BP Revises Workplace Relationships Policy Following Looney's Dismissal
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BP Updates Staff Policy on Intimate Relationships Following CEO Dismissal
BP has mandated that employees disclose any intimate relationships with colleagues to avoid termination, an update sparked by the dismissal of former CEO Bernard Looney for failing to disclose such relationships. This revised conflicts of interest policy was communicated to staff via email, highlighting the ongoing impact of Looney's sudden exit last September.
The new policy explicitly forbids employees from managing relatives or individuals with whom they have an intimate relationship either directly or indirectly. Non-compliance could lead to disciplinary actions, up to and including termination. Additionally, the policy requires thousands of senior leaders to declare any intimate relations with employees or agency workers that occurred within the last three years, giving them a three-month window to comply by September 1.
Previously, BP's code of conduct required employees to disclose and record such relationships only if they perceived a conflict of interest. Now, the updated rule mandates the disclosure regardless of potential conflicts. BP confirmed this policy revision in an emailed statement.
An investigation into Looney's conduct was concluded with the assistance of law firm Freshfields earlier this year, though the findings and conclusions have not been publicly disclosed. According to BP, the board is ensuring that the lessons from the investigation are implemented adequately.
Looney was dismissed last December, with the company reclaiming up to $40 million of his remuneration, after it was revealed he had misled the board by not disclosing past relationships. This followed a prior investigation into similar allegations in May 2022, after which Looney had promised improved conduct.
Since Looney's departure, BP's shares have dropped over 11%, underperforming relative to competitors, amid investor concerns about the company's energy transition strategy. The new CEO, Murray Auchincloss, has been trying to stabilize the situation by committing to increased returns. Notably, Auchincloss disclosed his relationship with another BP employee before becoming the chief financial officer in 2020.
