Instructions
Read the case titled “Exxon Mobil and the Chad/Cameroon Pipeline” at the end of Chapter 9 and answer the following questions:
1. How should managers think about the environment as part of their decision-making? How much should it matter and how should it be incorporated?
2. If Exxon Mobil is truly committed to the environment, is this the last place they should be drilling or exactly where they belong? For those who say they should leave, where else is it OK to drill for oil? For those who say stay, is there anywhere that Exxon Mobil should not drill for oil?
3. What about this case and its appeal for Exxon Mobil? What are the biggest opportunities and risks for the company?
4. Strategically, what is at stake for the firm and its future operations? How important is it for them to earn recognition for being environmentally responsible?
5. How much does it matter that someone else is likely to partner with the Chad government and develop this oil to your decision here? Especially if they are likely to do a worse job on the environmental issues, does that impact your thinking – and if so, how much?
6. What about the Chad government? Do you “own the ethics” of your business partners? Will Exxon Mobil end up suffering for being associated with this government and be seen as supporting its activities? Are they the kind of business partner Exxon Mobil wants to do business with?
7. Make the case: vote to stay and invest or leave and make the best arguments for your side.
Do not answer with just yes or no. Provide reasons for your answers and base your answers on the concepts in chapter 9. It is important to reason your answer. The points are for your reasoning.
