Corporate Social Responsibility and Sustainability

This presentation discusses the importance of corporate social responsibility (CSR) and sustainability in Shell Corporation. It explores the benefits of CSR and sustainability, as well as the principles followed by Shell to make their business more sustainable and attract a wider range of customers. The presentation also highlights new trends in the oil and gas industry and the reasons for promoting sustainability and CSR in this industry.

Corporate Social
Responsibility

Table of Contents
INTRODUCTION...........................................................................................................................1
New trends within industry....................................................................................................1
Benefits of sustainability along with principles.....................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Corporate social responsibility is a self-regulating business model that supports an
organization to become more accountable to its stakeholders and itself. It is important for the
company and its customers. This presentation is based on Shell who is oil and gas company
who operates in different countries. This oil gas company has headquartered is in the
Netherlands which incorporated in the UK. This presentation is going to show some advantages
of CSR and sustainability like it improves brand image of the company, satisfy stakeholders and
gives less negative impacts on the society and the environment. Further, it will also discuss new
trends in the oil and gas industry and some reasons of promoting sustainability and corporate
social responsibility by this industry.
New trends within industry
Shell corporation is an organization that is known for petroleum, natural gas and LNG.
There are approximate 82,000 employees in different countries of this company. All its skillet
workforce are known for performing activities and accomplishing its goals. It provides several
services such as: money laundering, tax avoidance etc. They act as like trustee.
 It has a financial asset but not have significant business activity. It is used for illegal
purposes like storing funds. This oil company now has approximate 80,000 employees. It
is formed as multiple layers with the main aim of hiding the identity of owner.
 The main activity and efforts that make this company unique is its active participation in
some activities which opposed green gas emission.
Interesting factor which shows that this company is differ from other companies and competitors
such as: it has joined the global climate coalition of several businesses that opposed to
greenhouse gas emission. Its management system is also effective which makes it able to take
competitive advantages such as it is grouped into 4 categories that include: Upstream, integrated
gas and new energies, downstream and projects and technologies. The top business group
manages and is responsible for upstream business activities. It searches for and recovers crude
oil and natural gas and operates the upstream and midstream infrastructure which is essential for
providing gas and oil to the market. Integrated gas department manages liquefying natural gas
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ans also convert it to liquids and low carbon which shows that this company focus on
sustainability. Downstream and other department manages its company's manufacturing and
marketing activities for which it has to refine, supplies and ship of crude oil in an efficient
manner. Last department manages cost of all projects which it gets and provide necessary
technical advices and services. So, it can be said that this grouping is the main key of its success
and all activities play by all these departments are more sustainable.
It can also be said that in the context of Shell that spilling of oil in Niger Delta in the
year of 2008, it improved its sustainable strategies. This oil spills damaged to the local
environment and affect approximate 15,000 people of that area in which maximum people were
farmers and fishermen. It was the main reason that why Shell focused on sustainability and CSR
approaches.
For industry new trends it is stated that natural gas is projected to be the fastest growing
fossil fuel over the last 2 decades. There are some drivers that are having pressure on oil and gas
companies to decarbonize energy provision as well as increase demand of energy in developing
economies. Digitalization is the main trends as several companies are making an effective use
of artificial intelligence, internet of things which are giving them competitive advantages of
opportunity.
Benefits of sustainability along with principles
Corporate social responsibility refers a concept in which different sectors of
organizations consider the interest of their stakeholders and all people who are directly and
indirectly involved with the business. With the help of this model and performing all activities
accordingly, an organization can make itself beneficial, its stakeholders and the environment.
There are several companies whose preliminary aim is to make their business more sustainable
for attracting wider range of customers because customers are becoming more aware about
sustainability. Operating and performing functions in a way that can enhance the environment as
well as the society instead of contributing negative impacts to them. There are mainly 8
principles which are being followed by Shell corporation for making its business sustainable and
attracting wider range of customers towards buying its services and products such as economic
principle according to which it focuses on long-term profitability. Next is competition according
to which it tries to compete in an ethical and fair manner. Next is business integrity according to
which, Shell protects people from those companies who take bribe and follow honest
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accounting. Its next and other important principle of sustainability is safety and security of the
environment and the society. Engagement with its stakeholders and improving relationship is
other important ethical principle. The last but not the least code of ethic is compliance or follow
all laws and regulations. Main 3 and some principles of sustainability are discussed as below:
Scalable and engagement with stakeholders: The most important principle which is
being followed by this company is ability to change itself according to the demands and
changing needs of stakeholders. This principle and ability shows that this company mainly focus
on satisfying its stakeholders. It is more engaged with its stakeholders or all those people who
are directly and indirectly connected with the company. Business integrity and fairness makes it
more able to satisfy its customers and all its stakeholders. For providing satisfactory services it
fights against bribery and honest accounting. It has the rights to make its own clear position in
line with business principles. Its employees are given opportunity to take active participate in
political and community activities. For this principle, it is now improving its ways in which it
directly and indirectly contributes to the general well-being of stakeholders or society in which
its operates and perform. It operates voluntarily on environment and social performance since
1997. It is called the best way of increasing morale in its workplace. In addition, and for
supporting this principle, it is also stated that if the company wants to be socially responsible
then it first requires to be accountable to stakeholders and itself as well. It is preliminary a
strategy.
Fairness: Fairness in competition is other main principle which can help the company to
become the market leader and protect itself from conflicts and disputes. When an organization
manages and performs its activities in a polite and with honesty then there are less chances of
conflicts. For developing business activities and expanding business in international market
there is a requirement for the company to follow this principle and have fairness in all activities
including competition. Fairness is called the basic and important principle that is beneficial for
both customers the company as Shell company follows it. Fairness is somehow related to the
diversity as providing fair treatment and equal opportunities to all employees is the main aim of
the company. By having fairness and honesty in business activities, Different organizations and
Shell can take several advantages. When employees and customers feel fair treatment then it
increases their morale and make them feel respected towards the company. Motivate and
respected customers are more likely to live with the organization which increases brand image.
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Increasing brand image is outcome and main benefit of following sustainability and becoming
corporate social responsible. It is characterized by respect, justice and equity which help an
organization to improve their relationship with all its stakeholders.
Diversity and protection of stakeholders: it is another principle that is followed by
Shell in sustainability. For them it is essential that stakeholders’ rights are protected. They must
be provided sustainable ecosystem to live in. besides, social and economic development has to
be done. This principle protects needs of stakeholders. It means that when business maintain
sustainability, they support in providing clean atmosphere. Also, they protect interest of
stakeholder by contributing towards society. Moreover, the principle state that Shell does not
focus only on specific stakeholder but overall. They have to contribute in economic,
environmental or social way. However, they are responsible for identifying risk or hazards and
protecting stakeholders from it. beside this, by offering high quality services to them
sustainability practices are implemented. It is useful in satisfying their needs. The main thing
here is to maintain diversity through sustainability. Also, by equal contribution in different
communities or stakeholder their rights are protected. It benefits Shell to deal with them easily.
Furthermore, stakeholder remain engaged with business for long term. By following this
principle, it becomes easy for Shell to protect their rights. They become accountable to them and
if rights are breached it results in unethical practice. In addition, the principle restricts Shell to
maintain diversity in sustainable practices. They focus on various areas within society. In this
way they are able to protect stakeholder.
Stakeholder needs vary as each one is involved in different way. So, it is important for
Shell to satisfy their needs. Hence, through sustainability each stakeholder need is fulfilled.
There is no partiality done in it. So, when each one needs is satisfied it results in building
positive image. Along with it, protecting society enables in their growth and development. The
organisation is able to operate in market and promote diversity. In that internal as well as
external stakeholder are protected. This covers other things like business partners, local
community, etc. the firm compliance with all types of stakeholder. The health, safety security,
etc. of people is done through sustainable practices. It leads to building a diversified culture and
reputed image. Diversity in sustainability means to cooperate in all sections of society. Also, by
allowing employees to use valuable resources' sustainability is maintained. Other than this,
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sustainability is also related to culture. This principle allow Shell to build it in culture. It also
results in protecting employees’ rights. Likewise, company is able to continue sustainable
efforts in to fulfil community needs. The proposed 'diversity for sustainability' approach is
expected to enable the utilisation of the rich potential of cultural diversity for environmental
sustainability.
So, from the above discussed principles, it can be said that all these plays an important
role in accomplishing goals and improving brand image. It also helps in improving relationship
with customers, stakeholders and suppliers of the company.
Benefits of sustainability and CSR:
A company takes several initiatives in order to grow and develop in industry. One of
them is sustainability and CSR. However, it allows them to create a positive image in society.
Also, it is necessary for organisation to protect and maintain sustainability. There are various
benefits for the company adopting CSR practices one of the major benefits is that it can help the
company to increase the level of satisfaction of the customers. As customers feels satisfied if
company gets involved in sustainable practices. It also increases the brand image of the
company as it helps in developing a positive perception within the mind of customers which can
help in increasing the profitability of business. Another major benefit of adopting CSR practices
is that it can generate customer loyalty which can increase the customer base of the company to
higher extent. Thus, there are many benefits of CSR for Shell. They are as follows:-
Maximising long term value – CSR helps business to contribute towards society. The company
identify challenges and reduces its impact. Through this, they focus on economic and social
development. It results in increasing value for business. Alongside, by helping in economic or
environmental way the company support society. From that they build value and are able to
survive for long term. Moreover, by doing social investment they are able to gain competitive
advantage. The customers see them as responsible companies.
Cost saving – This is benefit of sustainability as by reducing waste and emission, business is
able to save their cost. They form policies and follow them. Also, various steps and practices are
undertaken to minimise wastage. Technology is used in order to use energy in efficiency way.
Thus, this leads to decrease in expenses and improving business efficiency. However, renewable
resources are used for energy.
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Keeping talented staff – The CSR practices allow organisation to be accountable and
responsible towards society. When business is highly engaged in CSR they are able to create
positive image in minds of people. It also leads to developing positive work environment. The
employees like to work for company for long time. They get motivated with it. Also, Shell is
able to attract new work force. Thus, it reduces cost of recruitment and training as well
Building loyalty among stakeholders – When business is engaged in CSR activities and focus
on sustainability the stakeholders are highly attracted. By doing development in society
contribution is done. Thus, it allows them to gain trust of stakeholder and retaining. However,
investors, customers, etc. get engaged with firm and find it valuable. The company identify
growth opportunity areas. In this way they are able to increase market value.
Other benefits – There are some other benefits as well of CSR and sustainability. A business
can easily acquire funds or investment from the market. The investors like to invest in reputed
firm. Also, organization attract media that shows contribution towards society. However,
government support them as well in CSR practices. So, by having good relation with them
regulatory burden is reduced. This make it easier for them to operate in market. Therefore, they
are able to find out new areas for growth.
CONCLUSION
From the above presentation it has been summarized that CSR and sustainability played
a vital role for accomplishing goals and taking competitive advantages. It has shown several
advantages of making a business sustainable and following corporate social responsibilities.
Some principles of CSR has also shown which support company to make all people and
stakeholders believe in them. Stakeholder engagement, integrity, fairness in competition,
promoting diversity are some principles which have been discussed in this study. An
organization who mainly work for the main aim of satisfying and serving people, needs to
follow all rules and codes of ethics for accomplishing goals. Further, it has also shown some
benefits of following CSR and sustainable organization such as it improves reputation of the
company in the market, increases business ability, makes shareholders happy and attract wider
range of customers and investors.
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REFERENCES
Books & Journals
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Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Jankalovaa, M. and Jankal, R., 2017. Corporate Social Responsibility in the Context of National
Awards for Social Responsibility in the Slovakia and Czech Republic.
Jenny, F., 2019. Populism, Fairness and Competition: Should We Care and What Could We
Do?. The Japanese Economic Review. 70(3). pp.280-297.
Nie, L.K.A. and Haryadi, S., 2017, October. Comparison of the Haryadi Index with existing
method in competition, equality, fairness, and correlation level calculation: Case study:
Telecommunication industry. In 2017 11th International Conference on
Telecommunication Systems Services and Applications (TSSA) (pp. 1-6). IEEE.
Unit, B., Star, E. and SmartWay, E.P.A., 2015. Corporate social responsibility.
Waddock, S., 2017. The difference makers: How social and institutional entrepreneurs created
the corporate responsibility movement. Routledge.
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through :<http://www.culturaldiplomacy.org/academy/content/pdf/participant-papers/2014-
biec/Koen_Wellink_-_Social_Corporate_Responsibility_and_Shell.pdf >.
CSR of Shell. 2016. [Online]. Available
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