1. Ethics in a Globalising World Oil exploration in Angola

2. The ethical dilemma Knowingly supporting a corrupt government versus Encouraging economic development in the Third World

3. Angola oil - the facts Produces 2-3% of world’s oil production Produces 2-3% of world’s oil production Approx 2m barrels per day. Approx 2m barrels per day. Oil industry contributes 45% of GDP Oil industry contributes 45% of GDP New off-shore reserves available New off-shore reserves available Low cost of oil exploration – 20% of av. cost Low cost of oil exploration – 20% of av. cost 7% of oil revenues devoted to public expenditure in 1998 7% of oil revenues devoted to public expenditure in 1998 Large scale corruption of oil revenues Large scale corruption of oil revenues Civil War – Govnt v UNITA Civil War – Govnt v UNITA

4. Stakeholder analysis StakeholderProsCons World Economy Increases / diversifies supply Reduces tomorrow’s consumption Oil Companies Increase profits, production options, diversifies risk PR issues Ethical issues Security issues Angolan people Increase in public spending/employment Entrenches corruption Depletes nat. wealth Govnt officials Increase wealth Social Bonus Fund Military Cash & Guns UNITA Strengthens govnt

5. Should oil companies invest? Milton Freedman view – YES (?) Milton Freedman view – YES (?) Utilitarian view – MAYBE Utilitarian view – MAYBE Deontological view – NO Deontological view – NO Our conclusion / Virtue ethics: NO Our conclusion / Virtue ethics: NO Knowingly propping up / encouraging corruption Knowingly propping up / encouraging corruption Implicated within corrupt system Implicated within corrupt system Respect for Angolan people Respect for Angolan people Marginal benefits for society as a whole Marginal benefits for society as a whole

6. Encouraging ethical conduct within the oil industry Discouraging misconduct Pressure groups Pressure groups Consumer / media pressure on companies Consumer / media pressure on companies Govnt pressure Govnt pressure Encouraging ethical conduct Ethical awards Ethical awards Independent ethical body Independent ethical body Industry code of conduct Industry code of conduct Ethical awareness seminars / ethical awareness day Ethical awareness seminars / ethical awareness day

7. Encouraging ethical conduct within the oil company Support independent body Support independent body Code of conduct Code of conduct Market reputation of the firm Market reputation of the firm Close alignment with aid organisations / environmental groups Close alignment with aid organisations / environmental groups Change company culture – become a standard for the industry Change company culture – become a standard for the industry