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Gulf Oil Case

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  • Jan. 18, 2011
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Case Analysis: Gulf Italia
Nicolo Pignatelli and Gulf Italia: Case Analysis
1.
Pignatelli should first and foremost properly assess the ethical dilemma he faces. The problem before him comes down to the decision between two outcomes both with their share of benefits and risks. He can follow guidelines by waiting several months to receive a response from the Italian government while losing millions of dollars and risking his reputation and fate of his company if the government decides to not allow Gulf Italia to refine at full capacity. On the other hand he can attempt to pay someone off either directly or indirectly, a potential illegal activity, and more quickly have his company produce at full capacity, preserving his reputation without losing money and securing the jobs of his many workers. Because this is an ethical dilemma, a straight forward decision is not possible and a careful consideration of the factors must be taken. No code of ethics is mentioned in the case description, so a measurement of the moral intensity factor will be more relevant. The magnitude of the consequences leans more in favor or Pignatelli paying someone off because the employment of thousands of his workers is as stake and because the risks are not as high as imagined. It is mentioned that this practice is common in Italy despite it being illegal. The social consensus also leans in favor of Pignatelli paying someone off because of the fate of his workers and also because he has gone to great lengths to satisfy the local communities already in moving the location around five times and implementing cleaner technology at a higher expense to his company. The probability of effect also leans in favor of paying someone off because it seems as if his company is not doing any harm but rather is being harmed by the limitations placed by the Italian government. Proximity also leans in favor of paying someone off because his reputation is at stake and he could very well lose everything if...