The BP Gulf Oil Crisis 2010:

Its effects on Stakeholders commitment and trust

By

ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

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Dated:



ABSTRACT

This report presents the analysis of BP oil spill in 2010 on the stake holders. The method used for research is secondary. The researcher did a thorough analysis on the crises. The background and the affects of the oil spill are discussed in detail. The company ethical duties, before and after the crises have also been highlighted in this research.

Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

INTRODUCTION1

Background1

Rationale1

Significance1

Research question1

Key words2

Reliability and validity2

Ethical consideration3

Generalizability4

LITERATURE REVIEW5

Introduction5

Ethics Standards by the Company5

Recent British Petroleum Disaster6

Corporate Social Responsibility7

Ethical Image of BP7

Company's Ethical Rating8

Impact of environmental disaster on BP Ethical rating9

Ethical duties owed by the company before the tragedy9

Ethical duties owed by the company after the tragedy10

Best Practices & Impact on Business11

The Oil Spill Clean Up Process11

Booms11

Skimmers12

Sorbents12

Cleaning Up Oil Spills in Challenging Environments15

Business Considerations Associated with Oil Spills15

Crisis Management & Communication16

Planning16

The Financial Ramifications of an Oil Spill18

METHODOLOGY19

Search Technique20

Literature Search21

Inclusion and exclusion criteria22

Search terms - key terms22

Additional Online searches23

Management23

Search rationale23

Critical Appraisal tool23

Appraisal limitations23

DISCUSSION25

Legislation Related to Oil Spills25

Stakeholders and effect of the Oil Spill disaster on them26

Impact on stake holders and company shares27

Impact of BP crisis on institutional portfolios27

Risk Analysis30

Summary33

Company decisions35

CONCLUSION37

REFERENCES39

INTRODUCTION

Background

In April 2010, British Petroleum suffered a major oil spill in the Gulf region. With the help of this report, the affects of the oil spill are discussed in detail.

Rationale

An in-depth investigation into the effect The BP Oil crisis had upon the trust and commitment of BP stakeholder in the brand and whether it any effect upon sales, share prices etc. I will be working on this topic as I found the studies of consumer behavior and relationship marketing interesting in my years of academic study and am interested to discover whether such a negative situation has any lasting effects upon stakeholders commitment and trust or not.

Significance

This research is very important as it will highlight the affects of BP oil spill on stake holders and their commitment.

Research question

To investigate whether the BP oil crisis had any impact upon its stakeholders trust both short and long term

To investigate whether the BP oil crisis had any impact upon its commitment both short and long term

Key words

Bp oil spill, Trust, Stake holders etc

Reliability and validity

In evaluating the studies, several methodological problems arise. Perhaps most important are reliability and validity. Reliability assessment is an essential component of behavioural research and can be easily incorporated into the direct observation to determine the optimum levels of performance. However, only 48% of the studies (except for assessment using computed) reported reliability measures on the assessment of ...