Talisman Energy Inc.: The Decision to Enter Iraq Case Solution & Answer

This Case is about ETHICS, GOVERNMENT, RISK MANAGEMENT, SOCIAL RESPONSIBILITY, SUSTAINABILITY

PUBLICATION DATE: April 20, 2009 PRODUCT #: 909M35-PDF-ENG

In the month of June 2008, the CEO of Talisman Energy Inc. (Talisman) and his senior executive team met with the company’s board of directors. The objective of this meeting was to debate with the planned entrance of Talisman into the oil-rich Kurdistan region of Iraq. This move was possibly quite profitable for Talisman but was filled with dangers.

Talisman’s previous foray exacerbated these threats into Sudan; during that growth Talisman was accused of complicity in human rights abuses, coming from business-taken fees and royalties it had paid to the authorities. Public interest groups held as an example this payment of fees to allege that the Sudanese civil war was being indirectly funded by Talisman.

Talisman’s standing had suffered to the point where the ire of investors and U.S. and Canadian authorities was adequate for Talisman to leave Sudan in 2003. Should Talisman enter in that case, could they avoid experiencing the exact same consequence as Sudan, and Iraq?

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