Sorry, but copying text is forbidden on this website!
1.0 Executive Summary
Many multi-national corporations consider their operations as a benefit for the consumer and general society and hold responsibility to human right and the environment. The corporate social responsibility gives organization an opportunity to continually provide the best, maintaining the best. This is achieved as a result of reduction of the negative publicity risk, stakeholders’ activism, and consumer boycotts, which reduce the organization profit – critics consider Corporate Social Responsibility (CSR) as a voluntary initiative which targets at increase corporate profits and market share through public relation strategy. (Botan & Vincent 2006, pp.249), (Werther & Chandler 2006)
The principles of Corporate Social Responsibility have helped many organizations to improve environmental and social performance, because of its moral obligation to people. Many questions have been raised, with regard to the Corporate Social Responsibility operation. Some people argue that Corporate Social Responsibility principles are likely to be compromised is an organization only considered its financial interest and ignore moral benevolence, and others think that an organizations commitment to Corporate Social Responsibility is likely to be affected negatively by a down fall of the organizations economy, demonstrating the insincerity of the commitment. (CSRwire 2007).
This had raised many ethical issues which can be explored using the Corporate Social Responsibility. This paper has presented the findings of a case study conducted to show the level of Corporate Social Responsibility in Exxon Mobil Company showing the reason of initiating the programme, its impact to the company, and how this Corporate Social Responsibility operates including the capabilities and internal resources. (Business Respect 2003)The report identifies the social responsibility and sustainability management, of the Company in emerging and developing economies, and explains their benefit to the organization itself; and the environment in which the organization bases its operations. This involves extra finances in social, environment and governance issues relating with economic matters.
The research aims at investigating new international management trends of global organization under the corporate sustainability, and social responsibility pressure.
Responsible organizations consider the interest of the society in which it is located, as well as the society in which it is likely to interact with during its operations, and more specifically when dealing with the global practices. (Habisch 2005, pp. 388). These organizations take responsibility for their activities impact on the various stakeholders and the environment. The organization does not only consider this as a mere statutory obligation that requires it to comply to the government law, but also as a voluntary action that is necessary to improve the living standards of its stakeholders, their families as well as other people who depend on the stakeholders, organization or the environment to live. (Elsevier1 1991, pp. 39-48). A global business need to take this responsibility at the organization level, local level and at international level.
Pressure of social responsibility and sustainability has created the need for management trends. Many global organizations have taken initiatives to enhance their responsibility, and it has shown positive impact. (Springer Netherlands 2004, pp.65-68). The better the social living they create to the people in the society, the more the economical grow of such organizations. This means that with implementation of effective management trends, the living standards of the people involved with the organization practices and activities, and those living in the environment in which an organization operates are improved, and this has subsequent impact to the organization development.
4.0 Main body
· Corporate Social Responsibility initiatives
· Internal resource and capabilities.
· Operation of Corporate Social Responsibility
· Reason for development of Corporate Social Responsibility in Exxon Mobil
· Impact of Corporate Social Responsibility
4.01 Corporate Social Responsibility initiatives
The Exxon Mobil Company has come up with Corporate Social Responsibility initiatives which aim at producing the best globally and prioritizing Corporate Social Responsibility. (Exxon Mobil Corporation 2008). The company considers this issue to be of most material and does not base its operation on just financial profit. The initiatives considers all the company’s operating aspects, stating with the people housed in the company, the neighbors and other societies where the company operates including the consumer of its products. This has been achieved by creation of a corporate – wide management system that has enhanced equal integration of citizenship with company’s processed and subsequent Corporate Social Responsibility performance improvement. The company has a culture that enhances ethical and responsible operation by monitoring enforcing and improving them in accordance to global need.
The company has integrity management system which enhances security, health, safety and environmental risk management in the company and the surrounding environment. (Exxon Mobil Corporation 2008) The company’s standards of business conduct ensure that the company operates within a framework and that all employees have guidelines on how to manage and comply to the corporations standards.
4.02 Internal resources and capabilities
The Exxon Mobil has created a constant. The workforce of the company is highly valued, and the company workers are the major asset. This is why their safety and working environment is a great concern to the company. (Hawkins 2006).
The company has a leading work force safety record, and a record of low oil spills number, which has ranked the company on top in Corporate Social Responsibility.
The company has continuous investments in energy-efficient cogeneration capacity. This is both an internal resource of the company and has helped in increasing capability. It has limited global carbon dioxide emissions, and up to 10.5 million metric tons have been avoided annually. (Zerk 2006).
This has helped the company in minimizing environmental risks and made the working conditions for the workers conducive, promoting their working capabilities.
The company’s carbon dioxide emissions have been reduced to about 8 million metric tons after the implementation of energy efficient strategies and improvements. The human rights and security of the Exxon Mobil’s workers and other stakeholders has affiliated over time. (Vian et al.2007) .The Company has been increasing the internal resources and capabilities by engaging in wide variety groups, recruiting and training a more diverse workforce, the company targets at increasing and strengthening capacities in the global regions where they operate. This has improved the production of the company. And subsequent economic development. (Ethics world 2008)
4.03 Reason for development of Corporate Social Responsibility in Exxon Mobil
Exxon Mobil Company is serious with its responsibilities, and it considers its stakeholders, environment, community and environment safety as its responsibility. The company has equal consideration of the financial profits and the risks related to its activities the people involved with the company’s activities and practices, believe that the method used to achieve the results is equally important to the results achieved. (Kheshgi & White 1993, pp. 479). The company targets at meeting Europe’s energy demand while socially, environmentally and economically responsible.
4.04 How the company operates in Corporate Social Responsibility
The company has integrated practices and policies which enhances Corporate Social Responsibility. These policies ensures the company meets health standards, safety standards and integrity standards to their stakeholders, while ensuring social and environmental responsibility in the company’s practices in the global level (EMC 2008).
4.05 Impact of Corporate Social Responsibility in Exxon Mobil Company.
The company has gained a lot as a result of Corporate Social Responsibility enhancement. The environment in which the society is based is safe, and this has helped the company in marketing its products as well as producing large numbers of the product. The company has developed economically, because of the increased output. (Civil society Observer 2005).The workers can work effectively. As a result of company engagement in Corporate Social Responsibility, many of the company’s stakeholders have benefited. (Kheshgi & White 1993, pp.134).The loyalty to its customers increased, workers got motivated, and the quality of work force has improved. This all contributes to enhanced reputation with high profits to the company.
To protect the environment, the company supported the research which was carried out to reduce green house gas emission and to lower the impact of these emissions. (Springer Netherlands 2005, pp. 33-40).The company has also partnered with many automobile companies with the aim of coming up with transportation options which effectively use conventional fuels, and also research on development of cars likely to utilize hydrogen fuels.
Responsible organizations should be ethically responsible whereby the interest of the organization should be handled hand in hand with the societal interest, and the interest of the people involved in the organizations activities. The Exxon Mobil Company has engaged in corporate social responsibility that has improved and maintained the living standards of the company’s stakeholders and their families, limiting the environmental risks. The use of pipelines and the controlling of gas emissions have shown how the case study company has protected the environment, while the health insurance policies and provision of conducive working conditions for the company workers proves its responsibility to the society and environment.