Exxon Case Study-Resolving Unethical Behavior
Option 2: Exxon Case Study (Relates to Chapters 1-3, 7 and 8)
Darren Woods, the appointed Exxon/Mobil CEO from January 2017, advised investors that Exxon will be expanding their output, due to the company’s predictions that global oil and gas demand will rise by 13% by 2030. While Woods has also supported the implementation of a carbon tax in principle, this support comes with a catch; in exchange for a carbon tax, the company wants future immunity from all climate lawsuits. Exxon is now looking for a new CEO and, in a stunning reversal of policy, they have chosen you to reshape Exxon into an ethical company.
First, read (and reference if you wish) the following plus any other legitimate sources (webinars, chapter content, academic, websites recommended in webinar 1) you choose to use.
The following articles are available in the public domain:
• Exxon Vision is Perilously Short-Term
• What Exxon Knew About Climate Change
• Seething With Anger, Probe Demanded into Exxon’s Unparalleled Climate Crime
• Imagine if Exxon Had Told the Truth on Climate Change •
The Dumbest Idea In The World: Maximizing Shareholder Value
• A Plan for a Sustainable Future (Note: You are not required to be this technical, the article is intended only to show that fossil fuels are not essential for our energy needs.)
Describe and reference how you would proceed to make Exxon ethically resolve their unethical behaviour. Use the following four subheads and answer each question under each subhead: 1) Get the facts:
a) What are the relevant facts of the case?
b) What are the current ethical issues at Exxon?
c) What individuals and groups have an important stake in the outcome?
2) What corporate culture would you Create at Exxon?
a) Provide a general description of the new ethical culture.
b) Outline what you could do to achieve it.
3) How would you use the following techniques with the staff of Exxon to achieve your new culture?
a) Rewards
b) Leadership
c) Bureaucracy.
4) How will you inform the Stakeholders you mentioned in 1c?
a) Write a 300 to 400-word statement as the new CEO announcing your new ethical plan for Exxon.
b) What other methods would you use to involve stakeholders?