Article Review on Exxon Business Ethics

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Business Ethics
The article is on Exxon Mobil’s failure to follow ethical standards (Geuss n.p.). The company misled the investors it was managing risks relating to regulations on climate change.
In my view, Exxon Mobil was unjustified in misleading the investors that it was managing the regulatory risks it faced in its operations. According to the deontology ethical framework, an action is deemed appropriate if it seeks to benefit others and avoid injuring them. Specifically, the deontological framework of fidelity applies to Exxon Mobil Corporation. The framework requires that actions keep the promises, legal obligations, and terms of the contract. The action by Exxon Mobil fails to adhere to the fidelity ethics since by deceiving the investors, it was acting contrary to the contractual obligations which bind it to the stakeholders. The legal obligation relates to full disclosure of information that can enable the investors to make informed decisions. As a result, investors are subjected to a potential loss in the case they invested in the company amidst the regulations.
Fidelity ethics also applies to Exxon Mobil since it requires firms to consider their roles in any contractual relationship. Applying this model, Exxon Mobil has the role of fulfilling its promises of safeguarding the interests of the investors, which is the funds invested in the firm. The ethical dilemma faced by the firm in this regard was whether to protect the interests of the investors or the entity.

Disclosing the regulatory risks would have scared away the investors, but would have affirmed the firm’s adherence to fidelity ethics. However, the interests of the firm would have been at stake since the investors would not provide funds to the entity.
Given that Exxon Mobil had a role in protecting the investors under the fidelity ethics of the deontological framework, it was justified for the company to face the lawsuit. The position is also anchored in the corporate governance which requires firms to act ethically when relating to their shareholders. Thus, the move to sue Exxon Mobil shows the importance of following the ethical standards by organizations.
Works Cited
Geuss, Megan. “New York Officially Sues Exxon Mobil for Misleading Investors on Climate Change.” Ars Technica, 2018. https://arstechnica.com/tech-policy/2018/10/new-york-officially-sues-exxon-mobil-for-misleading-investors-on-climate-change/. (Accessed 25th October 2018).