Case 5 Exxon Mobile

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Social Responsibility Marketing 550 Exxon Mobil today known as the third largest company by revenue in the world and the second largest traded, in this article was earning record high profits during the wake of rising gas prices (Exxon, 2014). While having many allegations out against them including the 1999 suit about denying domestic partner benefits to same-sex marriages and the 2001 allegations about Exxon Mobil knowingly assisting human rights violations, this case discusses Exxon falsely inflating the price of oil and the profits it reported. In April of 2006, Exxon Mobil reportedly replaced Wal-Mart as the largest company in the US with profits of $340 billion. In 2007 the company’s revenue increased to a staggering $404.552 billion due to the escalating prices and this did not sit well with the public (Exxon, 2014). With the public feeling the pressures of the extra cost of gas prices the US lawmakers as well were beginning to wonder if Exxon Corporate Social Responsibility Policy had any effect on their high profit margin. US policy makers were called to investigate the matter further as retirement packages upwards of $400 million were given to the CEO Lee Raymond. Exon defended its high prices through newspaper ads and the media. 1.) Rising gas prices impact on products and services: It seems hard to think that rising gas prices can have an effect on anything other than our wallets but when it hits our pockets other things in our economy suffer as well. Many products are shipped and delivered all around the world by trucks and other service vans. With the increase in fuel prices the rates for such trips must rise and that can have a negative effect on the bottom line. Not accounting for the extra cost in fueling trucks and other vehicles could cause a business to fail as they not be able to hand out contracts to other companies.
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