1. Introduction
This report will identify a crisis facing BP company, the Gulf of Mexico spill, and investigate how the organization response to the society. In this report, it will use Legitimacy theory to explain BP’s response to this event. Legitimacy theory can be treated as a explanation for voluntary corporate disclosures in annual report. As (Dowling&Pfeffer, 1975) says a corporation must act in congruence with norms and society value.
First of all, Legitimacy theory is based on the concept of substantive rationality and replies upon the notion of a social contract. This theory asserts that organizations seek to ensure that they operate within the bounds and norms of their respective societies (Ramon Mullerat, 2010) .It aims to conform to norms and value of society. As a company, it always use annual report to legitimize the ongoing operation, however, in common situations, it often discloses good news, but its actual behaviors decline which is called legitimacy gap.

2. The case
2.1 Context
In April 20, 2010, a semi-submersible drilling platform belongs to BP occurred explosion in American Mexico gulf. It caused 11people die and 17 people injured after 36 hours (CBC News, 2010). BP Company announced that it wills to response for this event. The Gulf of Mexico spill has become the worst environmental crisis in America. Except the direct cost, it will also attack people’s life, such as air and water safe. At the same time, it is a huge disaster for seaside animals. (Xinhua News Agency) reports that the United States Coast guard, government agencies, local residents and BP are trying to prevent further deterioration. This event causes a deep effort for surround regions. Obama (2011) says that America will face a huge finance crisis.

2.2 Data
Annual report will be chosen for the main corporate disclosure vehicle. Above all, it is an efficient means of highlighting of whole company. Annual report will inform people how the organization performs and some options in the future development (Economic Times). Full information offered by annual report will give opportunity to deal perceptions of stakeholders. Chairman’s words summary the whole situation of organization. Moreover, the financing situation also can reflect the operations well or not under the influence of oil spill. It is certainly that there are some notes or graphs which can explain why it is and how it can be got.
In 2010, 2011 and 2012’s annual report, the Gulf of Mexico oil spill is written by using many pages. BP wants to make full use of annual report to promote impression management. Besides it, some one likes official announcements are also needed. Organization may list some new problems or measures about this event.

2.3 Methodology
In the whole report, it will discuss different aspects about BP Company according to the annual report. It also can reflect whether BP is fit for the legitimacy theory or not. There are three categories will be discussed to analyze the corporate legitimacy which are text length, impression management and strategy.
Text length: In different years annual reports, the amount of pages are also different because of the Gulf of Mexico oil spill. In 2009, the annual report had 212pages, and then in next 2010 and 2011, the amounts of pages are much more than 2009 which are 272 and 282 respectively. In 2010 annual report, it related Gulf of Mexico oil spill at 34-40 pages. The key statistics and details things will be shown as (Appendix 1). In 2011 annual report, BP listed its efforts for compensation and environment protection (Table 1). So it is clear that BP disclosures its environmental norms and legitimacy to society.

Table1: BP EFFORTS IN 2011 | “…Continuing the clean-up of the waters and shorelines impacted acrossThe Gulf of Mexico and the ongoing protection of fish and wildlife…” | | “…Supporting the economic restoration of impacted sectors of the GulfCoast economy through targeted support to the tourism and seafoodIndustries…” | | “…Continuing the funding of the $20-billion Deepwater Horizon Oil SpillTrust…” |
Sources from: 2011 annual report
Impression management: According to Sinha (2009), impression management is an active self-presentation to enhance its image. It has power to create a positive role of company, but also can break it. BP has made a bad effort on its reputation, thus it does not get out of trouble and republic in annual report for the responsibility. Only this it can be estimated legitimacy and restore reputation.
“…BP immediately took responsibility for responding to the incident, taking steps to remedy the harm that the spill caused to the Gulf of Mexico, the Gulf coast environment, and the livelihoods of the people in the region…”.(2010 annual report)
Strategy: To ensure the social legitimacy, BP decided to change investment strategy. BP suspends the Liberty item in Alaska because it relates some refineries and US shale gas assert (2012 half year annual report). Moreover, BP company also makes a decision which is all amounts relating to the oil spill will be treated as non-operating items with a net amount $823 million for the half year in 2012.

3. Finding
Above all, BP is willing to operate with the bounds and norms of its respective society. It disclosures the environmental problems and satisfy external expectations by using annual reports. Moreover, it also can make a positive effect on stakeholders which has connection with legitimacy.
According to above data, it can be seen that the length of annual reports are different before and after the oil spill. BP pays more attention to disclosure environmental responsibility and operates social rules on legitimacy. To improve impression in society, BP promises will to bear all the responsibility and compensation in annual report which aims to promote reputation. BP company have received more than 30,000 claims which come from local people and agencies (New Orleans, 2010), but BP has not avoid and give them compensation. The charge for the half year also reflects a credit relating to certain claims which is consistent with legitimacy. The social contract is the invisible hand between BP and society In order to corporate with local compensation and environment protection actively, BP estimated oil spill trust fund in the amount of $20 billion in 2010(2010 annual report), seeking to reduce bad efforts and satisfy external expectations.
To disclosure more positive information for social legitimacy, BP makes a decision which all amounts relating to the oil spill will be treated as non-operating items. (John Elkington, 2008) says the non-operating items are no profits which aim to reach social and environmental goal, including some protecting environment and social welfare. To active the positive of stakeholders, BP allows shareholders to receive dividends by cash to avoid stakeholders withdraw money and drop into crisis (2012 half year annual report). Besides these, (New York Times, 2012) reports that BP has sold out some oil and gas companies in deepwater Gulf of America and the money will be used for compensation or environment protection. From above all, the activities or strategies which have been shown in the annual report are trying to get the substantial legitimacy. Do more positive things to change impression and satisfy external expectation.

4. Conclusion
To sum up, this report aims to show how a company using legitimacy theory can goes out of the problems according to the annual report. In the essay, there are three analyzing methods to solve oil spill problem which are text length, impression management and strategy. BP tries its best to show more environments issues for improving impression in society. In the next funding, BP makes positive efforts to satisfy social contract and reach substantial legitimacy as much as possible. In modern society, organizations are required more and more on human, environment and other social issues. Now BP is doing these items to make amends and to satisfy external expectation. Thus it can be inferred BP’s behaviors are consistent with legitimacy theory

Appendix 1