11/19/2014

Term Research Project

How did Chevron get its bad name?

James Fair
Professor: Basil Chelemes

How did Chevron get its bad name?

I wanted to do my research paper this semester on something I care about, the environment and it staying
healthy for future generations to enjoy. Now many people say there is nothing to worry about and that at
the rate we are going there is more than enough resources to go around for many generations, I do not
agree with that so I figured I would do a project on something I have a great deal of interest in, so I started
my research by looking up the most environmentally unethical companies in the world and there were
some companies that I didnt recognize then number three hit me Chevron, all I know about is Chevron at
this point really is that its an oil and gas company, and I could think about is there commercials telling
people how superior their gas is and how for years I have been trying to go to Chevron because I
remember my father doing that.
So it got me thinking and I started researching different resources and started to find out that from
Chevrons choices and actions along with the companies they have acquired they have really destroyed their
name as a credible company in the environmental world, from trying to walk away from polluting the
Amazon forest to hiring military forces to remove and eliminate issues in their way. So from there I
proceeded to do my research on what good things Chevron might me doing to promote a better image
and potentially start to clear their bad name. I have always had a strong understanding that you run a
business as though your name were on the building, thus making you more responsible about the
businesses wellbeing and success.
The first thing site I came across was Action For Our Planet, and it has been a great resource for the start of
my research, on this site a Swiss company did a lot of research in 2010 of over 580companies and the
companies were then rated out of 45 using different statistics from labor standards to human rights and
employee wellbeing. Now this site posted the to 10 worst companies of the 580 plus they researched and
the reason they made it to the top 10 is because they have a poor record when it comes to human rights

and they are almost all famous for taking multi-billion dollar profits and exploiting the third world
companies people for cheap labor (Action For Our Planet, 2014), and because the companies make so
much money they are able to corrupt and pay off the officials that come out to audit the companies
actions. I does also state that the only way to fight their corruption and bad practices is to boycott their
products and push for more government intervention so that these companies will hopefully start being
more conscious of the environment.
One of the main stories I found that has really destroyed Chevrons name as a company is the Project
Chevron undergo in Ecuadorian Amazon, Chevron polluted their lands, destroyed acreage in the Amazon,
and caused environmental damages beyond repairs, but worst of all it affected the villagers that live there.
The major issues is it has polluted the rivers, destroyed peoples lively hoods and their food supplies, the
issue has brought major human rights abuse issues and other serious claims against Chevron to light in this
case. And because of these causes a lawsuit was filed in 1993 by 30,000 plus people who live in the
affected area, they asked for Chevron to knowingly accept responsibility for the damage caused during
their operations in the Amazon from 1993 through 1990. The court ruled in favor of the people and
charged Chevron with a $9 Billion dollar fine and stated the company must file a formal apology, and
doing so must acknowledge what they have done as inappropriate and unacceptable. And failure to do
so would result in the fine doubling to $18 Billion. (Solar , 2012)
This lawsuit has put a huge black eye on the companies appearance, this is one of the biggest
environmental lawsuits in the world with the amount I think I read it actually is the biggest win for
environmental activists, and to make things worse for Chevron they are now getting in trouble because
they are to blame for an oil spill in Brazil contaminating 230 miles of ocean because a pipe burst causing
over 110,000 gallons of oil to be dispersed into the ocean, originally Chevron suggested the spill to be 10
times smaller than the true chaos it insured, and that was backed up by a group called sky truth who pulled
a satellite image of the affected area. (James, 2012) what makes this hard is the oil is moving with the

current and has been dispersing with the current and has been drifting out to sea gradually, which will just
increase the polluted area exponentially. So just these two recent issues has really put a bad perspective on
how negligent Chevrons operations really are, there should be fail safe measure in place that will keep
damage to a more manageable level, I could understand a few hundred to a thousand gallons of oil being
pushed out that is sucky but manageable, on the other hand 100,000 plus gallons of oil being dispersed
into the ocean where currents control it, and make it nearly impossible to manage, collect and clean most
of the contaminated area.
The last resource I found on Chevron and their blemished name was an instance where they were found
not guilty of the situation, however it has put a bad representation against their company again, and to be
honest after reading the story I am glad the plaintiffs are appealing the ruling to the 9th circuit, Chevron has
a history of unethical behavior. In 1998 a Chevron oil platform on the Niger Delta had peaceful protestors
that had made their way to the offshore platform, from there because Chevron didnt like the protestors
there, they paid and ferried Nigerian soldiers to the platform to remove the protestors. So while the
Chevron personnel supervised them, two peaceful protestors were brutally attacked killing them, one
protestor was shot in the back and the rest of the other protestors were injured, including some that were
tortured while in the custody of the mercenaries (guns for hire) (centerforconstotutionalrights, 2014).
This is just another classical case to show that Chevron has unethical approaches to eliminate issues that
arise because they are a multi-billion dollar a year company that wants to remain successful and contain
there power, and they will silence the ones that get in there way of whatever goal they have and if they
have to result to taking what you have and abusing your human rights to get what they want they will do it,
and then they will throw their money at the issue to try to make it disappear, all while they just continue
harming the environment and not practicing safe procedures to ensure the safety of the people and the
environment, it seems like they will make a dollar no matter what it takes or who they have to go through
to get to it.

So with all of these negative issues that Chevron faces I wanted to research and see if they were doing
anything to help their public image in any way, or see if it was just so tarnished at this point they dont care
to try going forward. I feel like if my company made it to the top three most unethical companies in the
world I would want to do something to immediately fix that, but I am not an unethical person, so trying to
understand what Chevron is up against it would hard for me to feel like that venture may be nearly
impossible. So I set out on my research and I did find that although it may seem they are fighting an uphill
battle Chevron has been trying to give back to the people and the communities. Chevron has made nearly
$1.5 Billion in social investments in the last 8 years, they focus on helping communities in where there
businesses are located because they believe that focusing on helping people with Health, Education and
economic developments with the locals will help foster a partnership with the people (Chevron, 2014).
Along with their donations and public campaigns for good I do like that Chevrons employees are big on
volunteerism they had in 2013 alone more than 13,000 employees and retirees of Chevron contribute
about 160,000 volunteer hours, along with more than 5,600 charitable organizations in the United States,
and the last really cool thing I liked is that Chevrons employees and retirees raised more than $19 Million
for U.S. non-profit organizations and then Chevron matched that amount bringing their contributions to
$37 Million all under their campaign name Chevron Human Kind.
So my conclusion after all of my findings is that although Chevron like many other companies in the world
have made really big mistakes that have really hurt our world, I do feel like Chevron is trying to do its part
to make the world a better place, and although they could just throw in the towel and say forget it and just
proceed to hurt the environment they are choosing to try and practice safer procedures now and they are
obviously fostering charitable organizations and trying to give back to the people, so I do think that
Chevron deserves to be given a chance to virtually start over and try to repair its public image, and it may
have become more of a priority since 2011 when they were fined so severely, but I am glad to at least see

they are trying to move forward in a proactive and helpful way. And as long as they keep on the straight
and right path I feel like they can change their public image and become a huge asset to the communities
in which they reside.
If I could give my resolutions and recommendations to Chevron they would be:
1. Start focusing more on the environment, you make all of your profits and get all of your resources
from the environment and if you are not respectful and careful with our environment which we are
all a part of you will never be seen as the great company you can be.
2. Do not take short cuts, they will be costly if not to you to the people and the environment, when I
think of the situation in the Amazon it come across like as you were packing up all of your bad
materials instead of removing and eliminating the waste properly you were like hey look theres a
ditch over there and that will save us a thousands if not millions to just throw it in the locals yard
for an analogy and let them deal with it, do what is right by the people and for the environment
and then its a win-win for everyone.
3. And lastly keep on focusing on your Chevron Humankind initiative it is and will become such a
great resource to the people you help and it will be the start of creating a new lasting impression
for people to support you by then if and when you make a mistake people may be more open
minded to seeing you as a good company as one that does not take short cuts and one that will
take action quickly and resolve the issues or conflicts that arise in a positive manner with nothing
but integrity and devotion to the environment and its inhabitants.
4. Lastly try to learn from your mistake from buying Conoco because that brought on what I feel like
was your downfall in reference to your public image, you bought Conoco with the impression
there past wrong doings (polluting the amazon forest) were pushed under the carpet and that
ended up not being a good move on your part obviously knowing now from the 2011 trial, so
going forward I would caution you to only associate with company buyouts that will build your
company and public image in a positive way.

WORK CITED:

Chevron Found Not Liable For Killings, Shootings and Torture of Nigerian Peaceful Protesters.
(2014, January 1). Retrieved December 4, 2014, from http://ccrjustice.org/newsroom/pressreleases/chevron-found-not-liable-killings,-shootings-and-torture-nigerian-peaceful-p

Community. (2014, November 1). Retrieved December 4, 2014, from

http://www.chevron.com/corporateresponsibility/community/

James, A. (2011, November 20). Oil spill disaster in Brazil: This time Chevron is to blame.
Retrieved December 3, 2014, from http://www.digitaljournal.com/article/314763

Solar, I. (2012, January 5). Chevron loses $18bn appeal for environmental damage in Ecuador.
Retrieved November 15, 2014, from http://www.digitaljournal.com/article/317330

Unethical Companies. (2014, January 1). Retrieved November 17, 2014, from
http://www.actionforourplanet.com/#/top-10-unethical-companies/4545796858