This paper analyzes the public image problem faced by the Organization of the Petroleum Exporting Countries (OPEC) in 2015. It explores the circumstances that triggered the crisis, particularly the legal attacks that accompanied OPEC member countries' decision to increase oil production and maintain low prices rather than regulate supply. The paper examines how this situation damaged OPEC's reputation, strained relations with Asian consumers, and reduced organizational productivity. It then describes the public relations efforts OPEC undertook to repair its image, including launching social media accounts on Twitter and Facebook and adopting precise, consistent language to communicate its tactics and strategic objectives to stakeholders.
The productivity of an organization or business entity is determined and influenced by many factors, including its public image. Public or corporate image is one of the most important aspects of an organization's success and profitability. It focuses fundamentally on a firm's reputation — that is, how it is perceived by potential and existing customers. This image is typically shaped by how an organization carries out its activities and the quality of its products, services, or processes.
Given the competitive nature of the modern business environment, organizations constantly work toward developing and communicating a positive image to their various stakeholders. However, some organizations encounter challenges in this process and must rely on public relations initiatives to repair their image. A notable example is the Organization of the Petroleum Exporting Countries (OPEC), which experienced a significant public image problem in 2015 and undertook a deliberate public relations effort to address it. This paper examines the circumstances that contributed to that problem, its impact on the organization and its stakeholders, and the strategies used to repair it.
OPEC began experiencing a public image problem toward the end of 2015. During this period, the organization's management grew concerned about its standing in the public eye following the emergence of several questions regarding its activities and operations. These concerns became evident through internal reports obtained by The Wall Street Journal (The Moscow Journal, 2015). According to one of those reports, the organization's authorities stated that it was important to work on and improve public opinion about its services and business operations.
The primary circumstance that contributed to this public image problem was the series of legal attacks that had characterized OPEC's operations over the preceding year. These attacks arose at a time when the organization was facing a historic reduction in oil prices. OPEC's member countries declined their conventional regulatory role and refused to decrease production in order to raise prices. Instead, they increased oil output to record-breaking levels in an effort to maintain market share and keep prices low over a prolonged period. As a result, OPEC became the subject of numerous legal challenges, which prompted its leadership to consider whether social networking platforms could be used to improve relations with Asian consumers and rehabilitate its public standing.
This public image problem had significant consequences for OPEC and its stakeholders. First, the numerous legal attacks generated widespread public concern and damaged the organization's reputation with respect to oil production and pricing practices. Second, the image problem strained relations between OPEC and its customers, particularly Asian consumers, who grew increasingly skeptical about the suitability and effectiveness of the organization's strategies and operations. As legal challenges mounted, customers began to question OPEC's reliability, further weakening those relationships.
Third, the deterioration of consumer relations negatively affected OPEC's productivity in the market. According to reporting at the time, these poor relations were in part attributable to the perceived arrogance of OPEC member countries regarding high oil pricing and their refusal to reduce production (The Moscow Journal, 2015). Together, these effects illustrated how deeply a corporate image crisis can penetrate an organization's operational and commercial performance, underscoring the importance of reputation management as a strategic priority.
As OPEC's authorities became aware of the public's negative perception of the organization, they began examining strategies that could be used to repair its image and address the downstream impacts on operations and stakeholder relationships. These efforts focused particularly on improving relations with consumers in Asia, who were among the most significantly affected stakeholders. Consequently, OPEC's leadership proposed and initiated a public relations campaign aimed at rebuilding the organization's corporate image among the public and its key stakeholders.
"Social media launch and strategic messaging tactics"
Faucon, B. (2015, October 5). OPEC worried about its public image, internal report says. The Wall Street Journal.
The Moscow Journal. (2015, October 6). In OPEC reflected on image. The Moscow Journal.
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