ExxonMobil and the Chad-Cameroon Pipeline (A)

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Case

Reference no. UVA-E-0262

Subject category: Ethics and Social Responsibility

Authors: Jenny Mead (Darden School of Business, University of Virginia); Patricia H Werhane (Darden School of Business, University of Virginia); R Edward Freeman (Darden School of Business, University of Virginia); Andrew C Wicks (Darden School of Business, University of Virginia)

Published by: Darden Business Publishing

Originally published in: 2003

Version: 5 July 2013

Revision date: 16-Jul-2013

Length: 15 pages

Data source: Published sources

Topics: Environment; Sustainability; Public relations; Cultural differences; Risk assessment; Corporate social responsibility; Business government relations; Global international foreign investment operations; Analysis; Stakeholder management; Corruption

Share a link: https://casecent.re/p/895

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Abstract

This case presents the dilemma of a multinational oil and gas company, ExxonMobil, as it factors in the ethical issues related to the environment and cultural differences in deciding whether to proceed with building a pipeline in Chad and Cameroon, two of the poorest and most corrupt developing countries in West Africa. The many players in this project included the World Bank -which co-financed the project and put restrictions into place that would hopefully prevent pipeline-related government corruption in both Chad and Cameroon - and many environmental and human rights groups that warned of potential disaster. The case also covers the environmental and social analysis of the areas that would be affected by the pipeline.

Industry:

Energy