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Summary of Presentation
1. History of Corporate Social Responsibility (CSR)
2. Current Status- Oil and Gas Companies
3. Praise and Criticism
4. Pros/Cons-the Debate
5. Conclusion and Recommendations
1. History of CSR
A. Concept
a. “corporate social responsibility”- 1970s
b. The inclusion of public interest into corporate
decision-making
B. The Triple Bottom Line
a. People, planet, profit OR
b. Economic progress, environmental progress,
social progress
History Cont.
C. Shareholders vs. Stakeholders
a. Shareholders: own shares in an organization
b. Stakeholders: on whom an organization’s activities
have an impact
D. Three Categories by the Economist
a. Corporate philanthropy
b. Risk management
c. Win-Win
History Cont.
E. Other Approaches
a. Philanthropy as a means of CSR
b. The Community-based development approach
c. Incorporate the Shared Value Model
2. Current Status- Oil and
Gas Companies
A. Shell
B. Chevron
C. BP
D. ExxonMobil
A. Shell
a. Background
i. Created in 1907
ii. Largest energy company and second largest
company
iii. 102,000 employees in more than 100 countries
A. Shell
b. Camisea-Peru
i. First major foray into international CSR activities
ii. Embracing the concept of sustainable
development
• Tripod: economic progress, environmental
progress, and social progress
iii. Rights to Explore
• Fields of natural gas in the Camisea
A. Shell
iv. Pledge standard of sustainable development
“Improving the quality of life…and
nonrenewable resources are used wisely… future
generations in mind.”
v. Contract and Smithsonian Survey
• A two-year contract in 1996: explore with minimal
disturbance
• The Survey: Emphasis on biodiversity & sensitivity of
the native people
vi. Promise and Withdrawal
vii. Disappointment
•
•
A. Shell
c. Nigeria
i. Negative reception in Nigeria
ii. Military government protection from Nigeria
iii. Environmental issues
iv. Amnesty International’s criticism
A. Shell
d. Other
Concerns
i. Largest freshwater oil spill in 1999
ii. Environmental record
• Disposal of the Brent Spar platform
• Reserved due to public pressure and commitment
to sustainable development
A. Shell
e.
Current
i. Desire to be viewed as socially responsible
ii. TV advertisements
iii. Website initiatives
• Energy efficiency, fuel economy, technology,
energy security, working with others, tackling
• “putting its money where its mouth is”
A. Shell
f. Searching
for a Consensus
i. Bittersweet history in Peru and Nigeria
ii. Window dressing vs. evidence of improvement
iii. Work in progress
B. Chevron
a. Background
i. 1879 in California
ii. American multinational
iii. Approximately 67,000 employees worldwide
B. Chevron
b. Corporate
Responsibility Management
i. Public policy committee of the Board of Directors
ii. Global Issues Committee
iii. Vice President- policy, government and public
affairs
iv. Vice President- health, environment and safety
v. Other managerial positions for specific areas
B. Chevron
c. What
they do
i. Reaching out to save lives
ii. Learning about future energy
iii. Introducing youth to science
iv. Using energy efficiency
v. Backs up “feel good” statements
C. BP
a. Background
i. England
ii. Third largest energy company worldwide
iii. Fourth largest company
C. BP
b. Re-branding (“beyond petroleum”)
i. Energy Challenge
•
•
•
Deepwater exploration
New technologies
More from mature fields
C. BP
ii. Climate change and environment challenges
•
•
•
•
Performance monitoring and developing
efficient fuels and lubricants
Promote natural gas
Focus on remediation
• Tree planting in IL
Advanced Seismic Imagery Technology
C. BP
•
Extended Horizontal Drilling
•
New cleaning procedure for crude oil tank
•
Water recycling plant
•
New ways of making PTA
•
Inclusion of cost of carbon in investment
appraisals
C. BP
iii. Alternative energy
•
•
Invest in low-carbon businesses
Invest in renewables and carbon capture and
storages
iv. Safety issues
•
Operating Management System (OMS)
D. ExxonMobil
a. Background
i.
ii.
American multinational
One of the largest publicly traded companies in the
world
iii. World’s largest global refiner
D. ExxonMobil
b. Current-
“Taking on the world’s toughest
energy challenges”
i. Environmental performance
• 2008 goals
• 2009 achievements
D. ExxonMobil
ii. Climate change
•
•
•
2008 goals
2009 achievements
2009 goals
D. ExxonMobil
iii. Human rights and security
•
•
2008 goals
2009 achievements
D. ExxonMobil
c. Searching
for a Consensus
i. Young company
ii. Performance overview
3. Praise and Criticism
A. Companies
a. Mixed reviews
b. Difficulty in distinguish true motives
c. Starting point
3. Praise and Criticism
B. The
2010 CSRI Index
i. Boston College’s Carroll School of Management
and the Reputation Institute
ii. Corporation’s strong interest in stakeholder
opinion
iii. Combined average
1. citizenship, governance and workplace
3. Praise and Criticism
C. Top
50 most socially responsible companies
i. No oil and gas companies
ii. The energy industry ranked the last in the
perception of U.S. industries
4. Pros/Cons-The Debate
Q: Is it in the nature of business to engage in CSR?
C: No. CSRs increase costs-> less efficient
P: Yes. Social aspects of corporations
C: Posner-> goal towards profits
P: Power of corporations
4. The Debate
Q: Whose job is it to address environmental issues?
P: corporations are in a unique position to impact
our environment
C: The government can enact changes to remedy
environmental issues
P: inefficient and ineffective governments
C: spread the financial burden
4. The Debate
Q: Are CSR initiatives necessarily costly?
C: Yes. New expenditure. Corporations should only
look to stakeholder interest.
P: No. Customer loyalty, human resources
objectives, risk management, brand differentiation,
and the ability to attract investors
4. The Debate
Q: Closing words
C: Give money back to shareholders. They can
decide how to invest
P: “Win-Win” projects
5. Conclusion and
Recommendations
A. Conclusion
a. Companies are trying
b. Hard to measure
c. Need of improvement
B. Recommendation
a. Keep it up!
The End
Thank you!