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BOARD PAPER
Agenda Item: Exxon Mobil Oil Spillage.
Sponsor:
Draft Resolution: A proposed resolution to renovate the transport system is needed to avoid
further oil spillage. The continuous oil spillage into the Indian Ocean, is as
a result of the poor conditions of the oil tankers. This spillage results in
water pollution.
1) Executive Summary
This board paper is about the rampant oil spillage that occurs in the Indian Ocean 1 as
Board Paper 3
Exxon Mobil company oil tankers transport oil to our African clients. This has resulted in
catastrophic negative impacts to the environment and huge losses incurred by the
company. The paper is endeavoring to achieve a lasting solution to this situation and is
therefore seeking the board’s approval to revamp the oil transport infrastructure.
2) Background
The current corporate social responsibility issue that we are facing as the Exxon Mobil
Oil Company is the pollution of the ocean due to the recurring problem of oil spillage.
The situation has escalated into unprecedented levels following the reported mass death
of aquatic life and growth of water hyacinth and other troublesome water weeds as a
result 2 . Coral reefs are also being reported to have been destroyed as spilt oil floats on the
water thus blocking sunlight and oxygen from reaching aquatic life below 3 . The problem
is being caused by the poor conditions of our oil tankers and lack of properly trained
personnel to handle the situation. Our stakeholders who are mostly affected are our
customers who live along the shores of the affected regions and depend on fish for their
livelihood. The appendix provided below will illustrate this problem using some images
that were taken recently to emphasis the predicament.
1 Oil spillage is the number 1 cause for ocean pollution.
2 Oil spillage leads to many effects on water.
3 Oil kills aquatic life by blocking sunlight and oxygen from penetrating into the deep. Sunlight and
oxygen are important for life to thrive underwater.
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3) Recommendation:
The recommendations that were arrived at by the management involved the training of
the current staff 4 on how to address such a scenario. The staff would also be trained on
ways to ensure the oil tankers are in the best condition possible to avoid punctures and
stalling of the ships. Another recommendation that was on offer was hiring qualified
personnel but it was overlooked since the management concluded that it was more costly
than training the existing staff. The other recommendation agreed upon was the
acquisition of new and advanced oil tankers.
By implementing these recommendations, the management hopes to reduce the
oil spillage and in the event of such a scenario, the staff will be in a position to deal with
it appropriately.
4) Implications of non-action and of the recommendation:
The key stakeholders who will be affected are:
- Customers
- Shareholders
- Marine society
The customers will be affected in that they will see that our company complies with
environment preservation regulations and thus they can have complete trust in our
business practices. The shareholders will be positively affected too as the reduced oil
spillage will consequently reduce loses and subsequently increase profitability. The
4 Highly trained personnel are one of the ingredients for a sustainable approach to controlling oil spills.
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marine society will be impacted the most as the marine life they depend on will be
conserved 5 . The company’s strategy, mission and policies will be maintained and we
shall also be in compliance with corporate governance. The CEO and the board will also
avoid any liability on environmental degradation.
However, inaction on these recommendations will lead to huge losses for the company,
more aquatic life deaths 6 , uncontrollable water pollution and negative impacts on the
society and the company’s reputation. Refer to appendix 2 for risk assessment and
financial implications.
5) Appendices
Appendix 1- Risk Assessment Table
RISK DESCRIPTIO
N
LIKELIHOO
D
CONSEQUENC
E
IMPACT
POTENTIA
L
A Expensive
oil tankers
Risk of
acquiring
expensive oil
tankers thus
increasing
implementation
costs
low low minor
B Legal
constraints
Risk of going
against
government
regulations
hence inviting
lawsuits
high high moderate
5 The marine environment and the people who depend on it will be the highest beneficiaries of reduced
oil pollution.
6 Sea mammals will die in large numbers leading to a negative effect on the ecology.
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Appendix 2- Images of Oil Pollution
nv
Appendix 3- financial implications
Recommendation Estimated cost
Training the staff $ 1500
Acquiring new oil tankers $ 150,000
a) Capsized oil tanker
b) spilt oil burning
c) Negative effects on aquatic life Marine society affected
negatively.
Board Paper 7
Bibliography
- Kadafa, A.A., 2012. Oil exploration and spillage in the Niger Delta of Nigeria. Civil and
Environmental Research, 2(3), pp.38-51.
- Green, J. and Trett, M.W. eds., 2012. The fate and effects of oil in freshwater. Springer
Science & Business Media.
- Owa, F.W., 2014. Water pollution: sources, effects, control and management.
International Letters of Natural Sciences, 3.
- Al-Majed, A.A., Adebayo, A.R. and Hossain, M.E., 2012. A sustainable approach to
controlling oil spills. Journal of environmental management, 113, pp.213-227. - Doerffer, J.W., 2013. Oil spill response in the marine environment. Elsevier.
- Geraci, J. ed., 2012. Sea mammals and oil: confronting the risks. Elsevier.
