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DESCRIPTION
Business Ethics CaseTRANSCRIPT
Morning Meeting: 2/17/11
CEO: Christopher Choing
CFO: Sulay Desai
History of Chevron
• Merged with Gulf Oil Corp. in 1985.
• Merged with Texaco in 2001.
• In 2002, Chevron became the second largest U.S.-based energy company.
Today’s Issues
• Chevron was found guilty and charged 8.2 billion dollars in fines for pollution and restoration.
• Chevron initially denied the charges of polluting water and soil.
• Many are suffering from health problems in Amazon.
Health Issues
• Polluted water has caused:• Cancers
• Birth Defects
• Minor Illnesses
• Locals in the Amazon rely on the water to live• Drinking water
• Bathing water
• Cooking water
The Ethical Question
• Should we accept and take responsibility to what has happened?
• Should we help pay for clean up in Ecuadorian Amazon.
Our response: Yes!
• We will pay the 8 billion dollars to restore a healthy lifestyle to the people of the Amazon.
• Here’s a breakdown of the amount of money, according to a copy of the verdict:• $5.39 billion: To restore polluted soil• $1.4 billion: To create a health system for the community• $800 million: To threat sick people affected by pollution• $600 million: To restore polluted sources of water• $200 million: To recover native species• $150 million: To transport water from other sites to supply
community• $100 million: To create a community cultural reconstruction
program
• Total: $8.64 billion
Plans and Considerations
• Texaco… Take responsibility
• Do more research
• Chevron will take a loss financially, but we are still a growing company
Questions/Comments
Sources
• http://www.texacotoxico.org/eng/node/144
• http://blogs.wsj.com/law/2011/02/14/a-breakdown-of-the-8-billion-chevron-judgment/
• http://online.wsj.com/article/SB10001424052748703584804576144464044068664.html?mod=WSJ_business_whatsNews
• http://chevrontoxico.com/
• http://amazonwatch.org/work/ecuador
• http://news.mongabay.com/2011/0214-hance_chevron.html