Research Paper on Comparative Approach of BP and Halliburton
The two different companies that encounter similar ethical, legal, social and political problems in this particular scenario can be the two oil multinational corporations such as Halliburton of United States and British petroleum of United Kingdom. Due to the similar nature of business that they are involved in both companies during their extensive period of economic and management activity have been confronted with problems of quite similar nature.
The Multi National Corporation or the MNC Halliburton is the second largest oilfield services corporation operating in more than 70 countries providing quality expertise and oil related operations. The corporation has long time been related to Energy Services Group or the ESG which provides technical services for petroleum and natural gas exploration and production. Halliburton has also been closely related to KBR which was involved in the construction of oil, gas and chemical pipelines and refineries for the company.
British Petroleum or BP on the other hand is a British multinational that has been in the limelight because of the recent oil spill incident that took place in the Gulf of Mexico has also been one of the prime contributors of generating massive economic revenue for the British economy.
One of the crucial political issues that the organization encountered was during the 9/11 incident when there rumors circulating that due to the affiliation of Vice President Dick Cheney with the organization he has been providing sufficient economic incentives to the company in order to seek refuge from preventing any substantial tanking of their share prices. Similarly British Petroleum came under severe criticism after the disastrous incident in the Gulf of Mexico took place took place that not only posed a serious environmental but also a political threat to the relations between the greatest allies United States and United Kingdom.
The social effects of Halliburton have also been remarkable in the sense that they have proactively been involved in campaigning environmental awareness and arranging programs through which they can help in fostering greater potential for ecological awareness among the different circles of the society. BP on the other hand has also been involved in similar functions. A major breakthrough in this context was witnessed in the changing of the logo of the company to depict an eco-friendly symbol. In addition to this the organization has also been involved in various other environmental friendly campaigns.
Legal and ethical issues of Halliburton came into limelight during the Iraq War when the chairman of the company David Leser due to the numerous contracts of oil pipeline and distribution that was awarded to the company at that time. Secondly the company has always been under severe criticism and objections due to the heavy influence that it has among the legislators and policymakers through which they frame corporate policies that serve their own interests. (Halliburton Watch, 2010)
Similarly BP also had to encounter ethical and legal issues when news began to make rounds that most of the contaminated waste from the oil spill was being dumped in areas where African Americans abided such as Alabama, Louisiana and Mississippi. In all the problems that have been encountered by the organizations in different phases of their time, the management of the corporations have been immensely proactive and zealous to counter and prevent any management crisis from taking place in the company. Along with this all the management of the companies has worked in complete coordination with other departments to weather the crisis.
In conclusion it can be said that Halliburton has been highly influential in managing the crisis because of its heavy state influences and affiliations but as far as BP is concerned the organization is looking towards devising strategies in a massive rebranding effort made by the multinational campaigned by the organization for its advertising and public relation campaign with a hefty expenditure of $200 million for the introduction of their new tagline that translated as ‘Beyond Petroleum’ however the phenomenal expenditure campaign could not produce anticipated results after the oil rig explosion took place in the Gulf of Mexico posing a serious threat to the reputation and credibility of the entire organization and further aggravating the gravity of the financial status of the corporation. (Bergin, 2010)