Ethical dilemmas in the Deepwater Horizon oil spill crisis

Latin America: Approaches to Ethics and Theory

Identify and discuss two ethical dilemmas specific to business in Latin America or between Latin American businesses and other global vendors, customers, and partners.

In 2010, the petroleum sector witnessed the greatest maritime crisis oil spill in its entire history called Deepwater Horizon Oil Spill. This accident was triggered by an outstanding explosion that led to the death of eleven people. Here, the first ethical dilemma is about pre-event planning. In this case, the deep-water horizon crisis is adequate evidence that before the disaster, the BP environmental strategy was merely a Greenwashing. In fact, BP did not adopt a culture of safety as seen from its lack of an emergency plan: it made no effort to avoid such a disaster (Cecilia & Granado, 2013). Moreover, research into the issue demonstrates that BP ignored crucial signals days before the incident. The second ethical dilemma relates to the expression of empathy and concern to the stakeholders, including victims (Becker-Olsen, 2011). Indeed, while the initial messages presented by a firm during a disaster must substantially influence public opinion regarding disaster as well as the company's management of the crisis, BP was neither fast nor consistent and accurate in their response to the accident. Consequently, their initial messages and response produced massive harm to its reputation and image. As such, the company was accused of being rather slow to acknowledge the issue and did not respond fast enough. It took BP four days to notice that the well had been leaking.

What ethical theories, values, or moral frameworks did scholars use to frame research conducted on the selected ethical dilemmas?

Many disaster communication theorists have recommended various theoretical frameworks for framing research on this crisis communication problem. However, the Situational Crisis Communication Theory (SCCT) and the theory of image restoration are the most relevant theories in this case. These theories identify various strategies that BP could have used to confront the crisis. The aim of image restoration theory is to help manager preserve a company's positive reputation via communication. Although it was originally not devoted to crisis communication, researchers in this field presume that it is useful in this area because disasters tend to elicit adverse perceptions among stakeholders regarding an organization, hence affecting its reputation and image. This theory concentrates on the content of crisis communication messages. It suggests five major reputation restoration tactics namely, evade responsibility, corrective action, mortification, reduce offensiveness and denial (Bissieres & Herl, 2011).

Besides the five image restoration tactics, before the crisis, BP should have engaged in a great deal of planning and devise a crisis management plan (CMP). Such pre-disaster preparedness could have reduced response time, thus potentially prevented missteps in BP's initial crisis response. The other attribute of the theory of image restoration is to identify the nature of the disaster. When the crisis occurred, this theory suggests that BP should have had a clear knowledge of the accident's nature and the charged that were brought forward. Understanding these things is paramount for an organization to launch a suitable response plan. Moreover, by understanding the perceived severity of the alleged offense, BP's spokesperson could have provided accurate information to stakeholders regarding the incident. The theory of image restoration holds that BP should offer information on how the damage is being minimized and how they plan to manage normal functions. This is the first stage in repairing reputation.

Nowadays, SCCT assumes a key position in the effective management of the BP crisis. As such, it has revamped its significance in the last decade. Besides, there are two conceptions of crisis communication strategies. On one hand, some scholars believe that crisis communication is a reactive function. However, others think that it is a long-term process and a proactive function rather than a reactive function. According to proponents of the reactive function, BP should have initiated communication with stakeholders during the "breakout phase of the disaster." This is because most of the communication decisions must be made in the phase of the crisis.

Compare and contrast issues and perspectives from this unit's readings with studies from previous units or your project research.