Do The Right Thing – Lawyers Permitting

It is unusual to feel sympathy for a big oil company, especially one responsible for a major environmental disaster.

However, it is in everyone’s interest to resist any attempt by politicians to turn business into a scapegoat for their own failures. This is the subtext of a lot of the criticism, coming from politicians of both major parties in the United States, of BP’s failure to clean up a major oil spill off the Gulf Coast.

After all, it was the Obama Administration which recently approved an expansion of coastal drilling – a policy long advocated by most of the Administration’s Republican opponents – which was bound to make an environmental catastrophe statistically more likely.

Unlike the politicians, BP accepted responsibility for the disaster – and for clearing it up – almost immediately. BP’s efforts to date appear to have been sincere and honourable, albeit less than completely successful. They have spent a great deal of money trying various methods to deal with the situation. Certainly there are no serious suggestions coming from their political critics of alternative methods that would work better.

This is why, for all the hot air about the Federal government taking control of the clean up, the better informed people in the government have been happy to leave it to BP. They know they could do nothing that BP are not doing already. It would simply become their problem, not BP’s, and they would lose the option of having BP to blame for any subsequent failures.

Moreover, if the Feds did take over, when success finally comes – as it will, eventually, irrespective of who is “in charge” – they would get little credit for it, because voters would then ask why they did not take charge from Day One.

So BP are left holding the baby, and getting criticised for it by the very people who are partly responsible for that unwanted child but do not want to get involved.

The lesson here for entrepreneurs is a depressing one. Most of us are entrepreneurs because we like the idea of taking responsibility. Yet it seems the most practical thing to do is to avoid it if and when a crisis occurs. Get the lawyers in. Admit nothing. If government starts to complain, let them take over, so you can sue them later rather than have them sue you.

This is hardly honourable, but such is the business environment is which we now live. We wish it were otherwise.

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