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Halliburton

Water Contamination Crisis
Halliburton Overview
•   Founded in Duncan, Oklahoma in early 1900’s
•   Used unique oil well cementing technique
•   Bought Brown & Root Construction in 1962
•   Expanded to Russia and China in 1990’s
•   Bought Dresser Industries in 1998 for $7.7
    billion. Doubled size of company.
Halliburton Crisis
• Two ex-Halliburton employees testify against
  the company.
• They testified that water purification
  standards were consciously ignored.
• Impure water from Euphrates River led to
  serious health issues amongst troops (Skin
  abscesses, cellulitis, skin
  infections, diarrhea, numerous viruses and
  parasites)
Organizational Response
• Denied any malfunction with water
  purification system.
• Conducted its own investigation into the
  incident. No problems found.
• Spokesperson told media that all the water
  purification levels were within acceptable
  ranges.
Media Response
• Large media response to the crisis
• All major news outlets covered the story
• Coverage included the testimony of ex-
  Halliburton employees
• Media suggested that Halliburton was to
  blame, never a direct accusation
Stakeholders Response
•   Large public outcry
•   Halliburton “watchdog groups”
•   View Halliburton as “war profiteers”
•   Enough outrage and evidence to investigate
    crisis
Recommendations
• Listen to employees concerns, do everything
  possible to avoid disgruntled employees
• Stop providing questionable water and use
  alternative source
• Reassure public and consumers that the
  problem is solved
• Communicate more effectively with
  stakeholders

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Halliburton Crisis

  • 2. Halliburton Overview • Founded in Duncan, Oklahoma in early 1900’s • Used unique oil well cementing technique • Bought Brown & Root Construction in 1962 • Expanded to Russia and China in 1990’s • Bought Dresser Industries in 1998 for $7.7 billion. Doubled size of company.
  • 3. Halliburton Crisis • Two ex-Halliburton employees testify against the company. • They testified that water purification standards were consciously ignored. • Impure water from Euphrates River led to serious health issues amongst troops (Skin abscesses, cellulitis, skin infections, diarrhea, numerous viruses and parasites)
  • 4. Organizational Response • Denied any malfunction with water purification system. • Conducted its own investigation into the incident. No problems found. • Spokesperson told media that all the water purification levels were within acceptable ranges.
  • 5. Media Response • Large media response to the crisis • All major news outlets covered the story • Coverage included the testimony of ex- Halliburton employees • Media suggested that Halliburton was to blame, never a direct accusation
  • 6. Stakeholders Response • Large public outcry • Halliburton “watchdog groups” • View Halliburton as “war profiteers” • Enough outrage and evidence to investigate crisis
  • 7. Recommendations • Listen to employees concerns, do everything possible to avoid disgruntled employees • Stop providing questionable water and use alternative source • Reassure public and consumers that the problem is solved • Communicate more effectively with stakeholders