BP is being criticized from coast to coast and from beach houses to the White House. Many ask how the company will survive the backlash. Unfortunately, there is no magic wand for a crisis of this magnitude.
Some feel it could be too late for BP to recover from the worst oil spill in U.S. history. Yet, upon review of other public relations nightmares, BP has an opportunity to rally if its leadership applies lessons from other past crises.
In March 1979, an accident causes a partial meltdown of the Three Mile Island Nuclear Generating Station in Dauphin County, Pennsylvania. It was the most significant accident in the history of the American commercial nuclear power generating industry. The accident was exacerbated by decisions made by operators overwhelmed with irrelevant, misleading or incorrect information. Widely publicized, the incident had far-reaching effects on public opinion about nuclear power.
In the March 1989, the Exxon Valdez oil tanker ran aground in Prince William Sound in Alaska spilling 10.8 million gallons of crude oil in the largest U.S. oil spill crisis to that point. Because of the spill, the Exxon brand suffered in the public eye. Exxon Mobil is financially stronger today than when the spill happened and, though arguably, the company recast itself as environmentally sensitive.
In October 1994, an academic discovered a flaw in Intel’s P5 Pentium microprocessor that would produce the wrong answer to some mathematical equations. With no response from Intel, he posted a message on the Internet. Word of the flaw spread quickly through the media. Intel's statements that it was minor were not accepted by computer users. The backlash from customers forced Intel to change its position and offer to replace every chip – resulting in a $500 million charge against Intel's revenue.
Many things make a reputation, but one tiny spark can cause a veritable blaze that can destroy a brand. Products are recalled. Executives are caught in comprising situations. Plants explode. Security is breached. Employees wreak havoc. For further reference on reputation management, look at the Pierpont Brief titled
“Five Public Relations Nightmares and How to Avoid Them.”