EXXON MOBILE: HISTORY AND BRIEF OVER VIIEW OF BUSINESS OPERATIONS Exxon Mobil is a great example of a corporate giant. It all started in 1870, when JD Rockefeller founded U.S. Standard oil a company that will go on to be the most profitable in the world. In 1911 the company split up into 34 different companies, amongst these companies was Vacuum oil company that will later be called Mobil Oil and Jersey Standard which was renamed to Exxon corporation. In 199 the two companies decided to work together again, this was the birth of Exxon Mobil. Exxon Mobil was financially superior to most of its main competitors except for Royal Dutch Shell- British-Dutch company. The other main competitors include BP- from UK, Chevron and Conoco Philips- both from US and Total S.A. - a French company. Exxon Mobil reported net income in excess of 40 billion dollars in 2008 and 2009. Exon Mobil Key Financials REVENUES $ 452,926,000,000 PROFITS $41,060,000,000 ASSETS $331,052,000,000 STOCKHOLDERS EQUITY $154,396,000,000 MARKET VALUE $405,714,000,000 Exxon Mobile employs roughly 83,600 employees worldwide. The company produces approximately 3 percent of the world’s oil and about 2% of energy. Exxon Mobil had 72 billion barrels of oil equivalent reserves that are expected to last more than 14 years, the company also had 37 oil refineries in 21 countries, which collectively have a refining capacity of 3.92 million barrels per day, and this makes the corporation the largest oil manufacturer in the world. EXXON MOBILE PRODUCTION STATISTICS NUMBER OF EMPLOYEES 83,600 BARRELS OF OIL RESERVES 72 BILLION NUMBER OF OIL REFINERIES 37 BARRELS PRODUCED PER DAY 3.92 MILLION BARRELS TOTAL DAILY REFINING CAPACITY 6.3 MILLION BARRELS CORPOATE SOCIAL RESPONSIBILITY... ... middle of paper ... ... 14001 standard on environmental management systems. Exxon Mobil is a reactive company, in the sense that it only acts when things go wrong, the company had to embrace CSR in light of invents that threatened to tarnish the image of the company. However the company has tried to be proactive in some areas with minimal success, this includes: wind power and solar panel constructions, for instance, are real not just stories. 3% reduction of gas emissions and 23% of sulfur are also real and provable results. Industry issue Proactive/Reactive Compliant/setting new standards Myopic/visionary Competitive advantage Human rights Reactive Setting new standards Myopic No Environmental Reactive Compliant Myopic No Labor Proactive Compliant Visionary Yes Bribery and corruption Reactive Setting new standards Myopic No Governance Proactive Setting new standards Visionary Yes
When John D. Rockefeller merged with the railroad companies, he had gained control of a strategic transportation route that no other companies would be able to use. Rockefeller would then be able to force the hand on the railroads and was granted a rebate on his shipments of oil. This was a kind of secret agreement between the two industries. None of the competition knew what the rates were for the rebates or the rates that Rockefeller was paying the railroad. This made it hard for the competition to keep up with the Standard Oil Company. The consequences led to many oil companies getting bought out by Rockefeller secretly. All in all, 25 co...
In most cases, profits and social welfare are at odds. In such a case, business executives being answerable to shareholders are likely to focus on the profit-making aspect of the business rather than going against the interest of their shareholders by promoting social welfare at the expense of profits. In addition, research shows that companies actively involved in Corporate Social Responsibility efforts are more likely to be targeted by activists (Kress, 2011). In fact, it has been established that many companies initiate corporate social welfare projects when they stand to gain from those projects. For example, automakers resulted to creating fuel-efficient vehicles when they became profitable; similarly, energy conservation became an important CSR activity when the cost of energy became very costly. As such, the companies are benefiting their society as they follow their own
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
We have been engaged to audit the financial statements for Exxon Mobil Corporation (ExxonMobil) and assess the effectiveness of their internal controls for the fiscal year ended December 31st, 2010 in compliance with the laws of the state of Texas and the standards set forth by the Public Company Accounting Oversight Board (PCAOB). In the previous memo sent, we outlined the client’s high inherent risk due to the account balances and transactions, foreign currency translations and the complexity of accounting for and auditing the client’s vast oil reserves and inventories. This memo will address preliminary assessment of control risk and the appropriate level of detection risk given the forgoing conclusions on inherent risk, audit risk and control risk.
...to those in administration to gain influence over political proposals on what to do about global warming and if there should be anything done about it. ExxonMobil is the most profitable company in the world and has a great deal of power. Both organizations have scientists working on research to prove their side of the debate and have credible and non-credible data. They have influenced many other non-profit organizations to becoming part of the global warming coalition. Similarly, the Union of Concerned Scientists has over ten million members fighting against global warming and companies like ExxonMobil. During the Kyoto Protocol, UCS members were fighting for the purpose while members of CEI were fighting against it. However, in The Washington Post, author Steven Mufson, writes that ExxonMobil is misunderstood and does acknowledge global warming (Mufson, 2011).
There are many different areas in which a company may choose to focus its corporate social responsibility. Duke Energy has demonstrated CSR at high level and received an award for it. 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; and that is what Duke energy exactly did. These elements are not only aspects of corporate social responsibility, but also a show of the 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 engage in environmentally demeaning practices that result in illnesses and loss of life and in conclusion Social corporate responsibility and the maintenance of high ethical standards is not an option but an
Dow manufactures plastics, chemicals & agricultural products. It is doing business in about 160 countries, & it employs about 54000 people in entire world. The company has seven different major operating segments with a many variety of
Companies have presented investigations about their motivation towards voluntarily social and environmental as insolvent. This paper argues in agreement with Adam’s view that the goal of CSR reporting is to promote credibility and corporate image of stakeholders operating in a particular industry. Whereas companies must focus their efforts on enhancing their profitability, they should also ensure that the welfare of other stakeholders is protected.
The oil & gas industry is among the largest industries in the world. The sector generates large revenues and employs a large number of people in order to meet the worldwide demand for energy.
How is this company engaging in CSR? What CSR activities does it develop (Main engagements or pillars)?
Though the Talisman Energy Inc. have done due diligence in order to prevent the recurrence of what happened in Sudan, entering Iraq may be a precarious move. However, following the saying “high risk, high reward” the corporation should enter Iraq for the following reasons. Kurdistan is a much safer area than the rest of Iraq, being given the fact that it’s U.S. –backed Iraqi government in place. Kurdistan is also much different than the rest of Iraq, being given their Indo-European culture. Kurdistan had been seeking independence from Iraq for several years, but each time it was cause for war, until the American and British troops invaded Iraq in 2003. Kurdistan saw that as an opportunity to claim their autonomy and built the Kurdistan Region Government. Given the fact that a geographical survey estimated Kurdistan to have about 39 billion barrels of oil reserves, entering Iraq was worth taking the risk. Since Talisman Inc.’s reputation had been slumped by the Sudanese incident, in which the corporation was accused of supporting the genocide because the Sudanese government used their revenues from Talisman Inc. to buy weaponry, Talisman Inc. should somehow make sure that the KRG doesn’t use their revenues of $220 million to also buy weaponry.
Companies that make too much money are horrible for our economic system and they dominate
ExxonMobil also made attempts at manipulating the public opinion on greenhouse gas emissions and energy issues because renewable sources could potentially cost them a lot of business (McNerney). Companies like ExxonMobil wounded the argument that fossil fuels are having a negative effect on the environment and led the American people to believe that our nation must wait to act in implementing renewable resource policies. The argued that we need to wait to act on an environmental emergency until “all the science” reassures us that fossil fuels and climate change is a serious threat to not only humankind, but also to our nation, and essentially, the entire Earth (McNerney).
The XYZ Corporation was established in 2004 and their main office is located in Vancouver, BC. The company’s main objective is to create new innovating technology for media devices, computers, and digital music players. They deal with the design, manufacturing and marketing of the products. XYZ Corporation has been providing Canadians with groundbreaking technology throughout the years and continues to create new technology to provide others with top-level technology. Although, recently their success rate has appeared to drop rapidly due to a number of factors that will be explored throughout this case study. Their main objective is to target the problems so that they can work towards having the issues resolved as quickly as possible. If they do not take any course of action, the state of the company may be in extreme danger. This case study is designed to explore the areas of the company and discover the problems blocking the XYZ Corporation from success.
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