Unocalin

Burma

Situation in Burma• Military dictatorship

• Human Rights Violation

• High infant mortality rate - Low life expectancy – Inflation

• Majority - 69% Burmese

• Minority - Karens, Rakhines, Indians, Chinese, etc.,

• Karens - Southern Burma – Rebels against Govt.

• No free speech, No association and No assembly.

• Founded – 1890 – California, U.S

• Oil Depletion in US

• Yadana Field (MOGE) (Burma)

• 1992 – MOGE signed with TOTAL S.A

Union Oil Company of California

4 InvestorsUnocal - 28.26 % Total S.A - 31.24%

Thailand’s Co. - 25.5% MOGE - 15%

What is the case is all about ?It was agreed that

• Total S.A responsible for overall coordination• Burmese Govt. provided security• Unocal would construct the pipeline(250 miles)

• 40 miles inhabited by Karens During Installation, Burmese army…– Human Rights were violated– Forced relocated – Forced Labor– Tortured

continuationHuman rights groups reported that

Burmese army brutally forced labor &UNOCAL is aware of these activities.

Unocal hired consultant to investigate• Report Concluded• HR Violation• Forced relocation w/o compensation• Execution for opposing

Production began in 2000• UNOCAL claimed that • 7,551 paid jobs were provided• Improved in education• New transportation infrastructure• Infant mortality dropped to 13 from 78

continuation

15 members of the Karen minority group stated that Unocal should be held responsible

Unocal announced it would settle a federal lawsuit, provided compensation and funding for social programs for people.

Utilitarian perspective

• Greater number of people got benefits from the

projects

• Right for UNOCAL to invest in Yadana pipelines.

• UNOCAL and other companies built schools and

along the pipelines, small business were also

growing

• Thailand was able to enjoy cleaner natural gas

• Project provided Burma citizens with employments

Rights perspective• The human rights groups issued the report claiming

that the Burmese army was using forced labor.

• Brutalizing the Karen population to provide security for the UNOCAL Workers and equipment.

• A report of 1995 by UNOCAL also stated the human rights violation.

• Karen people has right to claim on UNOCAL

• UNOCAL has right to do business in Burma

Punishment is morally accepted for breaking a law or rule. Govt forced UNOCAL out of business; merged with Chevron

Punishing Karen people who are against to project.

From UNOCAL’s view it was correct by compensating the suffered

Justice perspective

SUMMARY

Utilitarian: Right to an extent that it diminishes social costs and increases social benefits.

Rights: Even though UNOCAL has right. It was not correct to invest in the Yadana project.

Justice: Violation of justice; UNOCAL is punishable. Burma should also compensate

D E C I S I O N1. UNOCAL should not invest in Burma. But UNOCAL had chosen “engagement” rather “isolation”.

2. But based on the Utilitarian principle it was justifiable to continue.

3. UNOCAL must compensate suffered.