Exxon: Yesterday, Today and Tomorrow
Southern New Hampshire University
This paper will provide a brief history of the corporation Exxon, and a description of CSR issues that the company has endured. It will describe the impact on organizational, economic, and societal stakeholders of Exxon. It will explore the current status of the corporation by looking into the CSR failure filter, strategic CSR, and will identify two of the five driving forces of CSR for Exxon.
Exxon is a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Humble Oil or Standard Oil of New Jersey. Exxon replaced the Esso, Enco, and Humble brands in the United States on January 1, 1973. The Esso name was a trademark of Jersey Standard Oil, and attracted protests from other Standard Oil spin-offs because of its similarity to the name of the parent company, Standard Oil. As a result, Jersey Standard was restricted from using Esso in the U.S., except in those states awarded to it in the 1911 Standard Oil antitrust settlement. (2015, January, l.e.)
The Exxon Valdez oil spill occurred in Prince William Sound, Alaska, on March 24, 1989, when Exxon Valdez, an oil tanker bound for Long Beach, California, struck Prince William Sound's Bligh Reef at 12:04 a.m. local time and spilled 11,000,000 to 38,000,000 gallons of crude oil over the next few days. The Valdez spill was the largest in U.S. waters until the 2010 Deepwater Horizon oil spill, in terms of volume released. Captain Joseph Hazelwood, who was widely reported to have been drinking heavily that night, was not at the controls when the ship struck the reef. Exxon Shipping Company failed to properly maintain the Raytheon Collision Avoidance System (RAYCAS) radar, which, if functional, would have indicated to the third mate an impending collision with the Bligh Reef by detecting the "radar reflector", placed on the next rock inland from Bligh Reef for the purpose of keeping boats on course via radar. The radar was found not to be turned on at the time of the collision. (2015, Febraury, l.e.)
In response to the spill, the United States Congress passed the Oil Pollution Act of 1990 (OPA). The legislation included a clause that prohibits any vessel that, after March 22, 1989, has caused an oil spill of more than 1 million US gallons (3,800 m3) in any marine area, from operating in Prince William Sound. In April 1998, the company argued in a legal action against the Federal government that the ship should be allowed back into Alaskan waters. Exxon claimed OPA was effectively a bill of attainder, a regulation that was unfairly directed at Exxon alone. In 2002, the 9th Circuit Court of Appeals ruled against Exxon. As of 2002, OPA had prevented 18 ships from entering Prince William Sound. (2015, February, l.e.)
In 1991, following the collapse of the local marine population (particularly clams, herring and seals) the Chugach Alaska Corporation, an Alaska Native Corporation, filed for Chapter 11 bankruptcy protection. It has since recovered. The economy of the city of Cordova, Alaska was adversely affected after the spill damaged stocks of salmon and herring in the area. (2015, February, l.e.). 25 years later the sound’s coastal ecosystem is still affected, and will most likely be permanently affected. As of 2010 only 13 of the 32 monitored wildlife, habitats and resource services that were injured due to the spill have fully recovered, or been labeled as most likely to recover. The pod of Orcas from that region only have one female left and have not produced a calf since the spill. It is only a matter of time before the orcas go extinct. Over 40 other species depend on the herring population that was heavily affected. (2014, March 24)...
Cited: (2015, January, last edited) Exxon. Retrieved January 28, 2015, from en.m.wikipedia.org/wiki/Exxon
(2015, February, last edited) Exxon Valdez Oil Spill. Retrieved January 28, 2015, from en.m.wikipedia.org/wiki/Exxon_Valdez_oil_spill#Identified_causes
Holleman, M (2014, March 24) CNN. After 25 Years, Exxon Valdez Oil Spill Hasn’t Ended. Retrieved February 18, 2015, from www.cnn.com/2014/03/23/opinion/holleman-exxon-valdez-anniversary/
Gilbert, D (2015, February 2) The Wall Street Journal - Breaking News, Business, Financial and Economic News - World News & Video - Wall Street Journal - Wjs.com. Exxon Profit Drops 21% as Production Declines - WSJ. Retrieved February 8, 2015, from www.wsj.com/articles/exxons-profit-drops-21-1422882396
(2015, February 23) Report: Built-up Pressure Cause Explosion at ExxonMobil Torrance Refinery. Retrieved February 25, 2015, from www.ocregister.com/articles/torrance-652083-refinery-revealed.html
(2009, March) Corporate Social Resposibility Initiatives at ExxonMobil - The Good, The Bad and The Ugly. Retrieve February 24, 2015, from www.icmrindia.org/casestudies/catalogue/Business%20Ethics/BECG102.html
(2015, February 24) The Legacy of the Exxon Valdez Oil Spill. Retrieved February 25, 2015, from www.response.restoration.noaa.gov/oil-and-chemical-spills/significant-incidents/exxon-valdez-oil-spill/legacy-exxon-valdez-spill.html
(2008, May 30) Insight: ExxonMobil is Not Very HIP: How to Take Action as an Investor and Consumer. Retrieve February 23, 2015, from www.hipinvestor.com/news/exxonmobil-is-not-very-hip-how-to-take-action-as-an-investor-concumer/#more-182
Please join StudyMode to read the full document