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Unocal Simac Case

In: Business and Management

Submitted By starwarsfan93
Words 2149
Pages 9
Michael Pedrahita
Business Ethics
Prof. Lacey
2/6/2014
Unocal Case Simac

1. The United Oil Company of California (Unocal) made the decision in the 1990’s to invest in energy projects outside of the United States and chose to invest in the “Yadana field” pipeline. There are many stakeholders involved in the international “Yadana Field” natural gas project. Unocal, Thailand’s PTT Exploration and Production Public Co., Total S.A., and the Burmese government (Myanmar Oil and Gas Enterprise) along with the employees of these companies are all major stakeholders in the project. These were the main participants that would directly benefit as a result of the project. The people who were living in the area that the pipeline was to be constructed are important stakeholders. Their lives are going to be greatly affected and interrupted by the construction of the pipeline. Thailand and other countries that are going to be buying the natural gas are also stakeholders as are the people living in these countries. The economies of these countries will benefit from the new source of fuel. By deciding to invest in the project, Unocal was confronted with many ethical issues. Unocal was very interested in participating in the project for several reasons, all of which were related to potential future profits and disregarded any harm that might come to the inhabitants of the pipeline area. Also, the majority of oil fields in the U.S. were near depletion so Unocal would have to begin investing in projects outside of the U.S. and deal with different governments who may be corrupt. The Yadana Gas field was located in Burma and as a result Unocal would have to go to Burma in order to invest in the natural gas field. Unocal would be dealing with a government that was a military dictatorship with a history of corruption. The government maintains law and order through the use…...

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