2. What Caused BP (British Petroleum) to Fall from Grace?
The unexplained explosion disaster of the Deepwater Horizon oil rig made BP notoriously popular for what is considered as the worst oil spill incident in the U.S.
Accordingly, investors both big and small, which include pension funds and teacher -association unions, have been hurt by BP’s fall from grace, as their investment holdings took a nose dive.
It is estimated that British Petroleum’s equity of $104 billion is largely threatened by the amount of damages that the oil company faces, estimated at $90 billion at the most.
The extent of liability damage which the oil industry giant faces as a result of the 2010 oil spill disaster includes:
- Property Liability
- General Liability
- Workers’ Compensation
- U.S. Longshore and Harbor Liability
- Clean-Up Workers’ Exposure, in relation to the threats of occupational hazards
- Tainted Food, in connection with fish and other seafood catches
- Disturbance of the Ecosystem, as environmentalists take into account the long-term effects of the oil spill in changing the balance of nature.
- Negligence and Criminal Wrongdoing, and
- Environmental Liability
In line with the havoc wrought by the oil spill, insurance companies are likewise forced to deal with their policy holders’ claims for damages.
In addition, the Occupational Safety and Health Administration (OSHA) office revealed that from June 2007 to February 2010, BP had received 862 citations for willful violations of the OSHA standards for workplace safety in two of BP's oil refineries, thus making this company one of the worst companies at which to work.
Based on Harris Poll results, British Petroleum ratings for ethical standard is a negative 61 percent, which is the second highest negative rating.
In terms of excellence in customer ratings, the oil company garnered the highest negative rating of 43 percent, fueled by public’s perception of their ineptness in handling the oil spill disaster.
Please continue on page 2 for more about companies that are potentially poor employers