The recent dismissal of BP’s former chief executive Bernard Looney for failing to disclose details about his personal relationships with colleagues has prompted the oil giant to tighten its rules on workplace relationships. The company has now implemented a policy requiring senior managers to report any intimate relationships that have taken place with colleagues in the last three years.
Failure to adhere to these new rules may result in disciplinary action for employees. This update to BP’s conflict of interest policy was scheduled for review this year, with about 4,500 staff at managerial level being asked to submit reports in the next three months, regardless of whether they believe it represents a conflict of interest.
Bernard Looney was found to have committed “serious misconduct” by failing to disclose workplace relationships, leading to his dismissal in December without notice and the forfeiture of millions of pounds in share allowances and bonuses. He had provided “inaccurate and incomplete assurances” during an investigation into the relationships in 2022.
The board had initially launched a review of Mr. Looney’s relationships with colleagues in 2022 following an anonymous tip-off, during which he disclosed a small number of historical relationships but was found not to have breached company conduct. However, further allegations prompted another review, ultimately leading to his dismissal.
BP’s updated conflict of interest policy, which came into effect in June, was influenced by comparable organizations and industry best practices. Previously, employees were only required to disclose family or intimate relationships if they believed there could be a conflict of interest, but now all relationships must be reported.
Rachel Suff, a wellbeing and employee relations adviser at the Chartered Institute of Personnel and Development (CIPD), noted that formal policies on relationships are more common in the US than in the UK. She emphasized the importance of reporting any relationships between managers and employees to avoid conflicts of interest and risks to confidentiality and fairness.
Overall, the case of Bernard Looney serves as a cautionary tale for senior managers, highlighting the importance of maintaining respectful and professional behavior at all times. The tightening of rules on workplace relationships at BP reflects a broader trend in corporate governance, emphasizing transparency and accountability in personal relationships within the workplace.
