Premium Essay


In: Business and Management

Submitted By jayleneortiz
Words 344
Pages 2
Jaylene Ortiz
BUS 4016
August 3 2014

Unocal in Myanmar

Unocal is an American oil and gas enterprise that was formed in a joint venture to build a pipeline from Myanmar to Thailand. During the time of the investment many other American companies were exiting the country due to protest caused by local government policy. The company’s agreement to clear a path for the new pipeline was a set deal. The controversy between the two began when Myanmar’s army forced their villagers to work under slave-like conditions. The actions of the company were unethical and while they may have not directly participated in such brutality, Unocal as a company should have taken responsibility to oversee what was going on before it escalated. “Together, value and norms shape the culture of a business organization, and that culture has an important influence on the ethics of business decision making.” (mcgrawhill-136) The Philosophical approach to ethics that I believe would apply to this case would be the Straw Man. With this business ethic there is something called the Friedan Doctrine which states that businesses should behave in an ethical manner and not engage in deception or fraud.(Hill,ch4). Although this doctrine is aimed more towards social responsibilities, they go hand in hand. It is unethical in any condition to treat your employees as slaves and mistreat them. This approach allows the company and the manager to prove that they value their employees. That they care about the treatment given to those that are helping make the company what it is. This being said Myanmar is responsible for the suffering as well as Unocal. Unocal had a moral obligation to make sure how the business was being run. Their failure to raise suspicions on the moral standards of the company has shown that they do not have any cares for their company. They did nothing to investigate wages,…...

Similar Documents

Premium Essay

Janata Bank

...decisions under its control. Within MEMR, the "Power Cell" acts as a single point of contact to facilitate the electricity reform and restructuring process, such as development of Independent Power Projects (IPPs). OIL Bangladesh contains small proven oil reserves of 56.9 million barrels and produces around 1,600 barrels per day (bbl/d), of which 1,400 bbl/d is crude oil. Until the beginning of the 1990s, state oil and gas company Petrobangla, along with its eight operating companies (OCs), was the sole player in the Bangladeshi oil and gas sectors. Over the past few years, however, Bangladesh has encouraged foreign oil companies to do business in the country. At present, Shell, Texaco, Scotland's Cairn Energy PLC; Holland Sea Search, Unocal, Rexwood-Okland, and UMC Bangladesh Corporation are active in exploration under six Production Sharing Contracts (PSCs) partnership with Petrobangla. To date, oil exploration has proven largely unsuccessful, although hopes continue, especially onshore. In August 2000, Shell confirmed that it and Cairn Energy were planning to survey the possibly hydrocarbon-rich Sunderbans area, home to the world's largest tiger reserve. Petrobangla regulates the activities of foreign companies under PSCs, and serves as the sole purchaser of oil and gas from the companies. Around 65% of Petrobangla's gross revenues are paid to the government in the form of taxes and compulsory dividends. Petrobangla has been characterized in recent years by a low level......

Words: 3263 - Pages: 14

Premium Essay


...Ethics in International Business Chapter Outline OPENING CASE: Wal-Mart’s Chinese Suppliers INTRODUCTION ETHICAL ISSUES IN INTERNATIONAL BUSINESS Employment Practices Management Focus: Making Apple’s iPod Human Rights Environmental Pollution Management Focus: Unocal in Myanmar Corruption Moral Obligations Management Focus: News Corporation in China ETHICAL DILEMMAS THE ROOTS OF UNETHICAL BEHAVIOR Personal Ethics Decision Making Processes Organizational Culture Unrealistic Performance Expectations Leadership Management Focus: Pfizer’s Drug Testing Strategy in Nigeria PHILOSOPHICAL APPROACHES TO ETHICS Straw Men Utilitarian and Kantian Ethics Rights Theories Justice Theories FOCUS ON MANAGERIAL IMPLICATIONS Hiring and Promotion Organization Culture and Leadership Decision-Making Processes Ethics Officers Moral Courage Summary of Decision-Making Steps SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Google in China Learning Objectives 1. Be familiar with the ethical issues faced by international businesses. 2. Recognize an ethical dilemma. 3. Discuss the causes of unethical behavior by managers. 4. Be familiar with the different philosophical approaches to ethics. 5. Know what managers can to do to incorporate ethical......

Words: 7379 - Pages: 30

Free Essay

Unocal in Burma

...While reading this case, “Unocal in Burma”, I thought that there were human rights issues but there were also situations that I thought might have been beneficial to the residents. There were improvements in the country due to the companies that decided to invest in the Yadana project. I will analyze four approaches namely, utilitarian, rights, justice and caring and discuss my point of view in relation to the case. Firstly, let us take a look at utilitarian approach in connection to Unocal and its Partners decision to invest in the Yadana Field project. Burma is a poor country and has been dealing with poverty for years now. Unocal and the other companies see that if they invest in this project there will be benefits for the companies but also for the people of Burma as well. Although it may be dangerous to transport gas above the ocean in a region where people live, the bigger picture would be how much people will be affected directed or if any at all verses how much revenue this would generate for the country along with benefits. This might be tricky since it is not possible to put a value or cost on someone’s life. Hence the greatest sum total of utility would be the revenue generated from the project allowing the government of the country fifteen percent of the stake, employment for the Burmese, improved health care, improvement in education, small business opportunities and new transportation infrastructure along with the profits for the company. Everyone has gained......

Words: 1049 - Pages: 5

Premium Essay


...Utilitarian perspective:By conducting the project, there were a far greater number of people got benefits from the projects. Rights perspective: 权利角度 Justice Perspective: The justice in ethics is ensuring that all are treated fairly and equally. Unocal position can be examined from the three types of justice. i) Distributive justice: It is concerned with the fair distribution of benefits in the society. ii) Retributive Justice: Punishment is morally accepted for breaking a law or rule. iii)Compensatory Justice: the just way to compensate people for what they have lost when they were wrong by other. Caring Perspective Ethics from caring point of view means the care to relations or care of people near to us. @In ethics moral responsibility depends on 3 components. Knowledge, freedom and involvement. Each factor contributes maximum in the moral responsibilities. Let’s see how Unocal was morally responsible.1.Knowledge:2. Freedom:3.Involvement: Religious Accommodation: An employer is required to reasonably accommodate the religious belief of an employee or prospective employee, unless doing so would impose an undue hardship. Sex Discrimination: 1.Sexual Harassment - This includes practices ranging from direct requests for sexual favors to workplace conditions that create a hostile environment for persons of either gender, including same sex harassment. (The "hostile environment" standard also applies to harassment on the bases of race, color, national origin, religion, age...

Words: 293 - Pages: 2

Premium Essay

Unocal Simac Case

...Business Ethics Prof. Lacey 2/6/2014 Unocal Case Simac 1. The United Oil Company of California (Unocal) made the decision in the 1990’s to invest in energy projects outside of the United States and chose to invest in the “Yadana field” pipeline. There are many stakeholders involved in the international “Yadana Field” natural gas project. Unocal, Thailand’s PTT Exploration and Production Public Co., Total S.A., and the Burmese government (Myanmar Oil and Gas Enterprise) along with the employees of these companies are all major stakeholders in the project. These were the main participants that would directly benefit as a result of the project. The people who were living in the area that the pipeline was to be constructed are important stakeholders. Their lives are going to be greatly affected and interrupted by the construction of the pipeline. Thailand and other countries that are going to be buying the natural gas are also stakeholders as are the people living in these countries. The economies of these countries will benefit from the new source of fuel. By deciding to invest in the project, Unocal was confronted with many ethical issues. Unocal was very interested in participating in the project for several reasons, all of which were related to potential future profits and disregarded any harm that might come to the inhabitants of the pipeline area. Also, the majority of oil fields in the U.S. were near depletion so Unocal would have to begin investing in......

Words: 2149 - Pages: 9

Free Essay

Legal Writing

...2d#914,#927#(Del.#2003)# .............................#passim# ,#Inc.#v.#QVC#Network,## # 637#A.2d#34#(Del.#1994)# .......................................#15# #Inc.#v.#Time,#Inc.,## iii# # # # # # 571#A.2d#1140,#1154 55#(Del.#1990)# ........................#22,#24# Revlon,#Inc.#v.#MacAndrews#&#Forbes#Holdings,#Inc.,## # 506#A.2d#173#(Del.#1986).# ...........................#7,#8,#10,#15# # Stone#ex#rel.#AmSouth#Bancorporation#v.#Ritter,## # 911#A.2d#362,#370#(Del.#2006)# ..................................#7# # Stroud#v.#Grace,## # 606#A.2d#75,#91V92#(Del.#1992).# .......................#18,#20,#21# # Unitrin,#Inc.#v.#Am.#Gen.#Corp.,## # 651#A.2d#1361,#1387V88#(Del.#1995)# ............................#22# # Unocal#Corp.#v.#Mesa#Petroleum#Co.,## # 493#A.2d#946#(Del.#1985)# ..................................#18,#19# DELAWARE'CHANCERY'COURT'CASES' Blasius#Indus.,#Inc.#v.#Atlas#Corp.,## # # 564#A.2d#651,#661#(Del.#Ch.#1988).# ........................#18,#20# Cantor#Fitzgerald#v.#Cantor,## # 724#A.2d#571,#579#(Del.#Ch.#1998)# .............................#16# # Consolidated#Forest#Industries#v.#BTRT#Forest#Products,#Inc.,## # C.A.#No.#6943VCJ#(Del#Ch.#Jan.#26,#2012)# ....................#8,#9# ' DELAWARE'STATUTES' 8#Del.#C.#§#362(a)# ..........................................#7,#8,#9# UNITED'STATES'SUPREME'COURT'CASES' Cedric#Kushner#Promotions,#Ltd.#v.#King,## iv# # # # 533#U.S.#158,#163#(2001)#......

Words: 6285 - Pages: 26

Free Essay

Phi 445 Week 2 Quiz

...3. Negative rights are defined entirely in terms of the duties others have not to interfere with you. (Points : 1) 4. Cost-benefit analysis is used to determine the desirability of investing in a project (such as a dam, factory, or public park) by figuring whether its present and future economic benefits outweigh its present and future economic costs. (Points : 1) 5. Rule utilitarianism looks only at moral rules of a particular action. (Points : 1) 6. Intrinsic goods are things that are desired for their own sake, such as health and life. (Points : 1) 7. Considerations to follow in determining what the moral thing to do might be are: (Points : 1) 8. UNOCAL worked with the Burmese army to push the pipeline using forced labor. (Points : 1) 9. Major problems with the utilitarian reliance on measurement include: (Points : 1) 10. UNOCAL agrees that it shares responsibility with the Burmese army over treatment of pipeline citizens. (Points : 1) 11. Many economists now advocate retaining the market system and private property while modifying their workings through government regulation. This is known as a: (Points : 1) 12. According to Locke, the power of government should be: (Points : 1) 13. Modifying Locke's views on free markets, Adam Smith's arguments rest on __________ arguments that unregulated markets and private property will produce greater benefits than any other system. (Points : 1) 14. Smith's utilitarian argument is most commonly criticized for making what some call......

Words: 382 - Pages: 2

Premium Essay

Article Review - the Powerful Antitakeover Force of Staggered Boards: Theory, Evidence, and Policy,

...delay which is risky and costly for both parties and worse, it may backfire on the target company. For the above reasons, the authors of the Article propose for a judicial remedy by the court to order the ESB target to redeem the pill where the hostile bidder has won its first proxy contest and has obtained support from other shareholders to proceed with the bid. Their reasoning is that the bidder’s one win of the election will put sufficient pressure on the target’s incumbent board members to concede. Furthermore, the bidder’s win would be regarded as indication of the shareholders’ support of the offer, thus, adding more pressure on the board. According to the authors, this proposal is consistent with; (1) the two prongs test set out in Unocal; (2) the principle in Moran against arbitrary rejection of an offer; and (3) Unitrin’s non-preclusive/non-coercive and reasonable plan. In my opinion, there are many good reasons to support the de-staggering board of directors’ movement. However, I am skeptical of the recommendation laid out by the authors, for the following reasons: First, the authors’ proposal suggests to me that board of directors’ decision can be made even if the board did not reach a majority vote (albeit this decision is somewhat coerced by the court). To me this defeats the cardinal purpose of having a board of directors in a company, which is supposed to gather, discuss and make decision through voting. For the board to disregard, or technically be......

Words: 1553 - Pages: 7

Premium Essay

Risk Management

...permission in writing from the publisher. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ISBN 0-13-008754-8 Pearson Education LTD. Pearson Education Australia PTY, Limited Pearson Education Singapore, Pte. Ltd. Pearson Education North Asia Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Pearson Education, Upper Saddle River, New Jersey A D V I S O R Y C O M M I T T E E Arnold H. Kaplan (Chairman) Chief Financial Officer UnitedHealth Group Peter G. M. Cox Chief Financial Officer United Grain Growers Limited Gracie F. Hemphill Director—Research Financial Executives Research Foundation, Inc. Karl A. Primm General Auditor Unocal Corporation William M. Sinnett Project Manager Financial Executives Research Foundation, Inc. III FINANCIAL TIMES PRENTICE HALL BOOKS For more information, please go to Thomas L. Barton, William G. Shenkir, and Paul L. Walker Making Enterprise Risk Management Pay Off: How Leading Companies Implement Risk Management Deirdre Breakenridge Cyberbranding: Brand Building in the Digital Economy William C. Byham, Audrey B. Smith, and Matthew J. Paese Grow Your Own Leaders: How to Identify, Develop, and Retain Leadership Talent Jonathan Cagan and Craig M. Vogel Creating Breakthrough Products: Innovation from Product Planning to Program Approval Subir Chowdhury The Talent Era: Achieving a High Return on Talent......

Words: 73678 - Pages: 295

Premium Essay


...activities of transnational corporations have violated human rights: the Union Carbide chemical leak in Bhopal, India (Stephens, 2002); the Nike, Disney and Levi Strauss sweatshops in such countries as Indonesia (Nazeer, 2011); the Wal-mart factories in China and Honduras (Clade & Weston, 2006) ; the case of Royal Dutch/Shell in Ogoni, Nigeria (Wiwa, 2000); the operations of Unocal Oil Corporation in Myanmar (Chambers, n.d.) the policies of British Petroleum in Columbia (Human Rights Watch, 1998); and the actions of Texaco in Ecuador, and Freeport-McMoRan in Indonesia (Ballard, 2001). 67 International Law Research Vol. 1, No. 1; 2012 Where a transnational corporation invests in a state with a repressive government and or a region where there is political unrest, Stephens (2002) argues that it is impossible for the corporation to operate without becoming complicit in human rights violations, even if it is just on the basis of security concerns as to property and employees. She cites several examples including the high profile Unocal case (Note 2) which was settled by Unocal in 2005 by the payment of compensation to the plaintiffs who had alleged forced labour, rape and murder by the Burmese military. It should not be implied that transnational corporations seek out repressive regimes in which to maximise corporate profit, but there can be no argument that these corporations seek to minimize production costs by taking advantage of varying costs......

Words: 7763 - Pages: 32

Free Essay

Critical Thinking and Ethics

...and values of thinking critically apply to ethical logic because our instincts may be to do what’s morally right, but we should weigh our decisions before acting. We need to consider if our actions will do more harm than good, perhaps we are acting out of self-interest, or maybe feel a moral obligation despite the consequences. For example, in the early 1990s when Unocal decided to go into Burma to build a gas pipeline. Did they consider that partnering with a military dictatorship that has a history of human rights violations would benefit their people? Or were the stakeholders just focused on the end result despite the cost to achieve it? Unocal compromised moral and business ethics by not widening their perspective beyond generating revenue. If everyone followed a logical path, there would still be a need to principled decision making. Both have a close bond in regards to right and wrong. Logic pertains to the reasoning process of a difficult situation where ethical actions determine the outcome. Rationale helps us critically think about a difficult situation before applying our ethical deeds. For example, Unocal reasoned the benefits of employment, education and medical assistance to the region’s people were the pipeline was being constructed. Giving careful thought to their plans before executing because of the area’s instability. Their moral actions, in this regard, helped approximately 40,000 people in the area. Without ethical decision making practices, logic would......

Words: 256 - Pages: 2

Premium Essay

Ethics / Unocal in Burma

...Unocal in Burma Charles L Currier ETH 316 September 8, 2014 John Bevell Unocal in Burma What is the moral responsibility of all participants? Burmese Government /Military: The moral responsibility of this Government / Military should be to make sure that their countrymen are compensated for the work that they do. Sense the hard labor is done by the Burmese people then their Government should hold Unocal responsible for paying them a daily wage for the work that they do. Unocal: Moral responsibility of Unocal is to take the responsibility to do research on the said territory and could choose not to go into an impoverished country where the Government / Military have no regard for the rights of humanity. Choosing to continue embarking on business agreements with impoverished counties without doing the proper research is unethical and immoral, and can show how a company can continue turning a blind eye to make a profit. What are the stakeholders' moral failings? The moral failings of the Burmese Government / Military, and Unocal are that they hold no regard for the Burmese people. Value, Virtue, nor ethics are being used here; it is an exploitation of a people. There is no one being held accountable for their actions. Unocal puts up a good front for special visitors, even though the United States State Department released findings that state differently about what is going on in Burma. What ideals or obligations are in conflict? The ideals......

Words: 609 - Pages: 3

Premium Essay


...between the returns of OCs and MCs. As Hindley suggests, the very existence of a statistically significant difference in performance between OCs and MCs indicates that there are some managers whose underperformance goes unpunished by the market. In the final part of this paper we present two hypotheses to explain the residual inefficiency in the market. Put quite simply, there are two explanations as to why the market for shareholder control retains inefficiencies (1) owners lack the information to contest management decisions or (2) owners lack the legal recourse to do so. The factors that help create the inefficiency in the market for control are equity market liquidity, informational asymmetry, the Business Judgment Rule and the Unocal anti-takeover rule. Grosfield (2006)18 studied the effect of owner concentration and productivity for firms in the Warsaw Stock Exchange on an annual basis for the 12 year period 1991-2003. In this study Grosfield employed regression analysis to predict the Tobin's q which can be used as a proxy for determining the relative value of the firms. This study reports that owner concentration and productivity were positively correlated. The author argues that in those firms '7 See Monsen, Chiu and Cooley data sheet (Table 1). 18Grosfield, I., "Ownership Concentration and Firm Performance: Evidence from an emerging market" William Davidson Institute Working Paper No. 834. Published by Scholarly Commons at Hofstra......

Words: 10704 - Pages: 43

Premium Essay

Critical Thinking

... Critical Thinking Student’s Name University Affiliation Critical Thinking Analyze your chosen scenario from a critical thinking perspective. In this assignment, we are going to focus on the Unocal in Burma. Unocal is a company that was established in California in 1890 to help in the development of the oil fields in the country. However, the company highly failed in its obligations since, by 1990s, the oil fields in the United States were performing very poorly almost reaching depletion and the company turned its back and started to invest in other oil firms in the United States. This led it to invest in Burma since it was attracted by the cheap labor, availability of natural gas resources, political stability and also the connection that the region offered to other international markets. They managed to start their business in the area of laying down a pipeline wit the government providing them with security. Their business was however associated with violation of human rights, relocating individuals forcefully, forced labor as well as physical torture of the residents. What is the moral responsibility of all participants? The company first of all given the fact that they had been granted the right to conduct business in the country had the moral obligation to be socially responsible. The state provided them with a platform to do their business and make profits and in return, they should have given back to the society through corporate social responsibility...

Words: 645 - Pages: 3

Premium Essay

China World Power

...Is China really the Enemy? Conflicts between the US and China yet arise, as Chinese Firm, Cnooc, tries to buy a midsize American oil company. Cnooc is one of the largest oil firms in China and is government owned, and primarily wishes to acquire Unocal for $18.5 billion, and are willing to pay more if necessary. Although tensions arise in the US, as several states are against the deal from happening and are trying to veto the decision of the firm. Cnooc is mainly trying to procure Unocal for its offshore natural gas fields and its expertise in offshore exploration and production so that China can move from using coal to natural gas for energy. However, Republican representative, Richard W. Pombo, thinks that the acquisition of Unocal would be a threat against the national security as oil is one of the key commodities for military activity. People are against this deal from happening as they see China as a rising threat economically as well as militarily. Similarly Senator Bryan Dorgan drafted three anti-Cnooc legislations, as he believes that it would manufacturing jobs would be lost due to the acquisition. He also firmly believes that the Chinese government does not trade fairly with American companies as; they would not allow any Chinese company to be sold to an American Company, and thus the US should do the same. Similar situations rose over China, as the “economic modernists” see China as becoming the next superpower alongside the US, if fair trade is implemented, and...

Words: 491 - Pages: 2