Following the dismissal of former CEO Bernard Looney for failing to disclose an intimate relationship, BP has announced a policy update that requires employees to disclose any intimate relationships with colleagues or face potential disciplinary action, including dismissal.
The updated conflicts of interest policy, which was communicated to staff via email last week, prohibits employees from directly or indirectly managing those with whom they have an intimate relationship. Additionally, thousands of senior leaders have been required to declare any intimate relationships with employees or agency workers occurring within the last 3 years, with a three-month grace period to do so.
BP confirmed the policy update, stating that employees were previously required to disclose and record such relationships if they felt there could be a conflict of interest, but now they are mandated to disclose intimate relationships at work, regardless of whether they represent a conflict of interest.
The company has concluded its investigation into Looney’s conduct, with the help of law firm Freshfields, but has not disclosed the findings or conclusions. BP’s board dismissed Looney last December and clawed back up to $40 million of his remuneration, stating that he had knowingly misled the board by failing to disclose past relationships.
Looney’s departure came after the board investigated similar allegations against him in May 2022, following which he had given the board assurances over his past and future conduct. BP’s shares have dropped by over 11% since Looney’s departure, underperforming rivals amid ongoing investor concerns over the company’s energy transition strategy.
BP’s new CEO, Murray Auchincloss, who took office in January, has sought to steady the ship by promising to boost returns. Auchincloss’ partner is also a BP employee, a relationship he disclosed prior to becoming chief financial officer in 2020.