Exxon Mobil Case Study

995 Words4 Pages
Exxon Mobil and the Chad-Cameroon Pipeline 1. Is this an attractive opportunity for Exxon mobile? Considering the financial perspectives of the project, the project was bound to create huge revenues for all the parties involved in the project. According to World Bank, this project would create a revenue of $2billion for Chad and $500 million for Cameroon. Along with this, it would also produce a sum of $5.7 billion for ExxonMobil and its partners. That being said, in projects like these, money or revenue isn’t the only aspect to be considered while deciding a project. Thus, even though the project looks financially very attractive, the actual risks and the treats will be discussed in the next part of the paper. 2. What are the biggest risks…show more content…
However, the case talks about high levels of corruption in the countries and ExxonMobil could have both internal and external concerns around it. The ExxonMobil has to ensure that the economic growth that it has planned for the people of Chad and Cameroon reaches to the public as planned. The involvement of the World Bank will ease this process. Also, it needs to ensure that the corruption does not delay the actual implementation of the pipeline project in any way. If that happens, there are fluctuation risks involved as well. 5. What role should concern for the environment play in the managerial decision making? As time passes, the importance of environmental considerations is increasing more and more in the society. For projects like these, ExxonMobil must realize that they are affecting the ecosystem, air, biodiversity, human population, fodder, forests, agriculture etc. and this means a lot to Chad and…show more content…
Is this a good place for EM to build an image as a responsible environmental citizen? Few events that happened in the past have led to creating a bad image of ExxonMobil in the minds of the common people. A few of those incidents include the very recent and extremely huge spill Exxon Valdez disaster of 1989, which causes irreparable damage and took years to recover, and total recovery was never possible. Another incident here was when miscommunication caused a life of a poor peasant in the Doba areas. Exxon had already lost a lot of reputation. Also, there was no way to mitigate the risks caused by the environment. Hence, I am of the opinion that this is not the best place for EM to build an image as a responsible environmental citizen. 7. Would you build the pipeline? Why? No, I would not build the pipeline in the current scenario, given the high risks and potential threats. However, if the involvement of World Bank is ensured to stay away from corruption. The economic growth that is promised is undertaken, and if there is an innovative way to reduce the human and environmental risk and the project still ends up being financially attractive, I might revisit my
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