Corporate Environment Obligation: An examination of the performance of Chevron Corporation Nowadays, increasing customers worried about the negative effects that large companies put on environment especially some energy industries. Chevron Corporation is one of largest multinational energy corporations in the world which has branch offices in more than 100 countries. It is engaged in all the aspects of gas and crude oil, which include exploration, production, marketing, chemicals manufacturing and so on (Chevron Corporation. n.d.). Although Chevron produce energy to power economic growth of America, even the whole world, the environmental problems it caused has aroused great public concern. This essay analyses the environmental contamination caused by Chevron Corporation operation, specifically in two cases: environmental atrocity in the Ecuador and Brazil oil spills. On the other hand, it describes some positive measures that Chevron takes to protect the environment which is focus on the following areas: protecting the environment, respecting biodiversity and preserving freshwater resources. The case against Chevron Corporation
In order to satisfy the tremendous oil demand of America, Chevron drill for more oil in other countries all over the world which heavily harm the ecosystems and communities in many countries such as Africa, South American and other nations. As a frontrunner in energy industry, Chevron also wants to gain more profit. For example, despite of the economic recession in 2008, Chevron still planned to increase total revenues by 25%, which is approximately $263 billion US Dollar. Chevron was concerned with environmental practices and business coincidentally, leading to huge environmental damage in some countries especially in Ecuador where the largest environmental lawsuit took place in the world. Early in the 1960s, Chevron began to prospect oil in Ecuador. It got a lot of money and then ran, leaving many environmental problems in the country (Julie, S. 2009 ). On February 28, 2011, Chevron Corporation was fined over $19 billion dollars by Ecuadorian Court because the oil and gas operations severely damaged the Amazon rainforest in Ecuador (Mark, W. 2011). There are a lot of evidences showing Chevron destroy the Amazon rainforest in Ecuador. In order to reduce cost, Chevron dumped more than 18 billion gallons of poisonous waste into Amazon waterways during 1964 to 1990. These waste caused seriously environmental pollution to six indigenous groups in Amazon rainforest and at present, one of them is extinct and other five groups lost majority of their ancestral lands. Chevron also abandoned a large quantity of waste pits which are filled with noxious sludge that contain carcinogens like benzene and chromium VI to Amazon forest. In the past few decades, these toxic substances migrated into soils, groundwater and stream that are the main source of drinking water for local residents. The toxins may cause reproductive problems, immune system damage, nervous system impairment and a number of other health problem to human beings ( Chevron’s Top Ten Lies: Chevron’s Ten Biggest Lies About the Ecuador Suit. n.d. ). In 2011 December, Chevron Corporation was imposed a fine of over $10 billion by Brazilian federal prosecutors due to environmental contamination caused by oil spill in northeastern coast of Rio de Janeiro state. The crude oil began to leak on 7 November caused by underestimating the pressure in an underwater reservoir which led to oil rush up a bore hole of a drilling platform and then ran into seabed around it. The oil spilled out from more than 7 narrow fissures at the bottom of the sea. Finally, the oil leak was under control until the end of November but there was still some residual oil seeping from the crevices. In addition, Chevron Corporation lack of environmental planning and management. According to an investigation by the attorney general’s office, Chevron did not have the capability to...
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