Discuss the effect of Corporate Social Responsibility (CSR) in Shell
First of all, I would like to thank my teacher ####, he taught me a lot of knowledge and gave careful guidance and help, I believe that this knowledge will make me finish this report.
Here I am also very grateful to my team members #### who learn with me together. They shared useful information about Shell with me. We spend our valuable time to write our report.
Finally, I want to thank again my dear every college and college teachers and students. I would like to express gratitude to all the people who helped me.
The purpose of this study is Using communications to develop business opportunities. This case study focused on how to use a series of Shell communication methods and processes, to help the individual dealers to develop their own business opportunities. This paper mainly studies how Shell use their communication to make people interested in the products to develop their own business opportunities. A good communication skills is the key to attract and retain talent. Therefore, from the perspective of communication to encourage distributors is an effective way to strengthen the Shell brand development. This report clearly shows how Shell can use communication developing and communication skills to make dealers to seek business opportunities and investment of Shell products marketing. Finally, it is expected that Shell Incorporation’s idea can be identified.
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Table of Contents
The investigation was done because to do research on communications to develop business opportunities. This report was required by Mr KAMARUL lecturer of academic skills for accounting. It was requested on 11th July 2014.
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1.2 Research Question
This report discusses why clear communication is of vital importance in management activities and how to use the communications technology development for the company business.
The report's goal is to explore how to use good communication to complete transfer product information, the correct understanding of the customer feedback on the products, improve the efficiency of the marketing activity and the formation of competitive advantage.
This report examines on how to make use of communication to develop business opportunities. It does not examines on Company is how it works and also not about their marketing activities.
2.1 Review on social responsibility from different scholars
1988 Alpha oil platform explosion and fire in 1989 Exxon "Valdez" oil tanker ran aground Britain's North Sea oil spills and other accidents vicious thrilling, shocked the world, but also caused great concern in the international oil industry and .1990 profound reflection, Lord Cullen is responsible for investigating Alpha oil platform explosion fire safety conditions recommended in the report submitted analytical reports and safety management system, and recommended safety management system should be based on the principles of quality management and this report aroused great attention of the world's major oil companies, and began to actively explore the establishment of effective health, safety and environment (HSE) management system.
HSE management is developed in the late 1980s up about health, safety and environmental management methods, which use systems analysis, production of accidents that may occur in the process of risk assessment and hazard identification, through planning, implemented in four phases, inspection and improvement, etc., using a systematic, structured, procedural, and full management mode, full participation and full monitoring to take preventive measures in a timely manner to eliminate all kinds of accidents. successful foreign multinationals experience of domestic enterprises have great inspiration.
2.2 Shell company history
Royal Dutch / Shell Group of Companies was founded in 1907, it was by the Royal Dutch Petroleum Company and Shell Transport and Trading Co., Ltd. is a coalition of multinational oil group.
Shell Transport and Trading Co., Ltd. (United Kingdom) was formally established in 1897 after the company each sales center in the Far East to establish a storage point, and with the Rothschild Group has signed a long-term oil purchase contracts. Royal Dutch Petroleum (Netherlands), founded in 1890, had opened in a small Dutch East India Company, in order to compete with Shell Transport and Trading Company, the company has also established its own fleet and sales network.
The reason why the Board was established in 1907 when two-merger, rather than merger of Royal Dutch Petroleum and Shell Transport and Trading Company in the form of the then chairman of the Anglo-Dutch oil company Royal De Teding (Derding) based on the following considerations: first, If the full merger, Samuel family do not necessarily agree, there might even sell Shell standard Oil; second, in the 20th century, the name under the banner of the British Empire, or help to make Shell access to resources in the world of Shell will not only be able to get the Dutch government support, but also to get the British government to support, and if the merger becomes a pure Dutch company then will not be supported by the British government, the British people will not be recognized. To get the British people agree that the new company referred to as "Shell", using the Shell Transport and Trading Company as a symbol of the shells, completely removed the Dutch dominated concepts. Then proved, with Shell UK or color it provides little to facilitate the 20th century grasp resources.
2.3 Analysis of SWOT
Among shell’s strength are:
a)Strengthen the Group's management, the establishment of business organizations; ensure coordination between the various services in the same area and play equipment operating company initiative
b)Global development and optimize the allocation of resources and market.
c)To the core business based, diversified management .
d)Investments in technology, continuous development of new technologies.
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Among shell’s weaknesses are:
a)The sustainable use of resources is not enough legal marketing disadvantages.
b)Import and export of oil need to strengthen supervision and regulation .
c)Oil reserves there is a big controversy, quoted uncertainties still exist.
Among the opportunities in shell are;
a)Part of the Group's parent company is not, and does not directly involved in the operation, but each group holding company is entitled to appoint members of the Board and received interest from each holding company of the Group.
b)In more than 100 countries around the world to build a huge sales network: 33 countries in the world has 54 refineries and petrochemical production base and a number of related operating companies, the establishment of large-scale global production and sales market system.
c)Such decentralization and autonomy so that managers can better integrate into society, and to new requirements, the changing needs of users and to react quickly to any crisis.
2.4 MAIN RIVALS
2.4.1 Exxon Mobil Corporation Company Profile
Exxon Mobil Corporation is the world's leading oil and petrochemical company, founded by John D. Rockefeller in 1882, is headquartered in the United States - Texas - Love Man City. Exxon Mobil Corporation is the world's largest non-government oil and gas producers and is the world's largest non-government gas distributor; but also one of the world's largest refiner, distributed in 45 refineries in 25 countries daily refining capacity of 640 million barrels; in the world with more than 37,000 gas stations and one million industrial and wholesale customers; annual sales in more than 150 countries around 28 million tons of petrochemical products.
BP is one of the world's largest private company, is the nation's largest vertically integrated oil companies stone enterprise products. Several cited Exxon can explain the strength of the data and its subsidiaries as follows: exploration and production in 30 countries. Crude oil and natural gas output more than 128 million tons; In 75 countries, annual sales of over 265 million tons of petroleum products;
2.4.3 Chevron Corporation Company
Chevron (CHEVRON) was founded in 1879, in terms of turnover, ranked one of the world's top ten oil companies. Headquartered in San Francisco, California, business scope includes all aspects of the oil and chemical industry, business involves about 90 countries, Chevron employees worldwide exceeds 39,000.In nearly 90 countries, regions, waters operations, scope of business throughout all areas of the oil and chemical industry. Chevron employees approximately 28,000 people worldwide. October 2001, Chevron with $ 39 billion merger of one of its main competitors Texaco, and Chevron - Texaco (ChevronTexaco) as the company's name. May 9, 2005 Chevron Texaco announced renamed "Chevron."
This report is a combination of my scrutiny and my group member’s data collection, experience and scrutiny and discussion by employing the existence series encompassed the assorted periods of scrutiny framework.
3.2 Data Collections
The research is all about the outcome of corporate social responsibility on shell. Data collection is gotten from annual report of shell 2012 and website. In this report, we need to find the last 3 years financial report to realize the revenue and do the analysis of the operating activities from Shell Company. The results will be shown in table form in this report.
3.3 Materials used in research
The material used in the research is obtained from websites of corporate social responsibility of shell, online journal and annual report of shell. Other than that, the data also collected from the survey questionnaires and interviews of shell.
4.0 RESEARCH FINDINGS: Analysis and discussion
Group started by a strong senior management frequently between Shell's operations in the country to connect to the parent company and the operating company bonds. However, this dual board structure, decision-making is inconsistent in both countries still exist. During World War I, the Board of Directors of Shell UK resolutely decided to interrupt the supply of crude oil to Germany, to support the British war, but the board of directors, led by the Netherlands uphold neutrality, in order to ensure that their interests refinery in Germany hesitate to German transportation of crude oil, such practices lead to controversy. This fully reflects the eyes of Shell in Dete Ding is a rational, realistic economy, the company's interests and long-term development is the most valued.
Shell Group immediately into the market in just two years in Spain established a Shell gas station network. Another example for the over-saturation of the European refining industry, the group promptly take appropriate measures, while compressing its refining capacity in the region, on the other hand new and expansion of a number of refinery and petrochemical plant equipment in Africa and Latin America regions. In recent years, the chemical industry for the continued decline in the profitability of the Group gradually sold some fine chemicals sector in recent years.
4.2 Reasons why companies should adopt the practice of corporate social responsibility:
To maintain a high degree of responsiveness to the market, seize the opportunity to maintain stable development
Group relies on the development of new processes, new technologies, new products, and promote the rapid development of supporting petrochemical, chemical industry.
In addition the Group also paid attention to use its strong capital through joint ventures with other companies to share technology and production experience joint each other.
With the development of the oil industry, to meet the needs of people's daily production and life, while also causing a lot of environmental pollution. And as a non-renewable petroleum resources should be reasonable development and utilization.
Shell is also facing the problem of waste management, their main source of oil-water emulsion is spent, sludge and spent catalysts. Shell is a problem with the oil spill damaged the agricultural farm farmers, it will cause damage to the breeding of animals and the environment as well.
Shell in sales is also facing a lot of problems, update the pressure of competition and marketing tools let companies face enormous challenges.
Materials from the boards were reprocessing and categorized for reprocessing as a collective for building. In recent years, more and more of the Group's oil and gas exploration in the deep sea and polar such as water depth, cold conditions, investment and environmental risks significantly upgraded, Shell Group relies on its own to develop new technology to reduce this risk. Meanwhile, the Group relies on the development of new processes, new technologies, new products, and promote the rapid development of supporting petrochemical, chemical industry. In addition the Group also paid attention to use its strong capital through joint ventures with other companies to share technology and production experience each other's joint venture.
4.4.1 Shell Company financial statement
This is shows the 2 years financial statement of Shell Company comprehensive the year from 2012 to 2013.
Table 4.1: Income statement
Profit before taxation
Figure4.1: Sales revenue from income statement
According to the figure 4.1, the sales revenue from the year 2013 is less than the year 2012. It is shows that the more operating cost or cash flow in the business is getting more than the previous years. The sales revenue is decrease from the year 2012 of $467,153 to $451,135.
Figure 4.2: Profit before and after tax
According to the figure 4.2, it is shows that the profit before and after tax of financial statement. It is shows that the profit is decreased from the year 2012 to 2013. From the situation, the operating or investing of energy-efficiency and technologies and processes to avoid the emission of carbon dioxide might cost the high to the cash flows.
Table 4.2: Cash flow statement
Cash flow from investing activities
Profit before taxation
Figure 4.3: Cash flow from investing activities
According to Figure 4.3, the cash flow from investing activities increased from the year 2012 to 2013. It is shows the figures of $40146 from year 2012 to $48153 from the year 2013. The applying of the disposal and dismantling of wastage structures which allowed the full tracking of all waste streams may cause the high cost to the cash flow in 2013 compared to the 2012.
Figure 4.4: Profit before and after tax
According to Figure 4.4, is shows the profit before and after tax in the year from 2012 to 2013. The figures of profit before tax are higher in 2012 which is $60749 and decrease to $60170 in 2013. Other than that, the figure of profit after tax is also decreasing from $40440 in year 2012 to $46140 in year 2013. This shows that from 2012 until 2013 that the profit of Shell Company cannot reach their target.
The whole report contains all the research requirements. The requirements are abstract which includes the purpose of this report. Do a lot of research study this report and whether the purpose of this report is achieved of failed. Then, is about the introduction includes the report’s background, the research questions, objectives and scope of the research. Then, the next part is the literature review that separated into four sections review from different scholar about Shell Inc, history of Shell Inc., SWOT analysis and the number of Shell’s rivals. After that, the methods used to research about Shell Inc. Above and beyond there are findings on Shell Inc., which introduction on Shell , the existing problems, the use of communication in Shell and how the companies use communication to develop business opportunities. In the final, through this research clearly demonstrates the purpose of this report is highly achieved when Shell company to develop business opportunities through communication methods, then implement in Shell business success.
Larse A.S.G. (2010) Corporate Social Responsibility as strategic Public Relations. Marketing and Management Communication, Vol 22, pp. 6-7.
Koekchi, S. and Rombaut, A. (2006) Corporate Social Responsibility - A Case study on Private and Public Corporations in Sweden, South Stockholm University pp.93-94.
Chakra borty S. (2010) Corporate social responsibility and society. India: Sage.
Davidsson, P. (2008) The Entrepreneurship Research Challenge. USA: Edward Elger.
Forbes, C. (2010) Corporate Social Responsibility. Mumbai: Eureka Forbes Ltd.
Tench, R., & Yeomans, L. (2006) Exploring Public Relations. Essex: Financial Times – Prentince Hall, pp. 100-101.
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