Royal Dutch Shell: Minimum Wage, Poverty, and Employee Welfare

This research project investigates the effects of the minimum wage system on employees, specifically within the Royal Dutch Shell Company, and its potential to trap workers in poverty. The report begins with an executive summary, followed by an introduction outlining aims, objectives, research questions, and a literature review exploring concepts of equality, diversity, the minimum wage, and its impact. The methodology section details the qualitative research approach, inductive approach, interpretivism philosophy, data collection methods (primary and secondary sources), sampling techniques (simple random sampling), data analysis (thematic analysis), and ethical considerations. Findings are presented through thematic analysis of data collected from employee surveys, revealing insights into employee awareness of equality and diversity, the company's wage practices, perceptions of wage impacts on poverty, and overall satisfaction. The report concludes with a discussion of findings, recommendations for improving wage systems, and reflections on the research process, supported by references and an appendix.

Research Project

Executive Summary
The present report is based on determining the system of minimum wage that traps the
workers in facing poverty specifically in Royal Dutch Shell Company. The study provides a
deeper insight relating the review and important aspects attached with the problem. It also
provides for different methods that could be used for making the study more as reliable and
valid.

Table of Content
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Literature review..............................................................................................................................5
Research methodology.....................................................................................................................7
Data Analysis and Findings.............................................................................................................9
Discussion......................................................................................................................................14
Conclusion and Recommendations................................................................................................17
Reflection.......................................................................................................................................19
REFERENCES..............................................................................................................................20
Appendix........................................................................................................................................22

INTRODUCTION
The current study will focus on the working of Royal Dutch Shell and on the concept of
minimum wage system and how it draws people towards the poverty line.
Aims and objectives
Aim
“To examine the concept of minimum wage and how it traps people in the poverty: A study on
Royal Dutch shell.”
Research objectives
 To articulate the key concept of the equality and diversity attached with equal wage to
workers within the work environment.
 To study the concept of minimum wage rate within the business.
 To critically evaluate the way in whichleast wage traps the people into poverty.
 To facilitateappropriate recommendation for improve concept of wage & alleviating
poverty.
Research Questions
 What isthe concept of equality & diversity associated toproviding equal amount of wages
to employees in the workplace?
 What is the meaning of minimum wage in an enterprise?
 How minimum wage traps the people into poverty?
 What are better suggestions for improving concept of wage & alleviating poverty?

Literature review
Theme 1: Concept of diversity and equality at business premises
In accordance to Simonin and et.al. (2017), equality and the diversity are different
concepts that play a crucial role in the business organization and affects the smooth functioning
of business. Equality is the concept which as ensuring that each and every person in the company
has equal opportunity & must not be treated as discriminated or differently due to their features
or traits. On the other hand diversity relates to taking an account of differences between group of
the people & individual along with it placing positive value on such differences. It reflects that
all the workers need to be treated fair and equal y giving them with same set of the opportunities
irrespective of their age, sexuality, gender, culture, race and disability. Proving the employees
with fair wages would help the company in avoiding the trap for their workers due to wage
difference so that they might not be facing poverty condition in any case. Thus, it is very
important for the business concern to promote equality of an opportunity for all the employees
by way of diversity which depicts that giving equal chance to every person for the purpose of
achieving their best potential and preventing them from the poverty because of unequal wage. In
today’s dynamic environment all the firms are been encouraged in having their equal
employment policies which helps in protecting an individual rights of an employee whereas
ensuring the employers to stay on right side of law. This kind of policy is been designed for
preventing employment related disputes and an equal opportunity guidelineswhich helps in
ensuring that female workers must be offered same job as the male employees are been paid.
Theme 2: Stating minimum wage rate system in business
In view of Barrett, Garg and McBride (2016) minimum or least amount of wage policy
reveals that minimum value of the remuneration that employers is needed for paying the wage
earners with respect to work performed at a given point of time that could not be reduced
through collective agreement or individual contract. The main purpose or objective of the
minimum wage amount is introduced to protect the workers against lower pay. They helps in
ensuing equitable & just share of fruits of the progress for all and minimum living amount of
wage to all the individuals who are recruited and needs such protection. It can also be a
component of the policy in order to overcome the poverty and in reducing differences in terms of
men as well as women. This system need to be defined and set in a manner for reinforcing &
supplementing other kind of employment and social rule with an inclusion of collective
bargaining that in turn used for setting employment terms and the working conditions. As per
ILO convention, it is essential that minimum wage must be specific regarding elements of wage
that could be counted as minimum, conditions and an extent under which payment in form of
kind could be allowed.
Theme 3: Evaluating the way in which minimum wage rate traps the people in poverty

It is been argued by Chakraborty and Chakraborty (2018) that minimum wages must be
subsidized for encouragingsocial integration by way of employing at least skilled employees
with respect to decreased demand for unskilled workers. Subsidizing companies which contracts
with the workers whose wages falls below certain level has recommended as one of the major
mechanism in protecting an income from poor. There are several problems attached with the
subsidizing entities for the purpose of increasing employment or supporting income of poor
workers. Besides difficult for monitoring, subsidizes might also generate the poverty traps as it
reduces an incentive for workers and firms for raising wages & productivity above a threshold
level. However, wage subsidies might be used on temporary basis with above effect; it deemed
that the social welfare encourages workforce participation that might turn out as detrimental to
the minimum wage earners in long run. The idea behind subsidizing work might imply that work
performed resulted as invaluable. On other side, this puts a downward pressure on non-
subsidized part of minimum wages with an effect that minimum wage might become maximum
wage.

Research methodology
Type- The researcher can use mainly 2 types of the research that are qualitative &
quantitative research method. The former technique means as analyzing the qualitative features
attached to the issue for drawing appropriate findings & results. On other side, quantitative
method means as using mathematical or statistical tools for making numerical analysis so that
accurate and relevant findings can be generated (Cuervo‐Cazurra and et.al., 2017). In this study,
scholar has used qualitative method as it helps in gaining in depth knowledge regarding an
examination of minimum wage policy that result to trap the workers in poverty. It helps in
looking into deeper aspect relating to the problem and also encourages an investigator in
expanding its responses on new research sector or areas so that new findings or inferences can be
drawn with regard to new theories, concepts & products.
Approach- It is classified into two types that include inductive & deductive approach
which could be used by scholar for making the study as more valid (Ratnam, 2019). With respect
to this study, scholar had used Inductive approach means as the approach that starts with the
observation and ends at developing appropriate theories relating to investigating an effect of the
minimum wage on employees poverty line. This theory is counted as grounded because it allows
the flexibility which attends in close context & supports new generation theory.
Philosophy- It is been categorized in majorly two parts that is interpretivism and
positivism philosophy. Under this study, an investigator has adopted interpretivism philosophy
which integrates interest of an individual into the study and the components attached with study
are been analyzed (van Hees and et.al., 2016). This philosophy is considered as most suitable for
the purpose of making qualitative analysis relating to impact of wage rate system on the
efficiency and effectiveness of workers performance along with equality & diversity in the
business.
Obtaining data-There are 2 methods which a researcher can used to collect the data that
includes primary as well as secondary sources. Referring to this study, scholar has make used of
both primary & secondary sources for gathering the information relating to its research issue or
problem (Lynch and Mannion, 2016). It helps in collecting relevant data through the use of
common sources that is structuring questionnaire, conducting the survey, interview with
participant, using articles, journal, books and internet sources for obtaining appropriate
secondary data. This helps in application of right sampling tool and analysis technique which in
turn results to true and correct findings of study.
Sampling- It is also divided into 2 parts that involves probabilistic and non-probabilistic
sampling tool. The former method means as providing an equal chance to large population in
getting chosen as a sample. On other state, the latter technique is stated as the selection of sample
based on the subjective judgments and the members in the population are not be given equal

chance of being selected as the sample. In context of this study, an investigator has used simple
random sampling tool which is a type of the probability sampling in which the sample is been
selected by providing equal possible chance to population in being chosen. The sample of 20
employees of the company is been taken in form of the participant and respondent.
Data analysis- It can be done by making use of 2 methods that is SPSS and thematic
analysis. SPSS is the statistical software that is used for developing hypotheses and determining
the relationship between two or more variables attached with the research problem (Gura,
Shevchenko and Gura, 2016). On other note, thematic analysis includes preparation of several
themes based on objectives and the responses of the participant so that proper discussion and
conclusion can be presented along with appropriate recommendations. In this report, scholar has
applied thematic analysis in order to assess the data in adequate manner. This tool act as most
useful as it helps in understanding the qualitative attributes associated with minimum wage on
poverty condition of employees.
Ethical consideration- It act as most crucial part which states that the report must be
prepared in compliance with all the ethical aspects. For conducting the report ethically,
researcher has taken full consent of the participant which shows that they are not been
pressurized or subjected to harm in any manner (van Hees and et.al., 2016). Further, use of
misleading information & offensive language has been avoided which might hurt the sentiment
of respondent. Moreover, higher level of objectivity and privacy of the data is maintained to
ensure high ethical responsibility in the study.
Research limitation- In preparing for the research report, there are various challenges or
limitation that had been faced by the scholar that includes framing precise aims & objectives in
order to conduct the study by taking into wide area relating to the issue so that better analysis
could be made. Researcher has faced difficulty in selecting the sample size; however, by making
use of appropriate sampling tool adequate size of sample is selected.

Data Analysis and Findings
Theme 1: Respondents are aware with the concept of equality and diversity
Respondents
Yes 12
No 8
Yes No
0
2
4
6
8
10
12
14
13
7
Respondents
Theme 2:Yes, Royal Dutch Shell offer minimum wage to all employees
Respondents
Yes 14
No 6

13
7
Respondents
Yes No
Theme 3:Adhering with equality and diversity, company attract range of employees
Respondents
Strongly agreed 12
Agreed 5
Disagreed 3
Strongly disagreed 0
Strongly agreed Agreed Disagreed Strongly disagreed
15
4
1 0
Respondents
Theme 4:Yes, there is a positive relationship between minimum wage and poverty
Respondents
Strongly agreed 11
Agreed 5

Disagreed 3
Strongly disagreed 1
Strongly agreed Agreed Disagreed Strongly disagreed
15
4
1
0
Respondents
Theme 5:Respondents are strongly satisfied that minimum wage traps people in poverty
Respondents
Strongly agreed 15
Agreed 4
Disagreed 1
Strongly disagreed 0
15
4 1
Strongly agreed Agreed Disagreed Strongly disagreed
Theme 6: Company do not pay equal wage to all employees

Respondents
Strongly agreed 3
Agreed 2
Disagreed 11
Strongly disagreed 4
Strongly agreed Agreed Disagreed Strongly disagreed
0
2
4
6
8
10
12
14
16
15
4
1 0
Respondents
Theme 7: Yes, most of the employees are satisfied with the working environment
Respondents
Yes 13
No 6
Yes No
0
2
4
6
8
10
12
14
13
7
Respondents
Theme 8: Company invest to developing policies related to wages and reduce poverty