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In this chapter, the post-disaster handling of the British Petroleum Oil Spill in the Gulf of Mexico is analyzed according to the concept of “Public Reserve.” Public Reserve extends the theory of privacy from the individual into the context of corporate behavior and environmental regulation and management by government. Secrecy is viewed as a form of privacy.

The purpose of this paper is to explore influences of green advertising and social activism during one of the worst adverse public relations episodes in history: the British Petroleum (BP) Deep Water Horizon oil spill.

The study uses self-congruency theory and perception of fit to explore the influence of green advertising and social activism on attitudes toward BP’s advertising, commitment to the environment, brand, and company. The survey data cover periods before, during, and after the spill.

Mean ratings for the BP brand were lower during the oil spill for respondents who viewed an environmental ad as compared to those viewing an ad lacking environmental content. Comparison of attitudes toward BP’s environmental commitment, advertising, company, and brand reveal differences between activist and non-activist respondents across all four attitudinal scales during the oil spill.

The study finds that lack of fit between corporate social responsibility communications and social responsibility performance raises the potential for a significant backlash against BP.

The paper utilizes unique data that include survey responses before during and after the BP Deep Water Horizon oil spill. Empirical analyses of attitudes toward advertising, company, and brand over the life cycle of an adverse public relations event are among the first of their kind. Similarly, analyses of differences in activist and non-activist attitudes toward a company operating in a high-environmental risk industry are also among the first ever.

The purpose of this study is to use a sample of oil and gas firms and examine the relationship between environmental disclosure in the USA Form 10-K and the stock market reaction after the BP oil spill.

The study focused on three important time periods associated with the oil spill: the time period beginning with the explosion on April 20, 2010 and ending August 5, 2010, one day after BP permanently sealed the oil leak; the period beginning with the explosion on April 20 and ending with the sinking of the Deepwater Horizon oil rig on April 22; and the period associated with President Obama’s first public comments on the oil spill and his administration’s ban on oil drilling, i.e. April 29-30 and May 3.

The results show a negative relationship between environmental disclosure and stock market reaction.

The findings of a negative association could be the result of higher disclosure by firms with more environmental risk because they indeed are riskier and/or they engage in “window dressing” to legitimize their operations and practices and maintain acceptance by society.

The results in this study run counter to a positive association documented in prior research studying the effects of environmental disasters.

Disasters drastically affect regional industries; consequently, the study of regional resilience is of much interest to organizational researchers. To that end, this study examines the role of entrepreneurial opportunity recognition, stakeholder engagement, and elements of psychological recovery in the US Gulf Coast following the Deepwater Horizon oil spill of 2010.

Through a qualitative content analysis of 183 industry-relevant articles published during and after the disaster, this study unpacks the most significant themes at work in the recovery process, including the psychological elements of the oil spill and its aftermath, the role of various internal and external stakeholders, and emerging opportunities for entrepreneurial activity in the region for regional resilience and recovery.

The nine themes that emerged from the data were captured in three categories mapped over time. Category one, psychogical states during and after the oil spill, include denial, coping, and recovery. Category two, regional recovery efforts and the role of stakeholders, includes the themes distractions, bargains, and material support. Category three, emerging opportunities, includes financial support, new markets, and reparations.

By mapping these themes over distinct time periods, this study identifies and explores patterns in the recovery period and use them to draw theoretical and practical implications.

It is indubitable that society expects organizations “to employ their assets in a socially responsible manner” (Cordeiro, 1997, p. 1390) and also to be seen to be doing so. BP is a case of interest as in July 2000 the company launched a public relations campaign to appeal to the public as an environmentally-friendly “green” energy company. The company rebranded with “Beyond Petroleum” as a tagline, alongside a new logo of a fresh sunburst replacing the solid shield of BP. In the wake of the consumer boycotts of Exxon and Shell that clearly demonstrated how intense public feeling was about environmental issues, BP made a decision to invest in renewable energy. Although it was only a small investment compared to their commitment to fossil fuels, it was widely promoted. Their stated quest was to produce the cleanest burning fossil fuels and to become a producer of solar energy that would provide sustainable fuel to reduce carbon emission levels with products that were “safe, practical and affordable” (Verschoor, 2010).

The purpose of this paper is to examine the experiences of family business owners in an externally induced crisis from a resource-based perspective.

The paper employs a qualitative case study approach involving 22 firms.

In the aftermath of the BP oil spill, a series of ripple effects impacted family firms both negatively and positively. The paper outlines five ways that family firms may improve company performance in crisis situations.

Although our study is rich in qualitative detail, it is important to recognize that the BP oil spill represents a unique crisis context and caution should be exercised in generalizing the study's findings.

While ripple effects may be powerful at the industry and industry sub-group level, the paper provides evidence that family firms may overcome these external effects using one or more of five strategic initiatives: strong networking relationships, idiosyncratic local knowledge, flexibility, rapid response, and exercising trust with caution.

The study validates the potential utility of a ripple effect model in the study of family businesses and externally induced crises. It has the potential to contribute to improving management response.

The purpose of this paper is to examine the stock market reaction to the Gulf oil spill and determine if the markets exhibited rational pricing. On April 20, 2010, the US Coast Guard received a report of an explosion and fire aboard Transocean’s Deepwater Horizon offshore drilling rig. The resulting spill exceeded the Exxon Valdez oil spill as the worst in US history. With the total cost of the disaster reaching almost $54 billion for British Petroleum, clearly the spill had far-reaching effects on its market value. However, the more interesting question is what valuation effects might exist for other oil and gas firms, due to an increase in perceived risk for all offshore drilling and/or the likelihood of an increase in the regulation of the industry.

Because the new information was released piecemeal over time and has the potential to affect a number of firms simultaneously, Gibbon’s (1980) multivariate regression model methodology (MVRM) was used to examine share price reactions of firms in the oil and gas industry in the aftermath of the oil spill. This methodology allows one to test whether significant abnormal returns occur on days where new information is released. Further, one is able to test whether the market reaction was the same for each firm or whether the market differentiated between firms.

Evidence of abnormal returns was found for the majority of the information dates in our investigation. Further, the results reject the notion that the market reaction was the same for all oil and gas firms, leading to the conclusion that the market did differentiate between firms.

This research is important because the results support rational pricing of the US stock markets following this unexpected and catastrophic event. The market was examined over the period following the oil spill on multiple dates when important new information is provided. This study contributes to financial and economic research on market efficiency and reactions to major risk events.

The case deals with comparison of two events namely Bhopal Gas Tragedy and BP Oil Spill Tragedy. Specifically, the case compares the negotiation process and its outcome. In other words, the case compares how negotiation was carried out on behalf of victims of these tragedies and resulted in optimal outcomes in one situation and sub-optimal outcomes in another situation. It case also provides insights into cross-cultural issues in negotiation process as one of the events took place in emerging economy (India) and other one in a developed economy (USA). The case gives insight for individuals on how handle communication process during the course of negotiation.

The purpose of this paper is to explore British Petroleum’s (BP) crisis response on Facebook and factors contributing to its stakeholders’ perceptions of its crisis response strategies during the Deepwater Horizon oil spill.

Applying crisis response strategies, this study content analyzed BP’s crisis communication messages and Facebook users’ comments on BP America’s Facebook page.

The results revealed that information giving strategies dominated BP’s crisis response, and Facebook users were more likely to comment favorably when BP used information giving strategies and accommodative strategies. Bolstering strategies and third-party endorsement did not achieve anticipated effectiveness.

The findings of this study will contribute to effective application of crisis response strategies.

The purpose of this paper is to explore the emergence of sustainability governance through the unfolding hybridisation process between corporate governance and corporate social responsibility and the implications of this for understanding patterns in sustainability reporting over time.

The Gulf of Mexico oil spill incident is an extreme case study undertaken to examine its implications on the organisational legitimacy of British Petroleum (BP) and the latter’s response to the incident and beyond. The paper draws on Suchman’s legitimacy framework (1995) to understand sustainability governance as an organisational practice that evolved post the Gulf of Mexico oil spill to manage BP’s legitimacy. It draws on archival records and documentation from 2008 to 2017, as key sources for data collection, using interrogation by NVivo software.

Sustainability governance is a sound practice that was socially constructed to manage the re-legitimatisation process following the Gulf of Mexico oil spill. It is characterised by broadness (the interplay between the corporate governance and corporate social responsibility disciplines), dynamic (developing the tactics to repair and maintain legitimacy), agility (conforming to the accountability for socially responsible investment and ensuring steps towards geopolitically responsible investment) and interdependence (reflecting composition and interactions).

This paper has practical implications for organisations, in terms of sustainability governance’s constitution, mechanism and characteristics.

This paper has implications not only for organisations, in terms of sustainability governance’s characteristics, but also for policy-makers, regulators and accounting education. However, the present paper’s insights are achieved through an in-depth and longitudinal case study.

This paper has problematized the concept of sustainability governance and elaborated its evolution (the emergence, enactment, deployment and interplay) process. The sustainability governance showed an otherwise organisational response that moves our understanding of the deployment of disclosure for complex organisational change as a way to discredit events.