That is Svanberg was at the helm of the board during the second executive

That is svanberg was at the helm of the board during

This preview shows page 4 - 5 out of 26 pages.

president and CEO of Ericsson, subsequently took over as chairman of BP in January 2010. That is, Svanberg was at the helm of the board during the second executive switch (See timeline in Appendix 1). GROWING ENVIRONMENTAL CONCERNS After occupying a seat on the board as Managing Director since 1991, John Browne was appointed Group Chief Executive of BP in 1995 at the age of 45. In addition to this he could boast of being knighted in 1998 and becoming a life peer in the British House of Lords in 2001. Considered one of the most successful CEOs in the firm’s history, Browne was given substantial credit for turning it into one of the world’s most succ essful energy companies. Not only recognized for his tremendous efforts to grow the company, Browne could also take the honor for introducing the slogan “Beyond Petroleum”, ‘BP’ for short, a slogan suggesting that BP was serious when they talked about becoming an energy company rather than a petroleum company. Browne shifted towards a more “green” strategic profile, emphasizing care for the environment and employee safety more than oil and profits. This not only refocused the corporate strategy of BP, but a lso reflected Browne’s personal engagement. As a consequence, he was appointed by then Prime Minister Tony Blair as a key member of the British Sustainability Development Commission. Similarly, BP went far under Browne’s leadership to give evidence of this change towards environmental concerns and safety became a focal issue in corporate reports and advertising, while the company undertook green investments and supported environmental NGOs financially. The firm also restructured the board to form new subcommittees monitoring projects on employee security and environmental awareness. BP rolled out the “Beyond Petroleum” campaign that was widely praised in the press and it was awarded a Gold Effie from the American Marketing Association (AMA) in 2007. The AMA referred to the campaign as "a landmark platform for a company trying to change the way the world uses, and thinks about, the fuels that are vital to human progress." 7 Hence, BP was the first oil major to acknowledge a link between the use of oil and the phenomenon of global warming. This market positioning seemed to work well as total sales went from $192 billion in 2004 to $266 billion in 2006. At the same time a Landor Associates survey found that 21% of consumers perceived BP as the greenest among the oil companies. 8 However, Lord Browne was also known for his willingness to take risks in the pursuit of big transactions. Hence, it was under his leadership the Amoco merger went through in 1998, as one of 7 Gregory Solman, BP: Coloring Public Opinion? Adweek, January 14, 2008. 8 Environmental Leader. Environmental and energy management news, ‘Beyond Petroleum’ pays off for BP, January 15, 2008. 714-017-1 Please note that you are not permitted to reproduce or redistribute it for any other purpose.
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 26 pages?

  • Spring '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors