This website uses cookies to ensure you have the best experience. Learn more

Chevron And Ecuador Essay

622 words - 3 pages

1) Background and Issues
Is Chevron guilty? This memo outlines the issues Chevron is facing through the Amazon lawsuit in Ecuador and identifies how the management can handle this squint situation. The Amazon lawsuit is a very big threat to the company’s profit, since the penalty payments will cover over 50% of the company’s current profit. To understand the situation of Chevron today we need to take a closer look at the background story.
The Story goes back to the 1960’ies when Texaco, an acquisition of Chevron, was involved in the oil drilling in Ecuador. Back then Texaco had a Joint venture with Petro Ecuador which was mainly owned by the Ecuadorian government and had a share of 62.5 percent. This Joint venture named Texpet drilled 1.7 billion barrel oil from government properties until the end of contract in 1984. After finishing the work Texpet was suit by the Ecuadorian government, because of violation of environmental laws. These violations included the ...view middle of the document...

Just to name a few impacts of the contamination, 18 billion gallon toxic water in rain forest caused many different types of cancer, miscarriages, child developmental errors and many more health issues for the population especially around the Amazonas.
After the release of the indicative studies it took a while until the affected Ecuadorian population could build a big enough group of plaintiffs to elevate a lawsuit against Texaco. In 2001 Chevron acquired Texaco initiated by John S. Watson the present Chief Executive officer and former Head of the Mergers and Acquisitions department by the time of 2000 Chevron-Texaco merger. In 2008 the plaintiffs indicted Chevron and demand 27 billion Dollars. The Ecuadorian court found Chevron guilty and imposes a compensation penalty of 8 billion Dollars. Chevron admits historical failings but finds the penalty as too high since it also represents the highest in history.
Ever since the lawsuit is in process and came up to 18 billion Dollar compensation penalty costs for Chevron. Chevron’s defending strategy is denying their contribution to the Amazon area pollution as shown in the following statement:
“The company maintains that the $18 billion judgment is illegitimate because of documented evidence of fraud and unethical action by the plaintiffs' lawyers and the Ecuadorian government and judiciary.”
As a counterattack Chevron now tries to sue the plaintiffs and their supporter in a civil lawsuit. This doesn’t change the ongoing lawsuit where 30,000 victims wait for an apology and the payment. If Chevron doesn’t accept the requirements the penalty will rise even higher.

 1970-2000
 Evaded taxes because of petroleum pricing scheme
 Indonesia – Fine of 5 Billion USD in Federal and State Taxes
 Destruction of Natural Park in Bangladesh
 Govt not informed about the cracks, which creates explosion.
 Brazilian Regulations reported OilLeak
 10.6 Billion for Oil Spill
 Activities in Brazil Suspended
 Rig Explosion- 2012
 Nigeria
 2 Died
 San Francisco
 Govt Sued- 275 Million, should be used for clearing the air pollution
 Pollution in Richmond, California.
 11 million Pounds of Toxic Material
 No Treatment to toxic
 95 Acres polluted in USA are attribute to Chevron

Other assignments on Chevron And Ecuador

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus Essay

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages , and Switzerland. In the Netherlands, voluntary euthanasia has been legal since 1983, with some 3,000 people requesting it each year. In Australia, assisted suicide was legalized in the Northern Territory with the backing of a substantial majority of the local population, but was then overthrown by the Federal Senate before anyone could actually use the new law. However, in Oregon and California, state legislation has been passed to allow for

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one

Nnnnn

1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of

Media

439 words - 2 pages day, that they are worse off than we are. People continue to believe what the mass media tells them. Kenya's tourism industry is undergoing a transformation - from the mass tourism of the seventies and eighties, when cheap package holidays were the norm, to the development of a quality-tourism product. Claire Footit reports. Laissez-faire policies towards tourism development in the seventies and eighties made Kenyan tourism a victim of its

Chapter 6 International Business

7113 words - 29 pages CGGGG The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U.S. Magnesium

Scope And Goals

279 words - 2 pages Introduction: Kudler Fine Foods is a specialty food store based in San Diego, California with its three locations in La Jolla, Del Mar, and Encinitas. Kudler Fine food prides itself on offering fresh and organic products that are carefully selected from local farmers and around the world. The organization has recently taken the initiative to start a Frequent Shopper Program to market and increase sales. This program will offer the customers a

Similar Documents

P2 M1 D1 Essay

1716 words - 7 pages crude oil being spilt alongside vast amounts of hazardous waste being left in open pits in the forest floor; all in a bid for Chevron to save money. These practises did not meet industry standards and are illegal in both Ecuador and the US. Chevron is now on the run from the Ecuadorian courts as they are required to pay $9.5 billion dollars to pay for the clean-up and remediation of the Amazon Jungle. The Ecuadorians have filed law suits in

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress hbr.org New Thinking, Research in Progress hbr.org FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically