Ethical and Corporate Social Responsibility Approaches to Reputation

The BP Case
With all that it has gone through, BP’s reputation is surely in a bad state. This is more so in the context of how it handled the Deep Water Horizon scandal in the Gulf of Mexico (Case 4 348-350). Whether it succeeds in regaining its reputation, the only certain thing is that it will be a long process. Not all is, however, lost for the company.
An appropriate starting point would be an understanding of the various components of an organizational reputation. One model identifies four such components (Dietz and Gillespie 6). First, an organization must exhibit ability by way of technical competence to carry out its activities. There is no question regarding the technical competence at BP in carrying out most of its ventures. The company has been ahead of its peers in some of technological breakthroughs in the energy sector. Secondly, the company must also strive to convince its various stakeholders that it is benevolence. This simply refers to how stakeholders view the company as genuinely concerned about them. The repeated incidences of ethical breaches at BP may as well have negatively impacted this aspect of its reputation (Case 4 350). There are those, especially people around the Gulf of Mexico, who may be viewing the company as totally unconcerned about the negative effects of its practices on the surrounding communities. Furthermore, BP is also facing challenges to its integrity as doubts have been cast on its moral commitments. For instance, revelations that senior people at BP knew of problems days before the Gulf of Mexico incident have created the impression that the company has no consideration for moral imperatives. It is a perception that the company has to change. In addition, whatever positive change that the company manages to effect must be seen to be predictable. It is the consistent occurrences of negative incidents that have reinforced the negative reputation of the company. Any change for the better must, therefore, be consistent.
Besides improving on the various components of reputation, BP must also conduct a serious overhaul of its ethical practices.It apparent from the case study that the company had been pursuing a reactive approach to ethics management (Schoeman 65). This must change to a more proactive and regular approach. There is no merit in BP using the code of conduct to appear good while nobody in the company complies with that code. A prerequisite to any proactive ethics management is knowledge on the part of the leadership of the ethical status of the organization. This knowledge enables the leadership to deal with real ethical issues as seen by the stakeholders as opposed to what the leadership perceives to be the problem (Steinberg 94-96). Thus, the management at BP should know the ethical strengths, weaknesses and potential weaknesses at the organization. They can achieve this by collecting views of all categories of stakeholders in a survey.
The other aspect of proactive ethics management that BP should pursue is the improvement of the level of ethical awareness especially among its employees (Schoeman 65). Just as visible policing reduces the levels of crime, a heightened level of ethical awareness reduces ethical misconduct even as it promotes ethical behavior due to its tendency to always act as a constant reminder. BP can achieve this by ensuring that all employees appreciate the role of ethics in business practices.


Works Cited
Case 4. “BP Struggles to Resolve Sustainability Disaster.”
Dietz,Graham and Nicole Gillespie. “The Recovery of Trust: Case Studies of Organizational         Failures and Trust Repair.”Institute of Business Ethics 5(2012).Print.
Schoeman, Cynthia. “Leadership Cracks.” Ethical Living 2012.Web.Retrieved 6 June 2013, from             www.ethicsmonitor.co.za/Articles/leadership-cracks.pdf
Steinberg, Richard. Governance, Risk Management, and Compliance: It Can’t Happen to Us-       Avoiding Corporate Disaster While Driving Success.Hoboken, New Jersey: John       Wiley&Sons Inc., 2011.Print.





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