Report on Responsible Business, Shell Oil, and Political Risk

This report delves into the concepts of responsible business and political risk, using Shell Oil Company as a case study. It explores the importance of balancing stakeholder needs and the role of entrepreneurship in fostering economic growth and innovation. The report examines the operations of Shell Oil, a major player in the energy sector, and analyzes the political risks that impact its business, differentiating between macro and micro risks. The report also defines political risk and instability, emphasizing the subjective nature of risk assessment. The report highlights how political instability can affect a company's assets and profitability, providing a framework for understanding and assessing these risks. The analysis offers insights into how businesses can navigate and mitigate political challenges in their operational environments. The report also provides some details of Shell's relationship with the Saudi Arabian government.

Responsible Business
Responsible business has been steadily climbing up the agenda, driven by growing investor and
regulatory interest in responsibility and sustainability, and an organizational focus on values and
purpose. A shift in business practices is needed to ensure work is a force for good, and the CIPD calls for
businesses to balance all stakeholders' needs and ensure employees benefit from the value created in
our workplaces.
Entrepreneurship Worth
Entrepreneurship always supported by every government because it enhances healthy competition,
Innovation, fostering economic cycle, creating job opportunities. It also challenges the traditional system
with growth – oriented system, and introduces the research and development cycle within limited
resources.
Shell Company
Shell Oil Company is the United States-based subsidiary of Royal Dutch Shell, which is amongst the
largest oil companies in the world.. The head office in the U.S. is in Houston, Texas. Shell Oil Company,
including its consolidated companies and its share in equity companies, is one of America’s largest oil
and natural gas producers, natural gas marketers, gasoline marketers and petrochemical
manufacturers. Shell is the market leader through approximately 25,000 Shell-branded gas stations in
the US which also serve as Shell’s most visible public presence. Shell Oil Company is a 50/50 partner with
the Saudi Arabian government-owned oil company Saudi Aramco in Motiva Enterprises, a refining and
marketing joint venture which owns and operates three oil refineries on the Gulf Coast of the United
States. It also holds 80% of an exploration firm called Pectin that explores and drills in various offshore
locations including the oil basin near Douala, Cameroon in cooperation with the French government-
owned.
Political Risks in Management
Political risk is an important idea in management literature, but it is difficult to comprehend and much
more difficult to describe numerically. A difference between instability and risk is a good place to start.
Instability has a palpable impact. Buildings, equipment, and state licenses are examples of products.
In other words, insecurity is a riot or new regulation may inflict significant damage to a business. Assets
of the firm Risk is not a physical entity, but rather a collection of expectations. Considering probable
future insecurity, which has a market value and decides profits in the future In other words, risk is a
subjective assessment of how unstable something is may have an impact on the company, and it is
evaluated in order to forecast the chance of several forms of instability.
The general definition of risk differs depending on the author. Political risks are defined as "the chance
that political forces may produce substantial changes in a country's economic environment that
influence the profit and other goals of a certain corporate firm." Political risk is conceived of here as a

measure of how volatility may influence the business enterprise. Political risk studies in business often
focus on country risk. Parts of the management literature distinguish between several forms of political
risk, such as macro and micro risk. Macro political risk comes when insecurity impacts all firms in a
country, such as a change of administration. Micro risk develops when insecurity impacts just certain
industries, firms, or initiatives, such as a public corporation's funding issues.