The CSR blame game

Would knowingly violating environmental rules cause a negative public reaction to the corporate responsibility decisions of some energy companies? Common sense suggests that it would be present a huge negative backlash, so I imagine that executives from firms such as Halliburton and BJ services are very concerned about the release of a Congressional probe this week. The case study examined whether there is energy companies have been violating established rules in the process of drilling for natural gas. It has been alleged that companies chose to inject diesel in the ground without permits being acquired according to the study. The report says that a total of 12 companies have been cited in the probe collectively injecting millions of gallons of fluids into wells between 2005 and 2009. Critics of the process say that the chemicals used in the procedures contaminate drinking water.

Regulations were created in 2003 by the Environmental Protection Agency in an agreement with Halliburton, BJ Services and Schlumberger which would eliminate the use of diesel fuel in the process of extraction, and additional energy law was passed in 2005 to exempt certain methods of fracturing for gas from regulation under the Safe Water Drinking act. The disturbing reality is that the probe found that no permits have been applied for or issued over the four year spell studied for the use of diesel fuel in the fracturing process. The initial findings have been received with scrutiny as Democrats have asked the EPA to look more deeply into this matter. The legal technicality battle has already begun however with the EPA guaranteeing to clarify the process and create clear framework of understanding about the rulings, while simultaneously have stated that the changes do not “constitute proper rule making” nor that the company believes that its “activities have resulted in a violation of the Safe Water Drinking Act or any other federal environmental law”. While the lawyers and representatives on Capitol Hill are certain to arm wrestle over the technicalities, I’m concerned whether the media will actively pick up on a story that further demonstrates the apparent gray area that corporations seeking to acquire fossil fuels seemed to accelerate toward whenever the question of ethical behaviour appears on the horizon. Surely a better approach would be for companies to partner with the government in establishing clear and stringent regulations that provides the best support for public interests and environmental welfare while also leveling the playing field for all companies that participate within the industry. The ebb and flow of a continued struggle between regulations and corporations all too often seems to result in a finger-pointing episode after the fact instead of comprehensive legislature that eliminates the gray area and that is frequently sought as an excuse.
While environmentalists and those to the left of the house are calling for tighter federal regulation of the practice, the reality is that the majority party now in residence of the house will stem such controls from taking root.

A new report from Congress starts another case of CSR finger pointing

Much like the BP disaster in the Gulf of Mexico a scenario where the corporations are blaming the existing legislation seems to be the endgame, whereas the prevention of practices that harm the environment continues to fail due to political wrangling and power brokering between corporations and politicians. While those who bemoan government control remain in the majority, everybody seeks a pound of flesh when drinking water is contaminated or our oceans are filled with gallons of oil due to negligence.