Video Question #1
1. Provide a synopsis of what the video was about
The videos are about how oil conglomerate Shell stunned investors by announcing a 20 percent reduction in its proven reserves, pensions and portfolios. 2. How does this relate to the material in Section 1 of your textbook It relates to the material in section 1 because the videos talk about different types of global economics systems, and how to control the factors of production. Also shows us how the environments affect the success of Shell. 3. Explain how the actions of Shell affected the four areas of social responsibility talked about in your textbook * Responsibility Toward the Environment:
Shell fails to report that the Gorgon gas fields could be exploited only by putting the environmental on Barrow Island at serious risk. Other oil reserve bookings worldwide also fail to meet SEC regulations. * Responsibility Toward Customers:
Shell publicly admits its overstated oil reserves by 4.5 billion barrels, and thereby slashes twenty-three percent of its stated reserves. * Responsibility Toward Employees:
Van der Vijver’s tried to won investors about shells misleading oil reserves, and chairman Philip watts did not allowed him to do that. * Responsibility Toward Investors:
Stock prices plunge, and an attorney files a class action lawsuit on behalf of an American pension fund. 4. Explain how “ethical norms” as described in your textbook relate to the video Shell should have told their investors about the misleading oil reserves and propose a different way of solving the problem.