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Ethical Environment of Business

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The ethical  risks in oil exploration, drilling, refining, and transport  in South America are largely environmental risks. These include short term risks like health risks due to gasses emitted during these processes ,  oil  spill    which  has  the  potential  to  ruin  livelihoods , ecosystems  and  the  health  of  communities   like  the  one  witnessed  recently  involving  BP.   long term issues like carbon emissions that rise the level of green house effect leading to global warming, poor long term toxic waste management leading to air and water pollution (Waisbord , 2000). Ethical  benefits  would  impact  positively  to  the  surrounding  community. These  include  creation  of  jobs. 

The  legal  benefits  the  oil  mining   company  stands  to  gain  include :  the  privilege  of   owning  the  mines  unlike  in  many  other  countries  where  Governments  own  mines , Government  subsidies  given  to  mining  firms  to  carry out  exploration  in  south  America  unlike  in  many  other  countries(Waisbord , 2000) .  legal  risks  include  a  law  that  gives  a  right  to   poor  communities  inhabiting  the  mining  area  to  have  access  to  books  showing  money  generated  by  the  mining  company  and  demand  that  the  company  builds  schools,  health  care  facilities  and  create   jobs(Waisbord , 2000).  

From  my  friends  responses, I  learnt  that  south  America’s  oil  reserves  remain   largely   untapped   due  to  a  history  of  poor  environmental  and  social  practice  coupled  with  a  lack  of  mining   experienced   personnel  .  The  most  compelling  points  were  the  best  scientific  methods  to  employ  to  mitigate   the  ethical  risk  involved  when  oil  spills  to  water  bodies  which  can  poison  communities.  This  was  still  unclear  after  the  discussion  and  also  the  legal  consequences   of  the  spill  on  the  mining  firm. 

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