Question

What is the Law and how do Ethics interact? Exxon Valdez - Continuing Case In 1989, the Exxon Valdez, an oil tanker, ran aground in Prince William Sound, Alaska, spilling an estimated 750,000 barrels of crude oil. Research this case and write a brief description of the case, with an emphasis on what its "ethical” duties were then, and now, and how the company addressed its ethical obligations at the time, and thereafter. Post at least a 250 word discussion of this issue. Make sure to support your statements with specific examples that are supported by a citation. Support your discussion with at least 2 Internet citations in APA style.

Answer 1

On March 24, 1989, the Exxon Valdez supertanker was involved in a tragic accident when it ran aground in Alaska’s Prince William Sound. There were an estimated 750,000 barrels of crude oil that were spilled in a short period of time. Massive cleanup efforts were organized by Exxon and the U.S. Coast Guard, which involved more than 11,000 Alaskan residents. It wasn’t until 1992 that the U.S. Coast Guard declared the clean-up complete. There were some short-term impacts on the Prince William Sound ecosystem following the spill, but today, it is thriving.

March 23, 1989 was supposed to be a day of rest for some of the crew members of the Exxon Valdez. Three of the ship’s officers spent the day conducting business, shopping and drinking alcoholic beverages in the town of Valdez. Although no one appeared to be intoxicated, “one basic conclusion of this report is that the grounding at Bligh Reef represents much more than the error of a possibly drunken skipper: It was the result of the gradual degradation of oversight and safety practices that had been intended, 12 years before, to safeguard and backstop the inevitable mistakes of human beings”.

“The destruction caused to communities, people, the environment and the livelihood of thousands of Alaskans and future generations, was not an exercise in corporate social responsibility, to say the least. Neither was the ongoing court battle between the Exxon defendants and the local commercial fishermen, a fight that dragged on until last year when the Supreme Court stepped in to defend the struggling company from being liable for the full amount. The 33,000 plaintiffs waited almost 20 years to receive a settlement they had hoped might come close to equalling their losses” .

The Valdez spill was one of the worst moments in the history of Exxon, and even though the company claims they immediately took responsibility for the accident, it is obvious they could have done better. They paid numerous fines, settlements, cleanup payments, and even compensated the time volunteered by Alaskan natives, but the court cases should have been settled years earlier.

“In the aftermath of the accident, we also undertook significant operational reforms and implemented an exceptionally thorough operational management system to prevent future incidents” . Since deploying the system, nothing similar has occurred. In the aftermath of the Exxon Valdez accident, ExxonMobil redoubled its long-time commitment to safeguard the environment, employees and operating communities worldwide. To improve oil-spill prevention, ExxonMobil has, for example: modified tanker routes, instituted drug and alcohol testing programs for safety sensitive positions, restricted safety-sensitive positions to employees with no history of substance abuse, implemented more extensive periodic assessment of ExxonMobil vessels and facilities, strengthened training programs for vessel captains and pilots, and applied new technology to improve vessel navigation and ensure the integrity of oil containment systems. In the unfortunate event of another spill, Exxon has improved their ability to respond. There are oil spill response teams worldwide, of which 1,000 ExxonMobil employees are involved in. They hold frequent drills and apply new spill-detecting technology.

Reflecting back on the Valdez oil spill is bittersweet for many. “On one hand, we must raise our glasses to applaud the tireless efforts of international organizations who have pushed so that now, in the year 2009, corporate responsibility has been on the lips of the largest companies. Yet, on the other hand, celebration is not in order when large companies like ExxonMobil have yet to see the light and be accountable for their past corporate irresponsibility