Abstract

The case describes the Exxon Valdez oil spill, one of the worst ever environmental damage caused by an industrial disaster. In March 1989, the oil tanker Exxon Valdez, owned by Exxon, a leading oil exploration and production company in the world, spilled 11 million gallons of crude oil in the Prince William Sound in Alaskan region that caused major ecological and financial damage to the people of the region. The case examines the response of Exxon to deal with the disaster and the compensation paid by the company to the victims. Though Exxon claims that it had acted responsibly and had spent around $3 bn to clean the region and as damages to the victims, the largest sum paid by any corporate to mitigate the environmental damage, environmentalists believe that the company must pay more. The case highlights the ethical issues involving the disaster and examines the response of ExxonMobil to deal with it.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Factors that led to Exxon Valdez spill and ethical issues involving the disaster.

Keywords

Case, Exxon Valdez, Environmental Damage, Industrial Disaster, Corporate Crisis, Crisis Management, Corporate Communication, Oil Pollution Act and Social Responsibility