The relation be...
How does the long history of ExxonMobil illustrate the significance of business-government-society relations?
The relation between the government, the
business, and society are vital for a healthy living environment. The
government plays a key role in the regulation of the business to ensure that
their activities do not result in negative outcomes that could negatively
impact on the lives of society members. Exxon Mobil Company predominantly deals
with oil that is a risky product to the environment. The government should thus
be keen on regulating the companies that deal with hazardous products. Exxon
Mobil has faced several challenges in complex business, the social environment,
and the business.
Exxon Mobil has been challenged in every
country it operates due to rising in companies owned by the state. Most
governments across the globe restrict the company through regulations and
policies. The Company is closely monitored by human rights, the environmental
agencies, consumer groups, most of which are much hostile. Exxon Mobil is
required to maintain a healthy relationship with the government and society to enhance
future success. It must conduct its operations with aligning to policies and
rules set. The history of Exxon Mobil, therefore, is significant in
illustration of the importance of the relation between the government,
business, and society.
Importance of relation
between the government, business, and Society
Government, business, and society are three
elements that interrelate in various ways, and their relationships change with
time. There is an innumerable range of institutions, activities, and operations
that revolve around the business. The businesses' core purpose is the provision
of goods and services to their clients from divergent cultures, races, and
market niches. They must ensure that the services they offer to meet the needs
of their customers for satisfaction. On the other hand, the government
primarily refers to the structure and the processes made by the authorities and
the policies applied in the management of a wide range of activities (Steiner,
2003). The society is involved in the creation of institutions and ideas
required in all range of activities. Concerning the history of Exxon Mobil, the
enhancement of a good relationship between the three elements plays a vital
role. It is primarily in the success of any business and maintenance of ethical
standards concerning the requirements of the government.
Exxon Mobil has been involved in several
cases due to a lack of adherence to environmental standards in its operations.
Exxon Mobil was involved in oil spills that were a threat to the environment
and the people. As a result, the company had to encounter severe measures
involved in environmental safety filed a case against the company regarding its
operations that caused serious degradation to the environment. The government
has also been involved in the close monitor of Exxon Mobil Company to ensure it
adheres to the policies and rules that have been concerning its operations. The
imposition of restrictions for the company in countries where it invests has
made the company take alternative measures that could help in reducing
environmental degradation and adherence to rules governing risky products in
the countries. The interrelation between the government, the company and the
society ensured that all operations taking place in the company have minimal
threats to the environment and people living in areas near the place the
company was situated.
The relation between the government,
society, and the business has played a key role in stimulating the values of
the company. Societies raise major concerns to the business and the government
on issues that should be enhanced. In
response to the issues, the government develops the policies followed, and the
business must implement them (Steiner, 2003). Exxon Mobil Company has, in the past
made huge investments to implement changes that go in aligning with
requirements of the government and societal, environmental agencies. The
relations hence are significant in safeguarding the standards of operations as
stated in policies and laws that regulate the operations of the business. There
are many instances that the company has faced restrictions as it does not meet
the required standards in its operation, and this may result in severe effects
on divergent living organisms.
Different ideologies that govern the
economic systems are devised through opinions and views of those who are part
of the government, society, and the government. For fairness to the society by
a business concerning their activities, there must be good relations in which
the parties come together and develop strategies that could curb the negative
impacts of the business operations to the society. Government and society
should voice their views and strategies they hope can work in businesses
without affecting their sustainable developments. Exxon Mobil Company has, in
the past, been obliged to perform its operations in numerous policies and
rules. By the establishment good relationship between the government and the
society, the company has been able to develop strategies that suit its
operations to the public. Safeguard for
the public interest is through policies and measures taken against risky
practices by the company.
In most cases, restrictions by the
government and agencies that ensure that monitor the ethical standards in
operations of the business ensured Exxon Mobil is keen on upholding the
policies that govern environmentally. It was also a way of boosting products
and safety measures for society. In this case, Exxon Mobil was able to set
aside an adequate amount of finances for investigations. The funds could also aid in the development
of facilities that could be used to reduce the impacts of its operations in the
environment (Enjolras, 2009). As a result, society has benefited from the
relationship as they can receive compensations from the companies that go
against policies that protect them,
Most governments across the globe ensure
that their societies benefit from the investor's operations in their countries.
Policies and business laws are formulated, requiring the operators to offer the
government a definite amount of their total income and other agencies. As a
result, these policies are used for the development of projects for public use.
In other cases, the establishment of the Company in a particular area involves
a series of protocols involving agencies from the government and society.
Formulation of the setup policies for any business that has potential threats
to society requires the involvement of the three elements. The businesses also
establish development plans with society representatives to maximize the
benefits of the Business to the public.
Good relations with society have been a
primary factor for the successful development of the company. The company has
been able to win many customers and enhance their loyalty. It has helped in the
expansion of the company in divergent corners of the globe, raising its profit
margin. Exxon Mobil can conduct market researches via its customers to satisfy
its requirements. The government has also been a key beneficiary to
achievements made by the company through taxes and other fines.
ExxonMobil Company depicted several
significances in the coexistence relationship between the government and the
society in the business environment. The government restricts this company
through enacting laws, policies, and regulations which it must comply with them
to create a cohesive and environment in its provision of services to the
public. In the history in 1911, the public out cried, and the supreme court of the
United States of America made a ruling that the standard oil should be
dissolved into 34 companies. Two of the companies were jersey standards that
later became Exxon, and Soccony Company became Mobil Company. Exxon Mobil Corp
was formed as a result of the merging of the two companies Exxon and Mobil,
which were descendants of the standard oil, which was established in 1870. The
government also regulates companies' production of synthetic lubricants,
lubricant additives, and propylene packaging films together with their
catalysts (Steiner, 2003). Production of these synthetic fibers has a great
impact on the society and life of future generations. Therefore, the impact
enhanced by the government to regulate the production of these products
promotes a coherent existence of the people in the society.
ExxonMobil is a signatory of voluntary
principles to safeguard the security and human rights. This promotes peaceful
existence due to respect for human rights and security. ExxonMobil has also
taken diverse measures to promote the harmony of people all over the globe.
ExxonMobil has been regarded as one of the greatest contributors to
environmental pollution. With that concern, it has donated $6.6 million to
social and environmental groups in 2007 that amounted to at least 0.016% of net
income that year.
The motivating factor that resulted in this
contribution by this oil company was the critics that came from outside
organizations like the environmental lobby group of Greenpeace movement that
ExxonMobil has widely contributed to global warming on its emissions. Research
has shown ranked ExxonMobil as sixth among the companies that emit poisonous
gas in the United States. The ranking was based on the quantity of the emission
emitted in 2005, and it emitted 15.5 million pounds. In the same year, the oil company
spent less than one percent of its profit. It was for research on the
alternative energy to use with was very high compared to other leading
companies who were listed top on emissions (Steiner, 2003).
On March 24, 1989, Exxon Valdez oil spillage
occurred discharging forty-two thousand cubic meters of oil into the Prince
Williams sound oiling about 2,100 kilometers of the Alaskan coastline. The
spillage was catastrophic and was ranked 36th oil spillage in history measured
volume. This oil spillage was termed to be the number one in terms of damage to
the environment with over 35000 birds and one thousand other sea creatures. Due
to the sinking of carcasses to the seafloor, it estimated the death of 250,000
seabirds,22 whales,300 harbor seals, billions of salmon, and herring egg were
also affected by the tragedy of oil spillage.
The government formed Exxon Valdez Oil Spill Council to investigate the tragedy of
the oil spillage and gave their findings that oil disappears at four percent
per year, concluding that the oil will take decades to disappear completely.
They also added that out of 27 species that they monitored, 17 of them have not
recovered. Though the salmon population had declined in a great number, whales
are recovering while fishing industries and the population herring have not
recovered their population. Exxon was highly condemned and criticized due to
its low response to responding to the disaster. The community in large
condemned the act they felt betrayed by the company. They went ahead headed by
their mayor and sued the oil company; the jury demanded Exxon to pay 5 billion
dollars to compensate for punitive damages. The company, however, made several
appeals to this charge that was charged to them, and they ended up paying 500
million dollars on June 25, 2008.
Exxon Mobil history has several
significances of business in government and society relationships, as evident
in the above instances. The government liaises with society to create harmony
and prevent misuse by the oil company, as evident in the oil spillage tragedy.
Mayor, together with the people, takes steps to sue the company for their
recklessness that caused the tragedy that affected them directly or indirectly;
for example, their fishing herb was greatly affected by the tragedy. ExxonMobil
has been criticized over the years by environmental lobby group and science
organizations for funding the organizations that are critics of the Kyoto
protocol. It has also undermined the role of public opinion in the scientific conclusion
that global warming is led by the burning of fossil fuels. It was founded that
the company had funded over eight million in three years between 2000 and 2003.
It is concerning forty different groups that have campaigned on environmental
degradation and influencing the public opinion and political approach to global
Ironically, the company was one of the
members in one of the groups formed to fight against environmental degradation,
such as the global climate coalition. More reports were released accusing
ExxonMobil on spending over 15 million dollars between 1998 and 2005 toward 43
advocacy groups that disputed with the effects of global warming. It was
founded that they have developed tactics to blackmail information as it’s done
on the tobacco industry in the effects of smoking to delay actions on the
issues of climatic changes (Enjolras, 2009). By developing this analysis on
this company act to suppress the truth, there is the stimulation of peaceful
coexistence on the people business and the government. It is because through
researches, justice has been able to be practiced accordingly (Steiner, 2003).
The company has developed plans to invest
over 100 million dollars in ten years in the project of Stanford University's global
climate. Several complaints of how the emissions emitted by the ExxonMobil
Company has a dangerous effect on the people's lives through depletion of the
ozone layer, thus resulting in global warming. The oil company has come up with
plans, and recently, they have announced to spend over 600 million dollars on
starting bio-fuel projects that come from algae. On July 14, 2010, I informed a
team of experts and opened up a green-house to research algae as the next
The government has ensured
that the acts and laws amended to protect the public and its developments are
taken heed by any firm. It was evidenced in 2003 when the former senior
executive officer of Mobil Corp was as sentenced three years and ten months in
jail with charges of tax evasion. The company had over seven million dollars in
unreported income (Enjolras, 2009). It was in addition to the two million
dollars of the kickbacks that he acquired in Kazakhstan and additional
penalties of interest. ExxonMobil was targeted by human rights activists in
Indonesia with the claim that the company knowingly helped human rights
violations, including murder, torture, rape by providing materials and
employing Indonesian soldiers who committed the following acts in Aceh. With
these efforts, the relationship between people and the government is created,
thus creating coherent market systems.
Steiner, G., &
Steiner, J. (2003). Business, government, and society: A managerial perspective
(10.th ed.). Boston, Mass.: McGraw-Hill/Irwin.
Enjolras, B. (2009).
Civil society in comparative perspective. Bingley, UK: Emerald.
Schwartz, R. (2006).
Law, society, and democracy: Comparative perspectives. Thousand Oaks, CA: SAGE