Documents Uncovered After the Exxon Valdez Oil Spill in Alaska

question 55

Essay

Documents uncovered after the Exxon Valdez oil spill in Alaska revealed that Exxon could have used double-hulled oil tankers that would have prevented the spill,but the cost of refitting their fleet of single-hulled tankers was considered too high.Exxon determined that the cost of cleaning up an oil spill would be less than the cost of refitting the ships,thus increasing shareholder value.Several years after the oil spill,however,Exxon was fined billions of dollars for the spill.How do the costs of the cleanup and the fines pertain to a discussion of maximizing shareholder value and ethical responsibility?

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Definitions:

Cognitive Development

The process by which a person acquires ability to reason, solve problems, and understand the world around them, through the interaction of genetic and learned factors.

Static Reasoning

A cognitive state where a person believes the world is unchanging, and what is true now will always be true.

Abstract Reasoning

The ability to analyze information, detect patterns and relationships, and solve problems on a complex level that is not directly tied to concrete experiences.

Concrete Thinking

A style of thinking that relies on the physical, tangible reality and does not easily grasp abstract concepts.