Unocal in Myanmar and Human Rights Violations

BMBA 9201 NA: CORPORATE SOCIAL RESPONSIBILITY

Case Analysis #1: Unocal in Myanmar and Human Rights Violations

Executive summary of key facts

The brutal circumstances occurring in Myanmar during the course of the Total Unocal Project are subjected to repercussions enforced by our legal system and encouraged by our moral ethics in society. Unocal Corporation had been for warned about risks with implementing the government’s military as security for the Total Unocal Project.  Hiring an elite military force known for their malicious behavior, which opened the door to abuse and execution of the Myanmar local people.  The Myanmar locals were forced to work on the oil and gas pipeline and abused by the government military. The sole concern of Unocal as a corporation was to increase profits for the benefit of its shareholders and higher management regardless of any neglect occurring within the societies in which they operate. They adopted the Utilitarian concept of producing the most gas and oil at the cost of compiling multiple human right violations within a foreign environment. The objective was to decrease social costs and maximize social benefits.

Corporations choose to outsource their production and manufacturing counterparts to foreign countries where the labor and material costs are cheaper. In addition to decreased costs, foreign countries provide an economy where the laws regulating labor do not abide by the same standards as the United States. This in turn gives large corporations the ability to move their business overseas while bypassing their home country’s regulations to some extent. Total Unocal can be held liable, as it’s own subsidiary for the violations committed by their security. Unocal Corporation will not be held liable because they are considered a separate legal entity.

Forced labor violates the Alien Tort Act of 1789, which allows the United States to intervene in any suits filed by non-citizens for violation of the law of nations or the United States Treaty. In addition, it relays the message that slavery is still in existence and practiced globally. The Thirteenth Amendment of the United States Constitution abolished all forms of involuntary servitude and forced labor, unless implemented as a punishment for a convicted crime. Total Unocal was not conducting their business overseas in accordance with United States laws and regulations.  For individuals who refused to work in connection to the pipeline project they were tortured or executed. Even upon acceptance of the position, the locals in Myanmar still experienced inequality because they were not compensated fairly for relocating to work and live near the pipeline.

Total Unocal’s security encouraged involuntary labor and committed further acts of crime by violating the rights of their families as well. Multiple witnesses testified to the murders and rapes of their wives and children. These acts of human rights violations are confirmed by not only witnesses but supported by documentation via e-mail communication as well as written documentation such as meeting agendas. Consultants had warned Unocal on numerous occasions that the military government is capable of causing harm in the community and they willingly continued with the project. The United States has since terminated their relationship with Unocal after being informed of the Myanmar’s military abusive history. However, since the military government was being funded by the pipeline project, they were allowed to continue the project regardless of their human rights violations. An increase in capital being generated in foreign countries that tend to carry fewer resources will tend to overlook the legal system regulations in order to benefit more. As a result, The Total Myanmar Project can be convicted of aiding and abetting the government’s military for the crimes they have committed.