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Social Responsibility and Elements of Stakeholders

Added on - 04 Jul 2022

Stakeholders are individuals or organizations who have a share in the business organization, and therefore they have the right to see how it is performed, because they seek to make a profit from it, and shared it with social, political, economic, environmental, or cultural concerns. Corporate social responsibility covers the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of businesses at a particular point in time,” according to Carroll's four-part definition.

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Social Responsibility (BUSS316)
Individual Project
Summer 2021- Sec.01
Submitted to: Dr. Munshi Afzal
Name: Maha Ali
ID: 200108671
Overview based on elements of Stakeholders.
“Stakeholders” are individuals or organizations who have a share in business organization,
and therefore they have the right to see how it is performed, because they seek to make a
profit from it, and shared with social, political, economic, environmental, or cultural concerns
or needs who have established or may form links with the company and may affect or
influenced by the company's actions, or reputation.[ CITATION Tea21 \l 1033 ].
PETROBRAS
Petrobras, an oil company established in 1953 in Brazil. The company's transition toward a
more active environmental role has been aided by the end of its oil production and exploration
monopoly, globalization, and catastrophic environmental mishaps. In terms of Petrobras'
climate change posture, the Brazilian government, NGOs, investors, internal scientists, and
regulatory agencies are among the most powerful stakeholders.[CITATIONOnl121\l
1033 ].
At Petrobras, they engage in activities that bring them into close touch with a diverse range of
people on a regular basis. They score diverse stakeholders to obtain a better knowledge of
theiropinions,expectations,
perceptions,andunique
requirements. They promote ongoing
communicationandconnection
activities with each of the audiences,
they have 13 stakeholders based on
this mapping:[ CITATION PET21 \l
1033].Themajorityofthe
interviewsfocused onstakeholders
andtheirimpactonPetrobras'
environmentalpolicies,witha
particular focus on climate change.
Respondentslargelyrecognized
stakeholderinvolvementasa
significantcomponentbehind
Petrobras'environmental
responsiveness, in line with theory (Berry and Rondinelli, 1998). “Most of the efforts done by
Petrobras to address the climate change issue are a result of stakeholder pressure,” one of the
respondents said. The findings from the interviews in respect to stakeholders were split into
HenriquesandSadorsky's(1999)fourstakeholdergroups,whichare:(regulatory,
organizational, community and media).
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1.Regulatory Stakeholders
Brazil'sgovernmentandregulatoryenvironmentalentitieswerethemostmentioned
stakeholders in this category. When addressing the creation of new items, one respondent
acknowledgedtheinfluenceofrivals.AnotherrespondentstatedthattheBrazilian
government has yet to enact tough laws on the issue of climate change. “Brazil has special
features in respect to climate change,” he said, pointing out the disparities between Brazil and
other nations in terms of GHG emissions. In contrast to other nations, where fossil fuel
combustion is the primary source of GHG emissions, rainforest burning accounts for around
75%ofGHGemissionsinthecountry.”Asaresult,heclaimedthattheBrazilian
government's primary focus on climate change is forest fires. One responder said that the
Brazilian government has a lot of say in defining Petrobras' management team, which is in
charge of approving environmental plans. Petrobras' expenditures to enhance product quality
were also mentioned by respondents, since the firm aims to sell gasoline and diesel to Europe
and the United States, where standards are stricter.
2.Organizational Stakeholders
During the interviews, seven people responded to the question about their impact on
Petrobras' environmental policies. Investors are a big impact, according to the majority of
respondents. Some, on the other hand, acknowledged their relevance but said that their effect
is based on how the firm portrays its environmental actions rather than its strategies. Several
responders brought out the current conflict of interest in Brazil's administration. “There is a
contradiction in connection to Brazil's governmental influence on Petrobras' environmental
strategies,” one respondent noted. At the same time, they are our majority owners and oversee
the country's environmental policies.” Respondents also emphasized the significance of
customers. “Customer in Brazil are increasingly paying attention to the environmental effects
of our products,” one individual said. They are, however, unwilling to pay a higher price for a
‘greener' product.” In the early phases of their review process, respondents said that the firm
is contemplating analyzing the social and environmental implications of new initiatives. At
the moment, the emphasis is largely on their economic feasibility. Internal scientists' impact
on Petrobras' climate change plans was also noted. One respondent went on to say that the
firm is also at the forefront of scientific debates in Brazil's academic community. Petrobras is
examining supplier CSR performance, according to one responder. Furthermore, she claimed
that suppliers have no impact on the company's own CSR initiatives.
3.Community Stakeholders
Five respondents acknowledged the relevance of the third sector. Non-profit and volunteer
groups are included in the third sector, according to one of the respondents. In respect to
Petrobras' CSR efforts, the same person ranked the third sector as the most significant
stakeholder. “The third sector constitutes a key stakeholder,” she claimed. They not only exert
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direct pressure on the firm, but they also employ other important stakeholders to propagate
their environmental views, such as the media, local communities, and regulatory institutions.”
Petrobras has created a sponsorship scheme to help fund environmental projects conducted by
the third sector.
4.Media
The media was the stakeholder group that received the least amount of attention throughout
the interviews. Furthermore, as previously stated, it has been claimed that the third sector uses
the media to spread its ideas. Because Petrobras is a big advertiser in Brazil, one respondent
stated that the firm has a very excellent connection with the main mass media outlets. One
responder, however, claimed that the media occasionally publishes unfavorable news about
Petrobras for political purposes, generally to harm the government.
IdentificationandAssessmentofStakeholders`InfluenceonPetrobras’
Environmental Strategies
Employees, scientists, and investors at Petrobras were found to be crucial in defining the
company's climate change plans. The effect of regulatory institutions in Brazil is shaped by
the country's distinct characteristics in terms of climate change. Although a conflict of interest
between Brazil's government's function as a majority stakeholder and its role as a regulator of
the country's environmental regulations, the government's relevance must be recognized.
Respondents, on the other hand, differed on their amount of impact. Petrobras has developed
a sponsorship program for the environmental initiatives of this group, demonstrating the
importance of the third sector and Petrobras' commitment to it. In terms of suppliers, it
appears that the firm has greater control on their environmental activities than the other way
around. The media has been proven to be useful, mostly as a medium for NGOs to
communicatetheirideasandduringdisasters,whenitbecomesextremelyinfluential.
[ CITATION Onl21 \l 1033 ].
FUJITSU
Fujitsu is a Japanese company that specializes in the leading Public Sector IT Service provide.
Headquartered in Tokyo, and founded in 1935.[ CITATION WIK21 \l 1033 ]. The Fujitsu
Group thinks that it is critical to have opportunities for conversation with a wide variety of
stakeholdersandtodeveloprelationshipsofassuredconfidenceinordertoimprove
environmental management that reflects societal changes and requirements.[ CITATION
FUJ18 \l 1033 ]. Stakeholder involvement is one of the essential pillars for good corporate
responsibilityperformance,accordingto Fujitsu.They recognizethatinvolvementand
engagement do not just happen; they must be initiated, directed, and sustained. The manner in
which this is accomplished can have a significant impact on the results. Inclusion, democracy,
empowerment, and motivation are all strongly linked to engagement and participation.
Effective involvement and communication may have a highly exciting and far-reaching effect,
always assisting in the establishment of wider ownership and greater accountability. They
regard them as crucial pillars in their efforts to improve their social responsibility. Through a
workshop and conversation with members of the Responsible Business Board, they have
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Organizations, at their basic level, must earn profit through expansion. There is no business to conduct any CSR effort if you don't succeed here. Laws and regulations must be followed by companies. Governments establish these norms as part of the social compact. Management is responsible for making moral judgments that affect the firm, consumers, employees, and the environment.