Marketing Organisations: BP’s Gulf of Mexico Oil Spill in Context
From the outset, it is perhaps to state that disasters are some of the most revered occurrences within the business fraternity. On the other hand, it should be noted that undesirable happenings have somewhat found a way of occurring when they are least expected. More often than not, they take place when organizations or business entities seem to be thriving in their respective sectors and are thus least expected as alluded to by Totaro, (2010, p. 1). Consequently, they would carry with them far reaching economic as well social repercussions to all the stakeholders.
The BP’s 6th July Gulf of Mexico Oil spill is an example of such disasters in this regard. Thus, it is imperative for every business to put in place clear and well-articulated recovery plan in the event of any disaster irrespective of the nature through contingency planning. The obvious merit of this is that it would ensure for the continuity of the organization. In addition, such disasters might present a perfect opportunity to be involved in Corporate Social Responsibility and thus aiding the business to rebound faster and efficiently.
That disasters of whatever kind normally result to huge losses to the affected businesses is a fact as captured
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Though unfortunate, it would be prudent to underscore the fact that the future profitability certainly relied on an effective corrective measure in place. Simply put, this disaster would have to supersede any other expense of the business owing to its magnitude or impact to BP as argued by Totaro, (2010, p. 1). From BP’s website, it is note worthy that this was the case since the firm dedicated all its resources towards rectifying this mess. The fact that everyone across the globe had increasingly become environmentally conscious provided no other alternative.
It is also evident that the said disaster resulted to significant changes especially in the aspect of prioritization of expenditure as argued by Totaro (2010, p. 1) . Indeed the company put concerted efforts to make everything right with the first measure being to seal permanently the Macondo well. In the words of the BP’s CEO, this would necessitate the firm to continue working in order to save the world since the survival of the firm greatly depended on it. In this regard, shareholders would have to contend with this loss as a measure to sustain the company in future.
From the company’s website, this seems to be case. The company in addition to sealing the well, sought to clean the environment as well. Across all the Gulf beaches, BP has sent several workers charged with this responsibility by working throughout the day. (www. bp. com) Furthermore, it is compensating all legitimate claims occasioned by this oil spill. Even though it is clear that the firm may not be able to restore the environment to its former state, such efforts serve to increase customer loyalty and confidence due to its genuine ownership of the disaster.
As a CEO, this is an effective marketing strategy in the offing. In particular, BP’s activities have usually had a negative impact on the environment in terms of green house effect, loss of fauna and flora; and such disaster only increase these effects. Upon successful correction of the disaster, I would advocate for considerable reduction of the prices of our range of products and services. Nonetheless, this shall be done in a manner that does not put BP’s market survival at risk.
In a nutshell, BP’s activities have a direct correlation with the environmental well being of the entire community. In particular, drilling of oil has the effect of contributing to acidic rain, production of harmful metals such as lead and mercury; in addition to noise pollution according to Lollar (2005, p. 443). Excessive noise in the sea has the effect of forcing fish to migrate thus affecting biodiversity composition. This is further compounded by the fact that setting up drilling factories requires numerous structures, which are known to disturb animal migration routes and habitats.
Furthermore, BP’s drilling activities have effect on the health of people living around. Against this backdrop, BP’s Corporate Social Responsibility would be captured in terms of holistic environmental conservation. This entail putting in place measures aimed at restoring the environmental dignity and of the people living around as well. One of such measures is through contributing towards or setting a biodiversity rescue centre to protect animals affected by BP’s drilling activities and thus preventing extinction of such animals.
Secondly, the firm is required to put in place greenhouse gas reduction measures as well as purchasing carbon credit certificates to compensate for its contribution to climate change impacts on the American people. In addition, BP is required to contribute to the overall well being of the people living affected by its operations by setting up a compensation fund. This fund can be diversified to construct social recreation facilities for the people as well as contributions to schools. According Kotler and Nancy (2005, p. 273), more and more consumers expect market players to do good in order to be guaranteed of staying profitable.
To the consumers, corporate communications are no longer effective and firms are expected to do something real to better their lives. Nonetheless, cost- benefit analysis should reveal that corporate social responsibility provides the much-needed impetus for market growth. References www. bp. com: Gulf of Mexico Response, Accessed on 22nd August 2010. Kotler, P. & Nancy, L 2005, Corporate social responsibility: doing the most good for your company and your cause, John Wiley and Sons, Washington, D. C. Lollar, B, 2005, Environmental geochemistry, Elsevier, Melbourne. Totaro, P, 2010, Lost at Sea SMH Weekend Edition, Weekend Business, June 18-20