Just admit it, 'Big Oil'

A key service that my company offers is the distribution of news releases to the media and financial disclosure points. As such, we process many earnings releases for public companies. I've noticed that all the releases I've edited for companies within the energy industry have reported solid profits, and I am not exaggerating. At the same time, popular media coverage seems to suggest that a limited supply of oil and rising oil prices-- not corporate greed-- are to blame for high U.S. gas prices.

I have to admit that, having observed how well companies in the energy industry are faring in the midst of tough economic conditions, I'm growing quite tired of hearing these excuses. The reality is that the oil industry is taking advantage of the demand created by our American dependence on gasoline. To the extent that we are willing to pay the higher prices, they will charge them. It's simple economics, and yet it makes my stomach turn. A company has a social responsibility to maximize its positive impact and minimize its negative impact on its stakeholders, which include its shareholders, customers, community, etc. Are the interests of these stakeholder groups of equivalent importance? If so, isn't price gouging socially irresponsible? On the other hand, if stakeholder groups are not created equal-- if, in fact, shareholders are an energy company's primary stakeholder, with priority over all others-- can we really blame the company for trying to maximize returns?

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Disclaimer: The postings on this site are my own and don't necessarily represent my company's positions, strategies or opinions.