Stakeholder Analysis- Fracking

Pursuing hydraulic fracturing as a top manager of Chevron, I will describe the dilemmas that are associated with fracking. The first problem with this procedure is finding the appropriate land and leasing it from the landowners. With talk around the country, it can be difficult finding land because of landowners’ personal experience with the practice of hydraulic fracturing. In southwestern Pennsylvania there have been cases of animal birth defects, faucet erosion, stomach pains, and other health issues; in response, according to the New York Times, “Range Resources maintains that a D.E.P. study from 2010 indicates no air pollution of any kind” (Griswold, 2011).

The country is torn in the middle of believing in natural gases and not believing. According to Huffington Post, “A report that the Congressional Research Service, which provides policy and legal analysis to the U.S. Congress, published in November also seems to support the industry’s sales pitch: ‘Given existing data, most indications point to the changes in the natural gas industry as positive to the overall U.S. economy’ (Peeples, 2013) but there are still skeptics.

The issue that my company is facing in expanding the operations within this industry is, mainly, the uncertainty of the long term effects the fracking procedure is possibly contributing to. According to msnbc, “fracking is causing earthquakes. Federal scientists presented a new study this week to the American Geophysical Union that suggests natural gas drilling is the likely culprit behind a skyrocketing number of earthquakes in the Raton Basin in Colorado and New Mexico… companies began injecting what’s called ‘wastewater fluid’ from natural gas drilling into the Earth” ( Gentile, 2012).

Different publications are distributing articles of studies of health effects and environmental issues that hydraulic fracturing are causing. This in response is effecting the possible growth for Chevron.

My team is conducting a stakeholder analysis and we have determined several stakeholders which include: the government, D.E.P., media, owners, shareholders, environmentalists, general public. Also established are the interests of each stakeholder. With the general public interests being in their health, voting is one power they could use to voice their concerns.

Environmentalists and the D.E.P. are interested in the pollution fracking is causing and the D.E.P. could use their legal power to help regulate the pollution. The concerns of the shareholders are the profits of the company and voting is their power they could use to fix problems within the organization. With the power of economics, the owners are interested in the success of the company. The media is concerned with the public knowing both sides of the issue. Lastly, one main interest in the government is the reconstructing of the economy and what hydraulic fracturing could create in jobs.

The stakeholders that are most likely to resonate with the public are the general public, media, and the environmentalists. With media producing stories of the public being affected by the pollution and the environmentalists undergoing studies on the environment, this could create a negative image on fracking companies. Considering all the stakeholders, the one stakeholder that holds the most urgency is the general public that is being affected. The general public is the most urgent because they are being victimized and their voices are being heard throughout the country which is causing confrontational issues.

Different coalitions could be formed by the environmentalists and the government. Different politicians could lobby to get a bill pass and environmentalists could form to fight bills. My recommendation for the company’s consideration is to invest in more resource of the different affects fracking is causing and to fix the environmental issues that are caused.

Ideally, Chevron should follow the triple bottom line perspective because all three elements (planet, profit, and people) are strongly involved. But with the uncertainty of the new procedures and all the different effects, the stakeholder approach is more realistic for Chevron. Chevron could prioritize their stakeholders and focus on each of their needs. This company holds ethical responsibility to the general public because of the health hazards that are surrounding the drill sites. The legal responsibility the company has is to follow the regulations that are formed by the D.E.P.

Works Cited1.) Grizwold, E. (2013). The Fracturing of Pennsylvania. 2.) Gentile, S. (2012). Fracking is transforming our energy economy- but its also causing earthquakes. 3.) Peeples, L. (2013). Fracking in Pennsylvania Sets Up Dilemma For Locals: Quick Money Or Long Term Health Concerns.