Initially established to develop the oil fields around
Los Angeles and California
In 1990, Unocal had operated in every aspect of the
petroleum business m m
evenue of US$ 5.103 million in 1998, increased to US$ 6.057 million in 1999 Project operations in Mexico, Alaska / Canada, Úrazil, Thailand, Indonesia, Úangladesh, Netherlands, Azerbaijan, Yamani, Congo, Myanmar (Úurma), Gabon (West Africa), Vietnam, Úrunei and The Philippines On 5 April 2005, Unocal was bought by Chevron Texaco for US$18 billion. m m
Several Unocalǯs business fields: 1. Oil and Gas Production 2. Geothermal resources exploration and power plan 3. Global trade 4. Mineral and Carbon 5. Agricultural production
Unocal began to enter Úurma at around 1990s for gas and oil exploration offshore. In 1993, Unocal participated in the to mine the Yadana offshore natural gas development projects which is located in the Andaman Sea, Úurma Úurma "Yadana" gas fields is a 5 trillion cubic feet, state-run company, which is enough to produce natural gas for 30 years.
!"
Õ #$$%&|
Appointing a local company Myanmar Oil and Gas Enterprise (MOGE) to help the development of the Yadana project Signing a contract with Total SA, a French company that has the right to build pipelines to drain the gas from the Yadana to Thailand and trade them for Thai government. Is expected to gain a net profit between US$200 - $400 million.
!"
MOGE signed a contract with Total S.A MOGE: Dzassist by providing security protection and rights of way and easements as may be requested bydz Total S.A: Dztook the gasdz from the nature and build the pipelines to distribute it from Myanmar to Thailand
!"
Unocal then joined the coorporation by paying a compensation of US$8.6 billion to the Total company There were 4 investors in the project, namely Unocal, Total, Exploration and Production Public Company (Thailand) and MOGE Total: responsible for establishing rig and natural gas exploitation.
!"
Unocal: pipe building as long as 256 miles (216 offshore + 40 onshore) for gas distribution from Myanmar to Thailand There are pipelinesǯ part passing through the land that is inhabited by ethnic Karens, the most hostile tribe to the government.
!"
The government guaranteed the "security", labors and land acquisition. The government allegedly used slave labors from ethnic Karens and violence/brutality to secure the projects. esidents were evicted without any compensation. Unocal was aware of this situation. ÿ
"
#
"#$ % o US State Department ´ Country eports On Human ights Practices in 1995 o Amnesty International ´ eport on Úurma in August 1991 o The contract with SLOC to maintain "security" during the construction of the pipeline. o
' (
)
)
&)
)
) o !"
&$##"m
o On Oct 15, 1996, 15 people from the Karen tribe sued Unocal in U.S. Court on charges they and their families have become the subject of land relocation, forced labor, torture, murder and rape in the Yadana pipeline project o Court of Federal Claims under the federal Alien Tort Statute 1789 o In December 2004, Unocal announced they would give compensation for the Karen and provide funds to social programs for people that live in the area of pipeline construction o This statement was accepted by the court and the case was closed on 13 April 2005 " ##'( o Did Unocal act properly? " ##'( In terms of utilitarianism: Unocal acted properly, because: The realization of investment had made Úurma's government and the people additional incomes, employments, technologies transfer, infrastructure developments, schools, etc. Thailand gained a stable gas supply for power plants that supported the sustainable economic growth. " ##'( In terms of justice:
Unocal also acted properly because Unocal
implemented the "code of conduct" in the company, including the Yadana project. "The code of conductdz treats all workers and labours on the projects with fairness and respect. " ##'( In terms of human rights: Unocal did not act properly. Although Unocal is not responsible directly, they did not act properly by ovelooking the human rights violation (the right for living, equal treatment, decent wages, etc) to the Úurmese (the Karens ethnic). " ##') o Is Unocal morally responsible for what happened to the Karens?
Yes, Unocal would be morally responsible. Although
Unocal did not do anything against the law, the violation took place on the pipelines projects area which operated under Unocalǯs surveillance. " ##'* o What should unocal do?
Get the investment out and do not involve the conflict?
Keep the investment on the project and pretend that nothing happened? " ##'* According to group discussion, the proper way for unocal is to engage. The involvement from outside parties that are "more civilized" could provide a positive impact on the social and politics. For example: The outsiders could expose the violation and injustice to the local throughout the world. Outside parties could provide contributions to the communities through CS.
#
Unocal did not do anything wrong directly, but by overlooking the human rights violations that happened around their jobsite, they are ethically responsible for the conflicts. &+ m
Reforming Mining Law: A Look at Transnational Corporations’ Activities in the Democratic Republic of Congo Within the Doctrine of Corporate Social Responsibility