Ethics in the Oil industry

Category: Industries
Last Updated: 13 Jan 2021
Pages: 4 Views: 535

The oil industry and the multinationals dealing with crude oil are the most unethical businesses in the world. A controversial increase in oil prices is biting hard in many developing and third world countries and cost of life is becoming higher daily. Recession, economic weather and foreign policies on energy have been blamed on these contexts. However, there has been no strategic usurpation on declining production cost hence lack of logics in the sharp increase. This paper is a cross examination of the most unethical industry in the world.

We evaluate the context of increasing cost of life based on unethical practices and trade policies used by oil marketers and multinationals. This expose draws out the clear picture of lack of a clear policy on control of oil prices, increasing costs of production and rising fuel prices. As such we examine broadly this from this perspective if there is any ethics in these unclear and unlegislated polices opted by multinationals. Introduction The oil industry is the most unethical industry in the world.

However, good ethics pay off to companies and have helped them create a market share in the high consumer market. Lately, good ethics, corporate strategy and strategic management have begun paying for many oil companies. Management and performance problems for the oil industry are declining based on the use of these strategic policies. However, the context of increasing fuel prices and the sharp decline on policies on marketing has become contentious. The need to explore further, the reality about what are the ethics and ethical considerations in the oil industry is paramount.

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This paper examines various contexts of the ethics and policies in the oil industry with emphasis on various contexts like foreign policies by major producers, terrorism angle and increasing production cost. We examine how the multinationals have discarded social responsibilities and aimed for higher profits without worrying about the consumers and the cost of living. We examine critically the ignorance by these companies, of the policies and treaties which can help to regulate and maintain a consistent price which would be healthy to both the industry and the consumers.

We also make comprehensive analysis and expose what would be suitable to the industry in terms of political policies and ethical considerations. We make suggestions and profound strategic plans for implementation of these suggestions which would ease the sharp increase in oil prices and protect the consumer from these rising cost of life due to increased production cost. Besides, there has been no clear advice or information regarding any gross decline in oil production hence the subsequent sharp rise in pump costs.

As such, we subject this increase in prices to an evaluation so as to expound on the credibility of any ethics in these considerations to up prices without any recent decline in production of crude globally. Overview on ethics in the Oil multinationals Ethics and laws govern all aspects of business management. According to empirical research on various businesses use of ethical considerations, the oil multinationals have lacked clear polices and guides to their unilateral actions.

According to Dietrich 2007 (238), corporate ethics in the oil industry is sublime. ‘Dietrich further usurps that ‘Multinationals are influential drivers of globalization, having become a source of employment, products, and technology in many countries. Through taxes and fees they add hard currency to local economies, broaden them by creating new industrial presence, and enhance the domestic labor’s skill base by introducing new production techniques.

They also bring with them a link to their home countries, offering a glimpse of corporate governance often quite different from that of their host and serving as a positive example (Dietrich 2007: 238),. Parker debates about equal opportunities, environmental responsibility, consumer redress, and corporate governance have given ethics a prominent place in the study of organizations in their social and natural environments (Parker 1998: 3) These two contexts bring about how multinationals role in economic progression of various economies become integral in social economic progress.

However, their big opportune and their strategic place in the government economic structures have become their source of strengths to use clauses of ethics with legal contexts to practice what ‘within a legal perspective is undisputable, and from a bureaucratic perspective cannot be done without’ at the expense of the consumers. Within corporate-socio perspectives, this is unethical since the impact on the consumer is very profound while the huge profit margins are not basically benefiting the consumers but forcing them to spend more.

Parker abstracts that ‘postmodernism and relativism have moved ethics to a new centrality in contemporary social theory. This context drills the questions of why these multinationals and other players management and organizations, from a multidisciplinary perspective. The purge my multinationals to increase prices and earn more is a violation of the civil rights, literally. However, this has to be substantiated using more empirical approaches to add credibility. Principles of ethics within a societal context protect the society members from exploit.

According to Brown and Bradshaw ‘each person is to have an equal right to the most extensive basic liberty compatible with similar liberty for others’. Social and economic inequalities are offset by unnecessary barriers brought in by bureaucratic policies by the Multinationals. According to Dietrich, ‘ethical considerations have been confined to the conduct of employees in multinationals and other organizations, defining these employees behavior in accordance with national law.

Such issues included the use of company assets, conflicts of interest, fair labor standards, as well as other areas related to the work environment” (Dietrich 2007: 238). However, there has been shift in policies governing such perspectives and there are guidelines to manage the oil industry sector through each company conforming to a set of ethical principles. These principles guide these organizations on policies, fair trade and legitimate business practices.

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Ethics in the Oil industry. (2018, Mar 20). Retrieved from

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