University Name: Business Ethics and Oil Sands Case Study

This case study examines the ethical and corporate governance issues surrounding the oil sands industry in Canada. It explores the ethical dilemmas related to environmental impact, stakeholder interests (government, producers, and environmental groups), and the application of ethical frameworks like utilitarianism and the consideration of the environment as a stakeholder. The analysis highlights the importance of the triple bottom line approach (people, planet, profit) to achieve ethical and socially responsible outcomes, focusing on sustainability and environmental protection. The assignment also connects these issues to real-world scenarios, such as personal transportation choices and their broader implications. The student considers the ethical considerations of using fossil fuels versus renewable energy sources, addressing potential impacts on future generations and the environment. The study emphasizes the need for responsible business practices and sustainable solutions within the oil sands industry.

Running head: BUSINESS ETHICS AND CORPORATE GOVERNANCE 1
Canada’s Oil Sands Case Study
Name of Student
Name of Institution
Workshop No:

BUSINESS ETHICS AND CORPORATE GOVERNANCE 2
What are some of the
main ethical and/or CSR
issues involved in this
case or dilemma?
Ecological ethics demand that nature has to be preserved due
to its inherent worth. This is regadless of its benefits to
humans. This case has both positive and negative outcomes in
production. Canada is known for ethical production of crude
oil and the corresponding CSR validates this. CSRis in the
form of contribution to support Aboriginal communities,
creation of employment to the First Nations communities and
business contracted to themevery year. On the hand there is the
dilemma of environmental damamge associated with
production: the average greenhouse emission is times more
than for conventional crude oil,accounts for more than 7% of
Canada’s greenhouse emission and ground and water
poluution.
Who are the main
stakeholders and what
are each of their primary
interests?
The two main stakeholders are the government and producers
on one hand and environmental interest groups on the other.
Extracting oil sands avails economic bebenfits to the Canadian
economy and ensures it is energy secure. For the oil producing
companies, the large proven deposits present the opportunity
for long-term production which is profitable in an environment
which is stable and upholds human rights and democracy. Th
environmental protection groups are interested in protecting
the water resources used in the production process. Other
interests include reducing carbon emissions emited as well as

BUSINESS ETHICS AND CORPORATE GOVERNANCE 3
safeguarding the regional aquatic ecosystem in the production
sites.
What theoretical
frameworks or models
that you are aware of so
far in this course might
apply to this situation?
One of the frameworkd applicable is the consideration of the
environment as a stakeholder. The utilitarianism and market
based ethical approach which has attendant remedies would be
the most applicable in this situation. Constraints which are
environmental should be a natural part of market system and
remedied with different protocols. This neccessitates firms
internalising their social costs which are external. This include
the Kyoto protocol and the EU emmissions trading scheme.
The capping of allowable emissions and trading of the same
ensures that total emissions fall over time.

BUSINESS ETHICS AND CORPORATE GOVERNANCE 4
What actions or
decisions would be
likely to yield the most
ethical and socially
responsible
outcome(s)?
The most appropriate decision is to embrace the tripe bottom
line approach in doing business. This will ensure that the most
ethical and socially responsible outcomes are produced. Three
stakeholders will benefit; people (communities), planet
(environment) and profits (shareholders/companies). This
approach is based on sustainability and the environmental
protection. Considerations of economic growth, conservation
and sustainability can be implemented at the micro level in the
oil sands industry.The oil producing firms can be encouraged
to engage in practices that lead to competitiveness and satisfy
concerns about the environment.
Any additional
comments or thoughts
on this case or
dilemma? e.g.
 do these
issues/dilemmas
relate in any way
to your daily life?
 do they relate to
in any way to
someone you
know? (and/or a
similar situation
that you may be
aware of?)
This dilemmas relate to me on a daily basis on the choice of
mode of transportation taken. I have to choose between
commuting daily using modes which use fossil fuel such as a
car and bus or the metro train which is electrified. Using the
metro train uses clean renewable energy which comes from a
mix of hydro and wind power sources. Using a bus or car
provides more flexibility and convenience but has several
dilemmas. The first dilemma is that I may unkowingly be
contributing to the funding of terrorists by fueling my car with
fuel from nations known to support terrorism. Secondly by
using fossil fuel based modes of transportation, I may be
compromising the rights of future generations. This may be

BUSINESS ETHICS AND CORPORATE GOVERNANCE 5
due to the unethical and environmentally unsound means of
crude oil production being used.