Social Performance By Royal Dutch Shell Commerce Essay

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This report is arguing about the fact of the social performance by Royal Dutch Shell. Not only to the good shell does but also with the insufficient social performance comment by the people. Also the report telling the facts that about Shell do provide benefit for their worker that third party will never know.

The aim of this particular report is to review the social performance of Shell Company. Past and current performances are included in the topic for discussion. This report will also cover analyse of the performance of the shell company.


In this report we would like to discuss about the biggest company - Shell Group. Royal Dutch Shell Group is the actual name of the company. The origin of the company is Netherlands and England. The key business operation of the company is to searches and recovers crude oil and natural gas from underground gas field and oil well and after refine the gas and oil, they supplies and trades to more than 145 country in the world. (Douglas 2010) Royal Dutch Shell Group was listed the world largest company by fortune during 2009.


The basic understanding of social performance is about the relation of an organisation and its customer or other stakeholders. How can an organisation build up and maintain this relation as long as possible? Social performance is not only to impact own customer and stakeholders, but also providing welfare to public including non customer. (Zeller, Lapenu, Greeley 2003) According to the review of general business principle, Royal Dutch Shell focuses on 5 areas of responsibility which include customers, employees, shareholders, society and also to their suppliers.


Royal Dutch shell is a biggest oil industry company. Exxon Mobil is one of the competitors to shell. Oil industry is a very dangerous industry to public. Social performance to the country and people are very important and people are paying attention to this focus point. For example Exxon Valdez oil spill occurred on the date of 24 March 1989. (Wells 1996)It is a most devastating human caused environmental disaster ever to occur in the history. More than 240,000 barrels of oil spill out and seriously damage the environment of California(Baker, M n. d) In the end of the case, the mistake of Exxon had done bring about the company to pay for the punitive damage cost the company 5 million and this amount is equal to a single year profit. (Vicini. 2008) after the case, federal judge try to reduce the damages charge to 4.5 billion and appeals court cut it to around 2.5 billion of charge. (Vicini. 2008) From this case we understand that the responsibility to the public is not just say it but really have to undertake the price of mistake. According to the review of general business principle, Royal Dutch Shell focuses on 5 areas of responsibility which include customers, employees, shareholders, society and also to other related person to shell. (Shell, 2005)


To build up the customer base, Royal Dutch Shell produces environmental impact, quality, safety product and sell it as a fair price to the customer. (Shell, 2005)


To become a successful company, company provide good and safe working conditions to the worker, promote and "use well" of the talents employees in a correct way to increase the quality of their work. Besides that, the workers have the right to report their concern and feeling to the company. The company treat this as an improvement target of the human resource management. (Shell, 2005)


A simple promise to the shareholders of the company to protect their investment and providing a long term benefit compare with other competitor companies in the industry. (Shell, 2005)


As a social responsibility company, obey to the applicable law and regulation, support fundamental human right and give proper regard to environment, safety, health and security to the public. (Shell, 2005)

Other related person to shell

To people who seeking mutually beneficial relationship with Royal Dutch Shell, shell promote these general business principles or equivalent principles to provide important factor in the decision to enter into or remain in such relationship. (Shell, 2005)


According to the commitment of Royal Dutch Shell, they aiming to performance the best to win the confident of customer, shareholder and society, to be the good neighbour and contribute to sustainable improvement. There are always difference opinion and view from people or other parties. It is not easy to satisfy all points of view from different people. Shell did the way to provide advantage to the country. They would like to listen opinion from people can be the way to change the company strategy become more efficiency and concern the public or social. "One of the principles underlying all of our work on the Web has been that we should be true to the spirit of New Shell." (Donovan 1999) This means they need to be open, listening, interested in the views of others, and provide information which helps people to make their own opinions up, not just force shell opinions at them. (Brandjes 2010) Although shell always associated with a high quality workforce regarded what their worker did, but accident always happen. According to the case, shell faced on serious ecological challenges due to gasoline released in the air without the compulsory vapour recovery equipment. (Brandjes 2010)This is totally against the company commitment.


In the case of Nigeria, ogoni people were so angry with Royal Dutch Shell wreck the environment because of searches and recovers crude oil and natural gas in their country and asking settlement cost $15.5m from Royal Dutch Shell. (Nnadozie 1995)They alleged that Shell was complicit in murder although shell paying so much tax every year and provide many working opportunity to the social of Nigeria. (Donovan 2009) "Where oil reigns, life is hell" this is the only idea or sentences Nigerian people can said. (Douglas 2010) The case is arguing about the human right of Nigeria people. A company sponsored clinic in Nigeria is also a point of social responsibility, but what the people said this is just a trumpet of Royal Dutch shell. (Shell settles Nigeria deaths case 2009)The drug supplies by shell cost more than they would on the open market and not been paid for many years. In other way we see, shell has actually spent $25m to rebuilding and equipping in the past year. The main point of setting this clinic is to concern about the health of people who working in shell company in Nigeria. Shell has budgeted nearly $500 000 just for the drugs to the patient. Beside that, Shell also provides free treatment and care to their employee who infected HIV/AIDS. (GBC Member Profiles: shell 2002)They play a role to reduce the spread and impact of HIV/AIDS by seeking prevents of new infection. (GBC Member Profiles: shell 2002)They provide safe sex knowledge and HIV test to their employee. This is all social responsibility that not seen by ogoni people. (Case Study: Royal Dutch Shell in Nigeria 2001)


During the corporate meeting of Royal Dutch Shell, Mr peter voser, the chief executive officer of Royal Dutch Shell accept people leave comment and give opinion to the company so that they can improve their way to develop a "good neighbour" company. (Royal Dutch shell plc 2009) A profitable company always win the confident of investor to do investment on the company. To become a successful company, social responsibility is an important way to do so. The strategy of the Royal Dutch Shell persuaded contributing to sustainable development helps create business value and reduce operational and financial risk, making us a more competitive and profitable company. (Royal Dutch Shell plc updates on strategy to improve performance and grow 2010)


As we see the social responsibility is a benefit to public and no one will saying that is enough. No matter how much the company did to the public but still not satisfy their need. People are just arguing but they never know and understand the strategy of the company plan to do. Shell need to send some senior employee to actually communicate with the people and solve and explain the question they don't even know.


This report has discussed about the social performance of Royal Dutch Shell company. At meddle of the body, the strategy of the company has been discussed. Besides that, this report also discussed about anger of the people and the fact of the company did to people at the end of the body. According to this report, the both side no matter the company or the people have to know each other opinion to create a peaceful environment.


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