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the relationship between economic development and environmental protection
oil industry effect on the environment
power and responsibility
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Ethical issues develop when environmental regulations in a host nation are less than the home nation. Developed nations have established many regulations regarding pollution, where as developing nations often lack regulations. Lack of regulations often causes developing country’s to experience higher levels of pollution. Nigeria, the most populous country in Africa, is a country whose people have experienced environmental problems because foreign multinationals are allowed to operate their businesses while committing human rights violations. In the case study, Shell and Nigerian Oil, by William Newberry and Thomas N Gladwin, Royal Dutch/Shell Group the largest foreign oil producer in Africa has been publically criticized for extracting oil from ethnic communities such the Ogoni people living near the Nigerian River Delta. The once fertile land served as a major source of food for the highly populated region, but was turned into a waste land full of pollution and land degradation caused by the company’s production of oil. In his paper I will discuss role that the people of Nigeria faced and will discuss how a relativist, universalist, Donaldson, Smith, Friedman, Marx and Bowie would view ethical or unethical role that the Shell Oil Company’s played in the situation. In the early 1990’s several ethnic groups in Nigeria peacefully protested against big oil companies who caused pollution in their communities. The country’s military dictatorship took action against them and killed 80 people. A few years later when the people living in the Ogoni region protested to stop contactors from laying a new pipeline for Shell, Nigeria’s Mobile Police Force killed over 2000 people. Critics argued that Shell was partly to blame for the kil... ... middle of paper ... ...iple of power. The principle of power suggests that if a business has the power that allows them the resources to not act in an unethical manner, then they should do so. In the case of Shell Oil, Bowie would argue had the resources to avoid the environmental probes they caused, but instead they chose to continue operating placing the people is harm’s way and causing damaging effects to the environment.. Bowie would consider that Shell Oil business practices were unethical because the multimillion dollar business had no reason to behave unfairly, since they did not lack the power. After considering all of the views discussed above; I have to agree with Friedman. I also believe that it is a company’s primary responsibility to maximize profits for its shareholders but if a company uses unethical behavior then it is wrong to continue to operate in that manner.
In the Macondo blowout case, (Deepwater Horizon Oil Spill), leaders within Transocean and British Petroleum (BP) processed a “by any means necessary” mentality as well. The company cultures promoted doing whatever was possible to enhance profits. This oil leak and explosion, resulted in the loss of 11 lives, destroyed beaches and wetlands, and killed multiple wildlife species. The most telling piece of information throughout this case is that the oil spill and explosion could ...
This relates back to Congo, where violence spurred by ethnic rivalries is due to local groups’ desire to make money by getting into the extractive industries. In another example, Newmont, an American company, mines Ghanaian gold and pays the government part of the profits. Here, Burgis shined the spotlight on an environmental issue: the sodium cyanide spill in Kwamebourkrom that killed aquatic life and posed hazardous living conditions for locals (Burgis, 134). Finally, in the last few chapters, Burgis touched on Cecil John Rhodes’ legacy as the founder of De Beers, blood diamonds, imperialism, and violence carried out by local governments and mining companies in order to protect their interests.
The board 's actions did not bring the most pleasure to the greatest number of people, and at no time did the company think of any other parties and the consequences of their actions. Tyco’s actions help to endorse the views of economist Milton Friedman, who is an advocate of the narrow view. The narrow view states that corporations only think of profit and care less for the stakeholders within the corporation. Possibly it is a mistake to see a corporation as being morally responsible or to expect it to display such moral characteristics as honesty, considerateness, and sympathy (Shaw, 2014, p. 155). The victims in this case were clearly the employees, shareholders, stakeholders, and the company
Ethical behavior, in a general sense, is a definition of moral behavior in regards to lawfulness, societal standards, and things of that nature. In the business world, ethics commonly refer to acceptable and unacceptable business practices within the workplace, and all other related environments. The acceptance of colleges regardless of ethnicity, gender, and beliefs, as well as truthfulness and honesty in relation to finances within the company are examples of ideal ethical business conducts. Unethical business behavior would include manipulating procedures based on bias or discrimination, engaging in activities that promote political gain, as well as blatant fabrication of monetary factors within the company and “can affect organizational performance and is costly to employers, employees, shareholders, and other organizational stakeholders” (Cox 263). When a corporation practices proper ethics, it is representing not only itself in a positive manner, but its partners, shareholders, and clients as well. On the other hand, when an organization partakes in unethical activities, all parties are negatively affected. The collapse of Enron is a major case of unethical conduct in the corporate world, because the circumstances surrounding the firm’s chaotic plunge where so scandalous that it left “creditors wrangling over Enron's skeletal remains” (Helyar) long after the company had seen its demise. There are numerous instances to be mentioned, including deliberate failure to properly report fiscal losses, insider trading, and overall relentlessness. The inclusive purpose of this paper is to further explore the underlining factors that contributed to the downfall of the once powerful Enron, and how a new way of approaching business ethi...
According with the textbook and other internet sources, Milton Friedman described in his thesis that the main goal of a business is to generate gains or profits. As a result, several business have been using such thesis as a justification for some of the decisions they made. In the case of “A Civil Action” we had the two companies contaminating the little town water with chemicals used during the elaboration of their products. The use of trichloroethylene was apparently causing some of the children of the place to developed respiratory and other cancerous diseases such as leukemia. After the death of several children, people on town began to worry about the situation and everything pointed out ...
Milton Friedman’s view is that in a capitalist economy, there is one and only one responsibility of business: to use its resources and engage in activities designed to increase its profits. Business does not have a social responsibility to promote desirable social ends. A corporation is an artificial person. The corporate executive is the agent of the individuals who own the business and their main responsibility is to them. The directors of companies have a fiduciary responsibility to act in the best interest of the shareholders. The managers are agents of the shareholders and therefore have a moral obligation to manage the firm in the interest of the shareholders, which obviously is to make as much money as possible and maximize shareholder wealth. The shareholders are the owners of the organization and therefore the profits belong to them. In conclusion, Friedman believes that business is to maximize profits. He suggested a healthy corporation has to be not only ethically good, but also being economically good. Overall, as he stated in the article, business must gain profit without break the rules of game (D. Murphy, Class Lecture, January 17, 2014)
Ejikeme begins her article by asserting that every year for a half of century; the Nigerian residents living in the Niger Delta are suffering from the oil spill which is equivalent to one Exxon Valdez – it is one of the worst environment disastrous conditions to live in imaginable. The situation is getting more atrocious when the amount of oil spills does n...
Baird, (in Easton 2013) argues in favor of drilling offshore for oil, saying that the benefits outweigh the environmental impacts, and how it is necessary to please popular demand. He also talks about how it is impossible for us to become entirely independent of foreign countries for oil, yet we still need to drill offshore to regulate prices and maintain the growing demands. The major weaknesses in this argument are how it focused too much on popular demand for oil rather than ethical concerns and how it downplays the possibilities of alternative fuel sources in the near future. Ethical concerns that Baird neglects include the impacts on the environment as well as the safety of the workers, as accidents such as blowouts and spills are very common in offshore drilling, which harm workers and devastate the local environment. This makes Barid's argument less effective, because while his main concern is money and popular opinion, accidents and environmental concerns can end up being very costly, and alternative fuel sources are becoming more and more popular.
The Huaorani is an Indian tribe in Ecuador whose livelihood and culture was threatened by corporate companies exploring for oil. These oil companies invaded Oriente with the support of the national government, leading to destruction of the environment that served the way of livelihood for the Huaorani. Different human right and environmental organizations tried to find a solution for the situation but were not conversant with the natives needs. In contrast, their actions only misrepresented the Indians’ interests and placed them in more difficult situations. The Huaorani have to get involved in the fight for their land, but there are still those among them who betray their course. The most unusual
Oil pollution has been a major environmental concern since commercial scale oil extraction began in the Niger Delta in the 1950s and it will be for as long as oil extraction continues. Since the 1950s because of the increasing demand for crude oil and the existence of large oil reserves, the Niger Delta has experienced what can be called an environmental disaster from oil pollution, which resulted in major consequences for the environment and for the indigenous people who depended on the region for their livelihood. A study on Ogoniland, located in the Rivers State of the Niger Delta, revealed that the soil, groundwater, vegetation, surface water and even the air had been contaminated by petroleum hydrocarbons, devastating aquatic and agricultural communities and causing serious health issues for many residents (Environmental Assessment 2011). Many historians, environmentalists, political theorists, and other parties have discussed and explored this disaster, leading to disagreement about who is to be blamed. Two general positions have emerged as a result: the first position, suggests the Nigerian State made the country ripe for such a disaster and that although multinational oil companies (MNOCs) like Shell might have played some role, the state that is primarily responsible for the environmental disaster in the Niger Delta because it is in control of rules, regulations, policies, and revenue. The second position argues that MNOCs themselves, with Shell being used as an example, are primarily responsible for the environmental disaster in the Niger Delta because they are in direct contact with the oil, equipment, and local people. Ultimately, the examination of popular and secondary research and of both positions outlined above l...
Not only does oil development pose a huge threat to the environment, but it also poses a huge threat to human development if it is not managed in a way that enriches the human development indicators of all people in the region. The USA is one of the key interventionist states in International Politics. Yet, when one considers the lack of positive intervention New Orleans in the wake of the storm, the rationale for interventionist role the United States becomes questionable. How can one country expect to help another if they cannot protect the rights and liberties of their own people? It is often argued that fact of interventionism is likely highly linked to oil and oil wealth. Coincidentally, Hurricane Katrina occurred at the peak of the Iraq war. This might suggest that the resources necessary for the correct investment in the preparation for the storm may have been tied up in the United States economic priority in oil extraction. Oil developments in the OCS began in the 20th century. The first offshore drilling on the OCS began in 1966, a period of time which was associated with huge Hurricane damage and serial accidents including blowouts, injuries to workers and helicopter crashes. This illustrates a need for the oversight of a stringent environmental policy. The 1978
Omeje, K. (2005). Oil conflict in Nigeria: Contending issues and perspectives of the local Niger Delta people. New Political Economy, 10(3), 321-334. doi:10.1080/13563460500204183
" Oil is the life blood of our modern industrial society. It fuels the machines and lubricates the wheels of the world’s production. But when that vital resource is out of control, it can destroy marine life and devastate the environment and economy of an entire region…. The plain facts are that the technology of oil-- its extraction, its transport, its refinery and use-- has outpaced laws to control that technology and prevent oil from polluting the environment…" (Max, 1969). Oil in its many forms has become one of the necessities of modern industrial life. Under control, and serving its intended purpose, oil is efficient, versatile, and productive. On the other hand, when oil becomes out of control, it can be one of the most devastating substances in the environment. When spilled in water, it spreads for miles around leaving a black memory behind (Stanley, 1969).
Friedman argues that, for example a corporate executive has a responsibility to his employers, which is usually to make as much money as possible for the company while conforming to the laws and ethical customs of the society. This employer, outside his work, may devote his time and money to certain charities that he regards as worthy and while these are social responsibilities they are the individual’s social responsibilities, not the company’s. Friedman in a sense says how entities have responsibilities; it is the people that have the responsibilities. A corporation in a way is too vague of an entity to assume responsibilities. Again, he feels ‘’that the key point is that, in his capacity as a corporate executive, the manager is the agent of the individuals who own the corporation…. And his primary responsibility is to them’’ . The only responsibility a director should have is to its shareholders and not to society or any other interest group or public good. And so if the interest of the shareho...
The world wide oil industry supplies mankind with many life improving products and services. At the same time these technological advances challenge us with numerous ethical considerations.