BP has been taken out of the FTSE4Good Index, however in contrast to United Parcel Service, DuPont and Bridgestone, it has not simply been ‘deleted’, it has been ‘suspended’. The difference is purely semantic, as, in order to qualify for re-inclusion, BP has to go through the same assessment as the other companies. So, with this ‘unprecedented’ measure following, the index is simply making a point.
Fair enough? Perhaps BP does deserve to be singled out for the failings that led to the oil spill in the Gulf of Mexico. However, by making such a show of suspending BP, the index is also highlighting the problems inherent in its criteria for inclusion. According to David Harris, Head of Responsible Investment at FTSE, the FTSE4Good committee had taken the decision following a review of the number of past events that had taken place and BP’s poor response to their aftermath. Therefore, why is it only now that BP’s inclusion has been called into question?
Perhaps the FTSE4Good committee should also consider suspending and reassessing its own criteria to ensure that it maintains its credibility and continues to contribute to the development of responsible business practice worldwide.
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