LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D. For this it will need to obtain a license from the government of Country D. These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement. However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water. Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?
A) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
B) Commit to improving the local amenities and roads as a part of the application for a license in Country D.
C) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
D) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
Correct Answer:
Verified
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