Caltex Case Study

1911 Words8 Pages
Case Study #4 – A South African Investment Organizational Ethics
May 9, 2011

Case Study #4 – A South African Investment In your judgment, were the possible utilitarian benefits of building the Caltex plant in 1977 more important than the possible violations of moral rights and of justice that were involved? The general reason businesses seek to conduct business in other countries is for increased profit margins or some other type of tax break. Caltex was no different. Depending on what perspective one chooses to examine, whether Caltex’s utilitarian benefit is more important than violations of moral rights and justices is subjective. From a profit standpoint, Caltex’s building and expanding made sense because their existence as a
…show more content…
In my opinion, from a strategic perspective, it would be more important for Caltex to count up the costs against the violations and determine the benefits in the long run for all concerned. When and if management would assess this issue from a utilitarian perspective, negotiation could take place in such a way that there is an exchange for the betterment of all, thereby giving blacks more rights, more justices, more opportunities and all the while benefiting the South African government to make money (which is what they wanted), in turn giving unto the white population as well, the wealth and power it seeks. Management knows that it cannot solve the problems of apartheid that is so deep-seeded and engrained in a society. Its job is not political but rather business. Yet, it can begin to peaceably assist in giving the government what it wants and in exchange advancing the cause of blacks to human rights and justice. If you were a stockholder in Texaco or Standard Oil (now named Chevron), how do you believe you ought to vote on the three kinds of stockholder's resolutions that were proposed (the first asking Caltex to terminate its operations, the second asking Caltex not to sell to the military or police of South Africa, and the third asking Caltex to implement the Tutu principles)? What kind of responses should the managers of Texaco and SoCal have made to each of the three resolutions? 0 When a company comes into a country to do
Open Document