Question

Read and answer the following three question provided below For the case

Going Green

For many people, the notion of environmental sustainability does not fit well—if
at all—with a giant oil company. This is an industry, it would seem, that thrives
on the ever‐increasing consumption of fossil fuels, not to mention environmental
catastrophes such as oil spills. José Sergio Gabrielli de Azevedo, CEO of Brazil‐
based oil giant Petrobras since 2005, says he is determined to change that image.48
Gabrielli describes his personal politics as progressive and leftist, pointing to

his 1970 arrest by the Brazilian army as he was protesting his country’s then mili-
tary dictatorship. After receiving a PhD in economics and joining the faculty of the

London School of Economics, Gabrielli joined Petrobras in 2003 as Chief Financial
Officer. His fast rise to the top was helped by his close personal and political ties
with Brazil’s ruling Workers’ Party.
A State Company
Petrobras was founded by the government in 1953 under the nationalist slogan,
“The petroleum is ours!” Petrobras held a monopoly until 1997, when the

government gave up its complete ownership (although it still controls a majority

of voting stock) and allowed for competition. Since then, the company has com-
piled a troubling history of disasters. In January 2000, a poorly maintained pipe-
line spilled oil into Guanabara Bay for two hours before the leak was detected.

Six months later, a Petrobras refinery spewed millions of gallons of oil into two

nearby rivers. A BBC news report referred to “an embarrassing level of incompe-
tence” on the part of Petrobras managers. Then, less than a year later, a Petrobras

drilling platform—the world’s largest at the time—blew up, killing 11 employees
and dumping 300,000 gallons of oil into the water.
Gabrielli saw that troubled history as a business problem to be solved as

well as an environmental threat to be addressed. “From a purely financial per-
spective,” he said, “environmental mismanagement was just bad business. From

an investor relations perspective, ignoring the growing demand for transparency
and sustainability was also bad business.”49 Plus, added Gabrielli, his personal

values and political beliefs led him to move Petrobras into a position of environ-
mental leadership.

Gabrielli Acts
In pursuit of his goal, Gabrielli took a number of steps:
• Increasing the budget of the company’s health, safety, and environment
programs

• Using the enormous market clout of Petrobras (which was the largest com-
pany in Latin America) to demand that all of its suppliers comply with best

standards for environmental management
• Personally touring sites to check compliance with company standards
• Moving Petrobras’ new refineries away from gasoline and toward biofuels

• Joining the Dow Jones Sustainability Index in order to invite external mon-
itoring of and reporting on Petrobras’ efforts

• Endorsing (and sitting on the board of) the United Nations Global Compact
• Personally blogging and tweeting in order to make the case for Petrobras’
efforts directly to the public.
As evidence that these activities were changing the culture and operations of
Petrobras, Gabrielli pointed to two facts:
• The company had gone eight years without a “major” environmental
accident.
• The private consulting firm, Management and Excellence, ranked Petrobras
as number one among the world’s oil and gas companies for promoting
sustainability.
Petrobras’ 5‐Year Strategic Plan, announced in 2010, called for additional
investment in refining capacity. The company’s goal was to make Brazil fuel
independent by 2014. That independence, it was hoped, would be supplied by
Petrobras’ 2008 discovery of a major oil reserve coming from a vast deep water
off‐shore region known as the subsalt. Later that same year, however, the Gulf of

Mexico oil spill—a British Petroleum rig exploded, killing 11 workers and pour-
ing nearly 185 million gallons of oil into the Gulf—raised questions about the

viability and the costs of future deep water drilling.

Going Green 195

How Green Is Petrobras?
In 2010, Newsweek conducted an audit of the top ranking “green” companies in
the world.50 The highest ranking companies—IBM, Hewlett‐Packard, Novartis,
and Panasonic among them—received an overall score in the 90s. The highest
ranking oil and gas company, French‐based Total, received a score of 65.
Petrobras’ score was 48, placing it sixth in the list of oil and gas companies and
84th overall in the top 100 companies. In fact, five of the bottom ten on that list
were oil and gas companies.

A brief summary over the article ?

Explain the major issues/problems that needs to be addressed?

How can you apply the information:What did you learn from this case/chapter that could help you to lead Organizational Change ?

Answer 1

HEADING FOR ANSWER:GOING GREEN A REVOLUTIONARY CHANGE

Contents in first paragraph:

1)What is Going Green term:

"Going green" means to pursue knowledge and practices that can lead to more environmentally friendly and ecologically responsible decisions and lifestyles, which can help protect the environment and sustain its natural resources for current and future generations.

2)Importance of Going Green:

A significant economic benefit of going green is that it helps lower costs and save money.Going green has several other benefits for companies. These include tax credits and incentives, improved efficiency, healthier workplaces, and cost savings

Contents in second paragraph:

Going green helps the environment by reducing the amount of pollution that enters the soil, water and air. By using alternative energy sources and avoiding the burning of fossil fuels, recycling and reducing waste and driving more efficiently, fewer pollutants are released into the environment.

When you think of the oil industry, environmentalism and sustainability are probably not the two words that come to mind. Nevertheless, we are living in an increasingly eco-friendly world, where both the residential as well as the commercial realm are adopting and implementing green practices in order to create a safer living and working environment, cut needless expenditure, and aid the preservation of Earth.

With that in mind, it shouldn’t come as a surprise that modern oil companies recognize the need for a more sustainable and environmentally-friendly business model that will not only help the environment, but the industry as a whole. Let’s take a look at case of Petrobras a giant oil company-Petrobras was founded by the Brazilian government in 1953 under the nationalist slogan,“The petroleum is ours!”Petrobras held a monopoly until 1997, when the government gave up its complete ownership and allowed for competition. Since then, the company has compiled a troubling history of disasters.In January 2000, a poorly maintained pipe-line spilled oil into Guanabara Bay for two hours before the leak was detected.Six months later, a Petrobras refinery spewed millions of gallons of oil into twonearby rivers. A BBC news report referred to “an embarrassing level of incompe-tence” on the part of Petrobras managers. Then, less than a year later, a Petrobrasdrilling platform the world’s largest at the time blewup, killing 11 employeesand dumping 300,000 gallons of oil into the water.

José Sergio Gabrielli de Azevedo, CEO of Brazil‐based oil giant Petrobras since 2005, says he is determined to change that image.Gabrielli saw that troubled history as a business problem to be solved as well as an environmental threat to be addressed. “From a purely financial per-spective,” he said, “environmental mismanagement was just bad business. Froman investor relations perspective, ignoring the growing demand for transparency and sustainability was also bad business.”49 Plus, added Gabrielli, his personalvalues and political beliefs led him to move Petrobras into a position of environ-mental leadership.

Explain the major issues/problems that needs to be addressed?

The main reason many people choose to avoid green action is that they think it will cost them more than their typical, environmentally harmful activities. Many times, it is true that environmental friendly products come with high up-front costs, but these costs almost always are made back over the lifetime of products.

Elaborate following for above answers

1)Lack of knowledge for investing and moving to green policy

2)Increased cost of green materials production

3)Financial losses to companies

4)Effective use of science and technolgy

5)Overcoming the myths and belives of government and factories

6)Environmental movements and production to meet the increased demand

How can you apply the information:What did you learn from this case/chapter that could help you to lead Organizational Change ?

1)Elaborat the difference in Petrobras after and before joining of José Sergio Gabrielli de Azevedo as  CEO

2)Methodology implemented by Jose in company

Put a conclusion paragraph as:It is up to every single individual to take initiatives towards greening their lives, and making the world a more sustainable place. In the years to come, as in the years past, the greatest challenge to the environmental movement will be rallying support from individual consumers all around the world. The time is now to show our dedication to the environment by overcoming the initial uncertainties of choosing to go green, and effectively and decisively making a positive impact on the world around us with each and every decision we make.