May 3, 2010

• BP’s PR Disaster

  As BP feverishly works to corral the thousands of gallons of crude oil its damaged well has pumped into the Gulf of Mexico dangerously close to my home in Destin, it is also fighting a major image crisis. But much like trying to clear up the oil oozing in every direction in the Gulf, its PR crisis may also soon turn into an impossible battle — and that is partly due to a successful marketing campaign that pitches the company as environmentally friendly.

  What Size is Your Carbon Footprint?
  
  Because BP has long waved the “green” flag, the oil giant seeming so unprepared for a catastrophe of this magnitude puts the ad campaign at odds with reality.

  The company’s “Beyond Petroleum” campaign, launched with the help of Ogilvy & Mather almost 10 years ago, was seen as a classic case study for rebranding. Indeed, in an ironic twist, the company was recently named as a finalist for a federal award honoring offshore oil companies displaying “outstanding safety and pollution prevention.”

  The disconnect has come off as shocking even to crisis experts, including Harlan Loeb, U.S. director crisis and issues management at Edelman.

  “This kind of event should clearly have been contemplated in their crisis simulations,” Mr. Loeb said. “BP is an enormous actor in offshore drilling and exploration and the fact that this kind of event took place, while tragic and horrible, should not leave BP looking totally unprepared.”

  Following Toyota’s crisis approach?

  If it appears that the company is following Toyota’s crisis playbook, Mr. Loeb said people shouldn’t be too surprised by that. He said BP, much like Toyota, is a very centralized company, which tends to result in a non-efficient and non-comprehensive decision-making process when a crisis strikes.
  
  “It troubles me that as of yesterday the governor of Louisiana was still waiting for a contingency plan from BP,” Mr. Loeb said. “It wouldn’t shock me if the attorneys general of the affected states intervene and pursue BP on some legal front, compelling them to step up with a contingency plan. It’s beginning to spin out of control for them.”

  What troubles Mr. Loeb most is that not only does BP lack a visible presence in the news cycle, which it has not managed to get out in front of, but the reports that BP was offering $5,000 settlements to residents if they waived their rights to sue for any damages. “That’s a profoundly disturbing message to have resonating as one of your first public messages,” Mr. Loeb said. “When the public sees the company leading with a legal protection agenda trying to limit legal exposure, it’s not a good thing.

  The next shoe to drop is usually the attorney general intervening to remind the company of its obligations. Perception-wise, this is out of control. Operationally it’s an enormous issue but they are not at all visible.”

  I know what I will tell them to do with the 5K offer.

  • 9:17 pm
  • 4 Comments