...Introduction 2 2. Evaluation of ethical performance 3 2.1 Environmental issues 3 3. Evaluation of financial performance of Santos 5 3.1 Share price history 5 4. Recommendation 7 References 8 Executive summary Evaluating companies for their ethical and financial performance are important processes before deciding whether these firms could be invested in. The report aims at analyzing the energy company of Santos and to assist the client who is interesting in making ethical investment. This report focuses on environmental concern with pollution and the financial performance. The results indicate Santos did not perform ethically. The way of fracking could cause water pollution as well as fracking would endanger the health of human beings. In terms of financial performance, analyzing of financial performance of share price history over five past years indicated decrease. Overall, the graph shows that the share price fall dramatically in these years. It is recommended that not to invest in Santos, due to the ethical issue of fracking would pollute environment and damage health of people and the decline of the share price over five years. 1. Introduction This report was prepared for a client to advice whether Santos is an appropriate company to invest in. The definition of ethical investment can be defined as decisions of investment which investors made depend on whether behaviors of the company are ethical (Hudson 2005, p. 641). The one of...
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...merging, the board was only acting on their best interests and not the shareholders. The most essential part of the merger agreement was the payments made to officers and the members of the board of directors of XTO. However, ExxonMobil was underpaying for XTO, which was harming the shareholders. 2. Much has been said during the recent financial crisis about top executive salaries being way too large, especially in those companies receiving a government bailout. The Obama administration sought to rein them in through threats of taxation or other forms of moral suasion. Do you believe that the government has an ethical right to intervene in a company’s executive compensation program? Support your answer with reference to ethical reasoning. Review Exhibit 1. Do you believe that the agreement in the Form 8-K about payments to officers and board members raises any ethical issues? What is the role of the business judgment rule in such decisions? Government...
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...1, The economic arguments in favour of fracking Enter “fracking,” the process used to access the country’s massive natural gas and oil reserves and the latest energy extraction method to come under intense fire. Ironically, it’s because of fracking that the United States now has enough oil and gas to potentially meet what has been an insatiable need for energy. (1) The economic arguments concerning fracking can be derived from two aspects, national and international. Because everything related to a country’s economy is always from these two parts. National: 1, It has already driven down natural gas prices to the point where utilities are replacing dirty coal-fired power plants with cleaner natural gas-burning plans and increasingly vehicles are burning natural gas instead of dirtier gasoline. 2, As the shale gas is increasingly explored, the coal and other fuels will be replaced. It can lead to country becoming energy independent to reduce some threats. 3, Fracking is a big industry, which can give a boost to national and local economies in forms of revenue. 4, Fracking need much more people to join in to play different roles such as geologists, well drillers, office workers, truck drivers, construction workers. International: 1, This will reverse the global energy scarcity woes, rising shale gas production has increased alternative liquefied natural gas (LNG) supplies to Europe in the form of LNG displaced from the American market. (2) 2, For some country, it is...
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...which currently presents several environmental concerns to the residents located near the mine, and a representation of the general public who believe that hydraulic fracturing is not an ethical method of extraction. Talisman Energy has recently been granted a long term contract to utilize fresh water from BC Hydro’s Williston Reservoir. Local residents are concerned about the additives used in Talismans fracking process, as well as the depletion of their fresh water source. The major environmental concerns associated with hydraulic fracturing include the presence of fracking additives in ground water supply, human induced earthquakes, and the use of large amounts of fresh water supply. Talisman Energy’s proposed plan of action was evaluated using a set of ethical decision making criteria in order to determine if Talisman Energy can be considered an ethical and socially responsible company. An analysis of the criteria determined that Talisman Energy currently fails to operate as an ethical and socially responsible company. Specifically, Talisman Energy did not take the initiative to evaluate more sustainable fresh water sources. It was concluded that upon further exploration in water management technology, Talisman Energy’s hydraulic fracturing project has the potential to satisfy the ethical decision making criteria. BACKGROUND – Hydraulic Fracturing Hydraulic fracturing is a technology used in the oil and gas industry in order extract fossil fuels used as a source of...
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...mortality rates worldwide, due to hunger, depression, suicide and lack of resources. My choice would be the “fracking” proposal which can avert the recession & boost the economy. “Green Wind Turbine” would be unsuccessful during recession, since its expense is more than its revenue. And, without economic viability all other stakeholders’ interests are lost. Utilitarianism supports “fracking” as it produces “greatest good for the greatest number”. In the end it will create millions of jobs, help boost economy, meet Canadian and US oil needs and supports ‘energy security’. We cannot address all concerns from all stakeholders at all times. “fracking” serves the majority of Primary and Secondary stakeholders which have a higher priority in the stakeholder typology. The non-social stakeholders are dormant and are a minority. Utilitarianism being a consequential principle focuses on the ends, and ignore the means. The shortcoming of “fracking” is that on the way to boost economy via oil production, it’s also boosting environmental and ecological dangers. Emissions, pollution, wastes, chemicals, contamination are bi-products of oil extraction by “fracking”. This principle drives us to ignore the primary and secondary non-social stakeholders and may cause an irreversible damage, while focussing on producing utility for the majority. The principle of Moral Rights supports the “fracking” proposal because it is giving the current generation the right to live and a means of livelihood, job...
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...Introduction Hydraulic fracturing, or fracking, is a drilling technique used for extracting oil or gas from deep under the earth’s surface. It has been around for more than 60 years, but has emerged as a controversial topic in the US energy sector. The highly debated activity has become a focal point to environmental and political issues. Since 1949, the beginning stages, which started in Texas and Oklahoma, fracking has fueled an environmental debate of clean air, drinkable water, clean energy, and its large contribution to green house gases. This process is much safer and cleaner than the old method known as the “Exploding Torpedo,” but still leaves room for controversy due to its profitable amounts of oil and the lingering effects. The gas and oil industries diligently worked to perfect a fracking process to extract more oil. After hydraulic fracturing began commercializing, this new oil extracting process allowed the US to become the worlds largest oil and gas producer. What is hydraulic fracturing? Hydraulic fracking involves pumping water, chemicals, and solid materials down an oil or gas well under extremely high pressure to break apart rocks or pockets that contain oil and gas. The solid materials used with the water and chemicals usually is sand and holds the cracks open after they are formed. When the cracks are held open oil and gas can easily flow to the well with less resistance. This new technique of fracking has allowed a huge boom in the oil and gas industries...
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...Working Outline Thesis: The use of hydraulic fracturing or “Fracking” to provide natural gas is immoral because the risks far outweigh the advantages on an environmental and ethical scale. I. What is Fracking? A. Used to release oil or gas from underground formations of shale beds that are too hard to mine. 1. It can pollute local water systems * Toxins from the fracking leak into water systems and poison them * The toxins can get into the drinkable water supply and ruin them 2. The chemicals used damage the environment * The greenhouse emissions from fracking are almost less than half of what we get from coal furnaces. They still have an effect on the air, so one form of pollution changes with another, when there are clean air energy alternatives that have not been utilized effectively. * The recovered water that is used during fracking is usually held in open pits close to the well site causing contamination to nearby wildlife. II. Fracking consumes over one million gallons of water, which only half is recoverable. A. The amount of water used to frack some wells is well over a million gallons. Only 30 to 50% of that water is recoverable. B. 40,000 gallons of chemicals are used per well in fracking. Many of these chemicals haven’t been disclosed to the public at all. III. Fracking can cause a buildup of methane gas in groundwater in surrounding areas. A. Methane gas is a highly flammable, colorless and odorless gas....
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...BIBLIOGRAPHY 10 Introduction Over the last few years controversy surrounding Fracking has reached new levels. Fracking or hydraulic fracturing as it is also known as is the process where natural gas is extracted from layers of shale rock deep within the earth. Fluids are injected into the earth at high pressure which then creates new passages from which the gas is then extracted. The process of fracking has created controversy due to the fact that many believe the process has had a negative impact on the environment. Anti-fracking groups believe that the process in morally wrong due to the vast quantity of water which is required in order for fracking to take place while others believe that fracking is responsible for the increase in earth tremors. On the Other hand Pro-fracking groups believe that the claims regarding the negativity surrounding the dangers of Fracking are unfounded and the process is completely safe. The issue of fracking in the area has seen the emergence of groups with polarising points of view, those who believe that fracking will benefit the local region and those who believe that fracking will cause long lasting damage to the environment, local wildlife and the health and wellbeing of the local community. This essay will look at the historical context of the issue and the underlying causes of the conflict to date. The essay will also look at the main stakeholders involved in this issue and will put forward proposals to transform the conflict into a situation...
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...A Colossal Fracking Mess Just a decade ago, only the smallest sliver of the U.S. population had even heard of hydraulic fracturing, or fracking. Today, it’s one of the most incendiary environmental topics going. Natural gas is found underground, and is produced when trapped gas is released above ground. Hydraulic fracturing is a process that extracts natural gas from the ground. In order to try to break our country’s dependence on foreign oil supplies, we have begun to dip into our own natural gas supply. As harmless as the billion dollar producing oil companies would want us to believe, environmental groups, scientists, and average citizens have raised concerns about the negative impact of hydraulic fracking on the environment and surrounding communities. From an ethical perspective we might look at the harms and benefits of fracking. Is U.S. energy independence more important than the potential for harm to those affected by fracking procedures? Hydraulic fracturing poses the greatest current threat for communities because its potential for environmental and human damage is vast and its management is fairly unregulated. Modern day hydraulic fracturing results from the marriage of two technologies: hydraulic fracturing and horizontal drilling. Although these technologies are not new, it was not until 2002 or 2003 that they were first combined. In a typical fracking operation, pressurized water, sand and chemicals are injected into shale rock formations to release trapped...
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...Critical Thinking Scenario John Doe ETH/316 August 5, 2015 Critical Thinking Scenario Wyoming's Upper Green River Valley is a crucial link to Yellowstone ecosystem. Every year thousands of animals including Antelope, Elk, and Mule deer, pass through the valley on a long migration from the Grand Tetons to their winter grazing pastures. This valley is also home to the rare Sage-Grouse. The valley is also the home to the vital trout habitat of the headwaters of the Colorado River. People have compared the green valley river environment to the environment of the Serengeti, because of the spectacular variety of wildlife. Locals and environmentalist say it is starting to look like Saudi Arabia because of the natural gas drilling sites. So the question is to drill or not to drill this is what we will discuss in this essay. Scientist and other experts claim that there’s large pockets of natural gas in this geological region and is attracting many natural gas companies to drill and extract this natural gas. Nightline reported an article stating “Experts have estimated that there’s roughly 20 trillion cubic feet of gas here. That would supply the entire nation’s natural gas needs for about a year. The same geological formation that creates a natural corridor for wildlife also holds rich deposits of natural gas, miles beneath the surface. This country’s increasing demand for natural gas coupled with new technology is turning this area into a bonanza for the energy industry...
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...today you will see most big company have a team that dedicate exclusively to corporate social responsibility. Companies Corporate Social Responsibility can be easily seen on their websites. A formal statement or code of ethics summarizes corporate values, and expectations for many companies. The societal expectations on corporate social responsibility of businesses are increasing drastically. Corporate sector has been under pressure to implement environmentally responsible practices. Oil and Gas is top among those sectors. There have been a lot of concerns regarding the use of Hydraulic Fracking in the industry. Some of the concerns are that chemical could potentially leak into the water aquifer and contaminate the water sources. Another concern is the disposal of fracture fluid by reinjection it into sub-surface disposal wells has the potential to cause earthquakes. While it’s true that fracking may cause earthquake. They are so small (micro earthquake) that they are rarely felt and can’t cause any structural damage. USGS’s studies suggest that the actual...
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...Solution and Advantages Derrick L. Catley Strayer University Professor Dimetri Richardson ENG 215 February 21, 2013 Is Hydraulic Fracking the Answer For the Future Some may say that hydraulic fracturing is the key to our future. Various people say that it will give America a secure energy future. A number of people say it is a step to energy independence. Others say that it is a threat to our society, environment, and our water supply. Others also say that it can cause major damage to home and areas in and around the fracturing sites. Corporations and many in the legislative branch want to see hydraulic fracturing as a major part of America moving forward towards energy independence. For the majority of individuals, the good outweighs the bad. The people in and around these fracturing sites tend to disagree. Logically, this would be the thing to do if safety measures were to be tightened. Ethically, they have to think of the dangers that it can pose to humans, wildlife, and the water supply. This is a very emotional subject to the people that live within the boundaries of the danger zone involved with hydraulic fracturing. Hydraulic fracturing regulations should be changed because blowout, gas leaks, and home explosions can occur during hydraulic fracturing undertakings (Ehrenberg, 2012). With hydraulic fracturing being a major contributor to earthquakes, gas leaks, contaminated drinking water, and various other catastrophes, it is easy...
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...Research Based Argument Paper David Odenweller 05/04/2014 Welcome to the machine Hydraulic fracturing has become one of the key issues of our time, due to the important part it plays in our nation’s ambitions for a clean and sustainable energy future. Due to recent technological advances in horizontal drilling techniques, the vast natural gas reserves found within the shale formations underground in the United States have become easily accessible. Responsible development of these resources is believed to be key to a sustainable financial, and environmentally prosperous future for America. However, recent environmental and health concerns beg to differ, and question whether these new developments pose more of a threat to americans than they are worth. Nature sustains life on our planet. Humans have developed an organization of society that runs on machines. What does it take to run the machines that power our world? Our society also runs on money. So anything that plays into the running of our society must must invariably be tied to how it profits the people in charge of running things. How does it benefit us as a whole? This question is larger than the debate which this paper addresses, yet it is valid in that it is an overarching theme that drives the situation behind the issues within. A big part of what our economy has deemed is important in order to sustain the current level of comfort that we have been sold is largely based on non-renewable energy sources such as...
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... but also the stakeholders reputation and public pressure and criticism that they have to further deal with. 2. Compare the risk that BP, Exxon, and the fracking industry continue to face in providing adequate supply of energy? The main risks that each company will face are leaks, spills, and explosions happening. Other than those main 3, they also have to deal with reputation of customers and people who buy their oil. For instance, a loyal BP customer found out about the oil spill harming the ocean, now he will probably switch to Shell oil because their gas isn’t harming the environment. Also, both deal with political and financial risk. Activist groups will bring pressure on them. For example the National Resource Defense Council. Lastly, financial risk all the money you spend trying to repair and clean up oil spills, you could’ve avoided that and the money could’ve went to a better cause. 3. How can ethical leadership help the oil and gas industry to manage risk? Ethical leadership and help risk management by helping the environmental risk with organizations such as the IPIECA. Having a trustworthy organization that can stand up and speak for your problems would be highly beneficial by gaining trust from the public back again. Also, taking responsibility on both high and lower level positions of the issue will help manage risk...
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...principles that guide the direction a business behaves. Behaving in an ethical demeanor encompasses deciding what is right from wrong and making the “right” decision. Ethics written into a companies mission statement assists in clarifying a company’s goals and intentions. In this case, Matt Dyson is the founder and president of an ethical bank primarily focusing on environmental sustainability. Matt is faced with the difficult decision between profitable business ventures or ethical ones. Matt began the Silver Lake Green Bank with an assembled board of directors out of concern for his hometown environment of Colorado. The image promoted was environmental stewardship. To solidify their image, a famous architect was commissioned to build an office that reflected environmental values. Solar-powered windows and a set of wind turbines are examples to showcase their environmental take. Articles and TV segments were marketing techniques used to gather support from local depositors and borrowers. The ethical bank became successful in attracting clients who have grown tired of global banks, but to succeed financially, the bank needed clients that will take out big loans. Two big companies answered the bank’s calling but with a price. The bank’s opportunity to reap profitable returns came in the form of a gun manufacturing company and an engineering company specializing in hydraulic fracturing. As Silver Lake is an ethical bank, these two loan applications caused rifts among the directors...
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