Read and answer the following three question provided below For the case

Going Green

For many people, the notion of environmental sustainability does not fit wellif at allwith a giant oil company. This is an industry, it would seem, that thrives on the everincreasing consumption of fossil fuels, not to mention environmental catastrophes such as oil spills. Jos Sergio Gabrielli de Azevedo, CEO of Brazil based oil giant Petrobras since 2005, says he is determined to change that image.48 Gabrielli describes his personal politics as progressive and leftist, pointing to

his 1970 arrest by the Brazilian army as he was protesting his countrys then mili- tary dictatorship. After receiving a PhD in economics and joining the faculty of the

London School of Economics, Gabrielli joined Petrobras in 2003 as Chief Financial Officer. His fast rise to the top was helped by his close personal and political ties with Brazils ruling Workers Party. A State Company Petrobras was founded by the government in 1953 under the nationalist slogan, The petroleum is ours! Petrobras held a monopoly until 1997, when the

government gave up its complete ownership (although it still controls a majority

of voting stock) and allowed for competition. Since then, the company has com- piled a troubling history of disasters. In January 2000, a poorly maintained pipe- line spilled oil into Guanabara Bay for two hours before the leak was detected.

Six months later, a Petrobras refinery spewed millions of gallons of oil into two

nearby rivers. A BBC news report referred to an embarrassing level of incompe- tence on the part of Petrobras managers. Then, less than a year later, a Petrobras

drilling platformthe worlds largest at the timeblew up, killing 11 employees and dumping 300,000 gallons of oil into the water. Gabrielli saw that troubled history as a business problem to be solved as

well as an environmental threat to be addressed. From a purely financial per- spective, he said, environmental mismanagement was just bad business. From

an investor relations perspective, ignoring the growing demand for transparency and sustainability was also bad business.49 Plus, added Gabrielli, his personal

values and political beliefs led him to move Petrobras into a position of environ- mental leadership.

Gabrielli Acts In pursuit of his goal, Gabrielli took a number of steps: Increasing the budget of the companys health, safety, and environment programs

Using the enormous market clout of Petrobras (which was the largest com- pany in Latin America) to demand that all of its suppliers comply with best

standards for environmental management Personally touring sites to check compliance with company standards Moving Petrobras new refineries away from gasoline and toward biofuels

Joining the Dow Jones Sustainability Index in order to invite external mon- itoring of and reporting on Petrobras efforts

Endorsing (and sitting on the board of) the United Nations Global Compact Personally blogging and tweeting in order to make the case for Petrobras efforts directly to the public. As evidence that these activities were changing the culture and operations of Petrobras, Gabrielli pointed to two facts: The company had gone eight years without a major environmental accident. The private consulting firm, Management and Excellence, ranked Petrobras as number one among the worlds oil and gas companies for promoting sustainability. Petrobras 5Year Strategic Plan, announced in 2010, called for additional investment in refining capacity. The companys goal was to make Brazil fuel independent by 2014. That independence, it was hoped, would be supplied by Petrobras 2008 discovery of a major oil reserve coming from a vast deep water offshore region known as the subsalt. Later that same year, however, the Gulf of

Mexico oil spilla British Petroleum rig exploded, killing 11 workers and pour- ing nearly 185 million gallons of oil into the Gulfraised questions about the

viability and the costs of future deep water drilling.

Going Green 195

How Green Is Petrobras? In 2010, Newsweek conducted an audit of the top ranking green companies in the world.50 The highest ranking companiesIBM, HewlettPackard, Novartis, and Panasonic among themreceived an overall score in the 90s. The highest ranking oil and gas company, Frenchbased Total, received a score of 65. Petrobras score was 48, placing it sixth in the list of oil and gas companies and 84th overall in the top 100 companies. In fact, five of the bottom ten on that list were oil and gas companies.

A brief summary over the article ?

Explain the major issues/problems that needs to be addressed?

How can you apply the information:What did you learn from this case/chapter that could help you to lead Organizational Change ?