Unocal Case Study

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instead of “isolation” is “the proper course to achieve social and political change in developing countries with repressive governments”. Although they did not participate in the abuse of the locals, Unocal should have felt obligated and responsible for ensuring that the people working on the project were being treated fairly and humanely and of their own will.

In the framework of moral decision making, Unocal failed miserably. Rather than claiming ignorance, Unocal should have had a policy in place, which put into effect rights theories and incorporated the Universal Declaration of Human Rights. These rights are to transcend national borders and should be adhered to wherever business is taking place, regardless of culture. Every business should have a code of ethics that must be adhered to and acted upon. There should also be ethics officers in place to oversee and monitor good and humane business practices, such as guaranteeing fair wages and hours, providing a safe workplace free from abuse and terror, regular external inspections of workplace conditions, decent housing for those who lost their homes due to the project, the same benefits that the employees of Unocal would like to receive. Another option was to refuse to move forward with the project altogether until these processes could be monitored and enforced.

A good model to follow is the Saudi Aramco Mobil Refinery (SAMREF), one of the world’s largest crude oil refineries in the Middle East. They made good use of their investment by making safety a priority, creating a talent management program to develop their employees, and ensuring strict compliance of the Royal Commission’s Environmental Regulations. They have applied programs to monitor the highest standards of personnel and process safety. (Saudi Aramco Mobil Refinery (SAMREF), n.d.)

In Qatar, ExxonMobil ensure that all of their projects are in compliance with the environmental policies and guidelines stipulated by the State of Qatar and international standards. They follow the principles that help to minimize potential risks to the environment, communities, personnel, as well as the environment. Their goal is to improve the quality of life wherever it does business by supporting community development, creating programs that empower not only their employees but specifically women, and increasing educational opportunities. (ExxonMobil, n.d.)

Unfortunately, Unocal is not the only example of what occurs when a business is void of moral ethics. In an effort to stop these atrocities, every business should be building an organizational culture that places a high value on ethical behavior, so that when confronted with decisions that may negatively impact others, there are no questions as to what their moral obligations are.

References

ExxonMobil. (n.d.). Retrieved from Qatar: http://www.exxonmobil.com.qa/Qatar-English/PA/default.aspx

Hill, C. W. L. (2014). Global business today (9th ed.). New York: McGraw-Hill/Irwin

Saudi Aramco Mobil Refinery (SAMREF). (n.d.). Retrieved from ExxonMobil: http://www.exxonmobil.com/KSA-English/PA/about_what_samref.aspx

Seekins, D. (n.d.). The Social, Political and Humanitarian Impact of Burma’s Cyclone Nargis . Retrieved from The Asia-Pacific Journal: Japan Focus: http://www.japanfocus.org/site/view/2763