Managers need to consider the impact of their decisions on their companies' cash flows. Exxon should have given more importance to its corporate social responsibility and should have acted in a responsible and ethical manner by making desired investments in the new oil tankers. Exxon claims that it saved $22 million by not building the Exxon Valdez with a second hull. During the period of the oil spill, Exxon spent more than $2.2 billion for cleanup and for reimbursements to the federal, state, and local governments for their expenses in response to the oil spill. In addition, 31 lawsuits and 1,300 claims had been filed against Exxon within a month of the spill. On August 15, 1989, the state of Alaska also filed a suit against Exxon for mismanaging the response to the oil spill. The suit demanded both compensatory and punitive damages that would exceed $1
Managers need to consider the impact of their decisions on their companies' cash flows. Exxon should have given more importance to its corporate social responsibility and should have acted in a responsible and ethical manner by making desired investments in the new oil tankers. Exxon claims that it saved $22 million by not building the Exxon Valdez with a second hull. During the period of the oil spill, Exxon spent more than $2.2 billion for cleanup and for reimbursements to the federal, state, and local governments for their expenses in response to the oil spill. In addition, 31 lawsuits and 1,300 claims had been filed against Exxon within a month of the spill. On August 15, 1989, the state of Alaska also filed a suit against Exxon for mismanaging the response to the oil spill. The suit demanded both compensatory and punitive damages that would exceed $1