Corporate Social Responsibility: Shell Petroleum

Corporate Social Responsibility: Shell Petroleum















Corporate Social Responsibility: Shell Petroleum

Shell Petroleum focuses on five areas of responsibility namely, customers, shareholders, business partners, employees and the society with regard to its General Business Principle. Sustainable business operations are integral for the success of the entity. This focuses on operational safety, reduction of harmful effects of oil activity on the environment and enabling communities to share into the benefits of oil trade. The entity has been able to establish and adhere to global standards of operations in terms of managing environmental impact, operational safety, and relationships with the communities.

Sustainability is core to the functions of Shell Petroleum. It is important as it enables the entity to ensure that it meets stringent operation, environmental and safety standards and guidelines while retaining its focus on satisfaction of global demand for oil products and organizational profitability (Thompson, 2010). Operational responsibility assumes an important part of the corporate social responsibility of the entity. Operational excellence and performance are achieved only by ensuring that international operational standards and guidelines are met. Operational responsibility also amounts to ensuring safety and sharing of benefits and returns with local communities in various operational settings.

Operational responsibility also focuses on creation of employment opportunities by utilizing local labor, engagement with local supplies, training, and development of existing workforces. Irrespective of increase in competition and demand for oil related products and services around the world, Shell retains its focus on sustainable operations as a means of delivering value to communities, customers and the environment. Committing to the use of new technology and innovative practices is at the core of strategies developed by Shell. This is integral towards enabling the entity remain a key player in a highly competitive market.

Despite such measures, ethical issues remain a key concern given the importance of achievement of strategies such as return on investments and profitability and associated challenges such as, poor wages, ineffective safety procedures, and measures. Ethics in the operational aspect of this entity amounts to ensuring that the focus is on safety of employees, communities, environmental consideration, and social welfare and at the same time ensuring that investments on returns re provided to the shareholders based on the value of their investments (Royal Dutch Shell PLC, 2013).

Based on the Global Reporting Initiative (GRI), Shell Petroleum has been able to adhere to set out Sustainability Reporting Guidelines that are aimed at enhancing the levels of accountability and transparency in regard to environmental, economic, and social performance. Using the GRI standards the entity is able to ensure that reporting on environmental, social, and economic perspectives with regard to its activities are done in an ethical manner. In addition, these measures are effective in terms of enhancing the levels of disclosures with regard to sustainable corporate social responsibility as undertaken by Shell Petroleum (Thompson, 2010).

Shell has an established Code of Conduct that provides all employees with standards of conduct in the entity as provided in the Shell General Business Principles. All employees, contractors and partners of the entity are mandated to adhere to the Code of Conduct that focuses on issues such as fair competition, anti-corruption and safe work environment practices. The entity also provides for confidentiality channels to its employees to enable them to report corruption and any other potential breaches of guidelines and codes of conduct while retaining anonymity (Royal Dutch Shell PLC, 2013).

Diversity is also important at the organization as it also contributes towards achievement of set out sustainable and corporate social responsibility goals and objectives. Diversity is integral given that Shell Petroleum is an international entity. This amounts to providing an enabling environment for individuals drawn from different cultures, races, and social backgrounds by focusing only on individual skills and talents. Using such a background, the organization incorporates skills, knowledge of individuals drawn from variety of regions in an aim of enhances diversity, and sustainable business practices in terms of managing human resources on an international scale.

The entity in its line of conduct adopted anti-trust laws given the delicate nature of the resources industry. This is relatively important for capital-intensive industries such as oil drilling and sale of associated products given the potential for collusion amongst firms towards increase in prices. The entity has established programs that are central towards the identification, detection, and prevention of activities that pose a threat to antitrust laws. A similar approach is also assumed towards bribery and corruption with respect to procurement of tenders, contracts, goods, and services. Stringent measures ensure ethical conduct amongst employees and more so within top management to safeguard the entity and communities towards a sustainable future (Royal Dutch Shell PLC, 2013).

In its social responsibility performance processes, the entity focuses on integration of its business activities and model into the society or local communities; enhancing positive impacts associated with establishment of operations in these communities; engagement with the members of community and their leaders; undertaking social investments as a means of giving back to the community; and providing support towards avoidance and mitigation of any negative impacts that may be associated with oil drilling, exploration and associated goods and services (Royal Dutch Shell PLC, 2013).

Thus, ethical sustainability and corporate social responsibility amount to adherence to stringent measures, guidelines, and standards of operation. In this case, Shell Petroleum adheres to standards such as GRI and other sustainable measures as a means of benchmarking its sustainable initiatives and strategies and in the process ensuring that it achieves is goals and objectives with respect to sustanble operations, work safety, and environment effects by its operations.























Royal Dutch Shell PLC. (2013). Sustainability Report: Royal Dutch Shell PLC Sustainability Report 2013. London: Royal Dutch Shell PLC.

Thompson, P. B. (2010). The agrarian vision: Sustainability and environmental ethics. Lexington, Ky: University Press of Kentucky.









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