Legitimacy Theory And Impression Management In Response To The Gulf Of Mexico Oil Spill At Bp Plc

1341 words - 6 pages

1. Introduction
This report will identify a crisis facing BP company, the Gulf of Mexico spill, and investigate how the organization response to the society. In this report, it will use Legitimacy theory to explain BP’s response to this event. Legitimacy theory can be treated as a explanation for voluntary corporate disclosures in annual report. As (Dowling&Pfeffer, 1975) says a corporation must act in congruence with norms and society value.
First of all, Legitimacy theory is based on the concept of substantive rationality and replies upon the notion of a social contract. This theory asserts that organizations seek to ensure that they operate within the bounds and norms of their ...view middle of the document...

Annual report will inform people how the organization performs and some options in the future development (Economic Times). Full information offered by annual report will give opportunity to deal perceptions of stakeholders. Chairman’s words summary the whole situation of organization. Moreover, the financing situation also can reflect the operations well or not under the influence of oil spill. It is certainly that there are some notes or graphs which can explain why it is and how it can be got.
In 2010, 2011 and 2012’s annual report, the Gulf of Mexico oil spill is written by using many pages. BP wants to make full use of annual report to promote impression management. Besides it, some one likes official announcements are also needed. Organization may list some new problems or measures about this event.

2.3 Methodology
In the whole report, it will discuss different aspects about BP Company according to the annual report. It also can reflect whether BP is fit for the legitimacy theory or not. There are three categories will be discussed to analyze the corporate legitimacy which are text length, impression management and strategy.
Text length: In different years annual reports, the amount of pages are also different because of the Gulf of Mexico oil spill. In 2009, the annual report had 212pages, and then in next 2010 and 2011, the amounts of pages are much more than 2009 which are 272 and 282 respectively. In 2010 annual report, it related Gulf of Mexico oil spill at 34-40 pages. The key statistics and details things will be shown as (Appendix 1). In 2011 annual report, BP listed its efforts for compensation and environment protection (Table 1). So it is clear that BP disclosures its environmental norms and legitimacy to society.

“…Continuing the clean-up of the waters and shorelines impacted acrossThe Gulf of Mexico and the ongoing protection of fish and wildlife…” |
“…Supporting the economic restoration of impacted sectors of the GulfCoast economy through targeted support to the tourism and seafoodIndustries…” |
“…Continuing the funding of the $20-billion Deepwater Horizon Oil SpillTrust…” |
Sources from: 2011 annual report
Impression management: According to Sinha (2009), impression management is an active self-presentation to enhance its image. It has power to create a positive role of company, but also can break it. BP has made a bad effort on its reputation, thus it does not get out of trouble and republic in annual report for the responsibility. Only this it can be estimated legitimacy and restore reputation.
“…BP immediately took responsibility for responding to the incident, taking steps to remedy the harm that the spill caused to the Gulf of Mexico, the Gulf coast environment, and the livelihoods of the people in the region…”.(2010 annual report)
Strategy: To ensure the social legitimacy, BP decided to change investment strategy. BP suspends the Liberty item in...

Other Essays Like Legitimacy Theory and Impression Management in Response to the Gulf of Mexico Oil Spill at Bp Plc

Bp Oil and Gas Essay

574 words - 3 pages is accelerating. When the marginal product of labor curve falls, the firm experience marginal returns, that is, law of diminishing. BP Oil Company striving to come up with innovative ideas to keep the company more up to date with technology. They have started to come up ways to lessen the waste management. Back in 2011 when the BP oil spill happened in the gulf, many companies began to blame BP for not implementing new ways that could have

Who Is to Blame for the Deepwater Horizon Oil Spill?

1137 words - 5 pages serious spill” leaking into the Gulf of Mexico. An estimate by the Riser Insertion Tube Tool is between 25,000 to 30,000 barrels of oil a day, the largest oil spill in US history. The US government has named BP responsible for the spill, and another common name for the spill is “BP oil spill”, but was it only the fault of BP? I believe that there were multiple parties that could do something before it happened and should be held responsible

Oil Spill Exploitation and Marine Pollution

698 words - 3 pages and burning: and high tech such as varying of sophisticated dispersants e.g. giant separators have been remedies used for oil spill cleanup. Oil spill have destroyed a number of marine and terrestrial wildlife species. A terrestrial animal that depends on seafood dies of hunger due to the destruction of marine food by oil spill. Some marine animal that live and breathe in water dies off because of the contamination of water. The first step to

Locke And The Legitimacy Of The State: Right Vs. Good

728 words - 3 pages would not have created us unless we had the capacity to follow norms that are necessary for our survival), we all have the natural capacity for Reason, which gives to the moral law,” (Christman 43). God traditionally symbolizes all that is good and this provides an argument that at the root of Locke’s political theory there is one good (or God). Despite Locke’s reference to God, I believe that he prioritizes right over good in his Letter

A Comprehensive Overview And An Analytical Insight Into Human Resource Management At Barclays Bank Plc

3404 words - 14 pages A Comprehensive Overview and An Analytical Insight Into Human Resource Management at Barclays Bank Plc Introduction ============ This report is being produced to fulfil the criteria required for unit 4 of the AVCE course in business. It gives a comprehensive overview and an analytical insight into human resource management at Barclays bank plc. The report particularly focuses on the possible conflict between

Look at the Way a Theme or Character Is Presented in Your Chosen Text. Include in Your Response Any Social, Cultural and Historical Contexts That Are Important to Your Understanding of the Theme or...

887 words - 4 pages Look at the way a theme or character is presented in your chosen text. Include in your response any social, cultural and historical contexts that are important to your understanding of the theme or character. The character I have chosen to write about is Candy in the novel ‘Of Mice and Men’ by John Steinbeck. Candy is sort of like a narrator in the beginning of the story. He is the oldest ranch hand in the novel, who knows just about

Management Principal And Practice Within AMEC Plc

3154 words - 13 pages AMEC Plc, the international engineering service company has grown from its roots as a stone mason based in the UK during the 1940s, to the present day international player that provides design, project delivery and maintenance support solutions to its clients within the Oil & Gas, Transport, Industrial, Infrastructure and Regional service sectors.Through rapid growth, the company now generates annual revenues of over £5 billion and

Realism and the Persian Gulf War of 1990-91

1808 words - 8 pages included Britain, who joined Kuwait and Saudi Arabia in aiding the U.S. aerial assault. Airstrikes would continue for six weeks before a ground attack was launched, ending the conflict almost immediately. On March 1, 1991 Saddam Hussein recognized Resolution 660 and other UN-issued resolutions, formally agreeing to a Gulf ceasefire. At the heart of the Persian Gulf War of 1991 was a struggle for oil. Saddam Hussein viewed Kuwait as an opportunity

Causes and Effects of the Persian Gulf War

802 words - 4 pages The Persian Gulf War, often referred to as Operation Desert Storm, was perhaps one of the most successful war campaigns in the history of warfare. Saddam Hussein, leader of Iraq, invaded Kuwait in 1990. In 1991, after weeks of air strikes, US ground forces entered Iraq and Kuwait and eliminated Iraqi presence in 60 hours. Why Would Iraq invade Kuwait? Kuwait supplies much of the world’s oil supplies, and when Hussein invaded Kuwait, he

Report On Capital Structure And The Cost Of Capital Of Astrazeneca Plc And British American Tobacco Plc

2868 words - 12 pages geared and on the face of it this may be concerning, however, the profile of the business is that it has a very stable revenue stream and theoretically, in the scenario of another recession, tobacco sales should be maintained. BAT is also highly profitable and able to service it’s debt levels with considerable head room. 5.http://www.fool.co.uk/investing/2014/02/28/is-british-american-tobacco-plc-dependent-on-debt

Management Planning at Boeing as with Any Company Has to Have Cooperation and Organization in the First Phase of the Companies Management Planning. Within This Phase Many Different and Important...

1051 words - 5 pages Management Planning at Boeing as with any company has to have cooperation and organization in the first phase of the companies management planning. Within this phase many different and important functions are formed. Within these functions a standard is set for individuals to use and follow while performing their duties or jobs. This paper will discuss and identify legal, ethical and social responsibility that has impacted Boeing

Related Papers

The Gulf Of Mexico Oil Spill

1344 words - 6 pages reason of the spill. A wellhead was damaged and was now leaking oil into the Gulf of Mexico. The spill was one of the largest oil spills in the history of petroleum industry. The spill had came from a sea floor oil gusher. Based on my research the oil started gushing into the gulf because of a mistake of BP’s, also known as The British Petroleum Company. BP proceeded their work on drilling, knowing that the drill was in bad condition because a

Bp Oil Spill Essay

1151 words - 5 pages position for profits. However, being a global corporation with a long track of bad records, the company is under a lot of scrutiny from governments and environmentalists. The Gulf oil spill was just icing on the cake. The oil industry is heavily regulated by the US government, and competition is fierce. BP skipped certain safety measures for concern of increasing cost of operations, and this led to the spill in the Gulf of Mexico. The company

Bp Oil Spill Essay

1696 words - 7 pages Brock Guarino Smith: 2000 sec 44 2 May 2012 Smooth move, Slick. Have a second? Good. In one second, 1,704 gallons of oil were being projected into the depths of the Gulf of Mexico from the burst pipe attached to BP’s Deepwater Horizon oilrig. That is the average rate at which petroleum spewed for nearly 84 days. It has claimed its fame as the largest marine oil spill the United States has ever seen, constituting the largest worldwide

Bp Oil Spill Essay

1862 words - 8 pages of the Gulf Coastal region terrified and helpless. There were seventeen men injured in the explosion and eleven unaccounted for presumed dead, while hundreds of thousands of gallons of oil leaked into the Gulf of Mexico (BP Oil). The oil spill caused by the explosion may be recorded as one of the most catastrophic oil spills in history. This disaster served as a wake up call for the United States to seriously consider producing a well defined