Environmental Concerns And Manangement Clause

Running head: MANANGEMENT
Clause 4 of ISO 14001: 2015
Name of the student
Name of the University
Author’s Note

Clause 4 of ISO 14001: 2015
1
Introduction
Rozendal (1986) is of the opinion that the evolution of Clause 4 of ISO 14001: 2015 is a
result of the rising environmental awareness. The rising global pollution gave rise to
environmental concerns and the governments all over the world changed their environmental
policies and regulations to combat the new problems. The British Standards Institute published
BS 7750 in 1992 which was the ground work for the more recent ISO 14001 (Boiral et al. 2018).
Environmental management systems. One of the major sectors to be affected by the
environmental policies was the oil industry. The oil industry has been facing issues regarding
their environment policies and management. The following report analyses the environment
sustainability of the company Shell in the oil and petroleum sector.
Discussion
About the company
Shell is a part of the Royal Dutch Shell subsidiary that is entirely owned by the United States.
The company was founded in 1907 and has its headquarters in The Hague, the Netherlands. The
parent company is the Royal Dutch Shell (Rozendal 1986). The company considers a continuous
demand for their product due to the advent of rapid globalisation and development. The
organisational structure of the company realises that while there is a rising demand for their
product they also understand the environment implications the oil industry has. The company
intends to focus on improving their technology and reducing their impact on the environment.
Analysis of the implementation of clause 4 within the context of Shell
The Shell Company is one of the largest oil and natural gas companies in the world with
a 2% share in the oil market and 3% share in the world gas market. The organisational structure
of Shell is superficially involved in their CSR activities and have no thorough long term planning

Clause 4 of ISO 14001: 2015
2
to adhere to the legalities of the environment laws. Recently, however the company’s governance
structure faces criticism regarding their environmental management policies. The government,
regulatory bodies and public are of the opinion that they want to impose further regulations on
the energy sector and stresses on reducing their impact on the carbon release, reduce drilling of
crude oil and concentrate more on bio fuels and renewal source of energy (Rozendal 1986).
However, the activities of the company shows that the company has not been adhering clause 4
of the environmental management. Shell has not changed their strategy at all and continued to
procure crude oil and has hardly spent any money on the renewal source or clean energy
development. As a result of which the company is faced with numerous issues that has resulted
in the drop of the shares of the company. Now the ISO 14001:2015 is the newest standard that
can be integrated into the current system management to enhance its functionality (Boiral et al.
2018).
The implementation of sustainability in decision making policy is one of the most
important factor that governs the policy of business. Strategies that include the sustainable
polices are inclusive and have a more holistic philosophy of the business management. The
business environment refers to the external and internal factors that has an effect on the
organisations stance on various products, services and investments (Iatridis and Kesidou 2018).
Understanding the needs of both the external and internal environment is important and should
be in accordance with the EMS. Studies suggest that one of the first things is to strengthen the
leadership of the top management and to create an environment management that is aligned with
the organisation’s direction (Gleckman et al. 2017).
Benefits of implementing management system audit
There are numerous benefits to encourage implementation of the ISO 14001. Firstly, it helps to
set a leadership among the other companies within the same industry. Currently Shell is under a