Corporate Social Responsibility Initiatives at ExxonMobil - The Good, The Bad and The Ugly

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Case Details:

Case Code : BECG102
Case Length : 18 Pages
Period : 1999-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : ExxonMobil
Industry : Petrochemical
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

About ExxonMobil

The history of ExxonMobil dates back to 1870 when John D. Rockefeller (Rockefeller) and his associates started the Standard Oil Company (Standard Oil) in the US. By 1878, Standard Oil controlled US$ 33 million of the country's US$ 35 million annual refining capacity. In 1879, Standard Oil bought a 75 percent equity stake in Vacuum Oil Company (Vacuum Oil) for US$ 200,000.

In 1882, Rockefeller and his associates formed Standard Oil Trust to centralize their holdings in several US oil companies. By 1891, the trust contributed 25 percent of the total oilfield production in the US...

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CSR Initiatives at ExxonMobil

ExxonMobil, as one of the largest petroleum and petrochemical companies, recognized the risk of climate change, and therefore emphasized improving efficiency and reducing Green House Gas (GHG) emissions in its operations. The company started reporting GHG emissions from its operations in 1998. It also supported biodiversity conservation. The company promoted education in the communities where it had operations...

The Criticisms

Despite ExxonMobil's sustainability initiatives, the company attracted criticism on several fronts. Some critics argued that its environmental initiatives were just public relation exercises. ExxonMobil was criticized for promoting fossil fuel and its reluctance to develop renewable energy. In 2003, the Chairman and CEO of ExxonMobil, Lee Raymond (Raymond), said that the company supported mandatory reporting of CO2 emissions...

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