that the company has been forced to pay out fictitious exaggerated and

That the company has been forced to pay out

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that the company has been forced to pay out ‘fictitious , exaggerated, and excessive awards’ to large businesses under the court - administered program.” 37 35 From public statement by Carl-Henric Svanberg, BP Chairman, July 27, 2010. 36 Juliette Kayyem, BP lets employees take the fall, The Boston Globe, November 19, 2012. 37 Richard Thompson , BP launches hotline for reporting allegations of fraudulent Gulf of Mexico oil spill claims, The Times-Picayune, July 15, 2013. 714-017-1 Please note that you are not permitted to reproduce or redistribute it for any other purpose. You are permitted to view the material on-line and print a copy for your personal use until 24-Mar-2021. Purchased for use by Alan Owen on 24-Mar-2020. Order ref F378754. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F378754
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13 The new facility was communicated as a moral approach where “The hotline, 1 -855-NO-2-FRAUD, offers ‘a reliable resource for people who want to do the right thing and report fraud or corruption.’” However, such moral behavior could also be rewarded as “BP said calls to the hotline can be anonymous and could entitle a caller to a reward if a tip leads to an indictment, recovery of money or denial of a claim.” 38 According to Robert Dudley BP was doing the right thing and still honored its obligations: “It was a terrible accident. And from that time on, we said we would want to step up and make good. We are still committed to make sure that legitimate claimants and people who were true victims of the spill are paid.” 39 However, he also argued that BP could become a victim itself in the claims process: “Quite frankly, the results have been really strange. The claims going through a claims facility have resulted in absurd results, and millions of dollars are going out to pay people who suffered, in many cases, no losses from the spill. And this is just not right. I don’t think it’s right for America. We’re a big investor in the United States, and we’ve challenged this really strongly. It’s just not right.” While the business conditions seemed to ease somewhat for BP, there were still difficult issues to consider and possibly more substantial challenges ahead that would require the attention of the executive leadership and the board of directors. The board members felt they had implemented many initiatives, such as, imposing a corporate code of conduct to increase a sense of responsibility across the company and reduce the likelihood of major incidents. However, it seemed as if things were not as much under their control as one could wish for. Many aspects influenced the daily business operations and working together with different suppliers and partners, especially on oilrigs in exposed locations made the sustainability challenges very complex. They needed to find out, how the board should handle the situation and influence the corporate leadership in a positive way going forward.
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