Summary of the PG&E case
First of all, it is essential to refer to the background of the disaster, which has taken its place in 2010 (Sept. 9) – when fatal natural gas pipeline explosion occurred in the Bay Area city of San Bruno. While the disaster has occurred in the evening (6:11 pm PDT), the major part of local population has already arrived to their residences and were engaged into the home routine actions. The steel natural gas pipeline of the following size parameters (76 cm in diameter), which belonged to Pacific Gas & Electric (PG&E) has exploded into flames.
Initial considerations of people, inhabiting the area of explosion, regarding this matter, were the following - they have considered it as the crash of the large jetliner or the earthquake. Almost one hour was needed to the crews for determining the actual reasons explosion – that it was related to the gas pipeline. In 20 days, there was an official report regarding the death of 8 people – because of the gas pipeline explosion. In addition, this explosion and its resulting shock were registered by the Geological Survey of U.S. at the magnitude 1.1 earthquake. In accordance with the reports of the eyewitnesses the fire wall of the initial blast has reached almost 1,000 feet high.
In the scope of this case discussion, it is essential to note that almost one hour before an accident the technical workers of the PG&E natural gas terminal, located in Milpitas and those employees, who were responsible for monitoring and maintenance of the pipeline network of PG&E, have managed the crisis situation. The crisis was represented in the following manner – there was an electrical failure at the terminal, responsible for control and maintenance of the proper functioning of the electronic supply, thus, the uncommanded pressure increase to the line 132 has taken its place. This line, in turn, is the 30-inch pipeline which transfers the natural gas from Milpitas to such designation points as San Francisco and Peninsula.
After this crisis situation, the local population as well as the personnel of PG&E was informed about the dangerously high pressure by the sounding alarms. Additional emphasis should be put on the fact that such problem with electricity has knocked out sensors, which were applied into the practice for the network monitoring. Remaining gas in the line lied on the ground as soon as explosion has taken its place.
Also, one of integral parts of the steel pipe, which weighted almost 3,000 pounds, has changed its dislocation for more than 100 feet from the blast. In accordance with the records of PG&E, the section of the pipe, which has changed its dislocation after explosion, was seamless. In other words, the scopes of the disaster may be traced from the set of the facts, such as huge blast wave as well as other factors (Bower 1).
Effect of the PG&E case on the market
Such disaster situation has finally led to explosion and to the worsening of the reputation of this business entity in the region and within the industry. The core reasons for such trend are the following: the low rate of the social responsibility, practiced by this business entity and the high risk for the local population, set by it. Thus, such companies as PG&D do not attract the investors into the process of active participation in the company’s business as well as the significant number of claims has decreased the competitive advantage of the business entity and its profitability in general.
It is claimed by the experts that the lack of professional ethics in business is one of the major pitfalls of the companies, operating in the high-risk segment, as the safety of the population of the particular region and area should be one of the major areas of the company’s responsibility. In the case if the company fails to protect the population within the region of its activity, there is a high probability that the business operations, the informational security as well as strict adherence to the rules and obligations, set in the contacts with such company, won’t be managed in a proper manner.
Social responsibility is one of the major indicators of the business effectiveness of the organization – as it implies the allocation of available sources for the protection of the local population, environmental protection, provision of the assistance to the layer of population, where it is actually needed etc.
In the case if such steps are not undertaken by the organization, there is a high risk that it will lose its positions in the maker one day- in the same manner as it has happened with PG&E after the fatal natural gas pipeline explosion has taken its place in the Bay Area city of San Bruno.
Works Cited
Bowe, R. Five Years After Deadly San Bruno Explosion: Are We Safer? 2015 <http://ww2.kqed.org/news/2015/09/08/five-years-after-deadly-san-bruno-explosion-are-we-safer/>
