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Case
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Reference no. 705-008-1
Published by: IBS Center for Management Research
Published in: 2005

Abstract

The case describes the Exxon Valdez oil spill, one of the worst examples of environmental damage caused by an industrial disaster. In March 1989, the oil tanker Exxon Valdez, owned by Exxon, a leading oil exploration and production company, spilled 11 million gallons of crude oil in the Prince William Sound Alaskan region, which caused major ecological and financial damage to the people of the region. The case examines the response of Exxon to deal with the disaster and the compensation paid by the company to the victims. Though Exxon claims that it had acted responsibly, it had spent around $3 billion to clean the region and paid damages to the victims, the largest sum paid by any corporate to mitigate the environmental damage, however, environmentalists believe that the company must pay more. The case highlights the ethical issues involving the disaster and examines the response of ExxonMobil to deal with it. The case is designed to help students to: (1) understand the factors that led to the Exxon Valdez spill; (2) analyse the responsibilities of Exxon in the event of the spill; (3) discuss the approach adopted by Exxon to resolve the crisis; (4) examine the action taken by Exxon and determine whether it was sufficient enough or not; and (5) examine the damage done to the ecosystem of Prince William Sound and discuss whether Exxon had acted responsibly in dealing with the disaster. The case is aimed at MBA/PGDBA students and is intended to be part of the ethics and social responsibility curriculum.
Location:
Industry:
Size:
Very large
Other setting(s):
1989-2004

About

Abstract

The case describes the Exxon Valdez oil spill, one of the worst examples of environmental damage caused by an industrial disaster. In March 1989, the oil tanker Exxon Valdez, owned by Exxon, a leading oil exploration and production company, spilled 11 million gallons of crude oil in the Prince William Sound Alaskan region, which caused major ecological and financial damage to the people of the region. The case examines the response of Exxon to deal with the disaster and the compensation paid by the company to the victims. Though Exxon claims that it had acted responsibly, it had spent around $3 billion to clean the region and paid damages to the victims, the largest sum paid by any corporate to mitigate the environmental damage, however, environmentalists believe that the company must pay more. The case highlights the ethical issues involving the disaster and examines the response of ExxonMobil to deal with it. The case is designed to help students to: (1) understand the factors that led to the Exxon Valdez spill; (2) analyse the responsibilities of Exxon in the event of the spill; (3) discuss the approach adopted by Exxon to resolve the crisis; (4) examine the action taken by Exxon and determine whether it was sufficient enough or not; and (5) examine the damage done to the ecosystem of Prince William Sound and discuss whether Exxon had acted responsibly in dealing with the disaster. The case is aimed at MBA/PGDBA students and is intended to be part of the ethics and social responsibility curriculum.

Settings

Location:
Industry:
Size:
Very large
Other setting(s):
1989-2004

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