Ch 6 . How can a business organization be made moral?
Read over Figure 6.1 on page 146
• On March 24, 1989, shortly after midnight, the oil tanker Exxon Valdez struck Bligh Reef
in Prince William Sound, Alaska, spilling more than 11 million gallons of crude oil.
• The spill was the largest in U.S. history and tested the abilities of local, national, and
industrial organizations to prepare for, and respond to, a disaster of such magnitude.
• The spill posed threats to the delicate food chain that supports Prince William Sound's
commercial fishing industry. Also in danger were ten million migratory shore birds and
waterfowl, hundreds of sea otters, dozens of other species, such as harbor porpoises and
sea lions, and several varieties of whales.
• Alyeska, the association that represents seven oil companies who operate in Valdez,
including Exxon, first assumed responsibility for the cleanup, in accordance with the
area's contingency planning.
• The Coast Guard quickly expanded its presence on the scene, and personnel from other
Federal agencies also arrived to help.
Three methods were tried in the effort to clean up the spill:
• Mechanical Cleanup
• Chemical Dispersants
In the aftermath of the Exxon Valdez incident, Congress passed the Oil PollutionAct of 1990,
which required the Coast Guard to strengthen its regulations on oil tank vessels and oil tank
owners and operators. Today, tank hulls provide better protection against spills resulting from a
similar accident, and communications between vessel captains and vessel traffic centers have
improved to make for safer sailing.
Read over Figure 6.2 and 6.3 on page 156 and 157
• If the total focus of corporate management is placed upon financial benefits for the
stockholders, with little or no attention paid to the well- being of the stock holder the
result will be lack of corporation and innovation and unification.
• This is what happened to Exxon at the time of wreck , Exxon was being managed with
sole attention to the financial well-being of the stockholders.
Corporate values a