Case 1.2: Unocal and the Yadana Gas Pipeline Project

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Case 1.2: Unocal and the Yadana Gas Pipeline Project
Background and Detail
An organization is required to develop strategies considering the cultural beliefs of the region. Unocal Corporation was an organization which was dealing with energy production where it had engaged in many projects since being founded. However, in 4th January 1995 the president of Unocal Corporation John F Imle, Jr. was summoned by human right activists for operating without considering the human rights of the nation. The company had engaged in Yadana gas pipeline project through a joint venture of a French oil company, the government of Burma and Thailand (Lawrence and Tolley). The Unocal Corporation was summoned by the human activist due to the continuous violation of human rights by Burma government which was partners with Unocal Corporation. This made it possible for the human right activists to amount pressure on Unocal Corporation to make sure that they take responsibility for forcibly clearing the land and roads so as to facilitate the Yadana gas pipeline project. According to Paula WellnerYadana gas pipeline project was becoming harmful to the community in the area due to the increased relocation of villagers and forced labor in the project which is violations of human rights. Organizations are supposed to take the responsibility of ensuring that all the human rights and freedom are properly followed when developing a project in a particular area. In this case the people in the area were against the project as it interfered with their daily operation and lead to forceful evacuation from the village. According to Unocal Corporation started as Union Oil Company of California in 1890, the company mainly focused on research on energy, refining, distribution and marketing of oil products. The company has increased its loyalty on consumers through production of fully service stations and auto repair services in the market.
The management of 1980s failed to ensure that there is continuous flow of the company as they operated in high debts. According to Lawrence and Tolley in 1997 the new management of Unocal sold off some assets of the company to ensure that they are able to pay off debts and but stocks in the security market. There were investment projects especially in Asia to make it possible for the company to achieve high returns from the investments. The high number of investments in Asialed to Unocal Corporation opening new subsidiaries in the region to deliver quality services and products in the market. Unocal Corporation mainly focused on oil and gases which was very profitable in the region making it widely accepted to invest in Asia nations. The brutal attack by police on civilians and forcing people to work on roads where the pipeline was passing led to anger reaction from the residents. An organization is required to properly analyze the external environment to ensure that there is acceptance in the community so as to achieve set goals of production.
Cause of the Problem
The primary cause of the problem was the government which used force to evacuate people and forced them to work. This made Unocal Corporation to be held accountable for the actions of their joint pa...