Alberta Energy Company and the Ethics of Operation Kabriole

What should be done?

The root reason of vandalism is environment concern. Morgan should not cooperate with RCMP “Kabriole Operation” and give direct financial assistance to RCMP any more because it will have adverse impact on corporate image and cause ethical issue, which is not consistent with its strategy and definitely affect its business development and reputation in the future. Instead AEC should find out a best solution to minimum the flaring pollution risk as much as possible and make effort to stop vandalism to ensure their employee’s safety.

Why should it be done?

First, strategy ought to be ethical. An organization’s strategy should be shaped by what is considered ethical and in accord with societal expectations and standards of good community citizenship. Because societal value and priorities, business ethics, community concerns and potential for onerous legislation and regulatory requirement are regular parts of external consideration for corporation’s strategy. A good strategy should conduct its activities according to general public interest and response positively to emerging societal priorities and expectation, as well as demonstrate a willingness to take action ahead of regulatory confrontation and balance stockholder interests against the larger interests of society as a whole.

Second, environmental concern should be considered as major consideration of AEC’s strategy. According to the case, the most concern of farmer community is environmental issue–Flaring problem, which is potential risk and big threat for the health of their family, livestock and crops. In fact, there are studies have supported the farmer’s claims. Ignoring or refusing to admit the primary problem will be never helpful for the company’s future business development in this area and cause more vandalism and eco-terrorism activities.

Third, it is a win-win solution and will satisfy its all stakeholders’ benefit for a long run. Cooperation with RCMP operation maybe is beneficial for its business and employee in short run. But it does not balance benefit for all of its stakeholders. In order to get biggest benefit and profit to company, Morgan should consider a solution for long term and find out a best balance point for its stakeholders as a whole.

How should it be done?

First, don’t involve in Kariole operation and any direct financial assistance to RCMP in order to avoid any ethical issue in the future. Instead, AEC can increase the percentage of its annual contribution on health and social security through government that can be used to stop vandalism and eco-terrorism activity in this community.

Second, let the public and media know how the eco-terrorism and vandalism activity threat community safety and what damage it made to community and direct public attention on the illegal and evil side of eco-terrorism activities.

Third, make more effort and investment to set up a laboratory and make research on how to eliminate the potential adverse impact of its operation on environment. If the research proves farmers’ suffering is really due to the pollution from flaring gas, establish a fund to make appropriate compensation for farmer’s suffering. It will be the best long-term solution of company for its stakeholders’ benefit, including shareholder, employee and community as a whole.