Business Communication Report: Royal Dutch Shell and Global Compact

This report analyzes the business communication strategies of Royal Dutch Shell, focusing on their commitment to eco-friendly practices and adherence to the UN Global Compact principles. The report examines Shell's approaches to reducing greenhouse gas emissions, developing sustainable technologies, and contributing to global environmental solutions, including their support for the Paris Agreement. It identifies positive and negative lessons from implementing Principle-9 of the Global Compact, and recommends innovative business practices such as using environmentally sound technologies, refocusing research and development, and reusing materials. The report also discusses key stakeholders, including investors, NGOs, employees, and societal communities, along with the potential benefits, challenges, and risks associated with implementing these recommendations. It references Shell's sustainability reports and relevant academic research to support its findings.

Running Head: BUSSINESS COMMUNICATION 0
Business Communication
communication in business
Student Details:
10/17/2018

Business Communication 1
Contents
Communication in Business.......................................................................................................2
Solution 1...................................................................................................................................2
Solution 2...................................................................................................................................2
Solution 3...................................................................................................................................3
Solution 4...................................................................................................................................3

Business Communication 2
Communication in Business
Being a sixth world largest Oil and Gas Company, Royal Dutch Shell must adopt eco-
friendly technologies and business practices and approaches relating to the UN global
compact principle (Reports Shell 2017).
Solution 1
The company Royal Dutch Shell (referred as Shell) using following business approaches, that
relate to the Principle-9 of the Global Compact to attain eco-friendly technological
innovation:
 Shell is looking for budget-effective methods to cope up with greenhouse gas
(referred as GHG) emissions and seeking great business opportunities while
developing Principle-9 global environmental solutions (Livesey and Kate 2008).
 Shell is in search for contributing to reduce world GHG emissions in following ways:
 Providing more natural gas that can replace coal consumption for electricity
generation;
 Developing Call-Control signalling (referred as CCS) technologies;
 Applying energy-efficiency ways in our operations and approaches wherever
logically practical;
 Evolving new fuels for transport like hydrogen and advanced biofuels;
 Participating in whole power value chain along with focusing natural gas as
well as renewable electricity generation.
 Shell totally sustenance the Paris Agreement, and the goal of holding the temperature
rise in global temperature to below 2 degrees Celsius.
 According to the UN Global Compact, the supporters and shareholders, The Company
have set a long-run goal to diminish the net carbon footprint of energy product of us
to decrease GHG emissions (Reports Shell 2017).
Solution 2
Positive lessons from Principle-9 of the Global Compact implementation are as follows:
 Accessing reliable and environment safe energy promotes economic as well as social
development and advances community health, overall education and livings.

Business Communication 3
 International business practices in global energy are helping local energy markets
development and encouraging entrepreneurs in the progress and spreading of global
energy solutions.
 Global Compact based business processes increase economic growth as Shell offer
jobs aiming to develop labour, safety and health standards (The Global Compact
2018).
Negative lessons from Principle-9 of the Global Compact implementation are as follows:
 While supporting one of the Global Compact principles, that are supporting a
precautionary method to future environmental challenges, many innovative and
efficient technologies are leaving our system on account for not supporting the eco-
friendly techniques (Williams 2014).
Solution 3
Innovative business practice recommendations are as follows:
 Establish a corporate as well as individual company policy on the usage of
environmentally sound technologies (referred as ESTs).
 Refocus research and development in order to design sustainable innovative
technological systems.
 Employ Environmental Technology Assessment (referred as EnTA).
 Reuse materials on business sites.
 Change the approach as well as the process and manufacturing techniques, and use
less toxic materials.
 Co-operate with business partners to ensure that ‘best available technology’ is
accessible for all organisations (Compact 2009).
Solution 4
Key stakeholders in this discussion are investors, non-governmental organizations,
employees and the societal communities where Shell operates. So, following impacts will be
occur on various sectors if above recommendations will be implemented (Compact 2009).
Thus, benefits to the stakeholders are:

Business Communication 4
 It will produce practical resolutions to current problems attached to globalisation.
 Business Approach to the Precaution Concept will have important long-run benefits
affecting future lifestyle as well as global market growth.
Challenges for the stakeholders are:
 Implementation of the above recommendations is not that easy, because global
awareness and education regarding the same is very much necessary which will take
time and much effort to be spread all over.
 Understanding responsibility to avoid collusion in human rights violations is a critical
challenge for world business operations (Williams 2014).
Risks for the stakeholders are:
 Being an employee or an individual, huge risk lies in taking responsible action which
can turn into profitable or non-profitable in future (The Global Compact 2018).
 All new recommended business practices must protect Human Rights, environmental
assets, and anti-corruption guidelines as well as free labour rights. Thus, it is also a
great risk for stakeholders to take care of.
References
Compact, UN Global. "Guide to the Global Compact—a practical understanding of the
vision and nine principles.". 2009. http://www.mas-business.com/docs/global
%20compact%20guide.pdf (accessed 10 17, 2018).
Livesey, Sharon M., and Kearins Kate. “"Transparent and caring corporations? A study of
sustainability reports by The Body Shop and Royal Dutch/Shell.".” Organization &
environment 15, no. 3 (2008): 233-258.
Reports Shell. Shell Sustainability Report 2017. 2017. http://reports.shell.com/sustainability-
report/2017/our-contribution-to-society/sustainable-development-goals.html (accessed
10 17, 2018).
The Global Compact. The Ten Principles. 2018. https://gcnordic.net/global-compact-focus-
areas/the-ten-principles/ (accessed 10 17, 2018).

Business Communication 5
Williams, Oliver F. “"The UN Global Compact: The challenge and the promise.".” Business
Ethics Quarterly 14, no. 4 (2014): 755-774.