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Summary of Summary of PresentationPresentation

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 CSR1. History of CSR

A. Concept a. “corporate social responsibility”- 1970sb. The inclusion of public interest into

corporate decision-making

B. The Triple Bottom Linea. People, planet, profit OR b. Economic progress, environmental

progress, social progress

History Cont.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.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. 2. Current Status- Oil Current Status- Oil and Gas Companiesand Gas Companies

A. Shell

B. Chevron

C. BP

D.ExxonMobil

A. Shell 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 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 progressiii. Rights to Explore • Fields of natural gas in the Camisea

A. ShellA. 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. ShellA. Shell

c. Nigeria

i. Negative reception in Nigeria

ii. Military government protection from Nigeria

iii. Environmental issues

iv. Amnesty International’s criticism

A. ShellA. 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. ShellA. 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. ShellA. 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. ChevronB. Chevron

a. Background i. 1879 in California ii. American multinationaliii. Approximately 67,000 employees

worldwide

B. ChevronB. 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. ChevronB. 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 C. BP

a. Background i. Englandii. Third largest energy company worldwideiii. Fourth largest company

C. BP C. BP

b. Re-branding (“beyond petroleum”)

i. Energy Challenge • Deepwater exploration • New technologies • More from mature fields

C. BP 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. BPC. 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 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. ExxonMobilD. ExxonMobil

a. Background i. American multinational

ii. One of the largest publicly traded companies in the world

iii. World’s largest global refiner

D. ExxonMobilD. ExxonMobil

b. Current- “Taking on the world’s toughest energy challenges”

i. Environmental performance• 2008 goals• 2009 achievements

D. ExxonMobilD. ExxonMobil

ii. Climate change • 2008 goals• 2009 achievements • 2009 goals

D. ExxonMobilD. ExxonMobil

iii. Human rights and security • 2008 goals • 2009 achievements

D. ExxonMobilD. ExxonMobil

c. Searching for a Consensus

i. Young company

ii. Performance overview

3. Praise and Criticism3. Praise and Criticism

A. Companies a. Mixed reviews b. Difficulty in distinguish true motives c. Starting point

3. Praise and Criticism3. 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 Criticism3. 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 4. Pros/Cons-The DebateDebate

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 Debate4. 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 Debate4. 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 Debate4. The Debate

Q: Closing words

C: Give money back to shareholders. They can decide how to invest

P: “Win-Win” projects

5. Conclusion and 5. Conclusion and RecommendationsRecommendations

A. Conclusiona. Companies are trying b. Hard to measurec. Need of improvement

B. Recommendation

a. Keep it up!

The EndThe End

Thank you!