Gulf of Mexico oil spill, Robertson &
Krauss (2010) described it as clumsy and not properly thought out, especially when citing
comments made by Tony Hayward, the former chief executive of the company in the wake of the
disaster. Given that the PR strategy for dealing with a disaster such as the Gulf of Mexico oil
spill was always going to be about damage limitation, Webb (2010) describes BPs PR response
to the crisis as the worst in US history. Attempts by BP press officers to transfer blame to
Transocean only backfired as subsequently, it was deemed that BP lied to the US Congress about
the causes and true extent of the oil spill disaster. In light of the observations by Robertson &
Krauss (2010) and Webb (2010), this research undertakes a critique of BPs PR response to the
disaster, especially as it concerned the management of negative perceptions emanating from the
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event. Having provided an overview of the Gulf of Mexico oil spill, it is now time to present the
aim of the research.
1.2

Research Aim

The main aim of this research is to explore how corporate organizations utilize public
relations to manage their corporate reputation in the face of crisis. In doing this, focus is devoted
to critiquing British Petroleums PR response to the Gulf of Mexico oil spill. In fulfilling this
aim, the research undertakes a critical stance against corporate public relations. It should be
noted that corporate PR tends to be perceived as a means through which the organizations
promote their agenda irrespective of public perceptions and concerns. For instance, although
CSR is a welcome initiative from the standpoint of corporate accountability to the communities
in which they operate-, it is often viewed by some as a PR ploy to create a favorable image of
themselves irrespective of reality. While examining how corporate organizations use PR to
manage their corporate reputation, effort will be devoted to undertaking a critical and objective
analysis of this approaches especially as it concerns the public sphere. In order to realize the
central aim of this research, these key questions were developed by the researcher:
Research Questions
i.)
ii.)
iii.)

How do organizations use corporate and strategic communications to manage their

corporate reputations in the face of crisis?
How do organizations manipulate corporate relations to maintain their agenda when
faced with crisis?
What was the nature of British Petroleums (BP) response to the Gulf of Mexico oil
spill?

Research Objectives
In light of the context of the research and the research questions earlier highlighted, these are
the main objectives of the research:
i.)
ii.)
iii.)

To undertake a critical examination of how corporate organizations use strategic

communications to manage their corporate reputations in the face of crisis.
To critically examine how organizations manipulate corporate relations to maintain
their agenda when faced with crisis.
To critically examine British Petroleums (BP) use of strategic communication to
manage public perceptions of its culpability in the Gulf of Mexico oil spill.

In exploring the role of that public relations play in the reputation management, especially
when faced with crisis, the following issues will be discussed:

Definition of Public Relations.

Theories underpinning public relations practice.
Role of public relations in crisis management.
Relationship between public relations and reputation management.
Public relations and corporate agenda setting.
Role of corporate communications in crisis management.
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1.3

Research Methodology: Overview

In this research, a qualitative research approach is used. Collis & Hussey (2005) note that
the qualitative research approach is concerned with recording, analyzing and making an effort to
uncover the deeper meaning and importance of human behavior and experience. The decision to
use this particular research approach is driven by a series of factors. One concerns the nature of
objectives developed for the research. In order to understand how organizations use public
relations to drive their own agendas, undertaking a critique of their corporate communications is
critical. In many cases, such communication consists of qualitative data hence, the usefulness of
the qualitative approach. Again, the qualitative research approach provides a useful way of
gaining an improved understanding of communication relationships and the social world
(Daymon & Holloway, 2011).
Strategic communication plays a part as an unseen influence (Heath, 2009) which seeks
to inform how and what we know at the individual and societal levels, and also how we define
our own identities in connection to others. Understanding the nature of this unseen influence
requires critical thinking. Critical researchers are interested in encouraging emancipation and
social transformation, for instance, challenging orthodox practices and ways of thinking, or
unraveling what has been marginalized. Their methodological approaches are usually based on
interpretive thinking. Interpretive thinking is useful in research because it challenges and
reformulates dominant paradigms. Communications relationships cannot be separated from the
social and historical contexts in which they occur, and this is demonstrated in the contextual
nature of qualitative research. These observations drove the decision to use the qualitative
research approach as a way of realizing the set objectives for the research.
One of the useful ways of applying the qualitative approach is through critical discourse
analysis (CDA). This methodology is used when analyzing the corporate communications of BP
during the Gulf of Oil Mexico oil spill. In other words, BPs press releases during this period is
analysed using CDA. The central objective of this research is to explore how corporations
manipulate or use spin to manage the publics perceptions of their reputation when faced with
crisis. To do this the case study design is used. The case study design offers a useful way of
understanding a complex problem by examining a real-life scenario (Collis & Hussey, 2005).
Regarding the collection of data for this research, only secondary data is used. The secondary
data will consist of corporate communications and press releases by BP during the Gulf of
Mexico oil spill.
1.4

Structure of the Research

In carrying out this research, the issues to be discussed are presented in five main chapters.
Each of these chapters serves a particular purpose. In the first chapter, the background context
for the research is presented. Here, different critical issues concerning the underlying subject
matter of the research are touched on: definition of public relations; crisis management; and the
role of public relations in crisis management and reputation management. In addition these
issues, an overview of the Gulf of Mexico oil spill is presented. Furthermore, the key aim and
objectives of the research are presented in this chapter.
In the second chapter, a comprehensive review of literature dealing with key aspects of
public relations management is conducted. In addressing these aspects, views and perspectives
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from different studies are presented. Studies covering the following issues are discussed:
definition of public relations; theories underpinning public relations practice; role of public
relations in corporate reputation management; role of public relations in crisis management; and
public relations and media relations. Prior to the conclusion of this chapter, BPs PR response to
the Gulf of Mexico oil spill is briefly examined.
In the third chapter, a detailed description of the methodology used in carrying out the
research is presented. Here, the approaches and design used are discussed with reference to
information from the review of literature. Furthermore, the methods used in collecting and
analyzing data for the research are discussed. This chapter concludes with a description of ethical
considerations permitted for the research.
The fourth chapter is where the data collected for the research is presented, analysed and
interpreted with reference to the objectives established. Here, the corporate communications of
BP both during the crisis response and post-crisis phases are critiqued with a view to
understanding how BP managed negative perceptions emanating from the Gulf of Mexico oil
spill. This chapter concludes with a presentation of the main findings from the analysis and
discussions conducted.
The fifth chapter is where the conclusions for the research are presented. The conclusions
highlight results from the critical analysis of BPs use of PR to manage reputational issues
arising from the Gulf of Mexico oil spill. The conclusions also show how contemporary
conceptions of corporate PR.

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CHAPTER TWO
REVIEW OF LITERATURE
2.0 Introduction
The range of issues discussed in this chapter helps to form the theoretical framework for
the research. The chapter begins with exploring some of the standard definitions of public
relations. In addition, some key models and theories underpinning public relations practice are
explored in this chapter. After exploring these theories, the issue of impression management is
discussed. This forms the basis for reviewing literature on the role of public relations in
reputation management. In addition to this, the role of corporate communications in crisis
management is discussed. It is important to do this given that the case study for the research
involved a companys response to a crisis situation. Consequently, best practices in crisis
communications are also discussed. An overview of the Gulf of Mexico oil spill is provided
together with snapshots of how British Petroleum (BP) responded to this crisis. This chapter then
concludes with a summary of the main issues discussed.
2.1 Public Relations: Definition
Different definitions have been provided to help capture the essence of public relations
management. In this section, some of these definitions are discussed. Exploring some of these
definitions will set the stage for the different range of issues addressed in this chapter. These
definitions will give a sense of what public relations is and what it does? The first World
Assembly of Public Relations held in Mexico city in August 1978 defined public relations as,
the art and social science of analyzing trends, predicting their consequences, counseling leaders
of organizational leaders, and implementing planned programs of action, which will serve both
the company and the public interest (Allen et al., 2008). What can be drawn from this particular
definition is that public relations (PR) is a field concerned with maintaining public image for
high profile projects, companies and people. Joye (1997) notes that public relations people
enable people to establish and maintain effective relationships with external stakeholders, i.e.
third parties. This particular definition views public relations as being concerned with
relationship-building or the management of stakeholder relationships. Dan et al., (2004) define
public relations as a leadership and management function that supports the achievement of
corporate objectives, define corporate philosophy, and encourage organizational transformation.
Dans (2004) definition views public relations as a management function designed to to support
the realization of corporate objectives. While this research seeks to explore contemporary
perspectives of PR in the corporate discourse, Dans (2004) perspective is limiting as it views
public relations as something domiciled to corporates. PR, according to Allen et al., (2008), can
also be applied to individual relationships. Furthermore, Dan et al., (2004) note that public
relations is concerned with the management of the network of relationships that an organization
is directly and indirectly engaged in. In this particular context, public relations practitioners
create, implement and evaluate company programs/activities that promote the exchange of
influence and understanding among a companys constituent parts and publics (Allen et al.,
2008). Given differing perspectives highlighted in some of the definitions presented, the
common theme among all of them is the fact that PR is concerned with the management of
relationships.
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Public relations is something that organizations invest in given its ability to promote
mutually beneficial relationships. Allen et al., (2008) provides a characterization of public
relations:
i.

ii.

iii.

Public relations is a condition common to every person and organization in the

human environment whether or not they acknowledge or act upon the fact- that
refers to their reputation and association with other external stakeholders.
Public relations is the structured function that assesses the attitudes and behaviours of
external stakeholders; harmonizes the objectives, policies, and processes of a person
or company with the public interest; and implements a program of action to gain
public support and acceptance.
Public relations is the complete flowering of the democratic principle, in which every
member of society is treated with respect, and has both a right and the responsibility
of expressing their views on public concerns, and in which policies are made on the
grounds of uninterrupted exchange of those views that results in public consent.

What can be deduced from the aforementioned conjecture of public relations is that it is at
the core of corporate reputation management. This is evident in how it seeks to enhance the
appeal of an organization to its diverse range of stakeholders including customers, the
government, civil society organization e.t.c. The third conjecture of PR provided by Allen et al.,
(2008) is somewhat altruistic as it sees PR as democratic in nature. The argument against this is
that PR can be used by corporate organizations to promote their own agendas irrespective of the
interests and needs of external stakeholders. Dan et al., (2004) note that integral to the success of
public relations is the proper identification of critical stakeholders. Identifying stakeholders
enables an organization to properly allocate its public relations efforts. Dan et al., (2004) note
that the process of identifying stakeholders can be achieved by the preparation of a stakeholder
matrix.
2.1.1 Theories Underpinning Public Relations Practice
This researchs purpose will be better served by exploring certain theories that lay the
ground for public relations practice. From a theoretical standpoint, PR practice can be explained
by different theoretical categories, some of which include: the theories of relationships (e.g.
situational theory) (Grunig & Repper, 1992); and the theories of mass communication (e.g.
framing theory and agenda setting theory) (Cohen, 1963). It is essential to examine the theories
of relationships because some of the studies already looked at in the first chapter indicated that
public relations is concerned with the management of relationships the network of relationships
between an organization and its external stakeholders (Leary & Kowalski, 1990; Spaulding &
Correa, 2005). Examining the theories of mass communication is critical because public relations
belong to mass communication discipline, which is an aspect of marketing.
Theories of Relationships
Situational Theory
In looking at the theories of relations, more attention is devoted to the situational
theory. Grunig & Repper (1992) are of the view that the concept of stakeholders provides a
useful means of describing and understanding relationships as a result of existing conceptions of
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PR as a means of promoting and persuasion. However, they concluded that not all people in
stakeholder groups would be equally likely to communicate with an organization. Grunig et al.,
(2002) note that publics range from those who actively seek and process information about an
organization or an issue of interest, to those publics who passively receive information. Grunig et
al., (2002:52) note that three factors predict when publics will search and process information
about a subject: problem recognition; constraint recognition; and level of involvement. What is
critical is that publics are situational. In this regard, as a situation, problem or issue changes, the
publics, with which the company must communicate, and constantly change. In essence,
situational changes lead to perception changes among stakeholders.
Situational theory also helps in explaining why certain groups are active on a particular
issue, others are active on many issues, and others are uniformly unconcerned (Grunig & Repper,
1992). The particular relationship is determined by the nature of the groups (active or passive)
and how a company is connected with the issue (Grunig & Repper, 1984; 1992). The situational
theory keeps us focused on the types of information that publics want as opposed to the
organizations preference of the type of information it wants to disseminate. Furthermore, the
situational theory operates on the assumption that publics will pay attention and search for
information that is in their best interests.
Theories of Mass Communication
Agenda Setting Theory
Cohen (1963) notes that although media cannot determine what people will think, they
are stunningly successful in telling them what to think about. This view is supported by the study
conducted by Shaw & McCombs (1977) into the media reporting and voter perceptions. Shaw &
McCombs (1977) discovers a positive correlation between what voters said was important and
what media were reporting as being critical. Even more amazing from the results of this
particular study was the fact that voters were more likely to agree with the composite media
agenda than with the position of the candidate they claimed they favored (Shaw & McCombs,
1977). Public relations practitioners make an effort to influence the media agenda by offering
news items for public consumption (Akpabio, 2005). To achieve this, they identify subjects that
editors and news directors consider news, localize their messages, and help media representatives
cover the story.
Framing Theory
Mass media scholars, such as Entman (1993), are of the view that the messages and
information sent to audiences contain with them pre-existing set of meanings or what some
would refer to as frames. Entman (1993) defines framing as an active process of drawing out
dominant themes from the content. Dozier et al., (1995) notes that these meanings stem from the
cultural and social groupings in which we live and work. For instance, the culture in the United
States is one that is highly individualistic based on Hofstedes cultural dimensions framework
(Hofstede, 1990). This cultural attribute tends to be reflected in stories presented by the media.
For example, CNN tends to carry stories of people who overcome adversity or those who excel
in sports. As a result, the focus on individual effort shapes the way people in the United States
communicate. The framing theory is of importance to public relations practitioners because
understanding common frames makes for easy and meaningful communication with the public or
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audiences (Dozier et al., 1995). In fact, Entman (1993) notes that if we want to communicate
effectively with each other, we are bound to utilize common frames as an essential condition to
being understood.
2.1.2 Models of Public Relations
One of the most effective ways of contemplating and understanding the issue of public
relations has been through the identification of widely shared orthodox thinking behind public
relations practive and how these are connected to each other (Broom & Dozier, 1986). Grunig &
Hunt (1984) propose four models of public relations that are dependent on communication,
research and ethics: press agentry; public information; the two-way asymmetrical model; and the
two-way symmetrical model. For the purposes of this research, focus is placed on press
agentry, public information, and the two-way asymmetrical model. The rationale for focusing
on these three models stems from the fact that they deal with communication mechanisms
between an organization and its stakeholders or the public.
Press Agentry
Press agentry is the model where information moves one way from the company to its
publics. This is one of the oldest or most traditional models of public relations. This particular
model is concerned with the issues of promotion and publicity. Adherents of this particular
model are always seeking opportunities to get their companys name favorably stated in the
media (Grunig & Repper, 1984). This model includes propaganda tactics such as the use of
celebrity names and attention-gaining tools such as giveaways, parades, and grand openings.
Despite the fact that press agents are not unethical, they do not desire to be ethical either. The
louder the noise, the more attention-getting the story, whether it is true or false, the better they
are at doing their jobs (Gruning & Hunt, 1984).
Public Information
Public information differs from press agentry because the intent is to inform as opposed
to press for promotion and publicity, but the communication is still essentially one-way (Grunig
& Hunt, 1984). Currently, this model represents public relations practices in government,
educational institutions, non-profit organizations, and even in certain corporate organizations.
Public relations practitioners that adopt this particular model do very limited research about their
audiences beyond testing the lucidity of their messages. Such PR practitioners are seen as
journalists-in-residence, who place value on accuracy but decide what information is best to
disseminate to their audiences (Grunig & Repper, 1984; Grunig & Hunt, 1984).
Two-way Symmetrical Model
The two-way symmetrical model is also referred to as mixed motives, collaborative
advocacy, and cooperative antagonism (Grunig, 2000). This particular model highlights a
public relations orientation in which organizations and their publics adjust to each other. This
depiction of public relations placed the organization and its publics on a continuum (Dozier et
al., 1995). It stresses the utilization of social science research methods in accomplishing mutual
understanding and two-way communications rather than one-way persuasion (Grunig, 2001).
This particular model is regarded as the most ethical because all groups are involved in the
problem resolution process.
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2.2 Impression Management

Included in the scope of the research is the role that public relations play in impression
management. Impression management is critical because it can build up into defined reputation.
Bearing in mind that public relations is about managing relationships (Spaulding & Correa,
2007), understanding how to manage impressions is important because it forms the basis for
developing positive interpersonal relationships. Leary & Kowalski (1990:34) define impression
management as the process by which people control the impressions others have of them. People
and organizations have a continuous interest in how others see and evaluate them. Schlenker
(1980) notes that impression management is also referred to as self-presentation. Schlenker
(1980) further notes that because the impressions individuals make on other people have
implications for how others see, evaluate, and treat them, as well as for their own views of
themselves, people sometimes act in ways that will create particular impressions in others eyes.
Different factors motivate and constrain public impression management and private selfimage maintenance differs in many respects. Many of the purely social variables that influence
peoples images play little or no part in private self-maintenance. As Tedeschi (1986:10)
observes, secret agendas, a desire to manipulate other people, the goal of making other people
to mediate reinforcements that otherwise would not be attainable, together with possession of
different views, information, and values contribute to significant variances between the
observations and evaluations of ones on behavior and the attributions made by other people.
Given that a person is motivated to create an impression on others, the issue becomes one
of determining precisely the type of impression one wants to make and choosing how one will go
about making that impression. Impression management is looked at differently. Gergen (1965)
views impression management as primarily the attempt to create impressions of ones personal
characteristics. Gaes et al., (1978) treat impression management as being more or less equivalent
to self-description. Miller & Cox (1982) view impression management as the management of
physical appearance. Forsyth et al., (1977) and Leary & Kowalski (1990) view impression
management as involving all behavioral efforts to create impressions in others minds. For Leary
& Kowalski (1990), individuals attempt to create impressions not only of their personal
attributes, but also of their attitudes, moods, roles, status, physical states, interests, beliefs etc.
Furthermore, people also use means other than self-description to create desired impressions
(Leary & Kowalski, 1990). This position is supported by Jones & Pittman (1982) who also
indicate that both verbal and non-verbal cues are critical in how people form the impressions that
they want others to believe or accept.
The construction of impression is a structured, conscious and continuous process. The
process of creating an image to sell to a target audience is a conscious effort which is designed to
influence the perception and evaluation of the target audience (Miller & Cox, 1982; Leary &
Kowalski, 1990). For an organization, the formation of corporate mission and objectives serves
as a guide for determining the image that it wants to convey, both to its customers and other
stakeholders. This image tends to be reflected in the organizations products or services, culture,
internal processes and structure (Broom & Dozier, 1986). Furthermore, the cultivation of this
image or identity is achieved through corporate and media communications. Sriramesh & Vercic
(2003) note that corporate identity management is a term used to identify the different strategies
used to oversee and direct variables that impact the companys identity, both internally and
externally. This means that the identity management effort not only has to do with the cultivation
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of a viable corporate culture that lends itself well to the interests of the company. Earlier on, it
was noted that the cultivation of corporate image can be facilitated through corporate and media
communications. Sriramesh & Vercic (2003) note that as an internal process, corporate identity
management will usually pay added attention to developing an internal flow of information that
makes it possible for staff members at all levels to actively participate in moving the
organization forward. Having looked at the issue of impression management, it is now time to
look at the role of public relations in reputation management. This is done in the next section.
2.3 Role of Public Relations in Reputation Management
Reputation management has emerged as a popular theme in corporate communications
and public relations. In addition to looking at the how PR facilitates reputation management, the
issue of corporate communications is discussed in this chapter. Girboveanu & Pavel (2010) note
that public relations is all about reputation the result of what you do, what you say and what
other people say about you. Spaulding & Correa (2007) note that public relations is the discipline
which looks after reputation, with the objective of gaining understanding and support and
influencing opinion and behavior. Furthermore, Spaulding & Correa (2007) indicate that public
relations is the planned and sustained effort to create and maintain good will and mutual
understanding between a company and its external stakeholders or publics. Sriramesh & Vercic
(2003) note that public relations not only tell a companys story to the publics, it also contributes
to the shaping of an organization and the manner it works. Through research, feedback,
communication and evaluation, the PR practitioner needs to find out the concerns and
expectations of a companys publics and explain them to its management (Chartered Institute of
Public Relations, 2009). Reputation management is the process or practice of monitoring the
reputation of a company, addressing contents which are damaging to it, and utilizing customer
feedback solutions to get feedback or early warning signals of reputation challenges (Milo,
2013). Lieb (2012:43) notes that public relations is critical to reputation management because it
bridges the gap between how an organization perceives itself and how others see it.
The reputation of an organization is not just the image the company conveys, it also
entails what external stakeholders think of the company (Lieb, 2012). The process of building
positive images in the minds of these external stakeholders is determined by the nature of
relationships between the company and these stakeholders. When it comes to the role of PR in
reputation, an interesting observation was made by Horton (2009:4):
We cant manage reputation never could, if we mean controlling how other people
independently evaluate a person or organization. On the other hand, if reputation
management is construed as monitoring how other people think and attempting to
persuade them to think in a different way, then perhaps we do manage reputation to a
certain degree (Horton, 2009).
Horton (2009) further notes that the monitoring function of reputation management is
concerned with gathering intelligence from the external environment to inform decision-making,
especially in the nature of corporate communications. Monitoring engenders situational
awareness, but it can also lead to paralysis when there are divergent opinions. The reputation of
an organization stems partially from perceptions of actions and partially from misinformed
observations (Horton, 2009). This view is supported by Bilton (2011) who indicates that while
public relations can communicate accurately and clearly what the company is doing and try to
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decrease misinformation, it does not have incentives or punishments to stop rumour mongers,
agitators, disgruntled investors/employees, or committed activists. In other words, reputation
management is not about controlling perceptions rather it is more about influencing the views,
opinions and perspectives of external stakeholders.
Given that the opinions and views about an organization can change, many organizations
have a dedicated PR department. The approach used by the PR department can be categorized as
being either reactive or proactive (Girboveanu & Pavel, 2010). Girboveanu & Pavel (2010) note
that whether the reactive or proactive approach is used, chief of the public relations departments
functions is managing the organizations reputation and responding to any crisis that threatens
the positive image of the organization. The reactive PR approach is one where the organization
waits for bad publicity or public criticism before they act or respond. Bearing in mind that
reputations are formed and re-informed in peoples minds continuously, and because public
issues debates are continuously taking shape, a more strategic approach is to be proactive
(Girboveanu & Pavel, 2010).
2.3.1 Corporate Communication
There is a popular belief in the management world that in the current business
environment, the future of any organization is critically dependent on how it is perceived by its
stakeholders, such as shareholders, customers, consumers, and other members of the community
in which the business operates (Horton, 2009). Perception management is of more importance to
organizations because of globalization and corporate crisis (Marchand, 1998). In a study
interviewing chief executive officers and senior managers of large corporations on the
importance of reputation management, Murray & White (2004) discover that the majority view
was that companies nowadays consider protecting their companys reputation as critical and
view corporate reputation as a very important strategic objective. Given this observation, Horton
(2009) notes that the goal of developing, maintaining and protecting a companys reputation is
one of the core responsibilities of corporate communication practitioners.
In the past, practitioners used the term public relations to describe communication with
stakeholders. This public relations function, which tended to be tactical in many companies,
largely involved communication with the press (Harris, 1991). But when both internal and
external stakeholders started to demand more information from companies, it became clear that
communication was more than public relations (Marchand, 1998). At this point, it is essential to
define what corporate communication is. Hutton (1996) defines corporate communication as a
management function that offers a framework for the effective coordination of all internal and
external communication with the aggregate objective of creating and maintaining favorable
reputations with stakeholder groups upon which the company is reliant. Furthermore, Hutton
(1996) notes that corporate communication can be a complex undertaking for companies with a
broad geographical span. This is because the coordination of communication ends up being a
balancing act between the companys head office and its network of subsidiaries and branches.
Whatever be the case, Hutton (1996) is of the view that corporate communication plays a
critical role in corporate reputation management. Hutton (1996) suggests that communication is
strategic because it informs the companys image over time from the past to present. This is
reinforced by the following key concepts that encapsulate the strategic role of corporate

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communication: stakeholder; public; corporate reputation; corporate identity; corporate image;

mission; vision; corporate objectives; and corporate strategies (Hutton, 1996; Marchand, 1998).
2.4 Crisis Management
In the previous section, the need to explore the role of corporate communication in crisis
was mentioned. Before doing this, it is essential to understand what crisis management is all
about especially as Dilenschneider (2000) notes that public relations enable organizations to
address organizational crises in a proactive manner. Coombs (2007) defines crisis management
as a process that is designed to prevent or lessen the damage a crisis can inflict on a company
and its stakeholders. Nwaocha (1999) defines crisis management as the application of proper
steps to either present a crisis from happening or to promptly control it once it happens. In
addition, Fearn-Banks (2001) notes that crisis management is proactive, preventive, planned and
structured in nature. Barton (2001) notes that crisis management is a critical organizational
function, and that one of the tasks of public relations practitioners is to help organizations
address organizational crises. Furthermore, Barton (2001) notes that failure can lead to serious
harm to an organization, especially its reputation and financial position. Dilenschneider
(2000:22) notes that a crisis can be viewed as an event which poses a significant threat to
company operations, and can have negative consequences if not treated properly. Furthermore,
Jaques (2007) indicates that a crisis can generate three main threats: (1) financial loss; (2) public
safety concerns; and (3) damage to reputation. Jaques (2007) notes that a crisis can lead to
financial loss if it disrupts operations. Given the threat of financial loss and the other
aforementioned threats, there is reason not to ignore crisis.
As crisis management can be categorized into three main phases pre-crisis; crisis
response; and post-crisis (Girboveanu & Pavel, 2010) - added attention is devoted to the crisis
response and post-crisis phase. In so doing, data collected for the research examines BPs
response to the Gulf of Mexico Oil Spill in both phases of crisis management. The crisis
response phase of crisis management deals with what management says and does after the crisis
hits. Here, public relations plays a vital role in the crisis response phase by helping to create the
messages that are sent to different publics (Coombs, 2007). Furthermore, Coombs (2007) notes
that the crisis response phase consists of two aspects: (1) the initial crisis response; and (2)
reputation repair and behavioural intentions. The initial response aspect stresses the need for
communication to be quick, accurate and consistent. While the reputation repair aspect deals
with the following: attack the accuser; denial; look for a scape goat; look for an excuse etc
(Coombs, 2007). In the case of Gulf of Mexico oil spill, BP adopted the scapegoat approach
when it blamed Transocean for safety issues that led to the environmental disaster.
Effective crisis management deals with threats in a sequential manner. The fundamental
concern in a crisis has to be public safety (Jaques, 2007; Coombs, 2007). Jaques (2007) notes
that a failure to deal with public safety concerns only intensifies the damage caused by the crisis.
Reputational issues and financial concerns are viewed as also important, that is after public
safety concerns have been addressed (Jaques, 2007). The post-crisis phase of crisis management
is the phase where the organization is returning to normality after the worst of the crisis has been
felt. This phase is critical as it is here that the company rebuilds trust with its external
stakeholders (Coombs, 2007). Thus, the reputation repair aspect can continue into the post-crisis
phase. Critical to the effective crisis management in the post-crisis phase is communication. In
this regard, the onus lies on the organization to provide regular information on the recovery
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process. Regular provision of information is critical to rebuilding trust with external

stakeholders. Coombs (2007) provides the following post-crisis best practices:

Deliver all information promised to stakeholders as soon as the information is known.

Keep stakeholders updated on the progression of recovery efforts including any
corrective measures being taken and the progress of investigations.
Analyze the crisis management effort for lessons and integrate those lessons in to the
companys crisis management mechanism.

The aforementioned best practices proved useful while examining the BPs crisis
management response to the Gulf of Mexico oil spill. It should be reiterated that in analyzing
BPs PR response to the crisis, more attention is focused on the crisis response and post-crisis
phases. Given the importance of communication in crisis management situations, attention is
devoted to looking at effective communication during crisis management in the next section.
2.4.1 Role of Corporate Communication in Crisis Management
Companies operating in crisis mode typically create a team of senior executives to
manage the crisis. This small group of executives usually includes the chief executive officer or
managing director, the chief financial officer, the senior operations manager, the senior legal
counsel and other managers relevant to the crisis (Marra, 1998). The media relations officer
usually acts as the interlocutor between the company and the media especially as news reporters
are usually drawn to crisis situations. Crisis communication plans and strategies offer the means
to collect and release information as rapidly as possible during a crisis. Authors such as
Bernstein (1986), Barton (1993) and Fearn-banks (1996) describe crisis communication tactics in
great detail. Fearn-Banks (1996) notes that crisis communication tactics usually perform an
important function by enabling companies to provide correct and particular information on very
short notice. To critical publics demanding immediate answers to a crisis that impacts them.
Barton (1993) notes that when it comes to communication during crisis situations, certain
organizations often find themselves trapped in the myopic view that public relations is a one-way
communication to reporters. This perception can carry far-reaching consequences on the crisis
management effectiveness of the organization. Furthermore, Barton (1993) notes that companies
that place more emphasis on the general public at the expense of more specific publics such as
staff members, customers, government officials, shareholders, and members of the community
usually suffer unnecessary financial, and perceptual harm. Stocker (1997) notes that effective
public relations during crisis management is dependent on the ability of companies to
immediately provide customers with explanations and information during a crisis that go beyond
the primary information offered by reports in the mass media. Furthermore, Stocker (1997) notes
that majority of costs connected with a crisis are not legal costs or penalties. Citing the case of
Sears to buttress this position, Stocker (1997:6) observes:
Sears reputation with customers was severely damaged in 1992 when its automotive
centres were accused of selling unnecessary repairs. Auto centre repairs decline by
US$80 million and generated a third-quarter loss. Legal fees were about US$11 million.
Reimbursing California for its investigation and offering mandated employee training
added another US$5 million. By far the biggest losses were to the shareholders and

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employees. The stock immediately lost 1.5 points, or an estimated US$565million.

Finally, 1993 revenues declined by US$1.5 billion (Stocker, 1997:6).
The observation by Stocker (1997) underscores the variety and intensity of damage that a
company can suffer from bad or negative publicity. In investigating the Gulf of Mexico oil spill,
an effort will be made to provide a profile of the reputation and financial losses suffered by BP
as a result of this particular crisis. Furthermore, regarding Sears, Stocker (1997) indicates that
poor communication by management contributed to mounting losses suffered by the company.
Although it was inevitable that Sears was bound to suffer financial harm from the mis-selling
debacle, effective, detailed and immediate communication to customers would have reduced the
extent of losses suffered by the company (Stocker, 1997).
Effective crisis management cannot exist without exceptional communication. Regarding
the role of communication in crisis management, companies must compare their ability to
communicate in a crisis situation against the following attributes of excellent crisis
communication identified by Marra (1992) & Grunig (1992): pre-crisis relationships; autonomy
of the public relations staff; and communication culture.
Pre-Crisis Relationships
Marra (1992) argues that six attributes consistently appear in the management and
communication studies as a measure of relationships trust, understanding, credibility,
satisfaction, cooperation, and agreement- and all of them are applicable to crisis public relations.
Marra (1992) notes that poor or non-existent relationships work in the opposite direction they
can easily magnify the negative effects of a crisis. In essence, if you do not trust someone, or are
not satisfied, you are not likely to agree with their actions during a crisis. Grunig (1992) notes
that companies cannot build or repair relationships during a crisis, and even the most
comprehensive crisis plan cannot compensate for poor pre-crisis relationships.
Autonomy of the Public Relations Staff
The degree to which a companys communication staff can become involved in deciding
the mature of communication response to a crisis, independent of the control of senior
management, can significantly determine the effectiveness of crisis communication. Companies,
therefore, are required to give their public relations staff the necessary autonomy to communicate
with relevant publics during crisis situations. In the absence of autonomy for public relations
staff, communication response to a crisis is likely to be delayed and tepid.
Communication Culture
Companies have many varying cultures within themselves. Mitroff & Kilmann (1984)
identifies different typical company values: do not disagree with your boss; do not rock the boat;
enjoy your work; treat women with respect; be diligent in your work etc. In similar vein, many
companies possess definable communication cultures. While certain organizations rely on twoway communication during a crisis, some others may rarely provide information to relevant
publics. Mitroff & Kilmann (1984) suggests that a communication culture that is open,
responsive and multi-dimensional is likely to be more effective at responding to a crisis situation
than one which is not. Again, Grunig (1992) advises that the role of public relations cannot be
underestimated and should be treated as strategic. Consequently, the top communicator for an
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organization should be involved in the board room. Having explored the importance of
communication in crisis situations, it is now time to present an overview the Gulf of Mexico Oil
Spill and BPs PR response to this effect. A more detailed analysis of BPs PR response to the
crisis is presented in the fourth chapter.
2.5 The Gulf of Mexico Oil Spill
The Gulf of Mexico oil spill, also known as the Deepwater Horizon oil spill, started on
20 April 2010 in the Gulf of Mexico on the BP-operated Macondo Prospect. The spill was the
result was the result of an accidental gas release and subsequent explosion. In the addition to the
massive oil spill, the accident claimed eleven lives. The Gulf of Mexico oil spill is regarded as
the largest accidental marine oil spill in the history of the petroleum industry with an estimated
9% to 32% increase in volume when compared to the previous largest, the lxtoc 1 oil spill
(Robertson & Krauss, 2010). In terms of the cost of the oil spill to BP, here are some startling
financial statistics: the Environmental Protection Agency (EPA) banned BP from new contracts
with the US Government (Thompson, 2012). In the same year, BP and the US Department of
Justice agreed to a record-setting US$4.25 billion in fines and other penalties (Muskal, 2013). In
addition, as at February 2013, BP incurred a cost of US$43 billion as a result of criminal and
civil settlements and payments to a trust fund (Fontevecchia, 2013). The financial loss also
includes the cost of BPs response to the crisis. In fact, BP (2013) noted that the cost of sealing
the oil rig permanently and for cleanup activities was about US$14 billion.
th

Majority of the public criticism suffered by BP at the onset of this crisis stemmed from its
inept and haphazard PR response to the crisis. BPs poor PR response to the crisis was
encapsulated by some of the comments made by its former CEO, Tony Hayward (Beam, 2010).
For instance, on an interview with the Guardian immediately following the explosion on the rig
and the subsequent leakage of crude oil into the Gulf of Mexico oil spill, Tony Hayward noted:
This was not our accidentThis was not our drilling rig.This was Transoceans rig. Their
systems. Their people. Their equipment. In fact, BPs press officers, whilst briefing journalists
in the week that the accident occurred, repeated the line that, this was not our accident. This
approach could be seen as the, looking for the scapegoat approach (Webb, 2010). Webb (2010)
notes that Tony Haywards comments made a bad situation worse. In fact, Duncan John, a
partner at StrategicFit, a strategy consultancy, made the following comments regarding the
comments by BPs CEO and press officers: communication over the degree of their
responsibility and the consequences may run the risk of aggravating an already skeptical public if
not carefully managed (Webb, 2010). What can be perceived from the initial communication
response of BP was a demonstration of lack of consideration for public safety. Based on the
issues discussed in this chapter, this can be perceived as poor crisis management in the crisis
response phase. Ultimately, this made the public suspicious of BPs every move thus,
complicating its already compromised crisis response mechanism.
Following what has been broadly judged as poor crisis response, BP continues to devote
sufficient effort and resources to rebuilding its corporate image. This is buttressed by its
willingness to accept financial liabilities where due and the speedy release of information on
BPs effort at restoring the ecosystem in and around the Gulf of Mexico. In December 2013, BP
issued the following statement:

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We have acted to take responsibility for the clean-up, working under the direction of the
federal government to respond swiftly to compensate people affected by the impact of the
accident, to look after the health, safety and welfare of the large number of residents and
people who helped respond to the spill. We have equally carried out studies with federal
and state natural resource trustees to identify and define the injury to natural resources in
the Gulf of Mexico (BP, 2013).
The overview presented in this section drives the direction of the research. In essence,
during the data analysis and interpretation phase, attention is devoted to critiquing BPs response
to the Gulf of Mexico crisis with a view to identifying dos and donts in crisis management. At
this point, it is essential to conclude this chapter by summarizing the main issues discussed.
2.6 Conclusion
The review of literature highlights the importance of public relations to the corporate
discourse. This is because organizations are involved in a network of relationships, whether
consciously or unconsciously, with a broad range of stakeholders customers, government,
NGOs, CSOs, consumers, regulatory agencies etc. Public relations present a useful means of
managing these relationships. PR is there to enable organizations build a positive image with
these stakeholders. This is the reason why PR plays a huge role in corporate reputation
management. Reputation management is the process or practice of monitoring the reputation of a
company, addressing contents which are damaging to it, and utilizing customer feedback
solutions to get feedback or early warning signals of reputation challenges. Public relations is
critical to reputation management because it bridges the gap between how an organization
perceives itself and how others see it. When it comes to the best PR approach to use when
managing the image of an organization, some of the studies examined (Girboveanu & pavel,
2010), stressed the need to be proactive.
Critical to building a positive reputation during and after a crisis situation is
communications. Crisis communication is critical to how an organization is perceived during
crisis mode. Communication is a very sensitive issue and must be treated with care especially
whilst communicating relevant publics during a crisis situation. Hutton (1996) suggests that
communication is strategic because it informs the companys image over time from the past to
present. This is reinforced by the following key concepts that encapsulate the strategic role of
corporate communication: stakeholder; public; corporate reputation; corporate identity; corporate
image; mission; vision; corporate objectives; and corporate strategies. Poor communication in
the crisis response phase was cited as being responsible for the public outrage that BP felt during
the Gulf of Mexico crisis. As a result, in critiquing BPs response to the crisis, some of deal of
attention is devoted to its communication during this period. As stated earlier, this analysis will
help to identify best practices in crisis management communication.

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CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
In this chapter, attention is devoted to discussing the methodology adopted for the
research. This chapter begins by looking at the research approaches used. The approach selected
for the research informs the method for analyzing the data collected for the research. Following
the discussing on the research approach used is a discussion of the research design. The design is
central to the methodology of the research. In addition to identifying the design used, the section
on the research addresses how data is collected and analysed. This chapter also addresses the
issues of validity, reliability and generalizability. After these issues are addressed, the underlying
limitations of the research are discussed. The chapter concludes with a discussion on critical
ethical considerations for the research.
3.1 Research Approach
The approach selected for a research usually underscores the technique to be used to
address the questions developed for a research (Saunders et al., 2005). Collis & Hussey (2005)
defines the research approach as a method for fabricating new or innovative knowledge or
deepening understanding about the subject matter under investigation. In essence, the research
approach is a method for confirming facts and generating new information. When conducting
research, there main approaches are available to a researcher. These approaches are: the
quantitative approach; the qualitative approach; and the mixed methods approach (Collis &
Hussey, 2003). The mixed methods approach entails a mix of the qualitative and quantitative
approaches (Collis & Hussey, 2003).
The researchers interest in crisis management requires consideration of established
procedures and protocols for good practice in professional PR. In view of this observation, a
qualitative approach is used. Denzin & Lincoln (2005) define the qualitative research approach
as a form of investigation used in different disciplines, especially in the social sciences, but
equally in market research. Furthermore, Denzin & Lincoln (2005) further note that the
qualitative research approach is one where the researcher is interested in obtaining an in-depth
understanding of human behavior and the reasons that determine such behavior. This particular
explanation contains one of the justifications for use of the qualitative approach in this research.
In the literature review, public relations is identified as dealing with a network of relationships
that an organization is involved in (Joye, 1997; Allen et al., 2008). In corporate settings, public
relations concern how companies manage their relationship with external stakeholders the
community in which they operate; their customers; the government; the media etc (Allen et al.,
2008). This network of relationships can be categorized as belonging to the social sciences
domain hence, the suitability of the qualitative approach for this research. It is essential to note
that irrespective of its usefulness in social sciences, one of the main weaknesses of qualitative
approach is that it is a subjective method of inquiry (Collis & Hussey, 2005). The qualitative
research approach is usually used in social science research. In essence, the qualitative approach
is useful when studying human behavior actions. Consequently, it is a useful approach for
understanding how companies and their representatives respond to crisis, especially from a PR
perspective, ie. communications, actions, behavior of executives etc.
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Another rationale for the use of qualitative approach stems from the nature of data
collected for the research. The data collected for the research is largely qualitative corporate
communications; media reports; observations, comments, reports- hence, the suitability of the
qualitative approach to the demands of this research. There are different tools or instruments
which can be used when using the qualitative approach. Some of these are: ethnography;
grounded theory; case studies; discourse analysis etc. For this research, case studies and
discourse analysis is used.
3.2 Research Design
Bryman & Bell (2011) define the research design as a systematic plan to solve or study a
problem, whether scientific or unscientific. In addition, Bryman & Bell (2011) suggest that the
research design solves the research problem by addressing the following concerns: hypotheses;
research question; study type; issues of causation and correlation between independent and
dependent variables. Yin (1989) notes that the research design underscores the logical
approaches for addressing the research problem. In essence, the study design deals with the
logical structure of inquiry. Collis & Hussey (2005) note that the research or study design
underscores the strategy for answering the questions developed for a research. There are different
designs which can be used when conducting research. Some of these are: descriptive design;
exploratory design; case study design etc (Bryman & Bell, 2011).
For this research, the case study design is used. Collis & Hussey (2005) note that the case
study design is a design where an organization, event, or scenario is studied closely as a means
of addressing a research problem. The case study is useful when doing qualitative research. Yin
(1989:1) notes that the case study is employed in many situations to contribute to our knowledge
of individual group, organizational, social, political, and associated phenomena. In order to
understand how crisis management fits into corporate public relations and reputation, the case
study is a critique of British Petroleums use of corporate relations to manage negative
perceptions stemming from the Gulf of Mexico oil spill. In essence, careful attention is devoted
to examining BPs response to this crisis from a public relations perspective. In addition, the
responses of stakeholders environmental groups; the American government; affected
communities; and the public- to BP are also examined. The critical analysis of perspectives from
these different groups will form the basis for drawing valid conclusions for the research.
Furthermore, this particular case study is selected because of the scale of the damage to the
environment from the deepwater horizon oil spill. This particular oil spill has been described as
the worst in American history. Again, the diversity of stakeholders affected by this spill
government, fishermen, the US government, communities in coastal states bordering the Gulf;
and shareholders-makes it a useful case study for understanding PR in the context of crisis of
management. In critiquing BPs PR response to the deepwater horizon oil spill, more attention is
devoted to examining the behavior of BP executives and press releases by BP in the days and
weeks following the accident.
3.3 Data Collection Methods
This section addresses the nature of data collected for the research. In addition to
describing the nature and how data is collected for the research, this section also shows how the
data collected is analysed.
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3.3.1 Primary Data

Primary data can also be referred to as raw data (Collis & Hussey, 2003). This
description stems from the originality of primary data (Collis & Hussey, 2005). Bryman & Bell
(2011) referred to primary data as data that is directly collected by the person doing the research
other than another party. Easterby-Smith et al., (2008) defined primary data as data or
information that is collected directly from first-hand experience. In other words, primary data is
the creation of the researcher as it does not previously exist. Based on the definitions highlighted,
primary data can be described as having two main qualities: originality; and it is collected only
by the researcher (Bryman & Bell, 2011). Primary data could also be derived from empirical
recording. Arguably, it is the act of researching that turns information into data although there is
still an element of interpretation and choice by the researcher that constructs data as such.
This research involved the collected of primary data. The primary data collected for this
research involved the following: feedback from interviews conducted with individuals in
affected communities (sourced through Youtube); feedback from interviews conducted with BP
officials (newspaper, Youtube and other media sources); responses from officials of the
American government (newspapers and Youtube); and remarks by public relations practitioners
(newspapers, Youtube, and other media channels). Data from these sources are subjected to the
analytical framework developed for the research. The information obtained from these sources
form the primary data used for the research. Information from the aforementioned media sources
Youtube and newspapers- are regarded as primary data because the researcher is studying the
constructions and interpretations of media commentators who are working within the terms of
journalistic discourse.
3.3.2 Secondary Data
Secondary data is different from primary data. Collis & Hussey (2005) define secondary
data as information that is not collected by the researcher but collected by other parties. In other
words, unlike primary data, secondary data lacks the quality of originality. Bryman & Bell
(2011) note that secondary data usually consists of information that is already in existence. This
is the reason why secondary data can be accessed or sourced from public domains such as
websites, academic textbook, academic journals, company publications, unpublished
manuscripts, and other public domains. Information is obtained from these sources for the
purposes of this research. The fact that secondary data is information that is collected by some
other party does not in any way reduce its usefulness. For the purposes of this research, the
information obtained from Youtube is treated as primary data because as mentioned earlier, the
researcher is studying the constructions and interpretations of media commentators who are
working within the terms of journalistic discourse.
In fact, secondary data can be used to support any primary data collected for a research.
This is the case in this research as secondary data was used to develop the literature review
chapter for the research. In addition, information from the literature review chapter is used to
support the analysis of data collected for the research.

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3.3.3 Analysis of Data

This section solely addresses how the critical data collected for this research is analysed.
While discussing the approaches adopted for the research, discourse analysis is identified as one
of the principal instruments of qualitative research. Given that this research uses the qualitative
research approach, critical discourse analysis (CDA) is used to analyse to primary and secondary
data collected for the research. In addition to CDA, textual analysis will equally be used to
analyse the data collected for the research.
Critical Discourse Analysis (CDA) is an interdisciplinary approach to the study of
discourse that sees language as a type of social practice and places more focus on the means
through which social and political domination are reproduced in text and talk (Fairclough &
Clive, 1995). Van Dijk (1993:353) views critical discourse analysis is a study of the relations
between discourse, power, dominance, social inequality and the position of the discourse analyst
in such relationships. Van Dijks (1993) position highlights the suitability of CDA for the
analysis of data collected for the research. Given that relationship management-especially with
critical stakeholders- is a dimension of public relations practice, the application of CDA in this
research enhances understanding of the implications of language and communication of
perceptions, especially stakeholder perceptions. The application of CDA in the data analysis
phase of this research entails a critical examination of corporate communications press releasesby BP during the crisis and stakeholder interpretations of the use of language in these
communications.
To support the CDA analysis, textual analysis will also be used to analyse or assess the
content of communication both from BP and the content of interpretations from different
stakeholders. The American Heritage Dictionary of the English Language (2000) defines textual
analysis, as a systematic analysis of the content rather than the structure of communication,
such as written work or speech, including the study of thematic and symbolic elements to
determine the goal or meaning of the communication.
3.4 Validity, Reliability & Generalizability
Winter (2000:1) notes that, the concept of validity in qualitative research is not a single,
fixed or universal concept, but rather a contingent construct, inescapably grounded in the
processes and intentions of specific research methodologies. Bashir et al., (2008) notes that the
validity in qualitative research implies the degree to which the data is plausible, credible and
trustworthy; and as such, can be defended when challenged. Furthermore, Bashir et al., (2008)
suggests that validity exists to enhance researchers to achieve rigor in qualitative research. To
issue of validity in this research is addressed by the use of rigid techniques for the analysis of
data collected. This is achieved through the application of textual analysis and Critical Discourse
Analysis (CDA) to the data collected.
Regarding the issue of reliability in research, Lincoln & Guba (1985:300) likened the
concept to dependability. In essence, reliability in qualitative research can be seen as a form of
inquiry audit. The suitability of methods selected for data analysis can be influence the
dependability of a researchs methodology, and indeed its findings (Saunders et al., 2005). Given
that one of the disadvantages of qualitative research is that it is subjective (ie. result in subjective
findings), rigid forms of analysis can be used to enhance the dependability of findings. To
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enhance the objectivity of the analysis and ultimately the findings of this research, triangulation
(ie. use of information from the literature review chapter) and references to some of the theories
and models discussed is used to interpret the results from the application of CDA and textual
analysis.
Generalizability is mainly concerned with the degree to which a researchs findings can
be applied to other scenarios. Given the rigor of the analysis, the results of this research offer a
useful lens for understanding how communications can be used to influence public perceptions.
Furthermore, the results of this research can be used to show how crisis management fits into
public relations and reputation management.
3.5 Limitations of the Research
When conducting a research, there is potential for encountering certain difficulties or
challenges. These challenges are also referred to as limitations. They are limitations because
the can affect the research process. In addition, they can affect the validity and reliability of a
researchs findings (Bryman & Bell, 2011). One of the main limitations of this research is the
inability of the researcher to conduct face-to-face interviews with PR practitioners to get their
perspective of British Petroleums management of the Gulf of Mexico oil spill crisis from a PR
perspective. Such interviews would have generated additional useful information for the
research. In absence of the interviews, the research relied on information in the public domain.
To compensate for the lack of these interviews, the researcher ensures that the analysis of both
the primary and secondary data collected are as rigorous as possible to generate useful findings.
Another limitation of the research stems from the use of only the qualitative research
approach. As mentioned earlier whilst discussing the approach selected for the research, one of
the weaknesses of the qualitative approach is that it is subjective in nature, ie. dependent on the
researchers perspective or point of view. To address this particular gap, the researcher uses
triangulation during the analysis of data collected. In essence, results from the review of
literature are referenced during the interpretation of data collected for the research. The use of
triangulations contributes to making the research less subjective.
3.6 Ethical Considerations
Before providing a definition of what research ethics is, it is helpful to first understand
what ethics is. Ethics refers to professional norms of conduct that create a distinction between
what is right and what is wrong (Resnick, 2011). In many cases, different disciplines or
professions, have their own ethical standards that guide actions and behavior (Resnick, 2011).
Research ethics is mainly concerned with the rules or guidelines that a researcher is expected to
adhere to while conducting research (Easterby-Smith et al., 2008). Collis & Hussey (2003) refers
to research ethics as the code of conduct for carrying out research-related investigations or
inquiry.
Given that majority of the data collected for this research are collected from public
domains, the researcher that sources were appropriately referenced. The referencing style used is
the Harvard referencing style. In addition, given that particular attention is devoted to the content
of communication both from BP and other stakeholders, careful attention is devoted to ensuring

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that any information presented is not falsified or distorted. This helps to enhance the validity and
reliability of findings for the research.

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CHAPTER FOUR
ANALYSIS AND INTERPRETATION OF RESULTS
4.1 Introduction
In this chapter, attention is devoted to addressing and critiquing the public relations
approaches used by British Petroleum (BP) to manage negative perceptions stemming from the
Gulf of Mexico oil spill. In carrying out this critique, content analysis and critical Discourse
analysis is used. Furthermore, some of BPs press releases in the days and weeks following the
deepwater horizon accident are subjected to analysis using established PR models. At the end of
the discussions in this chapter, a summary of the main findings of the research is presented.
These findings are used to develop the conclusion chapter of the research. At this point, it is
essential to present an overview of Gulf of Mexico oil spill. This overview then forms the
context for the other discussions conducted in this chapter.
4.2 Gulf of Mexico Oil Spill: Background
The Gulf of Mexico oil spill, also known as the Deepwater Horizon oil spill, started on
20 April 2010 in the Gulf of Mexico on the BP-operated Macondo Prospect. The spill was the
result was the result of an accidental gas release and subsequent explosion. In the addition to the
massive oil spill, the accident claimed eleven lives. The Gulf of Mexico oil spill is regarded as
the largest accidental marine oil spill in the history of the petroleum industry with an estimated
10% to 32% rise in volume when compared to the previous largest, the lxtoc 1 oil spill (BBC
News, 2012). Following the explosion and sinking of the Deepwater Horizon oil rig, a sea-floor
oil gusher flowed for a period of 87 days. In fact, the United States Government contended that
an estimated total discharge of 5 million barrels flowed from the leak (Weber, 2010). The effect
of the spill on marine in the area was both palpable and incalculable. Juhasz (2012) notes that as
a result of three-month long spill, along with the adverse impacts of response and cleanup
efforts, large scale damage to marine and wildlife habitats, fishing and tourism industries, and
human health concerns have continued through to 2014 (see Figure 1).
th

The Gulf of Mexico oil spill led to national and global outrage, most of which was
directed at BP, the company responsible for the Deepwater Horizon rig. This event significantly
disrupted BPs operations which ultimately resulted in significant financial loss. In 2012, BP and
the US Government came to a settlement for federal criminal charges with BP pleading guilty to
11 counts of manslaughter, 2 misdemeanors, and a felony count of lying to Congress. The
Environmental Protection Agency (EPA) banned BP from new contracts with the US
Government (Thompson, 2012). In the same year, BP and the US Department of Justice agreed
to a record-setting US$4.25 billion in fines and other penalties (Muskal, 2013). In addition, as at
February 2013, BP incurred a cost of US$43 billion as a result of criminal and civil settlements
and payments to a trust fund (Fontevecchia, 2013). The financial loss also includes the cost of
BPs response to the crisis. In fact, BP (2013) notes that the cost of sealing the oil rig
permanently and for cleanup activities was about US$14 billion. In the crisis response phase, BP
conducted a series of press conferences to update the public on the status of efforts as regards the
complex activity of curbing the leak; this was in addition to being involved in the cleanup effort,
i.e. containment, collection and the use of dispersants. Before critiquing BPs response to the oil

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spill disaster, it is essential to highlight the effects of the oil spill, together with identifying the
key stakeholders in this disaster.
4.2.1 The Effects of the Gulf of Mexico Oil Spill
It is necessary to highlight some of the main effects of the Gulf of Mexico oil spill. This
is important because it will form the context for identifying the principal stakeholders that BP is
accountable to following the oil spill disaster. While several studies are under way to determine
the effects of the Deepwater Horizon oil spill on the Gulf of Mexico, the degree and severity of
these effects and the value of the resulting losses cannot fully be measured without considering
the commodities and services provided by the Gulf (National Research Council, 2012). At the
moment, state and federal agencies are utilizing a process called the Natural Resources Damage
Assessment which is authorized under the Oil Pollution Act of 1990 (National Research
Council, 2012). In addition to the environmental impacts stemming from the oil spill disaster,
there are also individual and economic effects that equally demand consideration. Among the
effects of the oil spill are: impact on livelihoods; impact on coastal wetlands; impact on marine
mammals; and impact on the deep sea.
In terms of the impact on livelihoods, the oil spill has affected the fisheries industry in the
United States. According to the US Environmental Protection Agency (EPA) (2012), fishery
closures reduced commercial production by 20%, which created an immediate economic
hardship for fishermen. The spill also contributed to increased public concerns concerning the
safety of Gulf seafood, ie. poisoning. Furthermore, EPA (2012) notes that as a result of the toxic
effects of the oil spill, the productivity of fish populations would be affected for a significant
period of time. This could have far-reaching implications on jobs in the fishing industry.
Regarding the impact of the oil spill on marine mammals, dolphin populations have been
affected in the Gulf of Mexico. Dolphins provide scientific, cultural, and recreational services in
the Gulf of Mexico oil spill. Since the oil spill in 2010, over 800 bottlenose dolphin deaths have
been recorded (EPA, 2012). This could also affect the hospitality industry in communities whose
coastal areas transverse the Gulf of Mexico.
The deep sea is the largest yet least well-appreciated region of the Gulf of Mexico,
making it challenging to ascertain the total effect of the oil spill on ecosystem services. Among
the services derived from the deep sea are pollution attenuation by hydrocarbon-degrading
microbes, and nutrient recycling, which supports much of the marine biodiversity at all depths in
the Gulf of Mexico oil spill (National Research Council, 2012). Based on the issues discussed in
this section, it is clear that the oil spill has led to both environmental and economic effects. At
this point, it essential to identify the stakeholders in the Gulf of Mexico oil spill. Having
provided an overview of the oil spill, the stakeholders of the oil spill are as follows: communities
in the coastal areas traversing the Gulf; the US fisheries industry; the government; environmental
groups; and the public (see Figure 1). These stakeholders form the people that BP is responsible
to and as such, their perspectives are taken into consideration whilst examining BPs response to
the Gulf of Mexico oil spill.

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Figure 1: Stakeholders of British Petroleum

Figure 1 highlights the main stakeholders of BP. On a more specific note, the relevant
stakeholders in the oil spill disaster are as follows: fishermen living off the sea; inhabitants of
affected coastal states; the US government; media; families of employees who lost their lives in
the accident (specific public); shareholders; and environmentalists. Consequently, in addition to
addressing the concerns of the general public, BP must device more specific measures for
addressing the unique concerns of the aforementioned relevant stakeholders in the oil spill
disaster. Given the magnitude of the disaster, there is need to consider the varying perspectives
of specific publics. These perspectives and concerns ought to be taken into consideration by BP
in its response action and communication- to the crisis. The specific publics discussed are the
following: fishermen; BP shareholders; inhabitants of affected coastal states; environmentalists;
and the US Government.
Stakeholder Perspectives of the Gulf of Mexico Oil Spill
Fishermen:
Fish, crab and fish farmers have described the disaster as the worst for the fishing
industry according to Matt OBrien, owner of Tiger Pass Seafood (New York Times, 2011). The
US Chamber of Commerce (2011) reported that it would take years for the US fishing industry to
recover. The impact on jobs and livelihoods of communities in the coastal states impacted appear
dire according the US Chamber of Commerce (2011). According to the US Environmental
Protection Agency (EPA) (2012), fishery closures reduced commercial production by 20%,
which created an immediate economic hardship for fishermen.

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BP Shareholders:
The shareholders are mainly concerned about their stake and the impact of the disaster on
the corporate brand and reputation of BP. Within one week of the oil spill disaster, BP shares
dropped by as much as 5% (Yahoo Finance, 2010). BP stock decreased by 50% in 50days on the
NYSE from US$60.57 (20 April, 2014) to US$29.20 (9 June, 2014) (Yahoo Finance, 2010).
Environmentalists:
The homeland departments infrastructure and risk analysis centre (2010) reported that
the continued release of crude oil, natural gas and diesel fuel poses an increased risk of
environmental contamination in the Gulf of Mexico. In the weeks following the disaster, there
were disturbing images being released of the following: thick sludge, blood stained pelicans,
dead fish washing up ashore etc. These messages intensified protests by environmental groups
such as BP- against BP. The long term effects of the oil spill on marine life in the Gulf remains a
significant environment concern.
The US Government:
The US Government is one of the principal stakeholders in this oil spill disaster,
especially as it is the party that gives out licenses for offshore drilling. The Obama
administration had to respond appropriately by ensuring that appropriate fines and penalties were
levied on BP. It should be noted that at the time of the crisis, BP had its offshore drilling license
suspended. While these moves may be viewed by some as anti-business, the Obama
administration can claim credit for its response to disaster when compared to the US
Governments response to Hurricane Katrina. In fact, the Obama administration is credited for
getting BP to set up a US$20bn trust fund to deal with the fallout from the crisis civil
settlements and long term environmental recovery efforts.
4.3 BP Oil Spill and Anti-Capitalist Sentiments
One of the main elements of critical discourse analysis is examining power allocation and
power dynamics as it concerns social behavior (Fairclough & Clive, 1995). Given this
observation, there is a need to explore the oil spill disaster in the context of the anti-capitalist
sentiments. Anti-capitalism comprises a broad range of movements, ideas and attitudes that are
against or treat capitalism with suspicion (Newman, 2005). Anti-capitalist movements some
with a socialist mindset- tend to view corporations as wielding excessive power hence, they need
to be rigidly regulated as the can wield their power and influence to the detriment of the public,
ie. excessive profit-seeking. In certain cases, anti-capitalist movements are sometimes suspicious
of the relationship dynamics between big corporations and government. While writing for the
World Socialist Movement, White (2010) notes that the ongoing disaster in the Gulf of Mexico
and the US governments complicity and impotence in relation to energy giant BP highlight in
the most striking way the irrationality and socially destructive character of the capitalist system.
White (2010) adds that even as the world suffers from the effects of the global financial crisis
and the spread of Wall Streets toxic assets, the same irrational and inconsiderate drive for profit,
this time by multinational oil conglomerates, has resulted in an ever-spreading toxic mix of crude
oil and chemical dispersants in the Gulf Mexico that threatens to travel as far as Europe.

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The distrust for big corporations was buttressed by the attempt by BP executives to
conceal the actual extent of the disaster. It should be noted that when appearing before the US
senate, Tony Hayward stated that about one thousand barrels of oil were being released on a
daily basis into the Gulf. This claim was later debunked by the EPA (2010) who note that
between ten and fifteen thousand barrels of oil were being released into the Gulf on a daily basis
after investigation. This revelation was the one of the mistakes in a series of PR blunders by BP
especially considering the disparity between estimates from BP and that of relevant government
agencies. The EPAs revelations only served to intensify anti-capitalist sentiments in America,
especially as the US economy was still reeling from the effects of the global economic meltdown
the result of poor regulation of the reckless activities of global financial institutions- at the time.
There is in truth nothing specifically recent or new about American mistrust of the big
corporation. American capitalism has always been more statist than the stereotypical view holds.
Vast tracks of the US industry are indirectly subsidized through various instruments in the
budget. The bail out of banks at the onset of the global financial crisis by the Federal
Government highlights the suspicious relationship that exists between government and big
business. Big business has long been seen in the US as being as much a threat to livelihoods
and freedoms of individuals as big government. The motives of big business have always
drawn valid suspicions from sections of the public. The threat of big business becomes more
tangible when it interfaces with big government. For one, big government leads to crony
capitalism. While writing for the Front Porch Republic, Masciotra (2012) makes an important
observation:
First big government took care of big business. Then big government took care of itself.
It is a vicious cycle that continues, is seemingly unstoppable, and spins with the velocity
of the wheels on Harley. In this cycle, the American public are the road kill, left with an
unemployment rate close to 20%.
In view of the success of litigation brought against BP the imposition of US$4.25bn in
fines and penalties- is testament to the proactive approach of the Obama administration in
addressing this crisis. While sections of the American society may view the backlash and actions
of the Obama Administration against BP as anti-capitalist, the earlier mentioned effects of the
oil spill justify the administrations actions. It should be noted that given the effects of the oil
spill on the ecosystem of the Gulf and the livelihoods of those in the fishing industry, BPs
liabilities are expected to rise. Now that the oil spill has been discussed in the context of anticapitalist sentiments, there is need to now focus on analyzing BPs public relations responses to
negative perceptions stemming from the deepwater horizon disaster.
4.4 BPs PR Response to the Deepwater Horizon Disaster
This section focuses on examining how BP responded to the oil spill disaster, especially
from a PR standpoint. In analyzing BPs PR response to the Gulf of Mexico oil spill, three key
elements come to mind namely: (i) risk analysis; (ii) crisis management; and (iii) best practices
in crisis management.
4.4.1 Risk Analysis
In his assessment of BPs response to oil spill disaster, Terry Corbell a PR consultantnotes that prior to the disaster, BP lacked or did not have any PR response strategy for dealing
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with such a problem (Corbell, 2012). Fundamental to a PR response to a crisis such as the oil
spill disaster is the need for appreciation of the importance of the need for a comprehensive risk
analysis. Corbell (2012) notes that in a crisis scenario, empathy and competence are critical.
Given the public and governments backlash against BP and its former executive Tony Hayward,
serves as evidence that BP was not prepared to successfully deal with such a catastrophe. Faced
with such a crisis, a good old-fashioned SWOT analysis of strengths, weaknesses, opportunities
and threats with worst-cases scenarios would have sufficed. At the early stages of the oil spill,
comments credited by Tony Hayward did not help matters. For instance, when asked about what
BP was doing to stem the oil spill, Tony Hayward stated:
We are doing our best to stem the release of oil into the Gulf..It should be noted that
this is not the fault of BP rather it is the fault of Transocean.
The aforementioned statement is devoid of empathy and makes BP appear unconcerned
about the damage to the environment and livelihoods. His statement can be seen as arrogant and
insensitive. In fact, his statement reinforced anti-capitalist sentiments among the American
public. For possible insight into British Petroleums corporate mindset, a former CEO of one of
Royal Dutch Shells subsidiary John Hofmeister- in his article, Why We Hate Oil
Companies, provided the following explanation on how certain CEOs of corporate oil
companies dysfunction:
Retailing fuels is fundamentally a secondary exercise from the oil companys
standpoint, a way to get rid of the product it has spent so much time and money
producing. This makes the retail side the least valuable part of the business, more often a
nuisance than a value creator.
Based on Hofmeisters statement, the flaw in BPs PR response to the oil spill stemmed
from reactions overshadowed by the drive for profitability. This profit-seeking mindset appears
to have overshadowed the need for empathy by BP executives. From a risk analysis perspective,
the lopsided responses of BP, both from an operational and PR perspective, support the view that
BP had not conducted a proper risk assessment of its deepwater oil exploration activities.
Consequently, the oil spill highlighted BPs inability to properly address the negative publicity
its brand image suffered from this event. Coombs (2007) noted that public relations play a role in
crisis management especially given the threat of a crisis to a companys reputation. Jaques
(20070 notes that crisis management offers a useful framework for protecting a company and its
stakeholders from threats or reduce the effect from the materialization of such threats. While
crisis management can help to limit the damage emanating from crisis, it should equally be noted
that crisis can present an opportunity for good public relations (Girboveanu & Pavel, 2010).
4.4.2 Crisis Management
Despite BPs efforts, the company was not been properly represented properly in public
media at the time of the crisis. What was even worse is that whenever BP appeared in the media,
it was not a proper picture. Evidence of BPs poor performance and inept management of the
crisis are available in the public domain. One instance was when BP offered US$5,000 to
potential plaintiffs not to litigate in anticipation of lawsuits (BBC, 2010). Whatever BPs
intentions might have been at the time, this move attracted immense criticism from both the
American public and the government. Offering US$5,000 to forestall litigations only show BP as
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insensitive; in essence, BP viewed this amount of money as sufficient to change or influence

the views of the American public and those affected by the spill.
The deepwater horizon cast the spotlight on BPs safety records. In responding to a
question about BPs safety record in an interview with ABCs George Stephanopoulos, Tony
Hayward remarked:
I think we have made enormous strides as a company in the last three or four years with
a remorseless focus on safe, reliable operations. Ah, this wasnt our accident. This was a
drilling rig operated by another company. It was their people, their systems, their
processes. We are responsible not for the accident but we are responsible for the oil,
dealing with it and cleaning the situation up.
This statement can be said to have an air of arrogance about it as it fails to pay due
consideration to environment and to those whose livelihoods have been affected by the spill.
What is the difference between the accident and the oil being released into the Gulf? Claiming
responsibility for the oil and not the accident does not make any sense and certainly does not
endear BP the company he represents to the American public. Rather than showing empathy to
those affected by the spill, Tony Haywards statement seeks to transfer blame for the disaster to
Transocean. This was not necessary at the moment as what one would have expected especially
people employed in the fishing industry- is a response stating how BP was going to address their
concerns. The statements by Tony Hayward could have increased anti-capitalist sentiments and
led to what Grunig (2000) referred to as corporate antagonism. Having examined some of the
statements made by BP executives at the onset of the crisis, below are some recommendations on
how Tony Hayward would have responded to the crisis:

Tony Hayward should have been mindful of every aspect of BPs operations. In the
middle of the disaster recovery efforts soon after his interview on ABC, the following
negative headline was published by the Washington Post (2010): Washington State fines
BP US$69,000 for violations.
Initial comments by Tony Hayward to the crisis should have contained a significant note
of empathy, especially as it concerned the need for due diligence in oil exploration safety.
Tony Haywards appearance and demeanor during the crisis did not show a person that
was concerned about the far-reaching implications of the disaster. He appeared to calm
for the liking of the American public and the American government. He would have done
the BP image a great service by being shown as directing recovery efforts.
Communication is critical during crisis. Steady flow of communication during a crisis
helps in reducing apprehension among the general public or concerned stakeholders.
Hutton (1996) is of the view that corporate communication plays a critical role in
corporate reputation management. Hutton (1996) suggests that communication is
strategic because it informs the companys image over time from the past to present. In
the area of communication, at the onset of the crisis, BP did little in the way of
communication. This kept specific and the general public in the dark about the crisis and
what measures were being put in place by BP to manage the crisis. Stocker (1997) notes
that effective public relations during crisis management is dependent on the ability of
companies to immediately provide customers with explanations and information during a
crisis that go beyond the primary information offered by reports in the mass media.
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Given the aforementioned observations on BPs response to the crisis, here are some
suggested best practices in crisis management:

Be transparent about the situation or crisis. Be open about measures being taken by the
organization to mitigate the effects of the crisis.
Control the images released to the public.
Maintain a steady channel for information flow to concerned stakeholders.
Always display empathy and concern for people especially specific publics (Barton,
1993)- affected by the crisis.
In the case of an environment disaster, the organization should not be found to be
lobbying for environmental waivers.

During the review of literature on public relations and corporate reputation, the issue of
communication during crisis management was discussed. Results from the review of literature on
this particular matter showed that communication plays a strategic role in crisis management.
Crisis communication plans and strategies offer the means to collect and release information as
rapidly as possible during a crisis. Bernstein (1986), Barton (1993) and Fearn-banks (1996)
describe crisis communication tactics in great detail. Fearn-Banks (1996) notes that crisis
communication tactics usually perform an important function by enabling companies to provide
correct and particular information on very short notice. To critical publics demanding immediate
answers to a crisis that impacts them. Given these observations, it is essential to critique BPs
response to the oil spill disaster from the standpoint of its communication or press releases at the
time.
4.5 Analysis of Press Releases by BP During the Oil Spill
In this section, attention is devoted to analyzing the communications and press releases of
BP during the oil spill. In analyzing these press releases, one would be in a position to determine
the effectiveness of BPs communications during the crisis.
4.5.1 Press Release I: British Petroleum Initiates Response to Gulf of Mexico Oil SPill
BPs first press release was on the 21st of April 2010, a day after the explosion on the rig.
This particular press release particularly focused on providing information to the general public
about the rig accident. In addition, the press release also demonstrates support to Transocean
the company operating the rig. It should be noted that the rig was 100% owned by BP. The press
release also highlighted some of the actions being taken by BP to reduce the escape of oil and
protect the marine and coastal environments from its effects. The press release also highlights
BPs commitment to expediting action in dealing with the crisis (bp.com) (see Annex 1). This
particular press release is intended to address the concerns of the public. This press release fits
the public information model which is intended to inform as opposed to press for promotion
and publicity (Grunig & Hunt, 1984). Under this model, the information released is meant for
general consumption as opposed to for specific publics. Now, while BP should be commended
for the timeliness of the press release, there are certain issues not addressed in the press release.
For one, BP gave little away regarding the causes of the accident and whether there were any
casualties. The lack of these pieces of information only served to heighten the apprehension of
the families of workers on the rig together with general public.
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4.5.2 Press Release II: BP Offers Full Support to Transocean after Drilling Rig Fire
BP issued another press release on 21 April 2010. In this particular press release, BP
offered support to drilling contractor Transocean and its employees. In the second paragraph,
Tony Hayward issued the following remarks: our concern and thoughts are with rig personnel
and their families. We are also focused on providing every possible support in the effort to deal
with the consequences of the incident. This statement was followed by the following statement
in the third paragraph, BP, which operates the license on which Transoceans rig was drilling an
exploration well, said it was working closely with Transocean and the US Coast Guard, which is
initiating the emergency response, and had been offering its help which includes logistical
support. In this particular statement, the scapegoat mentality is evident. In essence, there seems
to be an attempt by BP to transfer blame for the incident rather than facing the crisis head-on.
Surprisingly, this perspective was reflected in some of the remarks some of which have already
been discussed in this chapter- credited to Tony Hayward during television interviews (bp.com)
(Annex 2).
The second paragraph is written in such a manner that BP is made to be assisting
Transocean in the incident. There is no attempt whatsoever by BP to assume responsibility for
the incident. This approach will later prove to be BPs undoing following its grilling at the hands
of the US Senate. If BP had assumed responsibility for the accident- given that it owned the rigthe backlash from the public following the disaster would have not been as aggressive as what it
turned out to be.
4.5.3 Press Release III: BP Offers Sympathy to the Families of those Lost in the US Oil Rig
Fire
This particular press release was made public on 23 April 2010. In the first paragraph, BP
offered its sympathies and condolences to the families and friends of employees who died as a
result of the explosion on the Deepwater Horizon rig. This message was communicated in Tony
Haywards message in the second and third paragraphs of this particular press release (bp.com)
(see Annex 3). This is impressive as it shows empathy to the families of those lost.
Demonstrating empathy is one of the fundamental requirements of crisis communication (Jaques,
2007).
While BP demonstrated empathy to the families of those lost in the deepwater horizon
explosion, BP failed to provide any information of the extent of the damage and its effects. This
was the case in the previous press releases released by the company. This can be interpreted as a
ploy by BP to manage any anxiety on the part of the general public. Again, this particular press
release fits into the public information model of PR where information released is aimed at the
general public (Grunig & Hunt, 1984). It should be noted that as at the time this particular press
release was made public, BP executives should now have been made aware of the leakage of oil
into the Gulf. Failure to make this information available in this and previous press releases
represents a PR blunder. Perhaps, this was the reason why the public outcry was more when it
became public knowledge that barrels of oil were being released into the Gulf. It should be noted
that BP only came forward with information about the release of oil into the Gulf during its
appearance before the US senate. And even at that, BP executives still underestimated the extent
of the problem. This can be seen as a form of dishonesty and lack of transparency on the part of

Page | 38

BP. While listing some of the best practices in crisis management, the need for transparency was
highlighted as one of the key cardinal points in crisis management.
4.5.4 Press Release IV: BP Pledges US$500 Million for Independent Research Into Impact
of Spill on Marine Environment
This particular press statement was released by BP on 24 May, 2010. In the first
paragraph of this particular press release, BP announced that it was committing the sum of about
US$500million for the purposes of studying the impact and generating viable recommendations
of addressing the effects of the Deepwater Horizon oil spill in the Gulf of Mexico (bp.com)
(Annex 4). Given the commitment amount and its purpose, it is clear that BP can be seen as
taking corrective action in response to the crisis albeit a belated one. This particular move can be
viewed as a form of press agentry in the sense that BP seeks to improve its image by
committing significant funds for scientific enterprise. BP, as part of its safety program, should
have invested in research into deepwater oil exploration a long time ago. This move is likely to
be seen as a welcome development by the scientific community. Whether this move will draw
the same response from the general public especially those whose livelihoods have been
affected by the spill- remains to be seen. One can only guess that reactions from the general
public is likely to be mixed especially considering earlier PR blunders by BP in its immediate
response to the disaster. Some members of the general public may view this move as an attempt
by BP to deflect attention from the crisis, whose effects are still being felt today by the fishing
industry and coastal communities in the United States. This press release highlighted some key
questions for the research. Given the questions elicited in this press release, it is clear that the oil
industry will benefit from this research. Having critiqued the some of the press releases made by
BP in the days and weeks following the deepwater horizon oil spill disaster, it is now time to
examine the impact of the oil spill on BPs reputation.
4.6 Impact of the Deepwater Horizon Oil Spill on BPs Reputation
In this section, attention is devoted to examining the impact of the deepwater horizon oil
spill on BPs corporate image. For one, for the first time in eleven years, British Petroleum was
removed from the index of the worlds 100 most valuable corporate brands (Interbrand, 2010).
The implication of this was a reduction in the share price of BP in the weeks following the event.
BP stock decreased by 50% in 50days on the NYSE from US$60.57 (20 April, 2014) to
US$29.20 (9 June, 2014) (Yahoo Finance, 2010). This decline highlights a fall in the aggregate
market value of BP. The financial losses suffered by BP also included a decline in sales at its gas
stations following the backlash from the general public. The backlash from the American public
was factored in by Interbrand in its decision to remove BP from the global index of 100 most
valuable corporate brands. At this point, it is essential to note that BP was fined about US$4.25
billion by the US government. Not to mention that BPs liabilities could rise as much as US$20
billion as costs from the oil spill continue to increase.
BPs reputation also suffered from a drop in its credit rating by Fitch Ratings. Fitch
ratings agency cut BPs credit rating six notches from AA to BBB. It is essential to note that
the BBB rating is just two notches above junk status. The implication of the cut in BPs rating
is that it will pay more in interest rates when raising debt finance (Wearden, 2010). Prior to the
year 2010, BP had the best image of any oil or gas company. After the deepwater horizon oil
spill, BP lost its reputation as an environmentally-friendly business. Images of environmental
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degradation stemming from the oil spill have been circulated widely on the internet thus,
intensifying anti-capitalist sentiments and the public outrage against BP. In fact, Tom (2011)
noted that the deepwater horizon oil spill will have long term effect on BPs corporate brand and
reputation, especially as the more serious effects of the oil spill on the ecosystem still remains to
be seen.
4.7 Summary of Main Research Findings
Having critiqued BPs response to the deepwater horizon oil spill, these are the main findings
of the research:

For effective public relations, BP must identify and target its communications to these
stakeholders. In communicating during crisis, findings from the analysis conducted in
this chapter suggest that the message for the general public tend to differ from the
message for specific publics. The main stakeholders that BP should pay attention to in the
oil spill are as follows: fishermen living off the sea; inhabitants of affected coastal states;
the US government; media; families of employees who lost their lives in the accident;
shareholders; environmentalists.

The public outcry against BP following the oil spill disaster can be interpreted in the
context of anti-capitalist sentiments. The global economic crisis in 2009 spurred anticapitalist sentiments and increased the American publics wariness of big corporations.
The public is even more wary of the intersection of big business and big government.
Statements by Tony Hayward some of which were highlighted in this chapter- only
served to intensify the distrust of big corporations.

The critique showed that BP did not carry out proper due diligence, especially as it
concerned proper risk analysis of deepwater or deep sea oil exploration. If BP had done
this, it should have been aware of the risks of deep sea drilling. Awareness of these risks
would have prepared BP on effective approaches to responding to the deepwater horizon
oil spill. Some of the statements made by Tony Hayward in the days and weeks following
the accident highlighted Tony Haywards limited knowledge about key aspects of BPs
operations, especially its deep sea oil exploration activities.

In addition to the lack of proper risk analysis, it appeared that BP lacked a comprehensive
plan for dealing with large scale crisis, such as the oil spill. It is essential for
organizations to always have in place a comprehensive crisis management strategy. Such
a strategy should lay the framework for PR response to the crisis.

In analyzing the behavior and responses of BP executives, it is clear that BP lacked

empathy; something that is fundamental to PR and crisis communications. As a
representative of BP, Tony Haywards statements and demeanor only contributed to
making BP appear like an inconsiderate firm. This only contributed to intensifying the
American publics outrage against BP; something that the Obama administration could
not ignore.

While BP maintained a steady flow of information in the days and weeks following the
oil spill disaster, the content of some of its press releases contained some flaws. For the
Page | 40

four press releases discussed in this chapter, BP can be said to have applied the public
information PR model in its crisis communications. In BPs second press release, BP
makes an attempt to deflect responsibility for the accident to Transocean. This was a
wrong move as BP owned the deepwater horizon rig.

Given the analysis conducted in this chapter, the need for transparency was highlighted
as one of the best practices in crisis communications. On this front, BP failed woefully.
For instance, BP made an attempt to conceal the true and accurate picture of the effects of
the accident, ie. the actual number of barrels of oil being released into the Gulf. The
estimate of the oil spill provided by BP executives was a stark contrast to the actual
extent of the spill, ie. BP far underestimated the extent of the pollution. This was a
display of dishonesty on the part of BP and as such, BP ended up not winning any
favours from both the US government and the American public.

In critiquing BPs response to the oil spill disaster, the researcher also identified some of
the impacts of the disaster on BPs corporate reputation. The following were identified as
effects of the deepwater horizon accident to BPs corporate reputation: (i) removal from
index of leading 100 corporate brands; (ii) significant decline in its share price and
shareholder value; (iii) operational bottlenecks as its offshore drilling license was
suspended by the US Government; and (iv) significant financial liabilities

Page | 41

CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
In this chapter, the conclusion and recommendations of the research are presented. The
conclusion is based on the key findings of the research as outlined in the previous chapter. In
outlining the conclusions, effort is made to demonstrate how the main objectives of the research
are realized. After outlining conclusions, the recommendations are highlighted. The
recommendations will equally highlight best practices in crisis communications based on
findings from the analysis of BPs PR response to the Gulf of Mexico oil spill. The
recommendations are accompanied by a section suggesting recommendations for further areas of
research.
5.2 Conclusion
While reviewing relevant literature for the research, one key observation was that public
relations is not only used for promotional purposes. It is also useful in periods of crisis such as
the unprecedented one faced by British Petroleum (BP). The decision to use BPs PR response to
the deepwater horizon oil spill as the case study for the research was informed by the scale of the
disaster; almost on the same pedestal with the Hurricane Katrina disaster. The diversity of the
stakeholders affected by the oil spill disaster also highlights the scale of the disaster: US
government, fishermen, communities around the coastal areas, BP shareholders, oil companies,
and the general public. These stakeholders are a critical consideration with regards to how BP
manages reactions to the disaster. In managing perceptions stemming from the oil spill incident,
public relations is critical given the potential for this crisis to affect the corporate reputation and
image of BP. Poor public relations (PR), in this regard, can have negative consequences for the
reputation of BP. . Girboveanu & Pavel (2010) note that public relations is all about reputation
the result of what you do, what you say and what other people say about you. Spaulding &
Correa (2007) note that public relations is the discipline which looks after reputation, with the
objective of gaining understanding and support and influencing opinion and behavior.
Furthermore, Spaulding & Correa (2007) indicate that public relations is the planned and
sustained effort to create and maintain good will and mutual understanding between a company
and its external stakeholders or publics.
The first objective of this research concerns undertaking a critical examination of how
organizations use strategic communications to manage their corporate reputation in periods of
crisis. As mentioned earlier in this chapter, PR is not only used for the purposes of promotion or
publicity, it equally instrumental to managing organizational crisis. Consequently, PR managers
and practitioners are expected to crisis managers. Dilenschneider (2000) notes that public
relations enable organizations to address organizational crises in a proactive manner. Coombs
(2007) defines crisis management as a process that is designed to prevent or lessen the damage a
crisis can inflict on a company and its stakeholders. Critical to managing crisis is the manner of
communications released by the concerned organization to both general and specific publics.
Corporate communications whether through media briefings, press releases or televised
interviews- is a sensitive issue that must treated with utmost care given its ability to influence the
perceptions and mindset of stakeholders.
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Coombs (2007) notes that corporate communications in periods of crisis must contain
best practices in crisis communication, ie. proper explanation of the crisis, transparency, empathy
etc. In this research, four of the press releases made by BP in the days and weeks following the
deepwater horizon disaster were analysed with a view to understanding if it helped to reduce
negative perceptions about BP. In the first press release (April 21, 2010), BP did a good job of
presenting an overview of the rig accident to satisfy the information needs of the general public.
In this particular press release, BP also did a good job reducing the apprehensions of the
American public and the US government by providing information on some of the steps that are
being taken to address any fallout from the sinking of the rig. It appears at this point that BP is
aware that oil was being released into the Gulf. While this press release contained the following
attributes that reflect best practices in crisis communications (ie. explanation about the accident,
transparency, responses being taken by BP to address any fallout from the accident), it failed to
address the concerns of the families of employees who lost their lives (ie. specific public) in the
explosion. This can be regarded as a PR blunder on BPs part. It took a second press release from
BPs CEO Tony Hayward- to address their concerns. Given anti-capitalist sentiments, BP failed
to understand that the American public is likely to commiserate with the families of employees
lost in the accident. Such commiseration is likely to ultimately intensify the public outrage
against BP; something that became evident in the weeks following the accident.
Press releases are not the only form of communication available to an organization in
periods of crisis. The statements made by BP executives, whether during interviews or informal
appearances, also form communications during periods of organizational crisis. Some of the
statements made by Tony Hayward in the days and weeks following the deepwater horizon
accident highlighted PR blunders that proved to be his and BPs undoing. It should be noted that
barely a month after the deepwater horizon accident, Tony Hayward was relieved of his position
as CEO of BP. Take this statement credited to Tony Hayward in an interview with the ABCs
George Stephanopoulos:
I think we have made enormous strides as a company in the last three or four years with
a remorseless focus on safe, reliable operations. Ah, this wasnt our accident. This was a
drilling rig operated by another company. It was their people, their systems, their
processes. We are responsible not for the accident but we are responsible for the oil,
dealing with it and cleaning the situation up.
An in-depth analysis of the aforementioned statement reveals the following: lack of
empathy for stakeholders; an attempt to transfer blame to Transocean; and an attempt to deflect
responsibility for the fallout from the accident to another part. The situational theory of
relationships suggests that the perceptions of stakeholders change and as such, there is a need for
organizations to change their communications to reflect this change (Grunig & Repper, 1992).
Tony Harwards statements only intensifying anti-big corporation sentiments and the public
outrage against BP. Tony Haywards statements a form of strategic communication- and the
publics reactions to them highlight the importance of communication during crisis management.
When asked about the amount of oil and dispersant flowing into the Gulf in an interview with the
Guardian, Tony Hayward remarked:
The Gulf of Mexico is a very big ocean. The amount of volume of oil and dispersant we
are putting into it is tiny in relation to the total water volume.
Page | 43

While the aforementioned statement is technically accurate, Tony Haywards comments

made BP to appear aloof and unconcerned about the environmental damage being done to marine
life in the Gulf and the livelihoods of fishermen. This statement lacked empathy and only served
to annoy the public, especially those directly impacted by the disaster. These observations
contribute to the realization of the first research objective (see section 1.2).
The second objective of the research concerns exploring how organizations manipulate
corporate relations to maintain their agenda when faced with crisis (see section 1.2). In
understanding how organizations can manipulate corporate communications to suit their own
ends in periods of crisis, BPs press releases and statements credited to BP executives when they
appeared before the US Senate are useful pivots. One of the best practices identified as critical in
effective crisis management communications is the need for transparency. From a transparency
standpoint, BP executives committed a PR blunder when in their appearance before the US
Senate- they lied about the actual number of barrels of oil being released into the Gulf from the
ruptured well. Initial estimates by BP were that about 5,000 barrels of oil were being released
into the Gulf. This was a stark underestimation of the actual figure which turned out to be
between 10,000 and 12,000 barrels of oil per day. This can be viewed as an attempt by BP to
manipulate the perceptions of stakeholders US Government, the communities bordering coastal
areas, environmentalists, and the general public- regarding the true and accurate extent of the
fallout from the deepwater horizon accident. The fourth press release by BP on 24 May 2010,
highlighted the commitment of US$500million by BP to scientific research into ways of tackling
the environmental impacts of the deepwater horizon accident. While this can be viewed as
corrective action on the part of BP, it can also be viewed as an attempt by BP to decrease public
outrage against it. These observations contribute to the realization of the second and third
research objectives (see section1.2).
The third objective of the research concerns a critical examination of British Petroleums
(BP) use of strategic communication to manage public perceptions of its culpability in the Gulf
of Mexico oil spill. In analyzing BPs use of crisis communication to manage public perceptions
of its culpability in the deepwater horizon accident, the statements of BP executives and BPs
press releases provide the information needed to realize the third research objective. Already in
this chapter, some of the statements made by Tony Hayward, the then CEO of BP, have been
discussed. The statements made by Tony Hayward highlighted the following: the appearance of
BP as aloof and unconcerned about the environment damage of the spill; BP as being dishonest
with reference to the quantity of oil being released into the Gulf; BP as being insensitive to the
people affected by the crisis (ie. environmentalists, coastal communities in the states affected,
fishermen, and the general public); and BP as being less aware of the risks of deepwater oil
exploration. The statements and press releases of BP lacked best practices in PR management of
organizational crisis. If provided another opportunity, BP would have conducted its PR in a
different manner given the lessons learnt. These observations contribute to the realization of the
third research objective (see section 1.2). At this point, it is essential to outline the main
recommendations for the research.
5.3 Recommendations
Having outlined the conclusions, the recommendations for the research are now outlined in
this chapter. Among the recommendations presented in this chapter are best practices in crisis
management:
Page | 44

When faced with a crisis scenario, timeliness in response is critical especially when the
crisis affects or concerns a broad range of stakeholders some of which are external to
the organization concerned. From the standpoint of timeliness of response, the
discussions conducted in the fourth chapter showed that BP was quick in its response.
Nevertheless, there were concerns about its content.
When faced with organizational crisis, transparency and honesty in communication is
critical. Honesty and transparency in communication can help reduce the apprehension of
stakeholders affected by a crisis. In crisis situations, organizations are supposed to be
open about the situation or crisis. Furthermore, organizations should equally be open
about measures being taken by the organization to mitigate the effects of the crisis. Being
open, in this regards, supports the public information model of public relations.
The analysis conducted in this research suggests that BP was not honest about the true
picture of the quantity of oil being released into the Gulf. This did not do BP any favours
as it intensified the publics outrage against it.
In communicating during crisis, press releases while important- are not the only
channels. Television interviews and press conferences are also useful channels for
communicating to stakeholders during crisis. Empathy in communication irrespective of
the channel utilized- is critical for effectiveness. Demonstrating empathy in crisis
response whether through communication or actions- can help reduce the tension and
apprehension among stakeholders affected by a crisis. Some of Tony Haywards
statements in the days and weeks following the crisis were put under the spotlight in this
research. As observed, his statements lacked empathy especially as it concerned specific
publics directly impacted by the deepwater horizon accident- and made BP appear aloof
and unconcerned about the environmental degradation to the Gulf. This was, in part,
responsible for his ousting as BP CEO.
Critical to the crisis management is the need for organizations to be seen as taking
corrective action where necessary to address causes and dealing with the effects of the
crisis. The commitment of US$500million by BP to support research in dealing with both
the short and long term effects of the crisis can be hailed as a move in the right direction
albeit a belated one. The belatedness of this move can be viewed with suspicion
especially in light of growing anti-capitalist sentiments in the United States. Irrespective
of this observation, the support to research is likely to benefit the oil industry especially
as it concerns the potential environmental risks of offshore drilling, particularly
deepwater oil exploration.

5.4 Directions for Further Research

In this research, attention is devoted to exploring how crisis management fits with
corporate public relations and reputation management. Findings from this research suggest that
indeed, crisis management fits into public relations practice. Furthermore, it was discovered that
critical to effective crisis management is corporate communications. The examination of the case
study BPs PR response to the deepwater horizon accident- highlights the importance of
communication in managing the perceptions of stakeholders involved in a crisis situation. While
this research has contributed to existing knowledge on the relationship between public relations
and crisis management, there is still a need for additional research

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Annex 1
BP Initiates Response to Gulf of Mexico Oil Spill
Release date: 22 April 2010
BP today activated an extensive oil spill response in the US Gulf of Mexico following the fire
and subsequent sinking of the Transocean Deepwater Horizon drilling rig 130 miles south-east of
New Orleans.
BP is assisting Transocean in an assessment of the well and subsea blow out preventer with
remotely
operated
vehicles.
BP has also initiated a plan for the drilling of a relief well, if required. A nearby drilling rig will
be used to drill the well. The rig is available to begin activity immediately.
BP has mobilized a flotilla of vessels and resources that includes:

significant mechanical recovery capacity;

32 spill response vessels including a large storage barge;

skimming capacity of more than 171,000 barrels per day, with more available if needed;

offshore storage capacity of 122,000 barrels and additional 175,000 barrels available and
on standby;

supplies of more than 100,000 gallons of dispersants and four aircraft ready to spray
dispersant to the spill, and the pre-approval of the US Coast Guard to use them;

500,000 feet of boom increasing to 1,000,000 feet of boom by days end;

pre-planned forecasting of 48-hour spill trajectory which indicates spilled oil will remain
well offshore during that period;

pre-planned staging of resources for protection of environmentally sensitive areas.

"We are determined to do everything in our power to contain this oil spill and resolve the
situation as rapidly, safely and effectively as possible," said Group Chief Executive Tony
Hayward. "We have assembled and are now deploying world-class facilities, resources and
expertise, and can call on more if needed. There should be no doubt of our resolve to limit the
escape of oil and protect the marine and coastal environments from its effects."
As part of its planning and approval requirement prior to offshore activity, the area was
evaluated for use of dispersants and the plans approved by the US Coast Guard which has now
given the go-ahead for their use.

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Annex 2
BP Offers Full Support to Transocean After Drilling Rig Fire
Release date: 21 April 2010
BP today offered its full support to drilling contractor Transocean Ltd. and its employees after
fire caused Transocean's semisubmersible drilling rig Deepwater Horizon to be evacuated
overnight, saying it stood ready to assist in any way in responding to the incident.
Group Chief Executive Tony Hayward said: "Our concern and thoughts are with the rig
personnel and their families. We are also very focused on providing every possible assistance in
the
effort
to
deal
with
the
consequences
of
the
incident."
BP, which operates the license on which Transocean's rig was drilling an exploration well, said it
was working closely with Transocean and the U.S. Coast Guard, which is leading the emergency
response, and had been offering its help - including logistical support.
Transocean reported the fire earlier today on the rig, located approximately 41 miles offshore
Louisiana on Mississippi Canyon block 252, saying that a "substantial majority" of the 126
personnel on board were safe, but some crew members remained unaccounted for. A number of
personnel were reported to be injured.

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Annex 3
BP Offers Sympathy To The Families Of Those Lost In The US Oil Rig Fire
Release date: 23 April 2010
BP today offered its deepest sympathy and condolences to the families, friends and colleagues of
those who have been lost following the fire on the Deepwater Horizon oil rig in the Gulf of
Mexico
this
week.
Group Chief Executive Tony Hayward said: We owe a lot to everyone who works on offshore
facilities around the world and no words can express the sorrow and pain when such a tragic
incident
happens.
"On behalf of all of us at BP, my deepest sympathies go out to the families and friends who have
suffered such a terrible loss. Our thoughts also go out to their colleagues, especially those who
are
recovering
from their injuries,"
he
said.
He added: "BP will be working closely with Transocean and the authorities to find out exactly
what happened so lessons can be learnt to prevent something like this from happening anywhere
again."

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Annex 4
BP Pledges $500 Million for Independent Research into Impact of Spill on Marine
Environment
Release date: 24 May 2010
BP today announced a commitment of up to $500 million to an open research program studying
the impact of the Deepwater Horizon incident, and its associated response, on the marine and
shoreline
environment of
the
Gulf of
Mexico.
"BP has made a commitment to doing everything we can to lessen the impact of this tragic
incident on the people and environment of the Gulf Coast. We must make every effort to
understand that impact. This will be a key part of the process of restoration, and for improving
the industry response capability for the future. There is an urgent need to ensure that the
scientific community has access to the samples and the raw data it needs to begin this work,"
said Tony Hayward, BP's chief executive.
The key questions to be addressed by this 10-year research program reflect discussions with the
US government and academic scientists in Washington DC last week. BP will fund research to
examine topics including:

Where are the oil, the dispersed oil, and the dispersant going under the action of ocean
currents?

How do oil, the dispersed oil and the dispersant behave on the seabed, in the water
column, on the surface, and on the shoreline?

What are the impacts of the oil, the dispersed oil, and the dispersant on the biota of the
seabed, the water column, the surface, and the shoreline?

How do accidental releases of oil compare to natural seepage from the seabed?

What is the impact of dispersant on the oil? Does it help or hinder biodegradation?

How will the oil, the dispersed oil, and the dispersant interact with tropical storms, and
will this interaction impact the seabed, the water column and the shoreline?

What can
be
done to
improve
technology:
* To detect oil, dispersed oil, and dispersant on the seabed, in the water column, and on
the
surface?
* For remediating the impact of oil accidently released to the ocean?

BP already has ongoing marine research programs in the Gulf of Mexico. Building on these, BP
will appoint an independent advisory panel to construct the long term research program. Where
appropriate, the studies may be coordinated with the ongoing natural resources damages
assessment. The program will engage some of the best marine biologists and oceanographers in
the world. More immediately, a baseline of information for the long term research program is
needed. A first grant to Louisiana State University will help kick start this work.
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"LSU has a significant amount of experience in dealing with the oil and gas industry and deep
knowledge pertaining to the Gulf of Mexico across numerous topical disciplines. The first part of
the program is about obtaining and analyzing samples and assessing immediate impacts. Other
areas of importance will emerge as researchers become engaged and the potential impacts from
the spill are better understood," said Professor Christopher D'Elia, Dean of the School of the
Coast and
Environment. Subsequent awards will be controlled by the independent advisory
board.

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