PR Crisis: BP Oil Spill
Few events are more damaging to a company’s reputation than environmental, financial, or other disasters. However, even when unimaginable tragedies occur due to human error, a carefully planned and executed public relations campaign can mitigate both the short-term and long-term damage to a company’s public image.
The recent Norfolk Southern train wrecks (literally, in this case) demonstrate how an otherwise inconspicuous company can instantly face an epic public relations nightmare. How the company responds via its PR campaign could determine if it survives or folds.
In April 2010, British Petroleum’s (BP) Deepwater Horizon oil rig exploded off the coast of Louisiana. It was one of the worst environmental disasters in U.S. history, and made headlines through several news cycles casting BP as public enemy number one.
BP initially shunned responsibility, blaming contractors, and appearing indifferent to the disaster. After facing intense public backlash, BP responded with a national TV spot and online ad campaign that backfired miserably. To make matters worse, President Obama suggested that the money spent on PR should have gone toward cleanup and compensation, a message that resonated more with the public than BP’s efforts.
In short, BP set a new precedent for bad public relations.
The Deepwater Horizon public relations debacle highlighted the importance of establishing a crisis management plan before a crisis occurs. Every company, regardless of size or service, should have a thoroughly prepared and functional crisis management strategy that receives periodic review and updates. This includes a robust PR plan – which BP regrettably lacked prior to the Deepwater Horizon mess.
Let's take a look at a few important considerations when crafting a PR crisis strategy.
Always be prepared to respond quickly and with transparent accountability
BP responded to the Deepwater Horizon spill a full four days after the oil leak became known. They failed to demonstrate concern or compassion. They did not immediately offer an apology to those most affected. Even worse, they initially blamed third parties rather than acknowledging responsibility for the disaster or offering containment and remediation plans.
Unsurprisingly, this prompted harsh backlash from high-profile sources and deeply damaged public trust.
Considering BP is involved in an industry vulnerable to major disasters, their PR strategy (or lack thereof) was surprising. This lack of preparedness resulted in lasting economic and reputation damage.
The Deepwater disaster should serve as a lesson to others. A quick response and acknowledgment of accountability almost always plays out better in the public eye than avoidance and blame-shifting.
Spokespeople matter
BP CEO Tony Hayward's public comments combined with his seemingly blasé attitude further soured public opinion. This left people feeling marginalized by the giant corporate entity.
An effective disaster PR strategy necessarily requires a positive, empathetic lead voice to, at minimum, neutralize negative public opinion.
Selecting the appropriate spokesperson, or providing regular media training for an existing spokesperson is an imperative element of a crisis plan.
Communicating with the media matters
During the Deepwater disaster, BP tried to censure, limit and delay the flow of information to the public. This proved counterproductive.
In times of crisis, a company must not ignore the media’s central role. Especially since stakeholders collect the majority of their corporate information from the news media.
Rather than viewing the media as a liability, risk and crisis communicators must engage the media through open and honest communication. They will find that the media can be a strategic resource to leverage in managing the crisis.
Equally as important, a lack of free-flowing information can result in misrepresentations or even false reporting of crisis related facts. Today, many reporters will cite other articles that may or may not contain accurate information. This too often results in an avalanche of negative public perception.
In a crisis, the media can be a strategic partner or a liability depending on how they are engaged. The story will be told, so ensure that the media has access to accurate information and the company's point of view.
Planning for a crisis should never be considered optional
Many companies try to avoid crisis planning — or at least avoid comprehensive planning — because of cost. However, the cost of not adopting a strategy can be much higher, if not fatal, for a company once disaster strikes.
In addition to massive cleanup and damage control expenses, fines and penalties from failing to take quick action can cripple a company financially. BP learned this lesson the hard way and suffered a huge financial burden in excess of $65 billion due, in part, to poor pre-crisis planning.
A crisis plan is like a fire extinguisher. In an ideal world, it never has to be used, but when disaster strikes it can make all of the difference.