BP’s use of posture to respond to the Deepwater Horizon crisis

Vida L Goosen-Botes,Grant Samkin

doi:10.4102/jef.v6i2.265

Vida L Goosen-Botes, Grant Samkin

Open Access

https://doi.org/10.4102/jef.v6i2.265

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Abstract

This paper focuses on the posture the oil company BP adopted when faced with a legitimacy crisis during one of the worst environmental disasters in history. Against a backdrop of a discussion of the rhetorical aspects of image repair discourse and organisational legitimacy, Hearit’s strategy of corporate apologia was employed to determine the posture BP adopted in relation to the crisis. This paper adds to the literature on image repair strategies by heeding a call by Hearit for the context within which corporate apologia takes place to be taken account of, an approach that warrants a distinct line of research. The literature was further extended by complementing Hearit's strategy with semiotics and analysing its use in both the annual and sustainability reports. The additional focus on the sustainability reports is important, due to the high premium placed on sustainability in the changing business environment. On a practical level this paper contributes to an understanding of how organisations use sustainability reports to respond to legitimacy challenges.

Highlights

The objective of this paper is to determine the posture BP adopted in its 2010 annual and sustainability reports in response to the Deepwater Horizon crisis
This study extends the previous studies that have focused on the disclosures made in the annual reports of organisations when they are responding to a crisis (see for example, Deegan, Rankin & Tobin (2002) and Summerhays & de Villiers (2012)) in that it focuses on the use of apologia in both the annual and sustainability reports
This article draws on the theories of organisational legitimacy and image repair discourse

Summary

Introduction

The objective of this paper is to determine the posture BP adopted in its 2010 annual and sustainability reports in response to the Deepwater Horizon crisis. In recent years the role companies play in society has changed significantly (Botes, 2006). No longer are they seen as existing primarily to deliver economic benefits for shareholders, but functioning as an integral part of society. The reputation of the organisation may be irrevocably damaged, leading to its legitimacy being questioned. The 2010 oil spill in the Gulf of Mexico, known as the Deepwater Horizon incident, is an example of an environmental disaster that caused the legitimacy of BP to be questioned. BP CEO Bob Dudley acknowledged this by explaining that the unprecedented oil spill had significant consequences for jobs, businesses, communities, the environment and the oil industry (BP Sustainability Review, 2010)

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