Parker Petroleum in Crisis
The Sanford C Bernstein & Co. Center for Leadership and Ethics Case Series
Parker Petroleum's board has given a special task force 24 hours to come up with solutions to trouble on several fronts. Plans for investing $4 billion in a new petroleum refinery in Jumandia are at risk after local residents rioted, alleging environmental damage. Political pressure is also heating up after Jumandia's opposition candidate claimed Parker's CEO was complicit in a $5 million bribe paid to the country's current regime. At the same time, an activist hedge fund has bought 15 of Parker's stock and is pressuring the company to exit its Jumandian investments. In this case students take on the special task force's challenge to make recommendations on how the board should deal with the crises.
Case id: 070603
Supplemental Materials: Teaching Note