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Power, Control and Resistance Are Key Determinants of Organizational Life

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'Like many multinational organisations in the 1980s-1990s, BP adopted a new organisational design in response to changing environmental conditions and new organisational priorities and strategies '. How and why might BP’s organisational design and its relationship with the broader environment be contributing factors in the Gulf of Mexico oil spill? Discuss using relevant organisational theories.

1. Introduction

Alongside with Shell and ExxonMobil, British Petroleum Amoco (BP) is one of the world‟s largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. As cited by (Skjaerseth and Skodvin 2001), with the multinational …show more content…

Climate change around the world was the most pressing issue at that time, and according to Levy (1997), it was an international environmental issue that stirred up widespread controversy amongst all the industries worldwide. In addition, Kolk and Levy (2001) also noticed that with increasing public measures, rules and regulations, most oil companies have started to change their strategies, with Shell taking very strong measures to be responsive to social and environmental concerns. Without any actions like Shell, BP would face a situation whereby lack of social legitimacy is seen as a fundamental threat to the company (Kolk & Levy, 2001).

As such, BP followed suit and attempted to portray an environmentally friendly image of BP to the public. This is aptly seen in a public statement made by BP‟s CEO Browne in 1997 about climatic changes. This is precisely because; companies with experience of strong public scrutiny are more likely to respond to an enhanced public concern for climate change by adopting a proactive climate strategy (Skjaerseth and Skodvin 2001). „Consumers‟ protests and boycotts of petroleum products can affect the companies‟ market share‟ (Skjaerseth and Skodvin 2001, p.47), thus with this opportunity available in the

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