Add another $4.5 billion today to the total of still-accruing costs to BP for its massive Gulf of Mexico oil spill in 2010. That’s the amount BP agreed to pay the U.S. government in its guilty plea to criminal charges connected with the deaths of 11 off-shore rig workers as well as the not-insignificant matter of lying to Congress.
The $4.5B is on top of the rapidly evaporating $20B in trust funds the oil company set aside to clean up the mess and to compensate the communities and individuals for property damages. All told, the company has booked $38.1B to cover the costs of the spill. But costs may very well exceed that figure; the settlement reached today specifically does not cover fines stipulated by the Clean Water Act that could reach as high as $20B (the Act calls for fines of $1,100 to $4,300 per barrel spilled; multiply the upper figure in that range by five million barrels of oil spilled).
There truly aren’t many companies that could absorb such massive penalties and continue to do business. And, of course, BP’s very deep pockets are a contributing factor in the magnitude of damages assessed to the company. At some point you have to wonder, how much is enough? Still you won't find too many in the public feeling sorry for the mammoth oil company. Next to the Wall Street “banksters” who collectively deserve much of the blame for the financial credit markets meltdown that precipitated the Great Recession, BP has few peers as a poster-child for corporate malfeasance, though Bernie Madoff deserves a special Dishonorable Mention in the “individual” category.
So it is that even after BP settles all of its criminal and civil legal obligations, it must continue to make progress on the rehabilitation of its reputation. Are oil and gas customers who have stayed away from BP in the after-math of the oil spill satisfied with the fines and penalties assessed the company and in the clean-up and restitution efforts that are now largely complete?
And, finally, are they convinced that BP is a different company now, committed to doing the right thing against a triple-bottom line accounting (people, planet, profit)?
A crisis is an opportunity to demonstrate an organization’s values, or to reevaluate its values. Criminal actions that led to the oil spill and the death of the rig workers came out of a company needing to revaluate its values, as did the well-documented missteps of BP Chairman Tony Heyward, “winner” of Force for Good’s 2010 PR Disaster of the Year. Since then, the company has demonstrated a new value system that can genuinely be applauded: a dedication to the cleanup and restoration of the Gulf shores, and a humility in acknowledging its culpability and its responsibility to make things right.