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The significance of Corporate Social Responsibility
Oil industry effect on the environment
The dangers and the benefits of corporate social responsibility
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Recommended: The significance of Corporate Social Responsibility
CSR is recognizing whether corporate behavior has responsibility on the social and environmental. The global oil companies are sparing no effort to promote the concept of social and environmental responsibility and action taken. With the improvement of the quality of life, the air quality is becoming more and more concerned by people. For example, in China, in addition to monitoring data and indicators are a reminder that environmental protection is imperative, the frequent visits of haze weather also make people intuitively feel the air pollution. Moreover, Fahad Al-Attiya said oil and gas, sunshine, wind and money is the abundant power that a country needs, but missing water is unbelievable. Both BP and SHELL conduct similar towards CSR that …show more content…
BP said, “Not only contribute to oil,” and the former chief executive officer of Shell Companies said “really different from competitors”. This essay will compare BP and SHELL with two criteria in the usage of water and air pollution. Fresh water is important for human life, and both BP and SHELL take measures to reduce the usage of water. Although BP uses fresh water in some fields, they also use much non-fresh water in some important fields such as seawater treatment. BP just use about 1% of global freshwater to explore, produce and refine oil and gas. Moreover, most water will be returned to the local water basin. BP also accesses different technology to the application amount of water and effluent treatment. For instance, it has valuated different access for reducing the usage of fresh water in purified terephthalic acid (PTA) operations, which contain wastewater recycling and seawater cooling. Through these ways, the usage of water in 2016 decreased by 20% compared to 2015. However, as for SHELL, tailoring use of fresh water to local conditions. Also, it is available for SHELL to treat the polluted water and recycle water, which …show more content…
In fact, it is unavoidable for oil companies to influence the air quality when they exploit the oil and gas. However, both BP and SHELL make efforts in the respect. Shell has put $25 million into the air emissions control and invest over 1$ billion in the production of lower sulphur fuels. In the early 1990s, SHELL made tremendous progress in producing diesel oil which containing sulphur is extraordinarily low. In addition, SHELL obtained the ratification which means its behavior is pretty in air quality. Furthermore, the ratification supervises the SHELL’s operation process, so Rick Albright said “this permit ensures that exploration and drilling will occur in a way that protects air quality”. With the economic consequences being affected by the climate change, trying to capture and store the carbon is in progress by the oil and gas sector and SHELL shows support for this project and wishes to implement it on a large scale. More importantly, SHELL is expected to cut the costs and improve the efficiency through the project. Similarly, SHELL also actively cooperate with other organizations. For example, Shell partnering with Chevron not only finishes a project which aims to trap three or four million tons carbon dioxide which issues from nature, but also story up it deep underground. On the other hand, the saltwater will be returned by the urge of storied carbon dioxide. BP also admit that their some
All the above stakeholders impacted by oil spill but differently unfortunately, the oil spilled into the ocean and killing all the fish and wash off the coast spread through rivers, affecting the fishermen and BP company affected by because they need to clean all this was to be able to cover the costs, and bad publicity the oil spill has affected governments w...
This study analyses the controversy that has existed within general electric (GE). This is a company that has been running the electrical equipment plants. The company has been dumping wastes into Hudson River. The case involves recovery battle and the plight of dumping the Polychlorinated Biphenyls (PCBs) into the Hudson River in New York, which had accumulated to more than 1.3 million pounds into a 40 mile stretch of the Hudson River. The cleanup programs supported by EPA, most of the environmental groups and some government agencies led to a lot of controversies since GE was not ready to take responsibility for the dredging expenses and even after their little cooperation, the dredging process is never complete.
In this project we explored the oil industry along the Delaware River, and considered its social, economic, environmental implications in local, regional, global contexts. Clearly the oil industry along the Delaware River has prospered the local, regional, and in some sense global economy. It has also, however, brought about social, environmental issues, positive or negative, directly or indirectly. We are trying to view the oil industry along the Delaware River in a dialectical way, to give the pros and cons, because it is really difficult to make a definite conclusion.
On April 20, 2010, BP’S deep water horizon drill exploded in Gulf of Mexico and this oil spill killed 11 innocent workers and caused severe damage to the environment. “It was the worst environmental disaster in US history and BP lost his reputation worldwide”. The oil spill created negative attention from media and public. BP’s “Gulf of Mexico Restoration” website uses these three strategies to try to repair its reputation: pictures of its new employees to show its dedication to creating more jobs and ensuring the safety in the company, images of emergency services and clean-up programs to show its quick responses and efforts to prevent more damages, and clear language about its legal proceedings and investigations to show its commitment to the affected people and environment.
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...
The total lifecycle emissions from producing, transporting, processing and burning the products derived from the oil would amount to 101.4 million tons of carbon dioxide per year. This is equivalent to 29.5 U.S. coal plants and the average emissions of 21.4 million U.S. passenger vehicles. Climate activist across the country are striving to block the further extraction of fossil fuels so as to prevent further carbon emissions
Do you think BP’s turbulent history contributed to its present day culture and general attitude towards safety and operational procedures?
Corporate Social Responsibility (CSR) is about how companies manage their business processes to produce a positive impact on society. Companies introduce new products in markets, usually after testing concludes that the product is safe for use or consumption. It is nearly impossible for a company to truly know all of the potential risks a brand new product may have, even after thorough testing. However, once a company receives reports that its product may be causing harm to consumers, it is their responsibility to conduct more research and tests to rule-out any possible truth in the reports. This is what a socially responsible company would do, one who is preoccupied not only with their bottom-line, but one that is also worried about its customers.
Risk Management practices by Royal Dutch Shell plc Risk factors considered by Royal Dutch Shell plc Prices of oil, natural gas, oil products and chemicals are affected by supply and demand. Factors that influence these include operational issues, natural disasters, weather, political instability, or conflicts, economic conditions or actions by major oil-exporting countries. Price fluctuations can test our business assumptions, and can affect Shell’s investment decisions, operational performance and financial position. CURRENCY FLUCTUATIONS AND EXCHANGE CONTROLS As a global company, changes in currency values and exchange controls could affect our operational performance and financial position. ECONOMIC AND FINANCIAL MARKET CONDITIONS Shell companies are subject to differing economic and financial market conditions throughout the world. Political or economic instability affect such markets. If such a risk materialises it could affect our operational performance and financial position. TRADING AND TREASURY In the course of normal business activities, shell is subject to trading and treasury risks. These include among others exposure to movements in commodity prices, interest rates, and foreign exchange rates, counter party default and various operational risks Different risk faced by Royal Dutch shell Market risk Market risk is the possibility that changes in interest rates, currency exchange rates or the prices of natural gas, electrical power, crude oil, refined products, chemical feedstocks and environmental products will adversely affect the value of Shell’s assets, liabilities or expected future cash flows. Most of Shell’s debt is raised from central borrowing programmes. Shell has entered into interest rate swaps and currency swaps to effectively convert most centrally-issued debt to floating rate US dollar LIBOR (London Inter-Bank Offer Rate), reflecting its policy to have debt mainly denominated in US dollars and to have largely floating interest rate exposure profile. Consequently Shell is exposed predominantly to US dollar LIBOR interest rate movements. The financing of most subsidiaries is also structured on a floating-rate basis and, except in special cases; further interest rate risk management is discouraged. Based on the Consolidated Balance Sheet at December 31, 2007, the impact on net interest income/expense of a change in interest rates of 1% would not be significant. Foreign exchange risk The functional currency for most upstream companies and for other companies with significant international business is the US dollar, but other companies usually have their local currency as their functional currency. Foreign exchange risk arises when certain transactions are denominated in a currency that is not the entity’s functional currency.
" Oil is the life blood of our modern industrial society. It fuels the machines and lubricates the wheels of the world’s production. But when that vital resource is out of control, it can destroy marine life and devastate the environment and economy of an entire region…. The plain facts are that the technology of oil-- its extraction, its transport, its refinery and use-- has outpaced laws to control that technology and prevent oil from polluting the environment…" (Max, 1969). Oil in its many forms has become one of the necessities of modern industrial life. Under control, and serving its intended purpose, oil is efficient, versatile, and productive. On the other hand, when oil becomes out of control, it can be one of the most devastating substances in the environment. When spilled in water, it spreads for miles around leaving a black memory behind (Stanley, 1969).
Business risk management has been a widely crucial tool for firms to include in their operations and its importance cannot be overlooked. In the case of British Petroleum (BP) Gulf of Mexico Oil Spill in 2010, there was negligence and lack in the contingency plan and response of the company to the risks that arose. It became evident in this analysis that BP’s manner of handling the incident had a massive financial implication that ensued negative public perception and company reputation and value.
I begin this essay by defining CSR, there are many definitions for this term by various different theorists, and EU says that CSR is "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." On the other hand, Sloman et al. define it as "The concept in which a firm takes into account is the interests and concerns of a community rather than just its shareholder". Davis and Blomstrom (1966), say it "Refers to a person’s obligation to consider the effects of his decisions and actions on the whole social system". These definitions differ from one another in many ways but they agree that CSR involves taking the environment into account and therefore, one must look take social responsibility.
2. How should BP have handled an external environmental analysis ties and what environmental changes and trends (opportunity and threats) might they have discovered?
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...
It is important to understand the importance of corporate social responsibilities. If Corporate Social Responsibility is properly maintained and emphasized by companies, it can benefit the society, economy and corporate sustainability. It can also be cost efficient to companies. also the environment . But above all effect (CSR) varies companies to companies. Where some corporates seem to make all sorts of benefits from their coporate social responsibilities but few of them are also having loss by trying to maintain CSR without properly evaluating their resources. (Porter and Kramer 2006) has said The inferences where corporates need to evaluate their CSR actions to figure out if they add