Is BP's 'Beyond Petroleum' image beyond repair?

Since the Deepwater Horizon rig's explosion in April, BP has done everything to convince members of the Congress, investors, stakeholders and the American public that it remains committed to operational safety, environment and to the people affected by the disaster.

It has followed what every crisis communications rulebook would prescribe in such circumstances: taken full responsibility to the disaster, showed concern, apologised publicly and set out steps to repair the damage, but still fails to repair its reputation.

The oil giant, which claimed that it cared 'beyond petroleum', lost 40 per cent of market capitalisation, and decided to show CEO Tony Hayward the door. It said that Hayward's presence would make it harder for BP to rebuild its reputation.

Hayward's unpopularity grew worse in the US after he made a number of PR gaffes including saying he wanted his "life back" and was criticised for sailing in the oil-free waters around the Isle of Wight.

So is Hayward the 'fall-guy' for BP?

Tim Riches, chief growth officer for Asia Pacific and CEO of FutureBrand, Singapore says that it's hard to argue that BP's brand reputation clean up does not require a sacrifice.

"It seems to me that it had to be the CEO, based not just on his performance after the incident, but more significantly the depth and breadth of issues associated with the cause of the accident," Riches says.

Indeed, the length and breadth BP's issues were grave and even included the reputation of Britain for which the newly elected prime minster David Cameron came under pressure from president Obama.

"BP is strongly linked to Britain Inc. so much is at stake for Britain and its reputation," says brand and business strategist, Martin Roll of the Martin Roll Company. "The BP brand must step up actively on the global scene, and take control of the crisis at a larger scale than any company has previously done. It is easier said than done, and the complexity is enormous as the crisis is linked to the environment - the topic of this century and the next."

As yet another textbook case study for CSR, PR and health and safety professionals, crisis communications, issues management, CEOs and CFOs, BP's response to the oil spill reveals that corporates must work to ensure that they implement optimum health and safety standards to prevent such accidents from occurring at all. This is particularly important given the heightened awareness of environmental conservation and the impact on communities who are sensitive to green issues.

"I guess what we may hope to see is a genuinely different kind of company rising from the sludge, and maybe we'll look back on this as an event similar to the global financial crisis - the kind of disaster that is a catalyst for enduring positive change in the consumption behaviours that frame businesses and brands of the future," says Riches.

And to this end, BP has a choice: It can lead or it can follow, and that will determine the long-term health of its brand.

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