Exxon - Exxoff

Posted on August 21st, 2008 by Will Marre.
Categories: CSR, Leadership, Education, Community.

I guess I am a little ticked off tonight. Here I am watching the Olympics and I am bombarded with Exxon ads featuring high-minded employees touting Exxon’s $750,000 contribution to fight malaria with mosquito nets.

Then I go to my computer and I get a feed on a Corporate Social Responsibility website called Responsible China (!) praising Exxon humanitarian work. Okay. I know Exxon actually does contribute to humanitarian causes in all kinds of oil-rich off-the-beaten-path countries. It is good and at the same time it is pathetic. Honestly, Exxon spends millions more on advertising costs telling us how good they are rather than on being good! More importantly, Corporate Responsibility and clear-eyed ethics do not pursue a core business that is wildly destructive to the environment, is a primary engine of climate change, and exploits consumers in an economy-wrecking policy of manipulated oil markets all the while refusing to adequately compensate for or even clean up their infamous Alaska oil spill. Now they expect us to feel warm and fuzzy because they throw pennies to poor people. Exxon made $40.6 billion in profit in 2007. They are the world’s most profitable company.

If ExxonMobil really understood Corporate Social Responsibility, they would be the biggest investor in clean renewable energy. Instead their CEO disputes the scientific basis of climate change and publicly reminds us that they are an “oil company, not an energy company.” So their investments are going into lobbying for more oil leases to drill for American oil they can sell to the highest Asian bidder. And to find better ways to extract oil that, after all, nature created.

How does that sound to you? To me it sounds like a very weak justification to pursue toxic self-interest. It has a name. It’s called “negative innovation,” which are improvements in products that destroy the planet, exploit people and eat our future. Let’s see…is there a connection? Global warming, world wide inflation, growing extreme wealth of middle eastern tyrants and Russia and the oil industry. And I’m supposed to feel good about Exxon’s Corporate Responsibility? Isn’t it ironic that rising temperatures are actually causing a rise of mosquito-born tropical diseases even as Exxon buys mosquito nets? (It’s like tobacco companies selling breath inhalers.)

This is all a tragedy. A failure of ethical vision. What’s crazy is that there is big money to be made by creating clean renewable energy (Just ask T. Boone Pickens, PickensPlan.com). And for Exxon to only dabble in it while they increase shareholder dividends is strategically stupid. If Exxon wanted me to feel better about taking a day’s work worth of income from my daughter every time she fills her tank, it would come from knowing they are using her money to create a healthy, sustainable, non fossil-fuel energy future. But they don’t care. Not really.

So here’s what I tell business leaders. Any time we justify the suffering of others as necessary or inevitable, we become the cause of that suffering.

Our worldwide oil economy will likely cause immense suffering in forms of wars, poverty, pollution, climate caused natural disaster, and other unanticipated tragedies. For those who are presently prospering from oil not to take the lead in solving the catastrophic problems caused by it is…well you know what it is.

So, Exxon don’t try to make it something different through public relations. Indeed, it is what it is.

Day-pay in a tank.

13 comments.

Comment on August 22nd, 2008.

Sounds like a great message to get out to the world via youtube and other venues. Also there is this rush by oil companies to claim the North Pole now that it will be unfrozen. Crazy. Destroy the world then save 1/1000th of it and claim to be a savior.

Suzanne
Comment on August 22nd, 2008.

This is what is called putting lipstick on a pig. Exxon Mobil has absolutely the WORST environmental and humanitarian record of ALL the oil companies, along with the largest obscene profit.
I have boycotted them for a number of years.

Chris
Comment on August 22nd, 2008.

Who reading this doesn’t drive? It is easy to point at a faceless corporate giant and vilify it, but it is much harder to look into the mirror and see the same hypocracy staring back at you.

Until we collectively demand alternatives to oil we all are contributing to Exxon and as long as that is the case then there is plenty of blame to go around for the state of the world.

Start with the person in the mirror as that is the only place you can truly make any lasting changes. When enough of us do that then we effectively take the teeth out of the corporate giant.

Scott Tuton - Seattle, Wa
Comment on August 22nd, 2008.

Chris is right. Lets not forget this is another example of suply and demand. Carpool or Vanpool, bike, WALK, make an effort to use less gas. MAKE AN EFFORT! Then vote. The legislation must pass to force changes, even if we are just talking about an improved mass transit system. Don’t wait for the perfect answer to alternative energy, at this time there isn’t one. But there are improvements and baby steps. Since westerns seem to specialize in movement. Why don’t we just try and focus in moving in the right direction for a start.

Love you all!

Scott Tuton - Seattle, Wa
Comment on August 22nd, 2008.

Sorry. That should read “Westerners” not “Westerns”.

There is a subtle difference ;)

Comment on August 22nd, 2008.

Is the symbol of an unethical company name one that starts with E and ends with ON?

Comment on August 22nd, 2008.

When I saw this ad on TV I hit the DVR and replayed it because I thought “Wait! What?” They state in this ad they are an energy company. Wasn’t it just last April in his interview with Fortune that Tillerson was adamant they were NOT in the energy business, but strictly the oil/petroleum business? I’m confused. Did they change their business model or just their PR tactics?

It’s tactics that this that give CSR efforts a bad name. I do think it’s great that they are doing some good things. But please don’t ask me for accolades until you do something on the giving back scale that is at least equal to what you are doing on the depleting and damanging and taking away scale.

They really just don’t get it, do they?

Lee
Comment on August 22nd, 2008.

I had an Exxon card for years, but cut it a couple of years ago because of this corporations lack of ethics regarding oil spill cleanups, alternative energy solutions, and obscene profit taking. I refuse to fill my tank under that sign.

Kelly
Comment on August 22nd, 2008.

I have to disagree with rants against oil companies. First..it isn’t ‘they’..it’s us! And most of ‘us’ do look the other way - we want it to be there at the pump, we just don’t want to know how it gets there! ‘They’ have been providing us with the products that we all want to feed our big SUV’s and heat our McMansions with their floor to ceiling windows. And even at $4.00+ a gallon we have only begun to slow our consumption. I guess in the past we have been able to afford big vehicles and high prices because we re-mortgaged our homes and taken a big pile of cash out of our equity so that we can live large off the real-estate boom. Now that the real-estate phonies have bent us over we should be thankful that there are profitable comanies like Exxon holding up some value in our 401k’s. The oil companies give us what we want. I truly hope there are companies out there working to provide the energy sources we will need for the future. And I hope they make a pile of cash for doing it. That’s free-market and that’s a good thing.

Larry Klein
Comment on August 23rd, 2008.

Your rant at Exxon or the CEO leaves you powerless. The relevant quesion is what are you doing about it?
Do you drive a Prius or Civic Hybrid which will cut your gas usage in half (and if everyone did, would put Exxon out of business)?
Do you drive 55 on the highway as it cuts your gas has consumption by 10 to 20% over driving at 70 mph?
Do you talk about these issues to people in your circle of influence?
Your power is your YOUR actions, not your rants.
But that still leaves us with a huge problem–the ignorance and stupidity of most Americans. They are addicted to the short term benefits provided to them by Exxon–the ability to fill up the tank on their BMW 750il and drive 80 mph on the freeway. I guess it never occurs to these people that their opting to be “cool” has the following costs:
1. funnelling $ to mideastern extremists
2. dumping toxins into the air so that their children will likely have a respiratory ailment
3. mutiple impacts of global warming
For the average American, the payoff of something they want today is worth far more than the damage they will do to themselves, their family and everyone else. The big question is what’s the remedy to the stupidity and ignorance of the average American? It’s not Exxon’s fault. It’s our fault. The free market works and your moronic neighbors, friends and cohorts are voting with their dollars to enrich Exxon.

David Enriquez
Comment on August 29th, 2008.

I don’t like the high price of fuel anymore than anyone else, but in our environment it is a necessary evil. It is only now that it might be economically feasible to develop alternative energy sources. The high price we pay for oil from the Middle East is set by those countries. It is their oil. If we want it, we have to pay for it.

There is a common misconception that alternative energy sources will be less costly. Although that may turn out to be true, logically it would seem that would not be the case. After all, if it were feasible for a company to develop alternative energy sources that they could sell and undercut the oil companies, the laws of economics and free enterprise dictate that they would already have done so. Only now is it viable for a company to make the huge investment in technology and research do so and hopefully it can be done for less, although there is no guarantee. For example, we have huge resources of shale oil, that may be considered for mining, should the price of oil go high enough.

Let’s face it. If you pull up to a gas pump and have a choice of “Algae ethanol” for $7.00 per gal or “Middle eastern gas” for $4.00 per gal, I’m going to guess that gas will still be the fuel of choice. Environmental concerns will become secondary to most people buying fuel.

That does not excuse the windfall profits of Exxon. There are very few businesses where the cost of materials can go up significantly with a resulting increase in profit. Quite the contrary, in most business, the opposite is true. This is an industry that is exhibiting signs that it should be regulated much like the power companies. They do have, in effect, a monopoly on our transportation.

So, although we may all have to make sacrifices and I feel sorry for those that have to sacrifice more than I do, I’m afraid it may be the only way to move our energy policy forward to improve our planet and quality of life.

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