Chapter 1.2-Discussion Question

Rebuilding Stakeholder Relationships

It is essential to build and maintain healthy and long-lasting relationships with stakeholders from the start. The tragic BP explosion severed ties with the company’s shareholders. The management needs effective ways to rebuild bridges with different parties. One of the ways the managers can achieve and sustain relationships in the Gulf region and beyond is by learning how to address issues as and when they arise. They should not postpone concerns raised by some of the stakeholders regardless of their position in the organization. It is also vital for the organization to understand that establishing trust is a way of ensuring that every partner’s interests are a priority.

Repairing BP’s Damaged Reputation

The Deepwater Horizon explosion damaged BP’s reputation. It revealed that the company had initiated measures to cut costs and compromised safety standards (Rothaermel, 2017). The company can repair its damaged image by embracing elements of the Situational Crisis Communication Theory (SCCT). It is a framework whose guidelines seek to facilitate crisis response strategies. The primary objective of the approach is to ensure that organizations can restore their reputations in times of crises (Claeys, Cauberghe, & Vyncke, 2010). Therefore, using rebuild response strategies is the most applicable method for BP to regain a positive image.

Leveraging Experience and Motivation

Local Managers

The management of a firm learns a lot when a crisis happens. BP’s board has realized that it is not profitable to prioritize cost reduction at the expense of safety (Rothaermel, 2017). Based on the experience, the leadership needs to motivate local managers across the globe to develop strong stakeholder relationships. The company can offer awards like promotions or pay rise for managers who lead in engagement and interaction with shareholders to minimize negative publicity


An organization’s employees play an integral role in building and sustaining healthy stakeholder relationships. One of the lessons learned is that BP’s management failed to impart a culture of safety within the organization (Rothaermel, 2017). One of the ways the company can encourage them is by offering monetary or title recognition for personnel who initiate or implement approved measures that uphold safety and facilitate excellent relations.




Claeys, A. S., Cauberghe, V., & Vyncke, P. (2010). Restoring reputations in times of crisis: An experimental study of the Situational Crisis Communication Theory and the moderating effects of locus of control. Public Relations Review, 36(3), 256-262. doi: 10.1016/j.pubrev.2010.05.004

Rothaermel, F. T. (2017). Strategic management: concepts (Custom 3rd Ed). New York, NY: McGraw-Hill.