Question 2 is asking to discuss about Saudi Aramco (Aramco) initiatives to build a women friendly work environment. Now International business is affected with globalization problems such as increasing rate of unemployment, economic recession, environmental pollution, and society's expectation from worldwide. Elkington's suggested Corporate Social Responsibility (CSR) model in 1997 which also called (Triple bottom line), it said "that the socially responsible company which consider the economic prosperity, social equity and environmental protection. Because there is linkage between all three domains, this mean what is good for people and what is good for environment, are also good for performance of the company." (Abro et al. 2016) Therefore, …show more content…
It encouraged the cultural autonomy in an environment of visible gender diversity. After 1980, it was fully owned by Saudi government and run by Saudis. Here Aramco faced the culture of male domination especially in the oil sector which I explained earlier in question one. In 2011, the organization had 57,000 employees inclusive of 15% women. (Al-Ghoson 2014) this social and traditional culture will affect the commitment of Aramco to meet increasing energy demand for a growing population and to ensure economic prosperity for all .( Al-Ghoson 2014) Therefore, Aramco had made initiatives to attract and empower women in the oil and gas industry workplace. According to CSR model I will divide the Aramco's initiatives into three elements which are economic, social and environment. First initiative is in economic sphere. Aramco focused more in the fairness of employment opportunity regardless of gender and more women in key position. (Abro et al. 2016) For example, in the early 1990, Huda M. Al-Ghoson was hired as supervisor of housing policy and now she is most senior female executive recounts, for smooth integration of women in the Aramco workforce and develop of talented …show more content…
I will use SWOT analysis which is a systemic approach for strategic positioning and problem solving. Because the organizations to be successful, first they need to know their strength and opportunities to be able to treat their problems (threats and weakness) in a strategic way. (Gariboldi 2005) First, the strength is the capabilities and resources of the organization. (Garibold 2005) GCC states have Oil and Gas (natural resources) which are the backbone of their Economy. For example, on 10/3/2016, the Saudi Arabia's PetroRabigh said on Wednesday it would book around SR750 million ($200 million) in sales revenue this year 2016 with the full start-up of its expanded ethane cracker. Second strength is the skillful human resources, for example, Saudi Aramco had strong strategic partnership with United States of America which form highly talented Human capital who can act as active and creative agent of innovations. (SAUDI ARABIA PETROCHEMICALS, OIL AND GAS 2016) Second element of SWOT is the opportunity which does mean the positive chances for growth. (Gariboldi 2005) There is increasing demands for energy worldwide. For example, on 8/3/2016, Saudi Aramco announced her plan to double gas production about 23 billion standard cubic feet per day in next decade. So, this huge
There are three main responsibilities for a company to cover under social responsibility environmental, social and economical. When social and economical responsibilities overlap it helps create an equitable company. When environmental and economical responsibilities overlap it creates a viable company. When social and environmental overlap it creates a bearable company. But when all three are combined it creates a sustainable company that incorporates all three outcomes of overlapping
America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...
The township of Wayne has grown throughout the years and adapted to the challenges presented. However, the AvalonBay development plans to completely change Wayne negatively. The “U.S Newswire”, “AvalonBay in Wayne” and “Edgewater fire” all describe the poor history AvalonBay had in other towns and as a company. It 's poor construction method and unsafe working conditions have created destruction in other towns and now plan to make a move into Wayne, so I say go away AvalonBay.
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
First, our company should understand the importance of gender diversity. In the first article “Why Workplace Gender Diversity Matters”, Anne Marsan pointed out directly that most tech companies lack of gender diversity. Then she explained several reasons why gender diversity matters to companies. Using logos, she mentioned that women in U.S. purchased 50 percent of computers, 50 percent of cars and 80 percent of consumer goods. In other words, organizations with gender diversity are better to connect with
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
The report also highlights the implementation of gender diversity in various S&P Companies, Fortune 500 Companies and the patterns followed in various UK-based companies. Several academic findings have been also included to provide information about the trends that are likely to be developed in coming years. The cost-benefit analysis has also been included to identify the concerns that the organizations have to address. Lastly, the report highlights the various steps that the management and the leadership can take towards efficient and effective corporate governance.
There is a link between corporate social responsibility and the key principles of the stakeholders, which a company should follow to be responsible to its stakeholders. The first stakeholder is environment and the key principle used for it is not damage the environment for example, recycling, dealing correctly with their wastes and emissions. The second stakeholder is the employees. The key principle for the employees is companies providing safe and health working conditions for their staff. Moreover, the employees earn an appropriate salary for ...
OPEC was established in the 1960's and ever since, Saudi Arabia gained a reputation of being the major power of the organization. Saudi Arabia has the biggest oil reserves in the world and production costs lower than any country. (economist.com 2003)This means that it is a natural monopoly and economies of scale arises; when the long run average total cost falls as the quantity of output increases as illustrated in figure 1. (Gans, J. King, S., Mankiw, N., 2003) Saudi Arabia is the undisputed leader of OPEC.
The current world dependence on oil leaves much to be said about the impact of Saudi Arabia and the Middle East on foreign policy and international politics. Presently the world's largest consumer of oil, the U.S. depends on Saudi Arabia and much of the Middle East for the energy to run its businesses, its homes, and most importantly, its automobiles. In the past few months U.S. consumers have felt the pressures of increasing gasoline prices as they struggle to commute and live their daily lives. This leaves the U.S. with important decisions to be made on behalf of its citizens and its position in the international realm.
Over the past 200 years, mankind discovered the fossil fuels and they used this source to produce hug energy. This affects the environment in many negative ways and caused many issues worldwide such as urban air pollution and acid rain, oil spills and the high temperature of earth. Saudi Arabia has the biggest oil reserves in the world by 19.66% (the world factbook, 2011) and the second oil producer country in the world with roughly 10.121 million barrels a day – which account for 12% of the total world production of oil in 2010 (Fontinelle,2011). Moreover, the country relies heavily on oil industry. And the most successful companies in the country are thus whose work in oil industry such as ARAMCO Company. The reason behind this success is because most of these companies get financial support and attention from the Saudi government and sometimes the government owes these companies. Because of the massive reserve of oil and the high income that generated from oil, the country has less attention to seek for other sources of clean energy such as solar energy and wind energy which leads to the increase of air pollution in the country. However, oil is expected to last in the next 50 to 100 years (Hubbert, 1956). Furthermore, the International organizations have made many decisions to protect the environment and environmental resource such as Kyoto Protocol which decided to raise the use of solar energy to 50%of the total global energy use by 2020 (UNFCCC ,2005 ). Recently, these issues lead the Saudi government to realize problems, such as air pollutions, and start to invest in clean energy area but not as expected. These days many people in Saudi Arabia argue the uses of clean energy and replace with the fossil fuels. And they d...
Corporate Social Responsibility (CSR) is a very familiar term in today’s world. Most of the successful companies try to be ethical and socially responsible toward their stakeholders. Because becoming ethical and socially responsible gains a lot in terms of profit or capturing more market share (Aras and Crowther,2009). This socially responsible approach is paved by the CSR activities of the companies which has a great contribution to their corporate strategy of winning the customers’ mind. In this assignment, the pros and corn of CSR activities of a particular organization a...
It has been shown that there are many different areas in which a company may choose to focus its corporate social responsibility. The top area of focus in corporate social responsibility is on environment. Other areas that should be considered in the development of corporate social responsibility programs are education, health, nutrition and employment. “Social responsibility investment combines investors’ financial goals with their obligation and dedication to factors that ensure the well being of society such as environmental friendly practices, economic growth and justice in society” (Anderson 9). These elements not only epic corporate social responsibility, but also represent ethical standards of a company. It is unethical for some individuals to own so much and earn so much, at the expense of other suffering members of society. It is also unethical for companies to damage environmentally that result in illnesses and loss of life. It can be concluded that Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all
Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...
In the current time of growth and progression, individuals should know that how a business not only flourish but sustain itself. Making profit is one of the main targets of every corporates but it must not be the only one. When an individual builds a company in order to do business, they should be well aware of their contribution towards the society as well as their business and employees in it. It is total strategy of all. We should be able to realize every increment contributes of it. One of the major factors that affect a business is how well it participates in Corporate Social Responsibility. According to (Werther & Chandler, 2006) corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefits the society. In authenticity, there is a whole lot to argue about it. There are no major guidelines that decides either a business is participating in Corporate Social Responsibility; what might be considered a Business practicing CSR to some, can still not be accepted for it by others. CSR may be restrained a term which his highly flexible. This paper will discuss about Corporate Social Responsibility and its