Communities and Shareholders: The impact of how ExxonMobil manage their interaction Exxon-Mobil is the world’s largest privately owned multi-national oil and gas company (Skjaerseth 2003). For companies as large as ExxonMobil, which possess considerable capital resources and are able to exert considerable power and influence, society is increasingly demanding that they behave in a socially responsible manner (Diara, Alilo, and McGuire 2004). There is a growing expectation that companies will adopt a business approach that illustrates responsibility to society above and beyond the economic function and legal performance of the firm (Gibbs 2009). This expectation can be understood as an implicit social contract. One of the underlying …show more content…
Other activities have included the provision of training in areas such as business entrepreneurship, management skills and record keeping, plus practical training on farming techniques and livestock care (MPNCN as cited in Idemudia 2009). From this perspective, it can be seen that the corporation has endeavoured to improve “host” communities in a number of instances. Such examples provide evidence that ExxonMobil’s efforts have been aimed at increasing (local) community capacity and sustainability. By engaging with communities in this way ExxonMobil are able to present themselves as part of the community. As a consequence there is less likelihood of negative outcomes for the company’s operations including concerns for worker safety and damage to worksites (Idemudia 2009). Thus, the benefits for the corporation are wide reaching but include an improvement to corporate reputation through improved relationships with local stakeholders as they come to accept and identify with the corporation. In addition, to ExxonMobil’s credit, they show a concern for the community beyond that of wealth generation for shareholders. While ExxonMobil’s engagement with communities that are proximal to their operations can often be described as proactive and
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In order to operate ethically in a global marketplace, corporations like Exxon Mobil need to define the conduct that they expect from their officers, executives, managers and employees. Without a defined code of conduct, employees feel forced to use their personal mores to determine what actions they should take in ethically ambiguous situations. Like children on a playground, employees need to know where the fences are so that they can work effectively.
In the era of capitalism and fierce corporate rivalries, the agenda for any major corporation is likely to prioritize profits over social problems such as environmental degradation. An example that sheds light on the conflict between human interests and environmental responsibility is the controversial approval of the oil drilling in the Northern Slope region of Alaska and the drilling that has already
1. Consider and discuss the impact of the rising price of gasoline on as many other products and services as possible.
The majority of people in today’s global society have a false sense of security in believing that the effects of climate change will not take place until the very distant future, and are to dire to bear engaging. Environmental protection is currently one of the largest social issues facing different groups within society including; governments, special interest groups, everyday citizens and global organisations. The actions of organisations with regards to environmental sustainability are becoming a larger factor in business operations. Today’s more informed society expects businesses to perform out of the traditional economic measure of profit motive and adjust to society’s efforts to achieve modern sustainability goals. BHP Billiton (BHP) is the largest and leading global resources company, being the world’s largest producers of major commodities including; coal, copper, iron ore, nickel and uranium. BHP’s annual revenue for 2014 can be rounded off to $607,206million US Dollars and currently hires 128,800 employees and contractors over 141 locations. These figures not only represent how large BHP is, but they highlight the importance of BHP’s contribution to help achieve
Executives in many prominent companies must constantly be aware of consumer sentiments in regards to business practices. As such, executives have a very compelling social obligation for safety and compliance. This is particularly important in industries that can cause systemic damage to both the society and the environment. Oil companies are no different in this regard. A drilling mistake can have catastrophic consequences for all stakeholders involved, as evidenced by the case. Ultimately, executives should put ethical and social considerations first as it will directly influence profits. By doing what is best for the customer, the business will eventually profit. Many of the socially responsible initiatives started by company's are really an effort to increase sales. It is proven that promotions that focus of socially responsible initiatives sell more than regular price promotions. Executives should therefore be aware of cause marketing and its implications on the bottom line. Recent research has indicated that consumers are extremely value conscious and are eager to patronize businesses that share their own values and ethics (Menon, 2012). In short, consumers are swayed by causes that they care about. They appreciate the
Based on the remarks of Chevron 's new Chairman and CEO at the 2010 Annual Stockholders Meeting and in testimony to Congress, that company has provided some technical assistance. There is an oblique reference in the Congressional testimony to "working with communities and organizations across the Gulf region", but no indication of the nature of that cooperation.
In today’s society corporations have a responsibility to the environment as well as to making a profit. A range of social and environmental issues and what is expected of the modern day corporation will be discussed along
With annual revenue of US $19.02 billion, Chevron Corporation is the 16th largest integrated oil and gas energy company in the world. Globally they account for a workforce of approximately 62,000 (Forbes 2011). In 2010, the company produced 2.763 million barrels of oil per day (Chevron 2012). Corporations as large as Chevron owe a great amount of responsibility towards the society and environment above and beyond the economic and legal obligations. The industry is strongly linked to environmental scandals and companies make various efforts to address these issues (Farache and Perks 2010, 235). The following thesis will review the Environmental performance of Chevron in terms of fulfilling social needs within society and stakeholders.
Exxon-Mobil, over the last twelve years, has demonstrated a lack of sound ethics and accountability for actions that will it will not be able to repair overnight. The company faces a long hard road of repairing its image and any mistakes along the way will be heavily scrutinized. According to the company’s 2006 Corporate Citizenship Report, small steps are being made to ensure that the mistakes of the past will not be revisited, and that may very well be the best approach for this company to take. By
In April 20th, 2010 one of the worst environmental natural disasters that were brought on by a men happened. We are talking about the British petroleum Oil spill on the Golf Coast. The disaster not only affected the plants, animals and people living in the area but also the image of the company. British Petroleum has been successful on creating a powerful brand image, being authentic to the core values of its business and building the goodwill of their customers, now BP is trying to save what is left after the disaster. The disaster leads to many angry people, including environmentalists,
Aramex investments in societies that company belong to it and develop through social participations for each single brands and this criteria of job creation, good wage and local hiring have strongly sustainability to Aramex in many community ,this strategic CSR look only to communities and society. However, by creating the ecosystem that help people and others employees to know how to protect and serve the environment as strategic that responded to the future generations enclosed between the environment and environment-related stakeholders (Madsen,
The global electronics industry comprises of many partners that make up a complex international supply chain. Due to globalisation, TNCs have set up subsidiaries that operate in under developed foreign countries like Asia. They operate in the areas of manufacturing of components for computers, assembly, contractors, suppliers, software, technical
While it is important for a company to make a profit, a business also has a responsibility to help better the community, this is referred to as a company’s Corporate Social Responsibility (CSR). Some elements of CSR that corporations focus on are sustainability, community service, and consumer affairs. A company’s CSR is featured on its website, however, some corporations fail at following through with their social and environmental responsibilities. For example, Gazprom, a Russian company focused on exploring new ways to use natural gas, plays a large role in the destruction of many natural environments. Gazprom was founded in 1989 and it is headquartered in Moscow, Russia. Gazprom’s website highlights many charitable acts done by the company, but it does not mention much of what the company has done in terms of the environment. This is because Gazprom is notorious for being environmentally unfriendly. Not only is Gazprom unconcerned with the environment, the company also abuses its strong market power and charges unfair prices to customers.
By this old way of thinking, neither employees nor shareholders would like to see money being used to support some educational or social initiative instead of being used to pay profit sharing or dividends. For very long time, this dominant thought, together with the lack of awareness about the environmental and social impacts caused by companies, led to decades of a debate “corporations against society and environment”. Even though this debate persists nowadays influenced by left wing thinkers, big part of society and the executives started to see this relation as a synergy instead of as a competition.