Research Paper Undergraduate 596 words

Exxon Mobil as a Joint

Last reviewed: January 6, 2007 ~3 min read

Exxon Mobil as a joint venture with Pertamina, Indonesia's state-owned oil and gas company has been known to have a mutually beneficial relationship with the government. A share of the profits is paid to the Indonesian government by the Exxon Mobil which operates a major natural gas facility in Aceh province in Indonesia while the area has been affected with violence as Acehnese separatists have been fighting Indonesian troops. Human rights group in Indonesia charged Exxon Mobil of support of torture, murder, genocide and human right abuses by security forces in Aceh. The company was also accused of helping government in suppressing separatist activities. Mobil was even accused of providing heavy equipment used to dig mass graves. The company even had to shelve gas production for the safety and security of workers due to deteriorating situation in the province. Exxon Mobil though denied such charges but critics claim that it never took any actions to end the connivance with the government and continued to pay military for the security. Some also claim that management pays fewer wages to Indonesian workers and even carries business without properly taking care of the environment and land. They give examples of explosions that have occurred in the province which company did not tackle well and even tried to rub the issues under the carpet. The act of knowingly employing atrocious military troops to protect its operations, and abetting the human rights violations is something that is heavily critiqued by the supporters of ethics, morality corporate social responsibility.

Exxon not only denies the charges but also cites examples of charitable works it has done in the areas. Setting up charity schools and health centers does not necessarily mean that the responsibility to all the stakeholders including the customers, employees, shareholders, suppliers, competitors, government, community and society is also being discharged. Community and society are a couple of stakes in the above array of stakeholders that a business is obligated towards directly. Charity schools and hospitals would be a part of direct responsibility to these two stakes but only partly and not completely. Exxon has failed to realize its obligations to the society in which it exists and so issues became so intense that Exxon Mobil had to suspend its activities. Corporate responsibility does not only lie with the protection of business interests and expatriate employees. It also involves going further ahead and taking care of employees. Any actions that affect the community in which the operations are established could reflect poorly on part of organization with regard to corporate responsibility.

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PaperDue. (2007). Exxon Mobil as a Joint. PaperDue. https://www.paperdue.com/essay/exxon-mobil-as-a-joint-40732

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