According to the article New CEO Shakes Up Management at BP on the Wall Street Journal, BP is administrating several changes with hopes of improving its currently reputation in society. The company is first starting with a change in management where current CEO Tony Hayward, who was the center of all blame and accusation during the oil spill incident, is being replaced by Chief Executive Bob Dudley and the head of the Gulf of Mexico operation during the oil spill is being fired. In addition to a change in management the company, led my Mr. Dudley, is pushing for a new safety division which will be called Safety and Operational Risk function. This newly formed organization will oversee and examine all of BP's domestic or offshore operations. Also as a part of its recovery plan BP says that it will change its reward strategy within the company; instead of issuing rewards to those that succeed in boosting production or efficiency, Bp will reward those that boost safety of its operations. All of this is being administrated to regain "the trust of [their] customers, of governments, of [their] employees and of the world at large."
BP is going to great measure to regain its former place in society. In the previous unit we learned a lot about business ethics and how a particular business or company can recover from previous unethical conducts. As I was reading this article I realized that BP is following the same plan our text book suggested-things such as changing the face of the companyand administrating a new form of reward system(which will encourage employees to make ethical decisions). For a company being, or at least seeming, ethical means a good public reputation, and good public reputation means better business and ultimately greater profit.
Though I am a bit skeptical about a lot of Bp operations I do believe that the company is taking the right steps to improve its image. Also it is important to note that the newly formed division (Safety and Operational Risk function) will, in addition to bettering BP's reputation, create new jobs opportunities within the company.
http://online.wsj.com/article/SB10001424052748704116004575521394170919842.html?mod=djemalertNEWS
I am glad to see a company like BP changing there reward system to give to those who value safety over profit, this is a trend that all major corporations not only in our industry but across the world should follow. When the banking industry failed banks continued to reward there CEO'S even when they were receiving government money. It is evident that BP is following steps to recovery as seen with the new commercials, departments and changes on the executive level. It will be hard to recover from the disaster but BP seems to be taking the appropriate steps and hopefully other corporations that suffer the same fate will deal with recovery as BP did.
ReplyDelete-Jaisukh Samaha