Ethics – Class 3

I thought about the movie “Erin Brockovitch” starring Julia Roberts when concerning business ethics.  Based on a true story, PG&E (Pacific Gas and Electric) operates a compressor station in Hinkley, California for natural gas transmission pipelines. The water used contained hexavalent chromium to prevent rusting of the machinery but consequently contaminated the town’s groundwater. The company advised the townspeople about the chromium but claimed it was not a worry and was in many multivitamins. However, this particular chromium can be quite toxic, causing body damage when inhaled. PG&E was sued, costing hundreds of millions dollars towards settlement. This case can judge PG&E with bad business ethics. Similar to the PG&E lawsuit, Midland, Texas has contaminated groundwater from hexavalent chromium Midland, Texas. This goes to show that billion dollar companies like PG&E seem to care more about their increasing fortune and remain ignorant to the complaints of the people they harm. It’s not like they made a mistake with their resources; the company was fully aware of the dangers of the chromium. The ethics behind a company keep it strong as does the strong relations with the community. Lying harms the trust of the company. Business in decline.

Reference:

http://fumento.com/brockovich/buspress.html

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