For this question I am going to reference a gas and oil company that I used to work for, which had been started by private owners. Outside appearances or reputation were completely different than image in some cases for a brief time period. This was primarily due to the owners stepping back and relinquishing management to their upper management employees that did not adhere to their prior ethical stance. However, this was starting to catch up with the company when I said farewell. The company was roughly deemed an industry standard for their proper and ethical environmental practices before this was even publicly seen as an issue. When they drilled an oil or gas well the surrounding land was left in pristine condition - almost as though the company had never been there with the exception of a well and storage tank. The company, when I was hired, portrayed itself as a company that cared about its employees. Additionally, the company hosted events at future drilling locations to promote a good relationship with land owners, since in this business they are a very important constituency for leasing. Employees would actually volunteer to man these events without pay due to their loyalty to the company.
The company identity was still very much intact as far as management was concerned; however the owners and various other constituents were starting to receive hints that all was not as it seemed. Scrimping and making a site appear pristine was becoming standard practice in the field and any employees involved in that part of the process new this. They were also more than willing to pass the information on to the coworkers at the office that they deemed ‘trustworthy’. Several court cases ensued concerning run off from wells and improper land management of sites. ‘Shmoozing’ with government officials become standard policy to try to remedy this situation with the DEP as well as address the old adage of taxes. Also, internally there was employee unrest in several departments. Most employees were not happy and complained to each other whenever possible. Management now was actually autocratic and was not truly interested in the welfare of their employees. Many good employees were lost do to the crass treatment they received. I personally opted not to sue this particular company for personal reasons, although the state wanted me to pursue litigation. A final blow to company reputation was the selling off of well sites to other companies, which left the previously loyal land owners in an uproar. This is far from all that I could describe, but the company managed to take a great reputation that had been established by the owners and turn it into a negative image for all constituencies and in the end gain a negative reputation in the industry. Had management continued on the same track as the owners had done, the company would have built upon a great reputation by utilizing several factors of corporate responsibility.
I think it's a shame that all it takes to ruin a successful business is to have a few managers that cut corners and become greedy. In your case, it must have been very frustrating to watch the company's image spiral downward; afterall, you and your coworkers had worked so hard to build a solid reputation.
ReplyDeleteI would almost argue that cutting corners and winning political influece is more the norm all across the energy industry, and that has been going on for a long time. The real tragedy is how the new management treated its employees. Workers who feel unappreciated are less likely to perform a job above standard. In the end, the company is just hurting itself internally with its employee management.