Exxon Mobil and a history of spills

Word Count: 2084 |

Exxon Mobil is listed as one of the world’s largest fortune 500 companies according to Fortune Magazine, 2006. Because of its size, I became interested in this company for my research paper on corporate social responsibility.
Exxon Mobil has a rich history that dates back to 1859. It all started when two individuals drilled an oil well in Pennsylvania. In 1870, Rockefeller and his associates formed the Standard Oil Company. Many businessmen, such as Thomas Edison and the Wright Brothers began to depend on oil for their inventions. In 1926, Standard Oil Company changed its name to Esso. In 1959, the company developed a famous slogan “put a tiger in your tank.” In 1972, the company changes its name to the Exxon Corporation (www.exxonmobil.com).
On March 24 1989, the tanker Exxon Valdez runs aground in Prince Williams sound, Alaska. This was a tragic accident that the company deeply regrets. It all began when the Valdez was traveling towards California when it hit a coral reef. As a result, of this accident, significant quantities of oil began to seep into the waters. According to most, the action to contain the spill was slow. As a result, the media blamed Exxon for not responding fast enough to the crises. Many of the wildlife including birds, fish and other mammals were killed because of Exxon’s slow response to the spill. This spill became the l

largest spill ever in U.S waters. The company unfortunately had to pay an estimated amount of

$2.1 billion dollars in clean up operations for the spill (Business Ethics, Exxon Valdez pages 396-405).
After the Valdez incident Exxon Mobil realized that something had to be done if they were to shine in the publics eyes once again. They realized that they had to take on the worlds toughest energy challenges and develop a mindset of corporate citizenship. The term “corporate citizenship” according to dictionary.com can be defined as: The extent to which businesses are socially responsible in meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim to create a higher standard of living and quality of life in the community in which it operates, while preserving the profitability of the company for it’s stakeholders both within and outside the company. The 6 areas of corporate citizenship Exxon chose include: education, health, community development, environment, safety and worldwide giving. Exxon Mobil believes that the key to progress is education. When it comes to the communities they operate in they strive to be a responsible partner. In the area of education, their most important subjects are Math and Science. These subjects play an important role in the energy business. Exxon has a variety of higher education programs to encourage minorities and women to pursue degrees in these subjects. They also host a summer job program for college students which consists of an 8 week paid internship where the student s participate in non-profit work. (exxonmobile.com)
Another corporate citizenship program that Exxon Mobil offers is the Green Team. This is an employment program for youths where jobs range form construction

projects to environmental projects for economically depressed neighborhoods and public parks. (CSR report)
When it comes to health, Exxon Mobil believes that good health is a good path toward development, opportunity and achievement. They also support programs concerning worldwide health issues. They began the African Health Initiative in 2000 where their goals were to fight the spreading of Malaria. The company spent over 40 million dollars with this project.(CSR Report)
Another campaign they started is called “Stop AIDS”. The goals of this campaign were to keep their employees and contractors safe from the AIDS virus. And, to educate HIV positive workers how to live safely with this illness. (CSR Report)
Exxon’s idea of community development is to gain mutual trust and respect of the partnerships they create. This is an important aspect of corporate citizenship. Some of the other things that Exxon does involves participation in human rights and capacity building. They promote respect for human rights in the communities in which they operate. They promote economic and social development by providing people with the knowledge and skills necessary to do so. (CSR report)
Save The Tiger Fund was started as a partnership with the National Fish and Wildlife Foundation. The main purpose of these fund is to address the threats that tigers are facing and to promote tiger conservation by educating the “next generation”.
Exxon support the Leuser Ecosystem which is located in Indonesia. This foundation helps preserve the most biologically diverse ecosystem in the world. When it comes to safety

their motto is “Nobody Gets Hurt.” This motto provides for an incident

free workplace. To further assist in the safety of their employees and contractors, they have safety teams and safety surveys to address this issue. They also have emergency response teams on all major sites that are specially trained in spills, fires, explosions as well as other things that could endanger their employees and contractors. (CSR report)
Worldwide giving is very important to the Exxon company, they support worldwide programs in health, education and biodiversity. They donate cash goods and services to communities all around the globe. The examples that I have given above demonstrate how Exxon Mobil is serious about its corporate citizenship. (CSR report)
The Exxon company is a 125 year old company that started out as a regional marketer of kerosene. They are the world’s largest publicly traded international oil and gas company. Their brands around the world include Exxon, Esso, and Mobil. Exxon Mobil is a leader in many aspects of business. They market there products in many countries around the world, they are also exploring in six continents for natural gas and oil. They have 50 facilities in which they operate in the petrochemical operations which makes them the leader in the petrochemical industry. They are also one of the industries leaders in research development which helps them enhance their performance. (Exxonmobile.com
I believe that my research has demonstrated that Exxon Mobil has shown a commitment corporate responsibility. Exxon integrates citizenships into their business practices and processes. They operate ethically and responsibly. They ingrain these practices in their business

culture and their standards of business conduct. Exxon Mobil’s business model include legal compliance, standards of integrity, governance practices and management control. These practices help them to ensure good corporate citizenship. Rex W. Tillerson, Chairmen and CEO states “ we are proud of our record of corporate citizenship, and look forward to building upon this record of accomplishment in the future.” This quote was taken form the 2006 Corporate Citizen report of the Exxon Mobil Corporation.
I believe that what the chairman states is true, because I do believe they shown good corporate citizenship. In this report Exxon Mobil states that they have a responsibility to society. And, that responsibility is to provide energy in a economical, environmental and social responsible manner to people all over the world.
Exxon regularly meets with community leaders and associations to incorporate community mindfulness in the environment in which they do business. Meeting with such groups is beneficial for exchanging information between the company and the community. The types of information that is exchanged has included such topics as; climate change, operating in environmentally sensitive areas, labor rights, security and human rights issues.
Environmentally the company has lowered the amounts of: oil spills and emissions reduction. In the workplace they are an industry leader in health and safety issues and has lowered accident reports. Challenges for the company include continuing to improve energy efficiency, eliminating injuries and fatalities form the workplace, continuing to deliver superior returns across the business lines, meeting the demands of their shareholders, participating in civil society and governments, maintaining the safety and security of operations worldwide, working with differing regulatory and legal requirement in other countries.(Fortune)

Future energy trends certainly add to Exxon’s toughest energy challenges. The economic of people around the world is driving a growing need for energy supplies. Our human population is forever increasing and supporting society with it’s energy need is a daily struggle. Alternatives to fossil fuels is critical which is why Exxon funds education in the arenas of Math and Science. The challenge of keeping energy affordable is also a major issue for the company. The economic growth and improvement in other countries are also adding to the heavy demand for energy. Exxon is committed to the exploration of energy alternatives, Exxon wants to be mindful of our Earths energy and therefore more committed to being socially responsible.
In the 2006 issue of Fortune Magazine, Fortune reported that oil companies, like Exxon have had a record breaking year in profits. Exxon’s profit in 2006 was 36.1 billion. CEO Rex Tillerson had what some call a “showdown” with the Senate Judiciary Committee which I felt was a unspoken attack on Exxon. They want to know why gas prices are so high when Exxon was making so much money? Crude Oil is topping out at $100 a barrel and does not seem to be going down in the future. Since the price of oil rose so quickly it was hard for Exxon to raise the price so much before protests broke out. The fact that they were not able to raise the price as fast as oil went up caused a decline in refining margins, the profit on refinery operations.(Forbes) Everyone is attacking Exxon Mobil because they are the biggest company of all the ones in its business, but it is not like they are the only ones reaping the benefits of raising oil prices. Companies such as Royal Dutch saw profits raise 68 percent and BP saw a 34 percent raise in profits as well. There is nothing that Exxon can really do about the rising price of oil, they are just doing what they have to do to make a profit. Exxon also produces the most oil and gas per barrel out of any non government energy corporation in the world. So it only makes sense that

they turn the biggest profit, the most oil production comes from North America while the most gas production comes from Europe. As Tillerson said of George W. Bush’s speech about us being addicted to oil, “It’s an unfortunate choice of words, quite frankly. Oil and natural gas have been the enablers of economic growth in this country. And to say that your addicted to oil and naturals seems to me to say your addicted to economic prosperity.” So I think that Exxon is handling the situation correctly and doing what they have to do to continue to be socially responsible. (Fortune)
In conclusion, I learned a lot about the Exxon Mobil company and their corporate citizenship policies. It was interesting to learn how the company operates globally and how strongly they believe in their corporate social responsibility obligations. I guess it’s politically correct these days for companies to take on this kind of thinking. Just look at all the profits that Exxon makes in just one quarter. One could agree from my research it pays to be socially responsible!
It was unfortunate for Exxon to have an oil spill, but they got past it, emerged as one of the worlds leadings oil and natural gas producers in the world. Hopefully, other companies will follow Exxon’s example and on how to overcome negative publicity and go on to becoming a leader in the industry that practices corporate social responsibility.

1.Corporate Citizenship Report. Virginia: Elizabeth Beauvais.
2.Goodpastor, Kenneth. Nash, Laura. de Bettignies, Henri-Claude. Business Ethics: policies and persons 4th edition. Mcgraw Hill Irwin Publishers. Pages 396-405
3.Nelson d.Schwartz. “Fortune” April 2006: Pages 78-88
4.Daniel Fischer. “Forbes” April 2006: Page 42
5. ExxonMobile.Com. http://www.exxonmobil.com/corporate/community
6. Dictionary.com. http://dictionary.referance.com/browse

You May Also Find These Documents Helpful

Allegory Of American Pie By Don Mc Lean

Ask anyone what was the defining moment in the rock history of the 1960s was and all you will get is a one word answer: Woodstock. The three day rock festival that defined an era was only one of many music festivals of the '60s. But Woodstock has come to symbolize, "an era of peaceful, free- loving, drug- taking hippie youth, carefree before harsher realities hit..." (Layman 40). The Woodstock festival ended a century filled with many metamorphoses of rock'n'roll, from the era of pop music to the rebirth of folk music to the invention of acid rock. But some cynics say that rock'n'roll died with the death of Buddy Holly before the 60s even began. One such person is Don McLean. The poet behind the haunting epic song about the death of 'danceable' music, McLean wrote the ever popular song, "American Pie" (appendix 1). The most important song in rock'n'roll history, "American Pie", is the song about the demise of rock'n'roll after Buddy Holly's death and the heathenism of rock that resulted. Although McLean himself won't reveal any symbolism in his songs, "American Pie" is one of the most analyzed pieces of literature in modern society. Although not all of its secrets have been revealed, many "scholars" of the sixties will agree that the mystery of this song is one of the reasons it has become so successful- everyone wants to know the meanings of its allegories. Proof of "American Pie's" truth lies in the allegory of the song. Many People enjoy the song but have no idea what it means- Who is the Jester? What is the levee? When the deeper story is found, the importance of the song is unearthed. "American Pie" is not only a song, it is an epic poem about the course of rock'n'roll...

Carl Orffs Philosophies In Music Education

While Carl Orff is a very seminal composer of the 20th century, his greatest success and influence has been in the field of Music Education. Born on July 10th in Munich, Germany in 1895, Orff refused to speak about his past almost as if he were ashamed of it. What we do know, however, is that Orff came from a Bavarian family who was very active in the German military. His father's regiment band would often play through some of the young Orff's first attempts at composing. Although Orff was adamant about the secrecy of his past, Moser's Musik Lexicon says that he studied in the Munich Academy of Music until 1914. Orff then served in the military in the first world war. After the war, he held various positions in the Mannheim and Darmstadt opera houses then returned home to Munich to further study music. In 1925, and for the rest of his life, Orff was the head of a department and co-founder of the Guenther School for gymnastics, music, and dance in Munich where he worked with musical beginners. This is where he developed his Music Education theories. In 1937, Orff's Carmina Burana premiered in Frankfurt, Germany. Needless to say, it was a great success. With the success of Carmina Burana, Orff orphaned all of his previous works except for Catulli Carmina and the En trata which were rewritten to be acceptable by Orff. One of Orff's most admired composers was Monteverdi. In fact, much of Orff's work was based on ancient material. Orff said: I am often asked why I nearly always select old material, fairy tales and legends for my stage works. I do not look upon them as old, but rather as valid material. The time element disappears, and only the spiritual power remains. My...

Johann Sebastian Bach Biography

Throughout the history of music, many great composers, theorists, and instrumentalists have left indelible marks and influences that people today look back on to admire and aspire to. No exception to this idiom is Johann Sebastian Bach, whose impact on music was unforgettable to say the least. People today look back to his writings and works to both learn and admire. He truly can be considered a music history great. Bach, who came from a family of over 53 musicians, was nothing short of a virtuosic instrumentalist as well as a masterful composer. Born in Eisenach, Germany, on March 21, 1685, he was the son of a masterful violinist, Johann Ambrosius Bach, who taught his son the basic skills for string playing. Along with this string playing, Bach began to play the organ which is the instrument he would later on be noted for in history. His instruction on the organ came from the player at Eisenach's most important church. He instructed the young boy rather rigorously until his skills surpassed anyone?s expectations for someone of such a young age. Bach suffered early trauma when his parents died in 1695. He went to go live with his older brother, Johann Christoph, who also was a professional organist at Ohrdruf. He continued his younger brother's education on that instrument, as well as introducing him to the harpsichord. The rigorous training on these instruments combined with Bach?s masterful skill paid off for him at an early age. After several years of studying with his older brother, he received a scholarship to study in Luneberg, Germany, which is located on the northern tip of the country. As a result, he left his brother?s tutelage and went to go and study there. The teenage years brought Bach to several parts of Germany where he...


Michelangelo was pessimistic in his poetry and an optimist in his artwork. Michelangelo?s artwork consisted of paintings and sculptures that showed humanity in it?s natural state. Michelangelo?s poetry was pessimistic in his response to Strazzi even though he was complementing him. Michelangelo?s sculpture brought out his optimism. Michelangelo was optimistic in completing The Tomb of Pope Julius II and persevered through it?s many revisions trying to complete his vision. Sculpture was Michelangelo?s main goal and the love of his life. Since his art portrayed both optimism and pessimism, Michelangelo was in touch with his positive and negative sides, showing that he had a great and stable personality. Michelangelo?s artwork consisted of paintings and sculptures that showed humanity in it?s natural state. Michelangelo Buonarroti was called to Rome in 1505 by Pope Julius II to create for him a monumental tomb. We have no clear sense of what the tomb was to look like, since over the years it went through at least five conceptual revisions. The tomb was to have three levels; the bottom level was to have sculpted figures representing Victory and bond slaves. The second level was to have statues of Moses and Saint Paul as well as symbolic figures of the active and contemplative life- representative of the human striving for, and reception of, knowledge. The third level, it is assumed, was to have an effigy of the deceased pope. The tomb of Pope Julius II was never finished. What was finished of the tomb represents a twenty-year span of frustrating delays and revised schemes. Michelangelo had hardly begun work on the pope?s tomb when Julius commanded him to fresco the ceiling of the Sistine Chapel to complete the work done in the previous century under Sixtus IV. The overall organization consists of four large triangles at...

Oscar Wilde

Oscar Fingal O'Flahertie Wills Wilde was born in Dublin Ireland on October 16, 1854. He is one of the most talented and most controversial writers of his time. He was well known for his wit, flamboyance, and creative genius and with his little dramatic training showing his natural talent for stage and theatre. He is termed a martyr by some and may be the first true self-publicist and was known for his style of dress and odd behavior. Wilde, 1882 His Father, William Wilde, was a highly accredited doctor and his mother, Jane Francesca Elgee, was a writer of revolutionary poems. Oscar had a brother William Charles Kingsbury along with his father's three illegitimate children, Henry, Emily, and Mary. His sister, Isola Emily Francesca died in 1867 at only ten years of age from a sudden fever, greatly affecting Oscar and his family. He kept a lock of her hair in an envelope and later wrote the poem 'Requiescat' in her memory. Oscar and his brother William both attended the Protora Royal School at Enniskillen. He had little in common with the other children. He disliked games and took more interest in flowers and sunsets. He was extremely passionate about anything that had to do with ancient Greece and with Classics. Wilde during school years In 1871, he was awarded a Royal School Scholarship to Trinity College in Dublin and received many awards and earned the highest honor the college offered to an undergraduate, the Foundation Scholarship. In 1874, he also won the College's Berkley Gold Medal for Greek and was awarded a Demyship to Magdalen College, Oxford. After graduating from Oxford, Oscar moved to London with his friend Frank Miles, a well-known portrait painter of the time. In 1878 his poem Ravenna was published, for which he won the...

The History Of Greek Theater

Theater and drama in Ancient Greece took form in about 5th century BCE, with the Sopocles, the great writer of tragedy. In his plays and those of the same genre, heroes and the ideals of life were depicted and glorified. It was believed that man should live for honor and fame, his action was courageous and glorious and his life would climax in a great and noble death. Originally, the hero's recognition was created by selfish behaviors and little thought of service to others. As the Greeks grew toward city-states and colonization, it became the destiny and ambition of the hero to gain honor by serving his city. The second major characteristic of the early Greek world was the supernatural. The two worlds were not separate, as the gods lived in the same world as the men, and they interfered in the men's lives as they chose to. It was the gods who sent suffering and evil to men. In the plays of Sophocles, the gods brought about the hero's downfall because of a tragic flaw in the character of the hero. In Greek tragedy, suffering brought knowledge of worldly matters and of the individual. Aristotle attempted to explain how an audience could observe tragic events and still have a pleasurable experience. Aristotle, by searching the works of writers of Greek tragedy, Aeschulus, Euripides and Sophocles (whose Oedipus Rex he considered the finest of all Greek tragedies), arrived at his definition of tragedy. This explanation has a profound influence for more than twenty centuries on those writing tragedies, most significantly Shakespeare. Aristotle's analysis of tragedy began with a description of the effect such a work had on the audience as a "catharsis" or purging of the emotions. He decided that catharsis was the purging of two specific emotions, pity and...

Scholarship Essay About Goals

Ever since I was a young kid I have always been interested with aircraft. I was so curious of how airplane's fly. I remember taking my toys apart to see how it works. As a kid I wanted to go to the airport to watch the airplanes land and fly and pondered how this happens. Other kids wanted to go to the amusement places. As I grew older I became more and more interested in aircraft and the technology behind it. I always involved myself with aviation early on. I read books and magazines on aviation, took museum tours, built model airplanes. When I was younger my father would take me to aircraft repair facilities where I would watch in great fascination. In my teens, went up to the military bases and befriended many soldiers involved with aircraft and asked them numerous questions. I got to meet many aeronautics engineers and borrowed their old textbooks and read them till the wee hours of the morning. As technology improved with information superhighway, I logged on the web. Stayed up for hours and hours searching through web pages and web pages of information about aircraft and technology. I started my elementary school in the Philippines, then we moved to U.S. and continued my high school education and graduated. Enrolled at the CCSF to pursue my college education and now I am in the 2nd year in CCSF taking aeronautics. My goal now is to obtain my AS degree from the City College of San Francisco (CCSF) so I can transfer to a University and get a Bachelors degree and to continue for my Masters degree in Aeronautics Engineering. I will strive hard to reach the peak level of my career which is a Professor and hopefully to be an aeronautic professor so...

Circus Circus Enterprises Case Studies

Executive Summary: Circus Circus Enterprises is a leader and will continue to be in the gaming industry. In recent years, they have seen a decline in profit and revenue; management tends to blame the decrease on continuing disruptions from remodeling, expansion, and increased competition. Consequently, Circus has reported decreases in its net income for 1997 and 1998 and management believes this trend will continue as competition heightens. Currently the company is involved in several joint ventures, its brand of casino entertainment has traditionally catered to the low rollers and family vacationers through its theme park. Circus should continue to expand its existing operations into new market segments. This shift will allow them to attract the up scale gambler. Overview Circus Circus Enterprises, Inc founded in 1974 is in the business of entertainment, with its core strength in casino gambling. The company?s asset base, operating cash flow, profit margin, multiple markets and customers, rank it as one of the gaming industry leaders. Partners William G. Bennett an aggressive cost cutter and William N. Pennington purchased Circus Circus in 1974 as a small and unprofitable casino. It went public in 1983, from 1993 to 1997; the average return on capital invested was 16.5%. Circus Circus operates several properties in Las Vegas, Reno, Laughlin, and one in Mississippi, as well as 50% ownership in three other casinos and a theme park. On January 31,1998 Circus reported net income of 89.9 million and revenues of 1.35 billion, this is a down from 100 million on 1.3 billion in 1997. Management sees this decline in revenue due to the rapid and extensive expansion and the increased competition that Circus is facing. Well established in the casino gaming industry the corporation has its focus in the entertainment business and has particularly a popular theme resort concept....

Effect Of Civil War On American Economy

The Economies of the North and South, 1861-1865 In 1861, a great war in American history began. It was a civil war between the north and south that was by no means civil. This war would have great repercussions upon the economy of this country and the states within it. The American Civil War began with secession, creating a divided union of sorts, and sparked an incredibly cataclysmic four years. Although the actual war began with secession, this was not the only driving force. The economy of the Southern states, the Confederacy, greatly if not entirely depended on the institution of slavery. The Confederacy was heavily reliant on agriculture, and they used the profits made from the sale of such raw materials to purchase finished goods to use and enjoy. Their major export was cotton, which thrived on the warm river deltas and could easily be shipped to major ocean ports from towns on the Mississippi and numerous river cities. Slavery was a key part of this, as slaves were the ones who harvested and planted the cotton. Being such an enormous unpaid work force, the profits made were extraordinarily high and the price for the unfinished goods drastically low in comparison; especially since he invention of the cotton gin in 1793 which made the work all that much easier and quicker. In contrast, the economical structure of the Northern states, the Union, was vastly dependent on industry. Slavery did not exist in most of the Union, as there was no demand for it due to the type of industrial development taking place. As the Union had a paid work force, the profits made were lower and the cost of the finished manufactured item higher. In turn, the Union used the profits and purchased raw materials to use. This cycle...

Evaluation Of The Effectiveness Of Trade Embargoes

Although I am a strong critic of the use and effectiveness of economic sanctions, such as trade embargoes, for the sake of this assignment, I will present both their theoretical advantages and their disadvantages based upon my research. Trade embargoes and blockades have traditionally been used to entice nations to alter their behavior or to punish them for certain behavior. The intentions behind these policies are generally noble, at least on the surface. However, these policies can have side effects. For example, FDR's blockade of raw materials against the Japanese in Manchuria in the 1930s arguably led to the bombing of Pearl Harbor, which resulted in U.S. involvement in World War II. The decades-long embargo against Cuba not only did not lead to the topple of the communist regime there, but may have strengthened Castro's hold on the island and has created animosity toward the United States in Latin America and much suffering by the people of Cuba. Various studies have concluded that embargoes and other economic sanctions generally have not been effective from a utilitarian or policy perspective, yet these policies continue. Evaluation of the effectiveness of Trade Embargoes Strengths Trade embargoes and other sanctions can give the sender government the appearance of taking strong measures in response to a given situation without resorting to violence. Sanctions can be imposed in conjunction with other measures to achieve conflict prevention and mitigation goals. Sanctions may be ineffective: goals may be too elusive, the means too gentle, or cooperation from other countries insufficient. It is usually difficult to determine whether embargoes were an effective deterrent against future misdeeds: embargoes may contribute to a successful outcome, but can rarely achieve ambitious objectives alone. Some regimes are highly resistant to external pressures to reform. At the same time, trade sanctions may narrow the...