Before Enbridge began work on a pipeline in the Livingston County of Michigan two years ago, the Calgary based energy delivery giant promised residents that it would leave their properties in better condition than [it] found them. However, minimal time and money were spent on restoration. Many locals have recently begun raising concerns about the company’s lack of consideration for business ethics.

Enbridge has faced criticism from activists and environmental groups in the past.

According to Milton Friedman’s stance in “The Social Responsibility of Business is to Increase its Profits” Enbridge carried out its social responsibility by maximizing profit and minimizing cost for its shareholders. Meanwhile, granted the Stakeholder Theory, the company will suffer as it did not act in the interest of a major stakeholder—the local community.

Which one is right?

In my opinion Friedman’s argument is outdated. In the information age, corporations cannot neglect business ethics without someone taking notice. While Enbridge’s practices were legal, they were socially irresponsible and unethical. Considering the backlash their Northern Gateway Pipelines Project has received from British Columbia, this recent happening will only add to the criticism they face. Their disregard for corporate ethics in Michigan will become a weakness for environmental groups and First Nations of British Columbia to exploit as the Northern Gateway is delayed for a few more years.

Image Sources: “The Solution – Putting the Brakes on Canada’s Tar Sands”