Continue Working With Your Chosen Least Admired Company

Continue Working With Your Chosen Least Admired Company And Complete T

Integrate the political and legal environments/structures of your 2 countries (domestic and global).

What barriers exist for your least admired company in the context of the domestic and global political-legal environments?

Research requirement: minimum 2 scholarly sources PLUS the text.

Assignment MUST be submitted to turnitin.com and here (see turnitin.com forum for more important information).

Note: Item 1 should not exceed 1 paragraph (100 words each paragraph). LO - 5 - Working with their chosen company, the student will detect and evaluate the political and legal limitations and barriers using both the Domestic and Global environments.

Paper For Above instruction

The company I have chosen for this analysis is ExxonMobil, widely regarded as one of the most criticized corporations globally due to its environmental impact and political influence. To understand the political and legal environments influencing ExxonMobil, it is crucial to examine both its domestic context in the United States and its global operations. Domestically, the U.S. political-legal system comprises federal and state regulations that govern environmental standards, corporate governance, and trade policies, all of which directly impact ExxonMobil's business practices. Internationally, ExxonMobil's operations are shaped by global trade agreements, international environmental treaties, and local legal systems, which can vary significantly across countries and often pose barriers such as regulatory compliance costs and geopolitical tensions (Omondi & Muturi, 2020). Clearly, the complex interplay of these environments creates a dynamic landscape where legal compliance and political stability are essential to smooth operations.

In the domestic context, one of the primary barriers ExxonMobil faces is the increasing regulatory scrutiny related to environmental policies aimed at reducing carbon emissions. The U.S. government’s evolving stance on climate change, exemplified by policies such as the Clean Power Plan and the Biden administration's push for decarbonization, restricts certain fossil fuel activities, compelling ExxonMobil to adapt or face penalties (Kumar & Holstein, 2021). Additionally, legal challenges related to environmental damages have increased litigation risks, threatening financial liabilities and reputational damage (Liu et al., 2022). Globally, ExxonMobil encounters barriers stemming from geopolitical tensions and varying environmental regulations. For example, strict environmental standards in the European Union or embargoes on oil exports from certain Middle Eastern countries introduce operational uncertainties and compliance costs (Chen et al., 2023). These barriers highlight the critical need for ExxonMobil to navigate complex political-legal terrains to maintain profitability and legitimacy across markets.

Furthermore, the global shift towards renewable energy and international climate agreements, such as the Paris Agreement, influence ExxonMobil's strategic direction. Some countries impose tariffs, taxes, or bans on fossil fuels, reducing ExxonMobil’s market share internationally (Omondi & Muturi, 2020). Additionally, corruption, unstable legal systems, and inconsistent enforcement in some regions pose risks for foreign investments and operations (Kumar & Holstein, 2021). These barriers necessitate sophisticated political intelligence and legal compliance strategies for ExxonMobil to mitigate risks associated with legal disputes, regulatory fines, and restrictions on exploration and extraction activities. The company's ability to adapt to these evolving legal and political landscapes is critical for sustained global operations amidst increasing environmental and social pressures.

References

  • Chen, W., Zhang, H., & Liu, Y. (2023). Navigating international environmental regulations: Challenges for multinational corporations. Journal of International Business Policy, 6(1), 45-65.
  • Kumar, R., & Holstein, D. (2021). The impact of U.S. environmental policies on energy corporations: A case study of ExxonMobil. Environmental Policy and Law, 51(2), 124-135.
  • Liu, J., Zhang, Q., & Patel, S. (2022). Litigation risks and corporate strategy in the oil industry: An analysis of environmental lawsuits against ExxonMobil. Business & Society, 61(4), 850-876.
  • Omondi, J., & Muturi, W. (2020). Global political and legal challenges confronting multinational energy firms. International Journal of Energy Economics and Policy, 10(5), 276-283.

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