Exploring The Tension Between Business And Its Stakeholders Case Solution
We selected the company ExxonMobil Corporation, which is a large American company with its headquarter located in Irving, Texas. The company was founded in 1870. It is an oil and gas corporation(ExxonMobil, n.d.).
ExxonMobil has been lambasted because of its tardy reaction to cleaning operations just after 1989’s Exxon Valdez oil spill in Alaska, which was widely regarded as one of the world’s worst oil disasters in terms of environmental impact. ExxonMobil has a long history of campaigning against denial of climate change and the scientific evidence that global temperatures is driven by fossil energy usage. Additionally, the business has been accused of being inappropriately connected with individual rights problems, exerting influence over United nation’s foreign policy and influencing the development of countries. ExxonMobil’s international reputation has come under fire for its position and contribution to the climate change. ExxonMobil is ranked 10th by politics Economics Research Organization among American businesses which release airborne contaminants, fourteenth by those that produce greenhouse gas emissions and seventeenth by those which release pollutants from wastewater in 2018. As per a recent survey; ExxonMobil was the fifth biggest source of greenhouse gases between 1998 and 2015. As of 2005, ExxonMobil has dedicated less than 1 percent of its earnings to cleaner energy research, a figure that, according to the activist organization Ceres, is lower than that of other major oil corporations.
The United States’ capital New York attorney General began an inquiry as to whether ExxonMobil’s shareholders’ communications were compatible with years of important scientific study conducted by the corporation in 2015. ExxonMobil was challenged by the attorney general in October 2018 based on this research, alleging that the corporation misled investors by trying to downplay the dangers of global warming caused by the company. The state official of other statein the United States launched inquiries on March 29th, 2016. 17 state attorneys general collaborated on inquiries. The U.S Virgin States’ prosecutors dropped the lawsuit in June. The U.S Supreme Court ruled in favor of Exxon Mobil company in November 2019. The court’s decision was written by Judicial Barry Stranger, who concluded that the AG’s department “ended in failure by a clear and convincing evidence to demonstrate that ExxonMobil managed to make any misrepresentation or exclusions about its methods and processes that would have misinformed any sensible shareholder.”
ExxonMobil was one of five big oil corporations that spent $195 million each year in lobbying to oppose the environmental legislation, according to Impact Mapping in 2019. The Churches of Europe’s investment company urged other investors to not re-elect ExxonMobil’s executive board at the company’s annual general meeting, claiming that the company’s reaction to the climate issue was “insufficient” and that it was “continuing as if nothing had changed.” A couple of months later, investing giant Black Rock said that it will vote against the re-election of two primary directors of the organization due to the business’ lack of action on ecological reforms.
As mentioned above, the negative environmental concerns of stakeholders were raised about ExxonMobil corporations.We can conclude that the almost all the stakeholders are concerned and affected by the companies’ environment strategy. Stakeholders, such as: large investor companies, Government, common public, and shareholders are broadly concerned.
Increasing the socially responsible and ecological constraints are changing the competitive forces for businesses across all the industries. Organizations are constantly expected to embrace a social mission and practice stakeholder management, but a few understand that how to do something in methods that also improves their profitability. ExxonMobil strives to increase its stakeholders’ knowledge, respect and collaboration on sustainable development. The company should communicate with a range of stakeholders via informal gatherings, internet and social media platforms as well as via one-on-one conversations. Establishing an open conversation enables us to hear the issues, debate methods and collaborate on goals. The company should expect continued wide attention in our ecological, socioeconomic and political performance across stakeholders’ involved, from community and non-governmental organizations to workers and investors. (Creating Shared Value Explained, n.d.)…………………………
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