I think we all agree that most advertising campaigns are superficially dishonest. Yet we all fall victims to such Ads. In 2001, as the Green movement gained momentum the Oil industry started to take some heat from regulators and activists, forcing BP to take the initiative and rebranded itself. The company formally renamed itself as BP Plc and adopted the tagline “Beyond Petroleum” as it trumpets the company’s investments in solar and alternative energy. Since oil companies provide the same product, fuel, and cars don’t have taste buds eco-friendly taglines and initiatives emerged as a popular way for retailers and consumer-product companies to strengthen bonds with discerning customers.
BP tried endlessly to create a new eco-friendly image, yet efforts always fell short from expectations. As part of efforts, it came out with a serious of commercials designed in light green colors and singing birds, flowers growing beneath the rising sun and a deeply soft voice saying “BP. Beyond Petroleum.” BP was named by Mother Jones Magazine as one of the “ten worst corporations” in both 2001 and 2005 based on its environmental and human rights records. It was the center of continuous public outcry and law suits. According to Seattle-based environmental activist Fred Felleman, “I always saw it as greenwashing, as it has proven to be.”
Following his first address to the nation from the Oval Office, Barack Obama has vowed to make BP pay for the damage it had caused, promised for more regulation within the oil-industry and asked Americans to seek alternative energy sources while reducing their appetite for Oil. BP has certainly taken the beating following the Deepwater Horizon Oil Spill as the stock fell by 52% in 50 days, going from $60.57 on April 20th to $29.20 on June 9, its lowest level since August 1996. While the damages had been previously estimated at close to $5 billion, BP is currently facing a bill of up to $34 billion after after US senators demanded the oil company deposited $20bn into a ring-fenced account to meet escalating compensation costs. With 40% of BP shares held by UK shareholders and 39% in the US, the UK dividends represent approximately one-seventh of all dividend payments in the UK and form the basis of many pension schemes. Come this year, BP will not be paying any dividend, and this news will for sure to be taken hard by shareholders worldwide.
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