ExxonMobil and the Chad/Cameroon Pipeline

A CEO of any multi-million dollar company is always left with ethical dilemmas that affect their profession. Most of these ethical dilemmas always center on employees, personal beliefs and environmental issues. In this case CEO Lee Raymond of ExxonMobil, was faced with the decision of building a pipeline in Chad and Cameroon. Until a Certain point in time, the pipeline was a shared interest among Shell and TotalFinaElf. However both the companies have backed from the project, due to future economical issues. Although on paper it seems that both companies were doing the best for the environment, but it was an environmental risk that these companies were facing. If such environmental risk was to take place the company could face up to billions in lawsuits. The CEO Lee Raymond was faced with the decision of whether building the pipeline would be ethical or not. Other than environmental factors, there were many other issues standing in his way. For example the lively hood of the people in Chad and Cameroon will be affected, as well as the indigenous people of Cameroon. Nearly 64 villages and their citizens will be affected by the construction of the pipeline. However the biggest dilemma that Lee Raymond faces is that if not ExxonMobil, than another company will continue with the project.

There are many ethical issues surrounding the construction of the pipeline, such as corrupt politicians, the environment and the people. Developing countries such as Chad and Cameroon have a problem with corrupt politicians. Cases of bribery always popping up from time to time and it will be likely to arise with this matter. This could seriously affect the reputation of ExxonMobil, as there are already many instances of this in the past. If such information were to leak these politicians could loose their job. All thought the president of theses countries encouraged western companies to extract their oil, it still stands as an unethical practice. The people of Chad and Cameroon are very unique; they are being brought up in a developed world in an undeveloped country. With very little communication from the outside world, they are not open to what’s right and what’s wrong. Especially the indigenous people of Cameroon have no say in the building of the pipeline. If the pipeline were to be build there is humanitarian problem of ethics involved. The pipeline would harm the lives of many people. By using the reversal tactic, you can see that if similar pipeline were to harm the lives of your family, you would not be in support of this pipeline. You could also argue that the pipeline is the greatest bet that these nations could become more developed but at what cost? Finally the environment plays the greatest role in this decision of building the pipeline. Other than the financial liability that ExxonMobil would face, if a certain environmental issue were to rise, the ethical environmental issue is more at stake. The Earth is home to everyone but its lifespan is limited to companies like ExxonMobil. Building a pipeline in the rich region of Chad and Cameroon will destroy a land, which is already nearly dead. There is already not enough drinking water in South Africa; this pipeline is going to make the availability of clean drinking water very scares compared to before. The animals and creatures that live in that part of Africa are going to go extinct because their homes will be lost. Since this pipeline is very large these animals cant migrate to a better environment to live. All these 3 issues combined will most likely affect LEE Raymond’s decision to build the Pipeline.

Are there really many alternatives to this issue? It would not seem so. As Oil company the practice is already very unethical rather than economical. As an oil company you’re faced with this dilemma every single day, an oil company will always harm the environment and its people. However there can regulate methods, which can be used to prevent such actions. Environmentally friendly options to clean the mess and extract in a way that wouldn’t harm the environment, should be imposed. In this scenario however there are many factors surrounding the extraction of crude oil, even with regulated practices it is impossible to satisfy all the needs. The best alternative is to hold on to the offer until better technology enables the company to extract the oil from the ground in a safer manner. As a CEO your biggest obligation is to bring financial benefit to your company. If you Lee Raymond do follow through and create the pipeline with all these regulations and compensations for the people, he will be selling a very expensive barrel of oil and therefore will loose profit. It is probably the best interest of ExxonMobil to leave the extortion of Oil in Chad and Cameroon because the opportunity costs of not extracting the oil from the two countries are not that great. Of course you will be faced with the same dilemmas in other countries but that is just the nature of the business.

Wicks, A. (2010). Business ethics: A managerial approach. Boston: Prentice Hall.