In the midst of massive growth in the oil sands, Suncor chief executive officer's (CEO) is growing concern the inability of local authorities to deal with the unprecedented rise in the development of the oil sands in Fort McMurray, Alberta. Crime, prostitution, drug addiction, social inequality and environmental degradation began to cripple Fort McMurray and the surrounding area is largely because the local authorities were not able to support a significant increase in government services and environmental protection. As part of the major oil and gas companies in the region, General Manager knows about the harsh lessons learned from Shell in Nigeria in 1995, where the reluctance of companies to take part in political activities led to a massive boycott and tarnished reputation. The Director-General is concerned that inaction could hold Suncor involved in social and environmental issues in the region. The case illustrates the need for companies to take on political responsibility, in this case by actively solving social service gaps. Written for courses in business and society, stakeholder engagement, governance, public-private partnerships, strategic management, and negotiation, it chronicles the reasons companies like Suncor to address the shortcomings of public services in order to avoid a negative impact on the firm. Students participate in role-playing games, representing six different stakeholders, the aim of which is to begin the process of interaction together to address social and environmental issues of concern to the region. The case helps students to recognize the increasing prevalence of private sector participation in political affairs, and the difference between the concerned management and stakeholder engagement, it would seem, competition participants, the latter of which is crucial to jointly respond to the complexity of sustainable development. "Hide
by Michael Valente Source: Richard Ivey School of Business Foundation 14 pages. Publication date: April 20, 2011. Prod. #: W11103-PDF-ENG
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