blog




  • Essay / Unocal - 852

    Unocal is an oil company facing an ethical dilemma. The owners and managers of this company wanted to invest money in the Yadana project and subsequently made huge profits. They knew that the government of the country where this project was taking place was violating the human rights of the local population. Unocal had evidence of these actions, but they decided to invest money in this project. To determine whether their actions were ethical or not, we need to look at this issue from four different perspectives: utilitarian, rights, justice, and ethics of care. According to Velasquez, utilitarianism is “a general term for any view that actions and policies should be evaluated on the basis of the benefits and costs they will impose on society” (Velasquez, 2012, p.78). To determine how the company should have behaved in this situation according to utilitarianism, managers had to perform four actions:1. Considered all alternatives (invest money or not);2. For each alternative action, they had to estimate the direct and indirect benefits and costs that the action would produce for each person affected by the action;3. For each action, they had to subtract the cost from the benefits to determine the net utility of each action;4. The action that produced the greatest amount of utility should be chosen. The benefits of Unocal's actions included improvements in education, improved healthcare, new transportation infrastructure and opportunities for small businesses, as well as improving Thailand's economy. The harm caused by their actions included forced labor, resettlement of local people without compensation, torture, murder and rape. Unocal believed that they brought more benefit than harm to the Burmese people. So, from this... middle of article... from the perspective of justice, rights and ethics of care. From a utilitarian perspective alone, the company acted reasonably and ethically. This shows that Unocal should reconsider their actions and start caring about others, not just their profit. They have shown that their actions have helped the general Burmese population (improvements in education, health care, new transport infrastructure and small business opportunities). But it still hasn't helped the people who were murdered, forced to work and relocated without any compensation. Since Unocal decided to invest money in the Yadana Field project, they must provide safe working and living conditions for the local population. Works cited1. Velasquez, M.G. (2012). Business ethics: concepts and cases. Boston, Massachusetts. Pearson.2. Dictionary. (nd). Justice. Retrieved April 29, 2014 from http://dictionary.reference.com/browse/justice.