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  • 1.  article recommendations for linking BP oilspill, financial crisis and Enron/accounting scandals?

    Posted 07-04-2010 15:51

    In my MBA core OB course this Spring, I want to draw attention to the similarities across the Enron and other accounting scandals, the current financial crisis and the Deepwater Horizon spill in terms of decision making biases (e.g., over confidence, escalation of commitment, etc) and non-independent oversight (e.g, Arthur Andersen, the credit rating agencies and the Federal Department of Minerals Management (or whatever that department is called)).

     

    Although I have some decent materials on the first two, I've yet to see a clear, concise statement of how those same dynamics played out at BP or anything making the links I'm proposing.

     

    Will you please let me know if you have come across any good articles, news stories, radio programs, etc. that I can use to make this point in my class? Reputable sources only, please.

     

    Thanks,

    Corinne Bendersky

    UCLA Anderson school



  • 2.  article recommendations for linking BP oilspill, financial crisis and Enron/accounting scandals?

    Posted 07-05-2010 04:21

    Dear Corinne,

     

    You might consider looking at the transcripts (or parts of it) of the commission that interrogated BP (ex-)CEO Tony Hayward with regards to the oil spill. Other interesting information: A former employee of BP, Tyrone Benton, has declared to the BBC (British Broadcasting Company) that Deepwater Horizon, leaked already days before its explosion. This was reported to BP, who has neglected to close the leakage.  Press agency Bloomberg has reported that already 200 law suits have been filed against BP. Edward Markey, Congressman for Massachusetts, has laid his hands on an internal BP document which reports on a daily spill of 16 million liters of crude oil in the Golf of Mexico. (source: Trends, reputable Belgian business magazine).

    I hope that this information can help you in the search for good sources.

     

    Regards,

     

    Ann-Sophie De Pauw
    Research associate
    Competence Centre People and Organisation
    Vlerick Leuven Gent Management school
    ann-sophie.depauw@vlerick.be
    phone: +32 9 210 97 10   
    fax: +32 9 210 91 11 
    --------------------------------------------------------
    Vlerick Leadership Day - 25 November 2010

    more info on: www.vlerick.be/leadershipday 

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    Tel: +32 9 210 9711 - Fax: +32 9 210 9100
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    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.PACE.EDU] On Behalf Of Bendersky, Corinne
    Sent: 04 July 2010 21:51
    To: OB@AOMLISTS.PACE.EDU
    Subject: [OB-LIST] article recommendations for linking BP oilspill, financial crisis and Enron/accounting scandals?

     

    In my MBA core OB course this Spring, I want to draw attention to the similarities across the Enron and other accounting scandals, the current financial crisis and the Deepwater Horizon spill in terms of decision making biases (e.g., over confidence, escalation of commitment, etc) and non-independent oversight (e.g, Arthur Andersen, the credit rating agencies and the Federal Department of Minerals Management (or whatever that department is called)).

     

    Although I have some decent materials on the first two, I've yet to see a clear, concise statement of how those same dynamics played out at BP or anything making the links I'm proposing.

     

    Will you please let me know if you have come across any good articles, news stories, radio programs, etc. that I can use to make this point in my class? Reputable sources only, please.

     

    Thanks,

    Corinne Bendersky

    UCLA Anderson school



  • 3.  article recommendations for linking BP oilspill, financial crisis and Enron/accounting scandals?

    Posted 07-05-2010 09:55

    Hi Corinne,

     

    Here's a few that may help flesh out the problems at BP:

     

    Interview with surviving employee from drilling platform, details of pressure placed on Transocean by onsite BP managers:

    http://www.cbsnews.com/stories/2010/05/16/60minutes/main6490197.shtml

     

    Systematic cost cutting by BP increases risk of accidents:

    http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7870301/BP-admits-failing-to-use-industry-risk-test-at-any-of-its-deepwater-wells-in-the-US.html

    http://online.wsj.com/article/SB10001424052748704289504575313010283981200.html

    http://online.wsj.com/article/SB10001424052748703964104575335154126721876.html

     

    Lack of modern risk-management techniques:

    http://online.wsj.com/article/SB10001424052748704312104575298820977456114.html

     

    Fighting on platform over the proper course of action between BP and Transocean:

    http://online.wsj.com/article/SB10001424052748704717004575268302434395796.html

     

    Arguments about who is at fault:

    http://blogs.wsj.com/source/2010/05/26/errors-in-judgement-probably-triggered-bp-disaster-but-whose

     

    Technical analysis on the problems at the well leading up to the blowout with information as of May 21:

    http://www.theoildrum.com/node/6493

     

    Corruption, sex and drugs at Minerals Management Service:

    http://online.wsj.com/article/SB10001424052748704026204575266112115488640.html

    http://www.rollingstone.com/politics/news/17390/112016

     

    I hope these help.  If not, maybe they will point to other articles of interest.


    David Stewart

     

    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.PACE.EDU] On Behalf Of Bendersky, Corinne
    Sent: Sunday, July 04, 2010 3:51 PM
    To: OB@AOMLISTS.PACE.EDU
    Subject: [OB-LIST] article recommendations for linking BP oilspill, financial crisis and Enron/accounting scandals?

     

    In my MBA core OB course this Spring, I want to draw attention to the similarities across the Enron and other accounting scandals, the current financial crisis and the Deepwater Horizon spill in terms of decision making biases (e.g., over confidence, escalation of commitment, etc) and non-independent oversight (e.g, Arthur Andersen, the credit rating agencies and the Federal Department of Minerals Management (or whatever that department is called)).

     

    Although I have some decent materials on the first two, I've yet to see a clear, concise statement of how those same dynamics played out at BP or anything making the links I'm proposing.

     

    Will you please let me know if you have come across any good articles, news stories, radio programs, etc. that I can use to make this point in my class? Reputable sources only, please.

     

    Thanks,

    Corinne Bendersky

    UCLA Anderson school



  • 4.  article recommendations for linking BP oilspill, financial crisis and Enron/accounting scandals?

    Posted 07-12-2010 16:59
    Corinne,
     
     
    In particular, one link in the article points to a 2007 report that outlines organizational issues related to a deadly 2005 BP refinery explosion: http://www.csb.gov/assets/document/CSBFinalReportBP.pdf
     
    Best,
    Corinne
     
    Corinne Post, Ph.D.
    Assistant Professor of Management
    College of Business and Economics
    Lehigh University
    621 Taylor Street
    Bethlehem, PA 18015
    610.758.5882 (campus office)
    908.766.9366 (home office)
    http://www3.lehigh.edu/business/faculty/post.asp