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 warming issues.
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 possible bio-fuels.
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 Publications.
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