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Business Ethics Case Study - Shell drilling for oil in Artic waters.

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´╗┐Contents Page Assignment Title: Oil Drill in Arctic Realises How Ethical Shell Is Industry: Oil and Gas Industry Company: Royal Dutch Shell Page 1. Introduction????????????????????????..2 1. The Case: 1. The situation and key facts????????.?????.2 1. The key stakeholders and their involvement?????..3 1. The ethics and values of the case??????????..3 1. Solutions 1. Solution one??????????????..???..??.5 1. Solution two???????????????.????....5 1. Solution three????????????..???????6 1. Evaluation 1. Evaluation one?????????????????...?..7 1. Evaluation two??????????????????.....7 1. Evaluation three????????..??????????8 1. Conclusion????????????????????????...9 1. List of references?????????????????????.10 Introduction Corporate social responsibility has become a prevailing term when examining the responsibilities of businesses, beyond economic and legal obligations, in making decisions. The degree of ethical norms the oil and gas industry is abiding by affects not only the consumers, who may suffer from high petrol prices, but also the environment, such as from oil spills. This paper will first describe the situation of the oil drilling programme in Arctic waters, which has raised a controversial dispute. In addition, its impacts on stakeholders will be discussed. Beyond concerning the key stakeholders, the ethics of Shell Petroleum in its new project are being reviewed by justifying its code of conduct. Finally, three approaches are suggested along with evaluation. ...read more.


It is suspected that corrosion and cracks are likely to occur during winter and, given that the oil will flow more slowly in the pipeline, this may present a greater risk. Solutions As oil exploration in the Arctic creates a dilemma for the Arctic?s conservation work, three possible solutions are suggested and divided into three aspects, which are ?before oil drilling?, ?after oil spill? and ?respecting the Arctic indigenes?. 1. Solution one In response to minimising the negative externalities before oil drilling, an all-embracing scientific assessment should be provided by federal resources management agencies (the Pew Environment Group, n.d.). The complete scientific plan should maintain a deeper understanding of environmental conditions, ecosystem structures and different marine species, as well as the impacts of oil spills. A similar recommendation by the United States Arctic Research Commission (USARC) (2012) suggests that the collected data can be used to tailor an accurate range of operation conditions, which reduce human errors. Hence it will be possible, at least, to mitigate blowouts. 1. Solution two With the consideration of environment groups, once an oil spill occurs, stopping the flux of crude oil as soon as possible is crucial to minimising environmental damage. ...read more.


1. Evaluation three After examining the solutions to the environmental hazards, some suggestions are going to be reached concerning the impact on indigenes. Shell Arctic (n.d.) claims that the oil drilling programme can create new jobs or other fringe benefits. Yet, as the Pew Environment Group (n.d.) suspected, it could indeed cause upheaval for local communities and indigenous cultures. For example, the immune systems of the Arctic?s inhabitant might not be able to cope with the exotic bacteria brought by an influx of workers, causing health problems and affecting the way they live. Besides, owing to the oil development, natural resources would be either occupied by the petroleum company or polluted by the drilling process. This would force natives to change their original lifestyle in order to survive. Conclusion In conclusion, as the Arctic is a pristine and vulnerable environment, not only does the oil drilling programme affect the indigenous subsistence lifestyle, it also lowers the environmental quality and endangers the majority of marine species. Thereby, suggestions are mainly on preparation work and precautionary measures which, however, have different limitations. Rather than taking consideration of pursuing more and more fossil fuel, it appears it would be a better idea for Shell to develop renewable energy to satisfy future energy demands, energy which is environmentally responsible and financially sustainable. ...read more.

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