Cases for Shell on Environment Protection - Case Study Example

BEHAVIOURS, ACTIONS AND COMMUNICATIONS OF SHELL Name Professor’s Name Course Date Introduction Just like in any other company CSR in Shell and its profitability goes hand in hand. There is no company in the world that is able to prosper without providing their services and products in an environment that supports the existence of the consumers in terms of quality and sustainability (Frynas 2009, 26). In this era where the public is well exposed on what they expect from the companies as they operate amidst them, Shell as accompany is trying its best to balance between survive delivery and its profit making objectives. Shell in this regard has strived to ensure that its continued profitability is applied towards the creation of investments through investments (Our strategy - Shell Global, n.d.). This is also meant to maintain a strong foundation towards future supplies of energy. In addition, shell is diverging towards the production of natural gas to aid it in its efforts to cut carbon emissions a situation, which is well intended to ensure its carbon reduction efforts (Kakabadse & Morsing 2006, 38-42). A. Cases for shell on environment protection Shell in its operations intends to save its image from the wide perception that big companies only have the objectives of making profits. The company management argues that yes they are interested in profits but also recognize the fact that sustainability of both the company and the society depends on sustainable behaviour and how it operates in both its internal and external environment (2010, January 29). Energy Weekly News, pp. 34-39). The protection of the environment is one of the pressing issues by most companies; this aspect also arises in many of the programs of the major groups in the society, which range from the government, interest and lobby groups and the worldwide organizations (Kakabadse & Morsing 2006, 79). In Shell’s efforts to attain profitability and future growth, the organization strives to respect and maintain the environment upon which it operates. Shell is a global organization known for the production of energy and mostly for carbon producing energy although recently they are striving to reduce production of carbon fossil fuels and go the coal way. This is in its efforts to conserve the environment by minimising global warming which is detrimental to the ozone layer. Clean fuel is good for consumption hence shell invests heavily in modern ways of fuel production to generate clean energy. Fuel as a source of energy is also important for production in the industries (Frynas 2009, 44-8). Reduction of CO2 emissions, a greenhouse gas emitted due to air pollution is one of the main objectives of Shell. In order to do this they are forced to put in place a series of mitigating strategies. They have realised that the refining and delivery of fossil fuels are the main cause of carbon emission in the atmospheres and this they have decided to combat by diversifying their operations (Our strategy - Shell Global, n.d.). In their modern production processes, they largely direct their energy provisions towards coal and its products. By employing such new technology, clean energy is produced and the energy used during such production is highly reduced. The reduction of CO2 emissions is largely because Shell is concerned about the environment and its sustainability. The company is trying as much as it can to stay away from being a contributor to climate change, which is a major contributor to global warming (Larsen & Wiggen 2004, 122-8). During the extraction and refining of the fuel as well as its supplies, there are a number of unfriendly occurrences that are likely to happen; and are harsh to the environment. Shell has therefore laid down workable strategies and procedures to combat the happening of hazards such a spillage since this is detrimental to the environment and biodiversity. Allowing such spillage to occur results into enormous damage to the environment hence avoided. For example, the Mocondo tragedy in the Gulf of Mexico leads to a lot of damage to biodiversity (Barth 2009, 123). Among the programs to protect the environment put in place by Shell is the monitoring program; this program helps in controlling emissions into the atmosphere of compound that are harmful to health (Frynas 2009, 68-9). B. Case against shell on environment protection The first case against Shell is the frequency and extent to which they cause pollution to their environment without making a consideration towards the duty of care they owe to both the community and environment (Environment & Society - Shell Global, n.d.). A company lime Shell is causes two major forms of pollution to the atmosphere; water pollution, it results from spillage of Oil in water. A case in point is the occurrence in the Gulf of Mexico; this is not only dangerous to the human but also the plants and animals in and out of the water bodies that depend on such water bodies for their livelihoods. There is also Air pollution, which is because of the greenhouse gases like CO2, this has caused acids rains and global warming which has resulted into overall climate change in the whole universe (Berkas 2000). Change in climate due to the neglect of duty to care by shell oil pollution has caused farmers their livelihoods; the case in point is in Nigeria. Oil spillage has caused land pollution and lead to death of plants, soil microorganisms making such lands unproductive. Frequent environmental contamination through the operations of Shell is common due to the nature of business it is involved in; this is despite the fact that those involved are not always aware. For example, such parties are never aware of the individuals causing such contamination and the extent of the impact; this makes it impossible to find instant solutions to such menace (Products & Services - Shell Global, n.d.). In addition, different stakeholders within the industry hold protagonist views when it comes to the contamination by shell products. For instance, the public are much aware of what such contamination can cause them a view that is denied by Shell due to its neglect of a duty to care (Larsen & Wiggen 2004, 144). Therefore, shell has strict codes of conduct, which governs how they handle such issues given they can cause them their hard earned reputation. Although shell claims of improved environmental performance, there are still a number of chronic malfunctions often reported during its operations. It is in record of the past fatalities among the employees of Shell, rendering the company one of the dangerous corporations to work for worldwide. The main reason for this is that the employee welfare in terms of safety needs is not well articulated (Kakabadse & Morsing 2006, 35-7). Due to exemption of the environmental regulation laws in some countries like the USA, shell has exploited the situation and ignored enacting corrective measures, which would otherwise help in the correction of the reported malfunctions. These inefficiencies results into unhealthy conditions of the residents and the workers due to the ever-escalating pollution levels (Environment & Society - Shell Global, n.d.). In some of the regions where shell operates, reports have been presented of scenarios when Shell deliberately failed to prevent unauthorised emissions; they also failed to operate control equipment responsible for pollution control. In addition, such branches of the company have failed to notify of planned unavoidable emissions and still they did not wrap the events up in a final report (Frynas 2009, 123-129). C. The impact and implications of Shell’s actions on society and stakeholders The impacts and implications of the actions by Shell are quite evident. The struggle by Shell to realize a healthy and profitable business has resulted into a healthy society. They have hence taken care of their shareholders and hence engineered growth of the business (Environment & Society - Shell Global, n.d.). Through strict adherence to rules and procedures, the company has earned the public trust hence busted demand for their goods and services (Frynas 2009, 89). They influence the public by directing part of their profit to handle projects by the company like CSR. The investments by Shell have also proved critical in tackling the green house gas emissions worldwide. The rules established by government allow for the expansion of the natural gas production, which is clean and does not produce gas emissions. These strategies by shell have helped saved much of the public funds, which are then directed, to projects that are valuable to the society (Larsen & Wiggen 2004, 168). Through social investments, Shell is able to achieve economic development in less developed or developing countries. It also extends an olive branch into the fields of education and skills development, local sourcing and the creation of jobs. Transparency held has also ensured that public funds are utilized well enabling the company to grow a situation which makes the shareholders smile a great deal (Larsen & Wiggen 2004, 201). Conclusion The damages caused by the contamination by Shell in its efforts to produce cannot be underestimated and can only be handled well in the event there is a good change strategy. The need to protect the environment and the society is through sustainability. The strategies to be employed include their diversification and strategic decisions to use other sources of fuel like coal for sources of energy. In addition, the company is also looking for ways to repair the damage committed on biodiversity a situation, which normally occurs when oil spillage happens (McIntosh 2003, 23-7). While their efforts are commendable, the environmental funding and programs they have implemented do not outweigh the devastating environmental impacts caused both directly and indirectly by the production and distribution of fuel using fossil fuels. Fuel is on daily demand for any producing and industrializing country (2010, January 29). Energy Weekly News, pp. 34-39). This is because production is one of the determinants of progress and development of any country. Hence, diversification into coal, adherence to law and funding of environmental harm prevention is not enough hence continuous research of better ways and techniques (Frynas 2009, 113). References Barth, R. 2009. Corporate social responsibility in Europe: rhetoric and realities. Cheltenham, UK: Edward Elgar. Berkas, WR, 2000, Occurrence, distribution, and concentration of hydrocarbons in and near the Shell Valley Aquifer, North Dakota, U.S. Dept. of the Interior, U.S. Geological Survey: Bismarck, N.D. Environment & Society - Shell Global, n.d., The Shell global homepage - Shell Global. Retrieved March 30, 2013, from http://www.shell.com/global/environment-society.html Frynas, J. G. 2009. Beyond corporate social responsibility: oil, multinationals and social challenges. Cambridge: Cambridge University Press. Kakabadse, A. & Morsing, M. 2006. Corporate social responsibility: reconciling aspiration with application. New York: Palgrave Macmillan. Larsen, L., & Wiggen, O. 2004, Responsibility in world business managing harmful side effects of corporate activity. Tokyo: United Nations University Press. McIntosh, M. 2003, Raising a ladder to the moon: the complexities of corporate social and environmental responsibility. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Our strategy - Shell Global, n.d., The Shell global homepage - Shell Global. Retrieved March 30, 2013, from http://www.shell.com/global/aboutshell/our-strategy.html Products & Services - Shell Global, n.d., The Shell global homepage - Shell Global. Retrieved March 30, 2013, from http://www.shell.com/global/products-services.html Shell Kicks Off 2010 With New 'Protect Your Engine Against Gunk' Fuels Campaign. (2010, January 29). Energy Weekly News, pp. 34-39. Read More