Leadership and Governance: Exxon Mobil Case Study Analysis Report

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This case study analyzes Exxon Mobil's approach to leadership, governance, and corporate social responsibility, particularly in response to shareholder concerns regarding environmental impact and the need for renewable energy initiatives. The study examines the arguments of shareholders who advocated for reduced greenhouse gas emissions and increased investment in alternative fuels. It highlights the conflict between the company's traditional focus on oil and gas reserves and the growing demand for sustainable practices. The analysis emphasizes the importance of corporate social responsibility and the impact of stakeholder perceptions on a company's financial health and operational efficiency. It also suggests strategies for Exxon Mobil to integrate green technologies and renewable resources into its operations to reduce environmental impact and improve long-term sustainability. The report stresses the role of leadership in managing these challenges and the significance of research and development in driving innovation in the energy sector.
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Running head: LEADERSHIP AND GOVERNANCE
Leadership and Governance
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1LEADERSHIP AND GOVERNANCE
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................3
References..................................................................................................................................4
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2LEADERSHIP AND GOVERNANCE
Question 1
Based on the analysis of the case study named Exxon Mobil- stewardship,
leadership, corporate social responsibility, it can tend to suggest that the concerned company
called Exxon Mobil should not focus on establishing and developing more of the oil as well
as gas reserves (Tricker, 2015). This is because some of the connected shareholders of the
company disagreed to the same, and the reason for their argument was investigated to be a
valid one. Concerning to this, the primary reason to stop the Exxon Company from expanding
into more of the oil and gas reserves as per the viewpoint of the shareholders and the research
study of the report, is recognised to be the threaten the oil and gas energy sources is causing
to the global environment (Sovacool & Dworkin, 2015). The shareholders were also recorded
to argue that this drastic effect that is caused to the environment will also affect the financial
health of the company in the long run. As opined by Rauter, Jonker and Baumgartner, (2017),
if any productive business organisation is not able to fulfil its responsibility that the same is
liable towards the sustainment of the natural environment, the synergy of the company that is
related to the corporate social responsibility is affected. In this connection, the concerned
business organisation under discussion here in the report will also turn ineffective in fulfilling
the responsibility the same as towards the society and the connected stakeholders of the
company. If the stakeholders of the company would have a negative image of the same, they
will not be interested in working efficiently with the company (Epstein, 2018). This, in turn,
will significantly affect the working condition of the company as well as the profit-earnings
ratio of the same. As known that the stakeholders connected to a business entity are the real
boss of the company. Therefore, Exxon Mobil should change their emphasis from producing
more of oil and gas reserves to protecting the environmental factors they are accountable to.
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3LEADERSHIP AND GOVERNANCE
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4LEADERSHIP AND GOVERNANCE
Question 2
As undermined by the above-illustrated pieces of evidence that the focus on Exxon
Mobil in the aspect of growing its oil and gas reserves is majorly impacting the natural
environment in a negative way, the same needs to be checked through on an immediate basis.
In light of the concept related to the synergy of corporate social responsibility, it can be stated
that every business organisation should effectively and efficiently follow the mandatory rules
and regulations that are built in the aspect of sustaining the environment while running down
the business transactions (Laudon & Laudon, 2016). Therefore in the context of curbing the
emissions of the greenhouse gases that are produced out of the manufacturing unit of the
company it is suggested that the company should make use of green and no-chemical
products while the production of the goods is in process in the company (Traudel & Merten,
2017). This will ensure that the gases emitted are less or even not at all harmful to the natural
environment, and the same is protected efficiently. In addition to this, based on the concept of
leadership, the report suggests that the senior-level managers are responsible for managing
the issues occurring in the firm. Thus, the HRM should focus more on the synergy of
researching about the use of renewable resources that may be used in their manufacturing
units. In this connection, the research and development team of the company should be
chosen in a strategical and at the highest priority level (Cassidy, 2016). Thus, implementing
the use of the alternative fuel resources in the concern of making use of the renewable and
green resources will not only help the company to decrease the adverse impact the operation
of the same causes to the environment but also reduce their cost of operations and thereby
increasing their revenue earning as well.
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5LEADERSHIP AND GOVERNANCE
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6LEADERSHIP AND GOVERNANCE
References
Cassidy, A. (2016). A practical guide to information systems strategic planning. Auerbach
Publications.
Epstein, M. J. (2018). Making sustainability work: Best practices in managing and
measuring corporate social, environmental and economic impacts. Routledge.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Rauter, R., Jonker, J., & Baumgartner, R. J. (2017). Going one's own way: drivers in
developing business models for sustainability. Journal of Cleaner Production, 140,
144-154.
Sovacool, B. K., & Dworkin, M. H. (2015). Energy justice: Conceptual insights and practical
applications. Applied Energy, 142, 435-444.
Traudel, K., & Merten, S. (2017). Possible food and agricultural application of microbial
surfactants: an assessment. In Biosurfactants and biotechnology (pp. 183-210).
Routledge.
Tricker, R.B. (2015). Exxon Mobil - stewardship, leadership, corporate social responsibility.
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