Actions speak louder than words

This week, British Petroleum [BP], under Tony Hayward’s leadership, failed to make any progress in stopping or even slowing the flood of oil in the Gulf of Mexico.  Five weeks after the explosion on the Deepwater Horizon oil platform the crisis is now described as perhaps the largest man-made disaster in history.

In the same week, the Canadian military leader of Canada’s mission in Afghanistan, Brigadier-General Daniel Ménard, was removed from his post after rumours of an affair with a soldier in his command.

The military responded quickly and unequivocally. Ménard is now back in Canada awaiting a hearing and potential court-martial.  The allegations alone were serious enough to remove him from his post.

Back at BP, Tony Hayward, continues to run the company despite:

• The explosion of the Deepwater Horizon on April 20, 2010 that killed 11 people and began the uncontrolled oil spill in the Gulf
• Rumours that the explosion happened because the company had not invested in a relatively inexpensive remote control shut off device due to budget constraints
• The fact that the oil spill now threatens some of the most important and fragile ecosystems in North America along the coasts of Louisiana, Mississippi, Alabama, Texas, and Florida and the livelihood of millions of people.  Today, on the first day of hurricane season, the potential threat to people and the environment has just increased.  The current and potential costs are incalculable.
• The lack of an actionable crisis plan. Now over 5 weeks later it is very clear that the company did not anticipate an accident of this magnitude or have plans in place. Every attempt [and there have been many] to stop the flow of oil is a new and so far failed experiment.
• The fact that the direct costs to the company of responding to the spill is now reported to be at $1B
• Today’s news that BPs stock plunged 17% – Investors will pay – and that the company’s very survival is at stake.   If this happens, over 80,000 employees and their families will be directly affected.  The direct social and economic costs to the supply chain and everyone in and around the communities where BP operates will be huge.

In the case of the Canadian Military morale may be affected by this revelation about a man they respected and trusted to lead in a critical and dangerous theatre of operation, but they will have no doubt that the institution values the lives of the people on the mission and in the communities they are there to protect over the image of the institution or the reputation of the commander.

What about the 80,000 employees at BP?

These are extreme examples, but I’d love to hear from you.  What actions are speaking louder than words in organizations you know?  What impact does that have?

Tags: Code of Conduct, Corporate social responsibility, Cultural norms, Employee communication, Ethics, Transparency, Trust