Case Study: Petron

Finally, I believe is important for companies to follow ethical standards that could assist them to make responsible decisions. The ISO 26000 standards is a document that addresses responsible practices related to organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues and community involvement and development (Ajeti, S. R., 2016, para. 2-4). for example, When Chevron faces difficult situations, they try to resolve them by answering four questions: (1) is it legal? (2) Is it consistent with the company policy, including human rights policy? (3) is it consistent with the chevron’s core values? (4) if it were made public, would be I be comfortable? (Chevron, 2015, p.

The organization’s strategy plan for any gaps in social responsibility that might be potential risks to internal and external stakeholders is challenging, but this company certainly does not allow for corruption. On April 1 “India has become the only country in the world with legislated corporate social responsibility (CSR) and a spending threshold of up to $2.5 billion (Rs 15,000

Breaking down an overview of Lockheed Martin’s organization leads to Terris’ elaborate plan to gain a general overview of the evolution of business ethics and revealing a balance between profits and stakeholder concerns. Responsibilities of top leadership involve several different form of involvement. These leaders have to be aware, decisive, honest, focused and inspiring. A top leader is usually referred to as a chief executive officer, CEO. CEOs have helped throughout the history of business ethics by seeking unfair advantages through immoral arrangements and creating new ways of business. With business changing occurring, welfare capitalism becomes a major aspect in the nineteenth and twentieth centuries. As a result of issues with welfare capitalism, corporate social responsibility has made its appearance in the twentieth century. Programs of corporate social responsibility now form many of corporate America’s largest advertising campaigns, especially in industries that have been vulnerable to public criticism for their social impact (Terris, 2005, p.42).

Business ethics is an important part of any business, as many new investors and stakeholders look at the ethics of a business before considering buying shares in it. Therefore SHP must meet the ethical expectations of these key stakeholders in order to expand. It is also important to note that ethical considerations impact on communities and the natural environment. As SHP are expanding into the Middle East and their main income is from emerging markets, they need to ensure that their overseas business partners ethical standards are similar to that which they have self imposed on their company. SHP are one of a number of businesses that sit on a Home Office board in the UK to ensure that the recycling of small electrical items is

Organisations such as the Global Reporting Initiative and AccountAbility have embraced and promoted the 3BL concept for use in the corporate world. And corporations are listening. Companies as significant as AT&T, Dow Chemical, Shell, and British Telecom, have used 3BL terminology in their press releases, annual reports and other documents. So have scores of smaller firms. Not surprisingly, most of the big accounting firms are now using the concept approvingly and offering services to help firms that want to measure, report or audit their two additional "bottom lines." Similarly, there is now a sizable portion of the investment industry devoted to screening companies on the basis of their social and environmental performance, and many of these explicitly use the language of 3BL.^ Governments, government departments and political parties (especially Green parties) are also well represented in the growing documentation of those advocating or accepting 3BL "principles." For many NGOs and activist organisations 3BL seems to be pretty much an article of faith. Given the rapid uptake by corporations, governments, and activist groups, the paucity of academic analysis is both surprising and worrisome. Our recent search of the principal academic databases turned up only about a dozen articles, mostly concentrated in journals catering to the intersection of management and environmentalism. One book beyond Elkington 's has been

Foreign subsidiaries need to start with a well-planned and defined strategic plan if they are to succeed with their Corporate Social Responsibility (CSR) programs, taking into account value creation, risk management and corporate philanthropy as part of their strategic vision for the programs. These three elements are essential for creating a solid foundation to define CSR-based initiative, strategies and programs on. The most effective CSR programs implemented by foreign subsidiaries in the United States often include International Standards Organization (ISO) 26000 compliance, in addition to the creation and continual development of ethics self-monitoring systems (Turker, 2009). In addition to these factors, foreign subsidiaries whose CSR programs are designed to provide continual updates on the progress being made on key social programs and initiatives often are more effective than those that withhold information or only share it sporadically (Turker, 2009). Being authentic and transparent is critically important in creating an effective CSR program within a foreign nation as the differences in culture, perception, attitudes and beliefs must be taken into account (Deresky, 2011). Being attuned to cultural variations from their native nation to the

Good business ethics is just one of many ingredients necessary for a successful business. You cannot have a successful business if you take advantage of stakeholders that support and have a vested interest in your business. History has shown time and again that, when the opportunity to grab quick profits presents itself, ethics can all too readily take a back seat to the entrepreneurial spirit. Incidents or abusive behavior, harassment, accounting fraud, conflicts of interest, defective products, and bribery and employee theft can happen at any business. Corporations have a social responsibility, an

A company can also enhance its ethical profile by enforcing a preference to do business with ethical suppliers, vendors, and contractors. A company commitment should not only permeate the parent company, but also all the companies that the parent company directly or indirectly supports. When the suppliers and vendors are equally committed to ethical dealings with employees and customers, the full supply chain can claim the ethical high ground and tout this attribute to customers. For example, if a diamond retailer habitually sources its gold and diamonds from mining companies who are not committed to ethically sound practices, the diamond retailer is equally responsible for the unethical profile of the supplier’s business.

Comparing to the website and annual report of Malaysian Pacific Industries Berhad, we found that the corporate social responsibility are only provided in annual report but not in their website. The company aims to ensure that the health, safety, and welfare of their employees are well taken care of. A commitment to health and safety through internal Emergency Rescue Team programmes was carried out by the company. Besides, they commitment to the environment has guided them to continually strive to reduce their waste in their manufacturing plants in Malaysia and elsewhere in the world by offering more environmentally friendly and sustainable operations. They are committed to the environment through the ISO1400 accreditation. An established Enterprise Risk Management structure to ensure that a systematic process and delegation of responsibility is clearly set out to guide management. All of this is not shown in their company website. This is because of the company is lazy to update their website from time-to-time. The company failed to provide clear insights into the approach, objectives and performance of their corporate responsibility. We suggest that the company should update their website since that website of the company is the

Again, the results of a firm’s environmental analysis will help management to respond to changing conditions in the environment. For example, if the firm’s competitors use their environmental analyses to be ready for regulatory changes, but management ignore the same, then the firm will be disadvantaged. The analysis must be effective in gauging all the key elements that is suspected to impact the firm’s operations and which attempts to forecast how future actions will affect the firm’s business

The procurement leaders need to encourage their teams to adopt a social mindset and operating model that will sustain the corporate brand in this more transparent era. The people is in a center of change dimensions. The future purchasing leaders will assess their intellectual, geographic diversity, and recruiting sources. Procurement teams will expand and attract more people with backgrounds in education and professional services. Geographical shifts into new emerging market will require procurement teams to have a diverse workforce that will be more relevant to local social and cultural dictates. In the transparent world, the procurement organizations to go far beyond corporate social responsibility and must have a multidimensional approach to managing the supply chain. We cannot forget the foundation factors of purchasing organization including information system, finance and risk. As big data is increasingly intertwined into corporate decision-making processes, the purchasing manager will need to become more comfortable with advanced data mining and analysis techniques. They will also need to develop financial acumen that rivals those of their finance counterparts to build a leading company. The procurement risk management will adopt a more holistic strategy that includes total risk exposure, risk mitigation investments and risk transfer pricing. The procurement leaders

The European Commission adopted on 16 April 2013 a proposal for a directive enhancing the transparency of certain large companies on social and environmental matters. This Directive amends the Accounting Directives (Fourth and Seventh Accounting Directives on Annual and Consolidated Accounts, 78/660/EEC and 83/349/EEC, respectively). The objective is to increase EU companies’ transparency and performance on environmental and social matters, and, therefore, to contribute effectively to long-term economic growth and employment.

This widespread transmission of a corporation’s misconduct will then have significant ramifications for their reputation and profitability. The case of Shell in Ogoni (Niger Delta, Nigeria), the Brent Spar in the UK as well as Nike’s sweatshop saga in Asia in the 1990s are good examples of how the social conducts of a corporation can affect their reputation. However, the tension between CSR concepts and CSR practices remain and this has led some to

According to Chanin Eimsark (2008), the research regarding on communication system and corporate social responsibility of business in Thailand aiming to investigate business system and operation to corporate social responsibility to Thai business as well as communication of business socially responsible of business enterprise to public by studying the companies awarded CSR awards from the Stock Exchange of Thailand (2006) as followings; (1) Bangchak Petroleum Public Company Limited (Thailand) company , (2) PTT Public Company Limited (Thailand), and (3) Siam Cement Thailand Public Company Limited (Thailand). The study found that three companies launched a principle involved in the corporate social responsibility by clearly scheduled and adhered action since the companies were established. Companies strongly pay attention the economic, social, as well as environmental aspects as achieving sustainable development both organizations and whole society by starting from the internal dimension which is self-development and environmental sustainability, human resource management, health care and safety at work. Then, the external dimension is also necessary, responsibility to the community, and consumer care by dealing with supplier and business partners. According to CSR types, which are separated into these dimensions followings: (1) Firstly, a responsible economy (earning the business revenue based on the target of the company and building long-term the business steadily) (2)

Thirdly, the principle demand investment institutions to disclose the information of environmental, social and governance issues appropriately. The company is required to provide standardised reporting on these issues, Meanwhile, merge ESG issues into annual financial reports. Moreover, the company should provide information relating to adoption of relevant standards or codes of conduct. To disclose ESG issue on reports could prevent some companies from doing some harmful investments to the ESG issues for the purpose of making profits. Lunar Capital Management do have the RI Transparency Report to disclose the relevant aspects about the company and ESG issues. In addition, it also has appropriate financial reports for all portfolio firms to increase the transparency, such as weekly KPI reports.