MM4513-Corporate Social Responsibility of Exxon Mobil Corporation

Critically analysing one firm’s use of Corporate Social Responsibility (CSR) as a strategy in the oil and gas sector in one geographical location. Your report should include the following:

• Analysis of the policies and approach to Corporate Social Responsibility by the firm you have chosen in one geographic location. 

• The advantages and disadvantages of Corporate Social Responsibility for the firm.

• Recommendations as to how the firm could improve its Corporate Social Responsibility in that particular location.

• Your report must include oil and gas examples relating to your chosen firm

 Discussion

Corporate Social Responsibility of Exxon Mobil Corporation

The prime responsibility of Exxon Mobil Corporation is to supply the energy required to maintain and progress the living standard of citizens globally. The responsibility of the company continues as they are a part of local areas where they operate and they try to find ways to improve the living style of people and try to make prospects all through the world (Michael et al. 2015). The three signature initiatives of the company are education related to math and science, malaria along with the promotion of women as mediums for the development of economy. These are some instances of programs that concentrate on standard requirements despite the consistency with the sustainability of the company. The development and progression of the communities in which the company lives and expands its business is done by the contribution programs (Capaldi, Zu and Gupta 2013). The programs also help the company to make relationships and partnerships with their partners, neighbors, staffs and suppliers that effect positively in the business and improve the reputation of the company (Ibe et al. 2015). The local requirements are also tackled through the programs of Exxon Mobil Corporation. In order to make the programs successful the company works with the partners who have proper skills along with resources.

Contribution programs of Exxon Mobil Corporation

 The areas of corporate social responsibility contribution programs of Exxon Mobil Corporation are education, health, environment, government and community services as well as arts and culture.  

Education

The company contributes to educational programs through worldwide with certain focus on subjects like science, technology, and engineering along with mathematics education (Valenti, Carden and Boyd 2014). The programs increases the access to skills and training related to education and leadership and the development of women education also works as medium for the development of economy. In order to support higher education proposals the company contributes directly to colleges along with universities as well as organizations. A certain importance is positioned to support universities and organizations that promotes improvement in science, technology, engineering and mathematics, who have record of supplying Exxon Mobil corporation with staffs and the organizations who support the disadvantaged students and women in developing career opportunities. The company shores up programs which offer training for people who reside in local areas in business. The capacity in the local area should be built by the programs in order to encourage communal progress along with the growth in economy. The company focuses on supporting programs that helps to educate and make women powerful so that they become the medium of economic growth. The company also supports programs that supplies professional training to local people to enter the labor force and increase employment.

Health

The company believes that good health is keystone of improvement in poverty, progress in society and economic development. Therefore the company supports programs that focus on health care improvement, supports research as well as development in the health care and awareness. The company maintains a signature program that focuses on prevention and treatment of malaria (Gaston 2018). The company promotes organizations and programs which balance signature malaria initiative of Exxon Mobil that involves in partnership with local and international organizations to improve strategies in prevention and treatment of malaria. The programs related to the extension of knowledge of health issues related to the operations in business are also promoted by the company. The company also promotes the health programs that planned the improve employee’s health and communities where they functions which includes health centre support, hospitals, education related to health (Hilson 2012).

Environment

A wider range of environmental organization that comprises of research, education as well as maintenance of environment is supported by the Exxon Mobil Corporation. Instead of preserving certain species the company tries to focus on the preserving eco-system. The company gives importance to programs that educate on the issues of local environment and also helps in building relationships between the company and leaders of neighboring environment. The projects that donate an understanding of environmental issues which are vital for the company like energy competence, quality of air, management of oil spill or release of carbon dioxide are supported by the company.

Government and community services

The government and community service organizations that assemble significant social needs and improve the conditions economically and socially specially in the areas where the employees of the company reside and work are supported by Exxon Mobil Corporation.

Art and Culture

Exxon Mobil Corporation promotes art and cultural organizations selectively; not in the base of high priority. It is to be mentioned that the arts and cultural organization comprises of festivals, museums along with performing arts, and historical links which encourages culture of local areas.

Advantages of Corporate Social Responsibility in oil and gas companies

The companies from oil and gas sector stays at the core of the development of corporate social responsibility. To manage the relationship with broader society the oil and gas sector remains under high pressure. The oil companies connect more with local population than multinationals in many sectors and they pay higher edge service to corporate social responsibility. Some major international CSR programs such as United Nations Global Compact and UK Government’s Extractive Industries Transparency Initiative are accepted by several oil companies (Raufflet, Cruz and Bres 2014). As an optional resource of earnings few international oil companies have endowed in renewable energy. Some major community proposals of development have been instigated, financed and applied through oil companies. In developing countries the oil companies have helped to construct schools, colleges and hospitals. They have also launched schemes for local people related to micro-edit and supported programs related to the employment of youth. The oil companies have also made a partnership with some development organizations like U.S Agency for International Development and the United Nations Development Program at the same time they use some non-governmental agencies and consultancies to execute improvement agendas on the field (Kirat 2015). The significance of corporate social responsibility in oil and gas industry is an edifying example to analyze how corporate social responsibility can change performance in industry. It is observed that corporate social responsibility has been accepted in an uneven way in the industry. In corporate nationality Royal Dutch and BP have been identified as leaders internationally. These companies have turn into important companies in renewable energy and have alleged to conflict the release of carbon dioxide to decrease their input in global warming (Muhammad et al. 2015). Exxon has also made some voluntary developments to its societal as well as ecological performance. It has been suggested that the movement of corporate social responsibility is universal and there are better expectations for the responsibilities of the companies. It is to be mentioned that the companies which are more involved in corporate social responsibilities can develop globally and these companies are reliant on worldwide economic markets along with worldwide status.

Corporate social responsibility and environment

The gas and oil companies vividly effect the environment through the gas emissions and oil spills, land clearance and others. Despite of affecting negatively on environment the oil companies have tried to reduce their oil tankers, volume of oil spills and other factors that affect environment (Schneider et al. 2013). They have developed environmental programs which includes issues like climatic change and biodiversity over the years. Some companies have tried to reduce release of gas among which BP has worked evidently. According to the Sustainability Report in 2006, the release of greenhouse gas has declined by 22% between 2002 and 2006 whereas the production of the oil in the company increased in the same time by 30% and the production of natural gas was also doubled (Munoz and Burnha 2016). It is to be mentioned that both the environment as well as the oil and gas companies can be benefitted if the flaming of gas along with the energy emission is reduced. The monetary performance can be increased through the saving of energy and the sale of formerly flamed natural gas. It has been seen that the business care of corporate social responsibility can be the strongest in case of environmental issues through the help of social issues like health and protection, standards of labor and improvement in local areas. The companies have increased the development of environment through the implementation of zero-spill strategy and replacement of steel tubes with chrome tubes. Through the suitable technical along with administrative capabilities of oil companies dealing with issues related to the environment the companies can become successful. The latest oil pipelines, improvised forms of ignition or latest manufacturing processes that need same engineering skills which oil companies need to operate their daily function such as increment in level of production and decrement in the cost of production can help to develop the environmental issues in the company. Moreover, with the help of solving technical problems, latest manufacturing processes and development of copyrights along with the formation of project teams the issues can be resolved.

Corporate social responsibility and development

The investment in the improvement of local areas of the oil companies has been in demand because of the nature of operations that engrosses several communications between the oil companies and neighboring communities. It is to be noted that the government organizations like U.S Agency for International Development as well as inter-government agencies like World Bank has declared about corporate social responsibility that it can play a positive role in the contribution of improvement goals internationally for instances poverty mitigation as well as development in health (Ebiringa et al. 2013). The social investments by the companies can positively impact on the improvement of the work of community. In order to maintain the precedence of public relations and motivating workers to maintain a stable environment of working the oil and gas companies make social investments.  The contribution of the beneficial factors of corporate social responsibilities in executing projects inclined to be restricted and it also might be restricted to presenting contracts to the companies that are placed nearby.

Disadvantages of Corporate Social Responsibility of oil and gas companies

The oil and gas companies indulge in several critical problems such as change in climatic conditions, dearth as well as HIV or AIDS. The limitations of the corporate social responsibility include several factors. The daily operations like oil spills and the protests by common society groups and native people affect negatively (Kolk 2016). The oil and gas companies engrosses in several negative effects of environment mainly during investigation, manufacture and release of natural gas. The risks of operations are increased as the deposits of oil and gas are mostly placed in developing locations of soaring biological range and high environmental exposure like rain forests and mangroves as well as national parks that are protected (Baumgartner 2014). The oil and gas companies also lead to marine pollution which affects the ecological balance. Despite of improving the environmental issues there are still some companies that focus more on the commercial concerns rather than the ecological interests such as they develop oil fields near to national park. Moreover the utilization of the products of oil and gas companies is dangerous to the environment due to the discharge of carbon dioxide.

Recommendations to improve corporate social responsibility 

Some of the recommendations to improve corporate social responsibility of Exxon Mobil Corporation are mentioned here. Although the company promotes a well maintained culture of safety and health, it can be further recommended that if the company tries to improve their work culture and safety issues of the employees it would eventually attract their employers and motivate them to work in a better way which would help the company in development. A number of programs should be initiated in order to find solutions of the climatic change. The company affects the environment vividly in a negative manner because of the emission of harmful gas and other factors. Hence the implications of environmental programs such as biodiversity services, management of fresh water and other programs would lead to the development of the company. The company should also understand the interests of communities where they operate to maintain their business. Some initiatives have been taken by the company such as Malaria initiative and development of education but they should also include more such initiatives like HIV/AIDS campaign, dengue campaign and others. The engagement in community, human rights and strategic investments should be improved to prosper their business. The management of supply chain and the development in local areas should be also looked after so that the company do not have face problem in their production and sell (Yusuf et al. 2013).

Conclusion

It is to be concluded that corporate social responsibility has the highest possibility for dealing with the environmental changes. The oil and gas companies are developing technologies that are environment friendly in order to reduce the negative effect of the companies. Corporate social responsibility is a vibrant area that covers all the factors that are dependent for the business in the realm of society as well as the financial sustainability. Moreover, corporate social responsibility is also associated with the initiatives that are related to the development of the community where it is dependent on the key factors like human rights, management of supply chain along with corporate power. The usage of social proposal to attain corporate intention sets the limitation on which the proposals can reach for the broader society. The development of corporate social responsibility can be fostered with the help of approach to the management of stakeholder, representing the changing anticipations of government (Fernandez-Feijoo,Romero and Ruiz 2014). The disadvantages of corporate social responsibility of oil companies are also high and the companies are trying to overcome their issues by supporting several programs related to the development of environment. They also try to develop their neighboring areas with the help of initiatives to develop education and awareness. The improvement of the relationship between the local community and company through better communication and interaction can also help the company to maintain their business in those areas.

References

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