Can BP maintain high CSR rating in wake of oil leak disaster?

Unless you’ve completely avoided the news for the last two weeks you have certainly been aware of the massive oil leak in the Gulf of Mexico. Following an explosion, fire and sinking of the off-shore rig operated by BP (British Petroleum) the existing well has been spewing some 200,000 gallons per day into the ocean since April 20th. The environmental impact and damage to marine life are both of course substantial and the PR battle being staged by BP and the US Government while the problem remains have seen a upsurge this week. Meanwhile concerned residents along the gulf coast are left waiting to see the true extent of the disaster, the economic implications to the gulf fishing and vacation industry (not to mention wildlife suffering) are in the balance and the trail of damage is subject to prevailing weather and the currents of the sea. This disaster has blossomed in two weeks into a story the world is watching both to see how it can be resolved but also more and more stories appear about how to hold BP fully accountable.

BP have already been caught in the crossfire and an army of lawyers position their claims even while the leak is still not capped. BP are  trying to stop the leak, manage the bad publicity and still determine exactly what went wrong. Off-shore drilling is by definition a dangerous commodity – but that is a different argument, BP state they weren’t technically ‘running’ the rig at the time of the explosion – but that too is a different argument. What is currently at stake is how does the company maintain an enviable reputation as a leader in CSR (Corporate Social Responsibility) ranking? As recently as 2007 BP ranked 1st in a review of ‘most accountable corporations’ conducted by CNN Money. BP promote a proud commitment to the research and development of wind, solar, and carbon-dioxide sequestration technologies, the company have overcome earlier setbacks including the 2005 refinery explosion that resulted in deaths of workers by replacing those executives deemed culpable. Can they manage this crisis?

What the next few days and weeks will bring is a relentless media watchdog seeing if the leak can be capped and the crisis reduced and ‘ceased’. In the weeks and months ahead the federal and private lawsuits will begin and the accountability debate will get into full swing. In the months and years ahead the true cost of the disaster in the gulf will be measurable as the impact on marine life and socio-economic matters can be evaluated. In a year or two we will see if BP can manage its (risky) business and maintain their reputation of accountable and responsible practices. Industry experts foresee a combination of ingenuity and damage control being the twin concerns for BP at present, I’d be more concerned however that if the ‘capping’ operation planned for Sunday/Monday is a failure that the disaster might become too large for any corporation to overcome.

We can simply hope that the cone being used to cap the oil well this weekend actually works, its never been tried before but if ever a creative solution needed a touch of luck this would be it.