...Corporate Social Responsibility in the Oil and Gas Industry Corporate social responsibility is the concept that has been increasingly used in present day business rhetoric. Although the concept itself is relatively new, it has become widely present and today there are no major companies that do not have some kind of CSR agenda. The role of CSR in the oil and gas industry has been at the forefront of promoting the idea of CSR. The oil companies today devote attention to sensible issues related to the society and environment in which they operate. The main reason why the companies today try to behave, or at least try be seen as behaving more responsible, is that such behavior is favorable to their financial success. Hence, although they behave more responsible to some extent, it would be wrong to claim that they are more ethical and moral. This is evident from often present manipulation of CSR actions and the fact that a lot of CSR rhetoric is geared towards advertisement purposes. As some companies devote more resources to the external communication of CSR practices, this creates an image that they are more responsible. In order to get the insight into the real role of CSR in the industry, a critical analysis of the CSR strategy of Exxon is presented below. Exxon is a major global oil multinationals that have significant influence on the oil industry and is a trend and standard setter. The concept of CSR itself is divided into two main spheres – macro and micro. Former...
Words: 1634 - Pages: 7
...next two days, four additional deaths from the same cause were reported. All seven deaths occurred in the Chicago Area, but J & J recalled thirty-one million bottles of Tylenol from store shelves throughout the nation. The publicity surrounding this was unprecedented in American business history; in the print media alone, more than 125,000 stories appeared. Many business analysts said that no product could survive this, and they pronounced Tylenol dead as a product line. From the outset of crisis, J & J recognized the immediate and long-term stakes involved. Its strategy was based on maintaining high visibility and avoiding any appearance that the corporation was trying to duck responsibility. The incident involved four specific “publics” – the management at Johnson & Johnson, its employees, the consumers and the stores which were selling Tylenol. By communicating with the management and employees (internal publics), the company reinforced the mission statement and its dedication to serving the consumers as well as possible even when it was not an internal problem. This served to make these people willing partners in finding a solution as well as handling the recalls. Such communication brings the people involved “into the fold”, into a cohesive team. It...
Words: 706 - Pages: 3
...Exxon Valdez Case Study Executive summary The ethical issues faced by management of corporations, and Exxon in particular, originate from the objective of cost cutting with the purpose of profit maximization. As was seen in Exxon’s case, where the disaster could have been prevented if the proper mechanisms and equipment were put in place. Conflict of interest is also a major ethical problem faced by management as well as employees in corporations, as human beings always look to benefit for themselves above others. Respect to others is another major aspect ethical aspect that should be present in organizations. Exxon Valdez allowed happenings which were seen as common practice. In any other situation this would taboo and not ethical. There was conflict of interest in the safety of the crew and the environment as seen with the emergency training and planning and the captaining skills which resulted in a natural disaster which should have been prevented. An analysis of the traits of a profession evidently suggests management would arguably not be classified as a profession. Ultimately managers therefore do not adhere to the same level of ethical standards as professionals. For Exxon managers to be ethically responsible in their commercial roles they need to find ways of balancing the needs of the company and satisfying their own personal interests with that of the organisation. One way of achieving this is to strictly adhere to the organisations...
Words: 3515 - Pages: 15
...DASMARIÑAS Communication Arts Department Lawrence G. Rawl, chairman and chief executive of the Exxon Corpoation was in his kitchen sipping coffee when the phone rang and received the news regarding the spilling of crude oil into the frigid waters of Prince William Sound, just outside the harbor of Valdez, Alaska. What was about to happen was the worst environmental disaster in the history of the United States. These were the documented facts that media had portrayed across the United States and to the world: Exxon Valdez, a 978-foot tanker piloted by a captain whom later revealed to be drank, ran aground on a reef 25 miles southwest of the port of Valdez. The results caused a spill of 250,000 barrels, the largest spill ever in North America. The devastating results affects, 1,300 square miles of water, damaging some 600 miles of coastline and murdering as many as 4,000 Alaskan sea otters. The disaster also enshrined the name of Exxon in the all-time Public Relations Hall of Shame. (Seitel, 2000). According to the book, Exxon’s dilemma broke down into five categories. First was the hesitation of Mr. Rawl if he is going directly and personally to Alaska. In an interview Mr. Rawl has said, “We had concluded that there was simply too much for me to coordinate from New York. It wouldn’t have made any difference if I showed up and made a speech in the town forum. I wasn’t going to spend the summer there; I had other things to do”. Secondly, Exxon failed to establish...
Words: 3558 - Pages: 15
...Exxon Valdez and Tylenol Case Study DE LA SALLE UNIVERSITY - DASMARIÑAS Communication Arts Department Lawrence G. Rawl, chairman and chief executive of the Exxon Corpoation was in his kitchen sipping coffee when the phone rang and received the news regarding the spilling of crude oil into the frigid waters of Prince William Sound, just outside the harbor of Valdez, Alaska. What was about to happen was the worst environmental disaster in the history of the United States. These were the documented facts that media had portrayed across the United States and to the world: Exxon Valdez, a 978-foot tanker piloted by a captain whom later revealed to be drank, ran aground on a reef 25 miles southwest of the port of Valdez. The results caused a spill of 250,000 barrels, the largest spill ever in North America. The devastating results affects, 1,300 square miles of water, damaging some 600 miles of coastline and murdering as many as 4,000 Alaskan sea otters. The disaster also enshrined the name of Exxon in the all-time Public Relations Hall of Shame. (Seitel, 2000). According to the book, Exxon’s dilemma broke down into five categories. First was the hesitation of Mr. Rawl if he is going directly and personally to Alaska. In an interview Mr. Rawl has said, “We had concluded that there was simply too much for me to coordinate from New York. It wouldn’t have made any difference if I showed up and made a speech in the town forum. I wasn’t going to spend the summer there;...
Words: 3532 - Pages: 15
...Exxon Mobil: Company Overview: Exxon Mobil Corporation is an American multinational Oil and gas corporation. It is one of the largest publically traded companies by market capitalization in the world with its operations spanning several continents. The Company was formed on November 30, 1999 by the merger of Exxon and Mobile (ExxonMobil, 2011). Exxon Mobil explores, produces and distributes natural gas and crude oil and also manufactures and distributes petroleum products. It also produces and sells petrochemicals such as polyethylene, aromatics, olefins, polypropylene plastics and other products. It has interests in thirty seven refineries world wide. It also markets its products through more than thirty two thousand retail stations worldwide (ExxonMobil, 2011). Types of market and legal systems that exist in countries that Exxon Mobil operates: Exxon Mobil has operations spanning several countries in the United States, Europe, Australia/Oceania, Asia, Africa, and Canada/South America. Market systems that exist in these countries range according to various policies that regulate the market place operations. In countries such as the US, Australia, Canada, countries in South America, Western Europe and some parts of Africa and Asia, the kind of market systems that exist are basically mixed market economy systems. In these systems, a bigger part of the market is controlled by the prices, demand and supply of commodities with few government regulations. In other regions...
Words: 1377 - Pages: 6
...In 1989, Exxon Corporation caused one of the worst environmental disasters. The oil tanker Exxon Valdez spilled 250,000 barrels, an amount equal to more than 10 million, into the waters of Alaska’s Prince William Sound after striking Bligh Reef at approximately 12:04 a.m. on March 24. The spill eventually covered 11,000 square miles of ocean and coated 1,300 miles of coastline. Shortly after the incident, different media piled in to begin extensive coverage often pointing out Exxon’s corporate irresponsibility. Company’s efforts to contain the spill were not good enough and slow but Exxon’s response was even slower. In addressing the problem, it tool company officials 10 hours after the accident to deploy booms that will contain the spill. Company executives refused to comment on the accident for almost a week and refusing to acknowledge the extent of the problem. In addition, statements made to the press by high-ranking executives were often inconsistent and contained contradictory information making the press question the credibility and truthfulness of Exxon. After the Exxon Valdez ran aground, the company conducted all its communication from the small town of Valdez, Alaska. This area proved inadequate, having only limited communication capabilities. Exxon seemed unwilling to disseminate its information using any other method or location. But the biggest criticism the company received was the fact that CEO Lawrence Rawl waited nearly six days to make a public statement...
Words: 1974 - Pages: 8
...employees may gain by joining and whether or not the union bargains; and if so, the effects it may have on the organization. ExxonMobil was formed in 1999 by a merger between Exxon and Mobil. It is a major United States producer of domestic oil production and is also involved in domestic petrochemicals and chemicals operations. They are strong competitors in the oil and gas industry with such rivals as Royal Dutch Shell and BP America. Over the years they have stayed committed to their explorations and development in the industry. In 2011 they achieved strong earnings and generated huge returns for their shareholders. According to the company, “ExxonMobil’s results for the third quarter of 2011 reflected a continued commitment to operational integrity, disciplined investing and superior project execution.” (Business Monitor International, 2012) ExxonMobil faces legal issues that include environmental, discrimination, and human rights issues. Some of the environmental issues include the possibility of oil spills and allowing pollutants to escape into the air, which can affect global warming. Because of these issues ExxonMobil has been criticized by a well-known environmental lobby group called Greenpeace. According to the EPA, “On March 24, 1989, shortly after midnight, the oil tanker Exxon Valdez struck Bligh Reef in Prince William Sound, Alaska, spilling more than 11 million gallons of crude oil. The spill was the largest in U.S. history and tested the abilities...
Words: 990 - Pages: 4
...residents near the waters of Prince William Sound awoke to the catastrophe brought by the tanker Exxon Valdez spilling more than 10 million gallons of crude oil. This incident caught the attention of the public and received many and different criticisms. Eight of eleven cargo tanks were ruptured during the incident. ARLIS or Alaska Resources Library and Information Services with the help of Exxon Valdez Oil Spill Trustee Council released a collection of materials on Exxon Valdez Oil Spill. It included the following information: * The crude oil spread approximately 1, 300 miles. 200 miles were heavily oiled. The impact was obvious while the remaining 1, 100 miles were lightly or very lightly oiled. * Aerial observations were used to determine the size of the oil spill to give immediate response and clean-up activities. It includes the estimation of the thickness and volume of oil on the water. * Exxon spent more than $2.5 billion on clean-up expenses. * Caption Joseph Hazelwood was the captain of the ship, a senior officer. He was convicted of a misdemeanour charge of negligent discharge of oil, fined $50, 00 and sentenced to 1, 000 hours of community service. * Exxon was fined $150 million, it was the largest fine imposed for an environmental crime. The court forgave $125 million in acknowledging Exxon’s cooperation in cleaning up the spill. During the clean-up, Exxon hired thousands of workers through several companies. There were more than 11, 000 workers, 1...
Words: 2581 - Pages: 11
...[pic] DE LA SALLE UNIVERSITY – DASMARIÑAS Communication Arts Department REACTION PAPER: JOHNSON & JOHNSON AND EXXON VALDEZ Submitted by: MARK ABELARD ARIAS BAUTISTA Submitted to: Prof. ROEL S. RAMIREZ, APR July 12, 2012 1/9 I. Background Information/ Additional Perspectives Johnson & Johnson: Tylenol Tylenol known as a kind of pain reliever also known as Acetaminophen and it may be used even without physician’s prescription. This pain reliever became controversial when an issue involving seven death people, cyanide, and Johnson & Johnson broke out on September 1982. In print, more than 125, 000 stories appeared describing the said issue. Johnson & Johnson is well-known industry in terms of health, medical devices, biological studies and pharmaceutical field. Way back on1960’s , Tylenol ended the almost a score dominance of P&G’s Crest toothpaste after being recognized as biggest-selling item in drug, food, and mass merchandising outlets. Focusing with the 1982 Johnson & Johnson’s Tylenol issue, many business analysts predicted that the said issue would be detrimental for Johnson & Johnson’s perception from the public. In print media alone, 125,000 stories published regarding the Tylenol issue. Due to that eventuality, Johnson & Johnson decided to recoil the product within just six months to reclaim 30 % of the market. In spite of being sensational, suspects 2/9 had not...
Words: 1460 - Pages: 6
...I - Background Study EXXON VALDEZ CASE Companies would always be prone to crises and problems beyond their control. What makes a company stand; amidst all problems they are dealing with is how they deal with it. One of the greatest controversies during the 1980’s was the Exxon Valdez oil spill that happened on a reef in Alaska’s Prince William Sound. The Exxon Valdez ship had identified icebergs and decided to take a different route to get around them. Unfortunately the oil tanker crashed into shallow water, this area is actually called the Bligh Reef, but because of the hit the tanker had about 10 million gallons of crude oil into the reef.This catastrophe got the media’s attention, and Exxon’s response to the environmental damage they had caused was very unprofessional. The company completely refused to communicate openly and effectively. The CEO of the company, Lawrence Rawl even refused to be seen for almost a week. Efforts to contain the spill were slow and Exxon's response was even slower. Because of the lack of appearance from high profile personnel from Exxon and the lack of action from their company, it left the impression that the Exxon Corporation did not take this accident seriously. Exxon Valdez case became one of the classical case examples of a “not to do in handling with a crisis”. By the time, they started to do some action; their reputation is already tainted with negative comments from...
Words: 2314 - Pages: 10
...A Financial Ratio Quarterly Trend Analysis of: Exxon Mobil Corporation Stock Symbol: XOM Listed on New York Stock Exchange Prepared for: Dr. Edward Lawrence Department of Finance and Real Estate Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Nicole Suarez Panther ID # 1101809 1.0 Introduction ExxonMobil Corporation and its affiliated companies operate in the United States and most other countries. Headquartered in Irvine, TX, ExxonMobil was formed following the merger of Mobil and Exxon. It is the world’s largest publicly traded international Oil and Gas Company. They hold an industry-leading inventory of global oil and gas resources. They are the world’s largest refiner and marketer of petroleum products, and their chemical company ranks among the world’s largest. They are also a technology company, applying science and innovation to find better, safer and cleaner ways to deliver the energy the world needs. The company has more than 82,000 employees across the world. ExxonMobil’s stock is publicly traded on the New York Stock Exchange (NYSE) under the symbol “XOM.” This report provides a quarterly trend analysis for ExxonMobil for fiscal year 2011. Financial information was obtained from the company’s website by examining the 10-Q SEC filings for Quarters 1 through 3 and the 10-K SEC filing for Quarter 4. Additional financial information was also found on Yahoo! Finance, MSN...
Words: 2496 - Pages: 10
...Why do organization bring in outside consultant to manage the organizational change process ? Change management is essential for organizational development in dynamic environment. Any change is likely to be resisted by the employees, if their confidence in the organizational system evaporate. The role of external change agent is to establish the faith and confidence of the employees on the organizational management system, as a first step. Effective change management depends on absorptive capacity of the organization and adaptive skill of the employees. The same may be assessed and suitable measures may be suggested by the external change agent. Further organizational architecture and agility are important factors in quick decision making and adaptation to change. The external change management agent may study and suggest the suitable measures for improvement. Introduction to change management Change is only permanent feature of our life. Life of individuals and organizations are evolving ever since their creation. Modern companies are in a state of cultural change. From working more or less alone to solving specific tasks, we are now required to work in an interdependent way. Teamwork is vital. These changes require that we change what we expect from the co workers. We have to change the values we highly believe. Values like awareness, teamwork, tolerance, responsibility and information are paramount - just as flexibility and change readiness. Team work make in imperative...
Words: 4458 - Pages: 18
...Strategic Alliance Advantages and Disadvantages Meishi Thomas Williams Everest University Online Business Policy and Strategy November 28, 2012 Instructor: Jill Heaney Strategic alliance is defined as a formal agreement between two or more separate companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence (Thompson 2010). There are many advantages with a strategic alliance that I will explain throughout this paper. According to the text, there are five factors why businesses form alliances. Exxon- Mobile merged in 1999, they signed an $81 billion dollar agreement to merge and form Exxon-Mobile. This merger became the largest company in the world. Because the merger was so large, the FTC required the company to the restructure many of the gas stations to incorporate the new Exxon-Mobile branding in order to avoid monopolization. Exxon-Mobile remains the strongest leader in the oil market with a huge hold on international market. This company remains the world’s largest publicly held company (second to Wal-Mart). The biggest advantage is mainly because it makes them more competitive. Companies are able to offer more products and or services. They are then able to provide or extended to other audiences. Many companies show improvements in there profit from participating in relationships of the strategic alliance. Approximately twenty...
Words: 640 - Pages: 3
... 1. Safety and health of employees, contractors and the community is the core of commitment to integrity for Exxon Mobil. 2. Careful management of their environmental performance, through a focus on operational excellence, is an imperative for Exxon Mobil. This is implemented through the Operations Integrity Management System which helps to align the environmental priorities with their business objectives, and locates new areas of opportunity to reduce environmental incidents. 3. The economic growth and development of communities they engage in business, primarily through hiring, training and utilizing local workers and suppliers. Ways these objectives can be implemented include; 4. Developing human, social and economic capacity in a way that benefits people, communities and their business. Achieving this goal requires managing the social and economic impacts actively and responsibly in these communities. (Mobil, 2013) 5. 1. Safety of employees can be enforced by measuring incidents that have occurred in the past and using that as a yardstick to enforce protection- taking a record of illnesses or injuries that occurred as a result of negligence and providing guidelines to prevent the reoccurrence. Special training on safety can be provided for the workforce and emergency units should be available for every department. 2. Communication with stakeholders such as the communities to create awareness of risks and provide assurance of safety. Research...
Words: 514 - Pages: 3