Assignment On Chevron Communication In Business

2374 words - 10 pages

COMMUNICATIONS IN BUSINESS 100Name: Anonymous 2Student Number: 12345678Email: anonym2@mail.auCompany: Chevron CorporationTitle: Corporate Social Responsibility: An Analysis of ChevronOther Details: Semester 1 2014, Bentley Campus(Word Count: 1568)IntroductionMultinational Energy Companies, like Chevron Corporation, have a broad and significant social, economic and environmental impact on the globe and as such are in a position to influence the lives of many people. Chevron is involved in many different facets of the energy business, including exploration, refining, production and transportation. The company employs approximately 60 000 people in the oil and natural gas industry, w ...view middle of the document...

The Case against ChevronChevron's reckless and irresponsible procedures in both Richmond, California and Ecuador have not only harmed the welfare of the respective local communities but also significantly tainted the company's public image in the process. By acting only in the interest of maximising profit and without consideration for others, Chevron has failed to minimize the negative externalities of their operations. This focus on economic results without factoring their effects is an illustration of the "short-termism" mentioned by Mitra et al. (2011), whereby bad decision making has tragic effects. In Ecuador from 1972 to 1992, Texaco, one of Chevron's subsidiaries, was responsible for destroying the land of the local Amazonian tribes and causing widespread damage to both the environment and the health of the forest's inhabitants. This was the result of Texaco's substandard drilling practices and daily dumping of 4.3 million gallons of oil waste water into the freshwater bodies of the Amazon. The oil waste water contaminated the drinking water of the local tribesman, causing a series of health issues (Widener 2007). Locals have since reported unusually high cancer rates, along with frequent fevers, gastro-intestinal diseases, stomach aches, skin rashes and respiratory problems. Many of the forest's residents attribute these ailments to petroleum-related contamination (Rochlin 2011, 11). Court reports have shown that 98% of the water samples taken contain chemical toxin levels that violate the country's environmental laws. Texaco's dumping of approximately 18 billion gallons of oil into the Amazon has reportedly affected some 30,000 people (van Schaick 2005, 41). The violation of the indigenous people's basic right to clean water was one of the many factors that brought up a civil action lawsuit against Chevron-Texaco charging the company with negligence with damages initially estimated in the billions of dollars (Payne 2012, 1067). The lawsuit has been ongoing for the last decade with Chevron appealing the initial judgement that ordered them to pay billions in damages; this was despite Texaco's $40 million payment in 1995 to clean-up the damages (Rochlin 2011, 11). Chevron's failure to take full responsibility and undertake programs to restore and mitigate the damage caused by Texaco has severely stained the public perception of the company.In Richmond, California, Chevron failed to act on recommendations made by personnel regarding the durability of the piping against corrosion and the lack of safeguards against hazards, resulting in an oil leak. Even after the leak was discovered, the plant was not shut down. Firefighters inspected the corroded piping, inadvertently puncturing it in the process. This lead to the release of a hydrocarbon vapour that ultimately ignited, discharging a large and toxic plume of smoke over the surrounding area (CSB Releases Draft Report 2013). The extent of the plume was such that 15,000 local residents had...


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