Exxon

Case Study Questions

1. Elab Elabor orat atee on why leadin leading g soci social al just justic icee and and envir environm onmen enta tall grou groups ps and and the the Amer Americ ican an government are concerned about Exxon’s conduct?

Ans: Leading social justice and environmental groups along with the American government are worried about Exxon obil’s operations! because they are o" the opinion that the company’s  business operations are posing a great g reat threat to the environment. en vironment. #hey believe that since Exxon obil is an oil and gas company! they are contributing to global warming and climatic change in a big way! which is harm"ul "or the society and the world as a whole. #he groups also blamed the company "or hiding the ris$s o" climate change "rom the American public! and not revealing how the company may be playing a part in climatic change. #hey accuse Exxon o" concealing these "acts as a means to protect their pro"its. %. &hy &hy is Exxo Exxon’ n’ss use use o" inte intern rnal al comp compan any y rese resear arch ch comp compar ared ed to Ameri merica can n toba tobacc cco o companies? 'n your opinion! is this a "air comparison?

Ans: 'n the case o" the tobacco companies! companies! the company conducted internal internal research and "ound out the ris$s o" smo$ing to health! but they chose to hide the "acts "rom the public. 'n the 1()*s and +,*s! +,*s! they spent money on intern internal al resea research rch and the scient scientist istss "ound "ound that that there there were were signi"icant health ha-ards "rom smo$ing! but launched campaigns that propagated otherwise. #hey mislead the public "or almost )* years. ut in the case o" Exxon obil! the company spent huge "unds on internal scienti"ic research about the e""ects on climate change! and published the correct "indings to the public. #hey did not deceive the public or mislead them in any manner. /ompany scientists also published do-ens o" papers and explored the possibilities o" stringent policies to curb climatic e""ects. Exxon obil has made its research "indings public right "rom the 1(0*s. #here"ore! in my opinion! it is not "air to compare the tobacco company issue with the Exxon obil case. . &hat type o" legal liabilities liabilities might might Exxon "ace "rom the American American government government regarding regarding its use o" its own internal research? Ans: #he American American government government could impose impose legal charges charges on Exxon based on the "act that it helped "und organi-ations organi-ations that promoted promoted climatic climatic denialism. denialism. Exxon could also be held liable about the statements it made about the 2yoto treaty and government policies. A course o" legal action might also be ta$en i" the American government "inds proo" that Exxon $new much more "acts about the harm o" climatic change! and they published only a part o" it to the public. pu blic. 3nder these circumstances! Exxon might be held liable. 4. 5ow is this this case study study o" Exxon regarding regarding its its business business research research similar similar to the the case studies studies we explored last wee$ in class 67ew /o$e! 2oda$8? Are there any patterns that could you detect regarding these companies use o" their business b usiness research?

Ans: 'n the case o" /oca9/ola! the company introduced a new "ormula "or the age9old world "amous soda! and they "aced huge criticism "rom the public who demanded that the original "ormula o" /o$e be bought bac$. #he researchers at /oca9/ola developed the new "ormula without ta$ing into consideration public views and opinions. &hat the research tests "ailed to show the company was the bond that consumers "elt with /oca9/ola! and they did not want the company to tamper with it. imilarly in the case o" 2oda$! the internal research team "ound out that the "uture o"   photography and cameras would be digital photography. ;et the company ignored this and continued mass production o" their original cameras. A"ter a "ew years! the company "iled "or   ban$ruptcy. imilarly! the internal researchers at Exxon in"ormed the company about the harm"ul climatic changes that would occur in the near "uture! but Exxon ignored it and continued "ocusing on  pro"its. &e can derive a pattern in all  companies that despite their internal research teams in"orming the companies about change! all  organi-ations continued per"orming their operations with a view o" generating pro"its! which lead to their down"all in the near "uture. ). &hat have been some o" the long term conse o" the company had ta$en action and published the "indings early enough! they would not "ace a procrastination penalty. '" a company cannot ta$e into consideration the sa"ety o" the environment and does not ta$e measures to protect the environment! in the long run it will lose its customer base and mar$et share! which will lead to the doom o"  the company.