It has been almost eight years since the Exxon Valdez ran aground on Bligh Reef in Prince William Sound, Alaska, and there are still questions of whether a lesson was learned.
We hear story after story about the mistakes of corporations and how the responsible parties avoid conflict and slander by using the show a lot, give a little” tactic. In this case, we are faced with a situation where the upper management at Exxon had to face the music. Before we can criticize or justify the response of Exxon’s management teams, we have to look at their objectives. The primary objective would be to maintain market position, which would be in the best interest of not only the managers but all stakeholders involved. The second objective would be to find an equilibrium point that both Exxon and all parties could live with.
There were many parties to keep happy, which explains the millions (even billions) of dollars spent on cleanup and reimbursement for damages. Everyone had their hands out, taking as much as they could in the name of compensatory and punitive damages. The managers not only had the responsibility of rehabilitation but also had to keep the company moving in a positive direction. They had to decide where the real needs were and where they could cut costs. I believe they achieved their objectives in both cases to an acceptable extent.
What Exxon faced was a lot of time and money. A total of 3.4 billion dollars was paid out in the 1991 fiscal year alone, which was more than half of the profits for the period. An abundance of money and time was also spent in court defending the corporation from lawsuits from surrounding communities and organizations. Some of those involved included a National Forest, four National Wildlife Refuges, three National Parks, five State Parks, four State Critical Habitat Areas, and a State Game Sanctuary. Due to so many people and organizations being affected, Exxon had not only the costs but also the time and relations aspect of the disaster.
Press conferences, litigation, trials, committees, and clean-up efforts took precedence over normal business activities. First, the hiring of contractors to help clean the mess, plus the weekly meetings with the locals and activists to discuss the steps needed to ensure results. The 1989 efforts included containing, cleaning, and rescuing oiled wildlife. Skimmers (to remove the oil), booms (to keep oil from reaching salmon hatcheries), and the most impressive Mosquito Fleet” were a few of the tactics used by management for these circumstances. Shoreline surveys and limited cleanup work occurred in 1991, 1992, 1993, and 1994.
Crews from Exxon, the state, and federal governments visited eighty-one sites in Prince William Sound and the Kenai Peninsula. Assessments from 1992 determined that the cost and potential environmental impact of further cleanup was greater than the problems caused by leaving remaining oil in place. I believe Exxon escaped without a fight in terms of future preventative plans. People were out for self-gain and forgot their obligations to Mother Earth.
