Wednesday, November 16, 2011

HUY Quy, JARRETT Michael, DUKE Lisa
Managing Public Opinion in a Crisis: BP CEO Tony Hayward - Abridged Version

© 2011 INSEAD Case Study

BP CEO Tony Hayward (UK) faced intense public scrutiny from many different constituencies in the US in the wake of the oil spill in the Gulf of Mexico. The case focuses on how his words and actions were perceived by the US media and government, and how these perceptions had critical business and personal outcomes.  

Pedagogical Objectives: Corporate leaders face the mounting challenge of having to inspire and motivate employees to achieve their business objectives, as well as external constituencies who do not perform economic transactions with the company, but can significantly influence its economic performance and leaders' legitimacy. The way in which Hayward's words and actions were perceived by these non-market constituencies, the outcome, and the conclusions to be drawn about managing such perceptions in a crisis bring into focus issues such as national politics, collective emotions, impression and symbolic management that many leaders fail to heed when managing a business.