Chevron and Chad: A Pipeline Dream? (pdf abstract)
Purchase the full report on GlobaLens (Case study #1-429-416) – published 02/2015, 20 pages
By: Andrew Hoffman
Description: Chevron Corporation invested in a Chadian-Cameroon oil pipeline consortium in the early 2000s. The project was extremely profitable through the decade, but it was subjected to claims of human rights violations that left a tarnish on Chevron’s name. Chevron is considering divesting its stake in the pipeline as its strategy has shifted since initial investment and it isn’t sure the future stability of the project. Students will gain an understanding of the role of human rights in a complex setting and will be able to articulate challenges of creating an industry within a developing country.
Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After reading and discussing this case, students should be able to:
- Discuss the intersection of human rights and business policy to determine a balance between the two in a corporate strategy.
- Identify the opportunities and concerns that arise while building a new industry in a developing nation.
- Articulate the environmental, social, and economic factors that aid board of directors and upper management in determining the divestment of business operations or investments.