Bp Case Study Tnc

Bp Case Study Tnc-82
Hayward responded by putting out a statement: “There is no objective justification for this share price movement.” This followed an earlier press statement in which he told reporters: “There’s no one who wants this over more than I do.

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President Obama expressed outrage that BP had initiated a $50 million advertising campaign to try to salvage its image and had announced it would pay a dividend to shareholders over the summer.

BP, he insisted, should be spending its money on repaying the victims of the spill.

I had the Tony Hayward role at the Red Cross during Hurricane Katrina, then Rita and Wilma too, which came back to back.

So I am very sensitive to the BP role in this situation.

Shortly after, Hayward removed himself from day-to-day oversight of the disaster and put an American, Robert Dudley, in charge. BP, it turned out, was not unfamiliar with oil-related disasters.

In 2005, at its Johnson City, Tex., oil refinery, an explosion killed 15 workers, an event later attributed at least partially to cost-cutting.

In a speech broadcast live from the Oval Office, President Obama said, “We will make BP pay for the damage their company has caused.” The next day, BP’s then-CEO, Tony Hayward, and chairman, Carl-Henric Svanberg, were summoned to the White House, where they agreed to put billion into an escrow account to pay for damages and to cancel stockholder dividends for the year.

Svanberg then held a press conference during which he apologized for the accident.

How would BP recapture its business momentum in the light of a catastrophe of this scope?

As this case study unfolded, Briefings asked four crisis and risk management experts to weigh in. Marty Evans, retired, United States Navy, president and CEO of the American Red Cross during and after Hurricane Katrina.

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