Business Ethics Unit 4 IP

Business Ethics Unit 4 IP

Natural resources such as minerals, water, land, and oil constitute the most vital sources of income, livelihoods, and influence for different communities and their respective countries across the world. However, the ever-increasing environmental degradation and population growth experienced in the modern world has posed intensified competition over the already limited natural resources. This has resulted in inequitable sharing and poor management of resources. Unequal sharing, poor management, and implementation of businesses without due consideration for context and communities have contributed to existing tensions that often escalate into conflicts between the government, investing company, and an environmental advocacy organization that voices the community view. Therefore, it is essential to view valid and questionable positions which different parties are likely to take whenever such conflicts arise. This will enable an arbitrator to find common ground that will be a mutually acceptable resolution to this dispute.

The claims presented by the environmental advocacy group clearly indicate that the environmental advocacy group holds its position to the fact that the operation of the oil company poses a risk to the economic livelihoods of the fishermen, depending on the Indian Ocean. This is because the oil operations may result in water pollution, which poses a danger to aquatic animals, which local fishers rely on for their living. Honestly, this is a violation of International Environmental Law, IEL, a constituent body of public international public law. The law is concerned with the obtainment of sustainable development achieved through controlling pollution and the depletion of natural resources. Another claim signifies a violation of basic principles of “Earth stewardship,” which means a science facilitating the active shaping of social-ecological change trajectories that promote resilience to the ecosystem and human well-being. The advocacy group stands in a position that the violation delays humanity’s movement away from the dependence of fossil fuels.

Regarding this claim, the oil extraction company can hold its position to the international legal scheme, which highlights the liability regime of oil spills. The scheme requires companies to pay compensation for damage caused by oil pollution. The company can also hold that its policies and procedures incorporate environmental safety and protection goals. This could depict that pollution resulting from oil spills is not as a result of negligence, but due to unavoidable circumstances. On the other hand, the government can hold its position to the high demand nature of oil products both by rail and transportation. Besides, the government can express how the huge revenues obtained from oil extraction plays a significant role in the fulfillment needs of the citizens.

The positions depicted by different parties, signifies that no party lacks a supportive legal background. Common ground in a mutually acceptable resolution to this dispute will be based on reviewing the contract terms and conditions in order to identify provisions of environmental protection that were omitted. If there is a critical omission regarding environmental protection, the arbitrator should call for the formation of a new contract that depicts commitments to adherence to environmental protection. Also, national human rights laws, international covenants, and measures requiring the government and oil company to entirely assess and create a plan to minimize violation of fundamental human rights should be incorporated.  The signing of this new contract will give both parties a further liability that will be looked at if the dispute reoccurs. This will bring satisfaction to the environmental advocacy group whose intentions are to have a sustainable environment for all walks of life.

Generally, due to the unstable economic regime, accountability, responsibility, and humanistic care are becoming rare terms in the culture of many investment companies. Governments, due to their desire for significant revenues, have also forgotten their protection and safety obligation that they owe ordinary citizens. This means people’s protection and safety have remained on their hands. Therefore, every individual should join hands with the environmental advocacy group and report any activity that they feel is endangering the ecological lives.

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