summary
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Apple/Foxconn working conditions |
2012 |
Part I: Crisis Summary Assignment
Objective: Summarize the crisis in “executive summary” format. Begin with what happened (who, how, when, what, where, why, how). Then explain why the events were a crisis. Conclude with two bullet points:
1. The second bullet highlights one reason why the company and/or its executives acted inappropriately in handling the crisis.
Length: Maximum 300 words (not including references).
Example: (289 words, not including references; also, see “Executive Summary Format” below)
On April 20, 2010, the Deepwater Horizon oil rig exploded in the Gulf of Mexico, killing 11 workers. The rig, owned and operated by Transocean, was contracted by British-based BP, a multinational energy company. Following the explosion, the rig burned for almost two days before sinking to the bottom of the Gulf (Timeline: BP Oil Spill, 2010). Almost immediately, the U.S. Coast Guard detected oil spewing from the ocean floor, and oil continued to gush from the well for five months before BP permanently capped the well in September 2010. The BP Oil Spill is largest environmental disaster in U.S. history and resulted in 250 million gallons of oil entering the Gulf (Macalister, 2016). In addition to the loss of 11 workers, BP faced potentially massive financial and reputational losses following the spill. The company pleaded guilty to 11 counts of manslaughter (Muskal, 2013) and bore the brunt of blame from the U.S. government and public (Kennedy, 2010). The spill damaged the fragile Gulf ecosystem and harmed the economy, especially fishing and tourism, of U.S. Gulf states. BP has paid more than $62 billion in fines, settlements and cleanup costs since the explosion (Macalister, 2016).
1. BP appropriately handled this crisis because its “Gulf of Mexico Restoration” website includes video testimonials from locals that lend credence to the company’s controversial claims of having restored the Gulf.
1. BP inappropriately handled this crisis because the company initially chose CEO Tony Hayward as its spokesperson, and the American public perceived Hayward as arrogant, uncaring and out of touch about the spill’s effect on the Gulf Coast.
References
Kennedy, H. (2010, June 2). BP’s CEO Tony Hayward: The most hated – and most clueless – man in America. New York Daily News. Retrieved from http://www.nydailynews.com/news/national/bp-ceo-tony-hayward-hated-clueless-man-america-article-1.178007
Macalister, T. (2016, July 14). BP faces further $2.5bn charge over Deepwater Horizon spill. The Guardian. Retrieved from https://www.theguardian.com/business/2016/jul/14/bp-fined-further-25bn-over-deeepwater-horizon-spill
Muskal, M. (2013, Jan. 29). BP pleads guilty to manslaughter in 2010 gulf oil spill. Los Angeles Times. Retrieved from http://articles.latimes.com/2013/jan/29/nation/la-na-nn-bp-pleads-guilty-to-manslaughter-in-2010-gulf-oil-spill-20130129
Timeline: BP Oil Spill. (2010, Sept. 19). BBC News. Retrieved from http://www.bbc.com/news/world-us-canada-10656239