Key Stakeholders And Their Involvement - 1159 Words

Key Stakeholders and their Involvement In this accident, many groups of people were affected in various ways. Three main stakeholders involved were the company’s shareholders, the government and the fishermen. Shareholders following the explosion, BP’s shares dropped by 54%, resulting in a loss of $105 billion in share value (Jarvis, 2010). This greatly impacted BP’s financial status, as shareholders are vital to the financing of businesses. Share prices have been falling since the explosion, and have not returned to the original value before the incident (Read, 2010). Dividends were also not given out that year (ibid). As such, BP had to take measures to regain shareholder confidence. This incident also led to the resignation of BP’s†¦show more content†¦In the fishing industry, the incident led to an approximate $2.5 billion loss, while tourist industries experienced a loss of a predicted $23 billion (Jarvis, 2010). In addition, the moratorium placed on deep water drilling left 58,000 workers unemployed (ibid). In its Annual General Meeting in 2011, BP faced protests against BP’s executive’s remunerations and voiced their injustice (Webb McVeigh, 2011). Facebook pages such as â€Å"Boycott BP† and RIP Spongebob, who died in an oil spill cause of BP† have been set up by activists, and have garnered 847,730 and 468,157 likes respectively (Jarvis, 2010). Hence, the impacts on these stakeholders have varying degrees, but are nonetheless affected one way or another by BP’s mistake. Ethics and Values According to BP’s Code of Conduct, BP †commits to â€Å"excellence and to the disciplined management of our operations† (BP, 2013a). In this case, this is broken, as the oil wells were not properly checked. Site managers Robert Kaluza and Donald Vidrine were accused of acting irresponsibly when handling the checks on the rig (CBS News, 2012). Furthermore, BP’s former vice president David Rainey was charged for the deliberate understatement of the amount of oil that was being discharged into the Gulf (ibid). In addition, BP was accused of overpaying their CEOs. Bonuses of $100,000 to top managers were deemed improper in the light of the disaster. Claims made by shareholders and victims whose livelihoods