Responsible Business

Assignment - 1
Shivam Goel - 22IB475

Apply the spheres of Influence model and attempt the following:

1) The adverse impacts created by the core operations of the company in the host
community
Chevron is responsible for major environmental crimes around the world. However, this
analysis focuses only on the company’s conduct in Ecuador.

1) The ChevronTexaco case in Ecuador represents one of the world’s largest oil
contaminations, which has affected and continues to affect the Ecuadorian Amazon rain
forest.
2) The affected area includes the areas around the wells, the facilities where the crude was
processed, and the open-air pools into which the generated oil was dumped without any
safety precautions.
3) This reckless behaviour has harmful effects on all aspects of the environment, including
soil, air, and water resources.
4) Over the course of the sites' operation, Texaco is thought to have leaked 18 billion
gallons of formation water, or around 10 million litres of hazardous water per day, and
16,800 million gallons of oil directly into bodies of water.
5) The tribes' natural source of drinking and bathing water was destroyed. The tribe used
to collect these for food and to survive by selling them in the market, so losing access to
fisheries, various plants, and trees growing along river bodies had a significant influence
on their way of life.
6) Several illnesses, including cancer, were brought on by the untreated trash that was
dumped into the water among the tribes. Due to the unsuitable climate and water, new
born babies' growth was stunted. Due to the abrupt and extreme changes in lifestyle
brought on by Chevron's interference, many of them even passed away.
7) During the operation period, about 6.667 million cubic metres of gas were burned
outdoors as a result of the employment of antiquated methods for oil-associated gas
burning. A total of 450,000 hectares were affected, and 30,000 people were harmed as a
result.
8) This contamination not only had a negative impact on the ecosystem but also decimated
the affected populations' means of subsistence and significantly altered their traditions.
9) The company made the decision to carry out full-scale production and exploratory
drilling without properly disposing of hazardous by-products including extra crude,
chemicals, and generated water. Contrarily, Chevron deposited the hazardous pollutants
into shoddy pits or into the nearby rivers and streams.
10) The main effect on the people was having to watch as their loved ones struggled and
perished in front of them. The infants were no longer in good health. Even the adult
tribes were experiencing several illnesses that may be fatal.
2) What are the issues of Responsible Business highlighted by the case

• The act of actively caring about people, ethics, equity, and environmental concerns while
operating a successful corporation is known as "doing business responsibly.

• By concentrating on profit, a company makes sure its finances are stable. The primary
responsibility of a competent business owner is to make sure that the company returns a
profit and provides income to live and expand because a business cannot survive or prosper
without making a profit.

• In the case the company had to expand its business to earn good profits from the low
margin to survive in the industry.

• By paying attention to People, a business focuses on its employees, suppliers, and

customers. Employees are the key group that make the business function and enable it to
create value-added. Satisfied, happy, and productive employees are the lifeblood of a
successful business.

• For a good working environment for their employees the company is disposing the waste
out of the plants which is causing problems for the people not working in the factory and
living nearby.

• Planet refers to the responsibility of the business to operate in ways that minimize the harm
to the environment and the planet, through its actions.

• It treats the natural environment as a finite resource, which must be sustained and
respected. Environmental degradation and destruction lead to a situation in which business
itself is no longer sustainable.

• In the case, the company is using lot of finite resources and wasting them. They are causing
harm to the environment as well as wildlife.