Abu Dhabi National Oil Companys Economic, Social Change, Time, Environment, and Safety Needs - Case Study Example

Abu Dhabi National Oil Company Name Institution Abu Dhabi National Oil Company Introduction Abu Dhabi National Oil Company is the largest company in UAE that engages in energy and oil related operations. It was founded in 1973 and its responsibility includes the supply of oil at the local and international level (ADNOC, 2009). Just like any other company, Abu Dhabi National Oil Company has responsibilities over its stakeholders. The major role and responsibility of ADNOC is to develop a long term relationship with the stakeholders. Stakeholder can be defined as anyone who is affected negatively or positively by an institution or organisation (Sharma, 2008). Each stakeholder has set of needs and expectations that an organisation is expected to satisfy. This report will identify the stakeholders of ADNOC, it will analyse their needs and will analyse ADNOC’s ability to meet their stakeholders’ needs. Shareholders of ADNOC Stakeholder theory argue that the stakeholders of any given organisation are not just the owners but are people, entity or party that a company has benefited or burdened by its operations and those who benefit the company with their actions (Sharma, 2008). The stakeholders involved in Abu Dhabi National Oil encompass those from the local, regional and international level. They include the government, local community, employees, the environment, suppliers, partners and shareholders and customers. The interactions between stakeholders highly determine the ultimate performance of any organisation (Sharma, 2008). Concerning Abu Dhabi National Oil, the company has local as well as international customers who expect their needs to be satisfied. The company is expected to satisfy local, regional and international stakeholders equally. One of the primary stakeholders of ADNOC is the employees. They work internally to the company and have needs and interests that are required to be satisfied (ADNOC, 2009). For instance, employees and workers are expected to work in a conducive working environment (Sharma, 2008). On the other hand, as a multinational company, ADNOC has a number of partners and shareholders all over the world who have invested finances and time in its operation (ADNOC, 2009). Due to this, the company has some responsibilities towards them. The local government also understands the significance of oil and has invested in the company for constant improvement. The state depends on the company in properly utilising the resources of the country and reducing environmental impacts. The company play the role of exploration, extraction and supply of oil, thus it has responsibility towards the environment and the local community. Analysis of Stakeholders’ Needs Stakeholders in Abu Dhabi National Oil Company have various needs which are inclusive of the following. These stakeholders have interests such as economic, social change, time, the environment, physical health, safety and security to mention a few. Stakeholders in a company need economic gains which involves employment training programs which ought to enhance the economic outlook of low income earners (Baker, 2013). Also, stakeholders’ needs such as social change mainly focuses on enhancing racial harmony which when not attended to appropriately may lead to alteration to the social climate existing between members belonging to minority and majority ethnicity. Environment is also a major stakeholder’s needs for it create a sense of protection of open space as well as conservation of resources. This acts as a key role in ensuring that both business and private ownership in everyday life are well addressed (Baker, 2013). In addition, safety and security is another form of stakeholder’s needs. Patrol programs, improved policing in high-crime environments as well as initiatives that encourage work safety brings about a sense of protection to stakeholders and hence encourages security improvement to the community as a whole (Cleveland, 2010). Additionally, stakeholder’s needs such as physical health is very important. Free and affordable healthcare and facilities together with similar programs offers a significant benefit to the stakeholders and improves their state of health encouraging good health practices (Baker, 2013). Finally, time is also an important stakeholder’s needs. Benefits such as flexible work time and parental leave to mention a few offers stakeholders with enough time to relieve their stress as well as increase their productivity in their work places. Analysis of Stakeholder’s Satisfaction Abu Dhabi National Oil Company is considered one of the companies in UAE that offer conducive environment to the employees (ADNOC, 2009). The company has invested a lot of money in manpower cost. ADNOC employee compensation level is considered very competitive. The company offer benefits to employees such as life insurance, maternity level, health care etc. In addition, the company offer housing facilities for most employees. One of the most important interests of the company is the health and safety of employees and customers. It has endeavoured to implement safe working practices and training. One of the major concerns for most stakeholders such as the government and the local community is the prevention of environmental pollution, proper use of natural resources and proper use of water. ADNOC spend a lot of money in supporting industry and community events that support environmental conservation and social sustainability (ADNOC, 2009). Concerning the environment, ADNOC has also established objectives for eradicating air emission by eliminating hydrocarbon flaring and improving energy efficiency. In addition, ADNOC distribution channel is responsible for delivering quality products to the customers (ADNOC, 2009). The company is in the process of producing products with few impacts to the environment and the customers. Their new products are associated with reduction in emissions. Nevertheless, ADNOC was reported to producing products that did not comply with health and safety requirement (ADNOC 2009). It was given a warning which resulted to a fine. Today, the company strive to comply with health and safety requirement throughout their product development. Generally, the company has strengthened its communication with the stakeholders. For instance, ADNOC often hold both internal and external stakeholder workshops where they take into consideration the perspectives of all them (ADNOC 2009). Strategies that Fulfils Stakeholder’s Needs Abu Dhabi National Oils Company employs a number of strategies which pays keen attention in fulfilling their stakeholders’ personal needs. These strategies include; identifying their stakeholder’s needs and engaging them in every process that is involved in the company (Cleveland, 2010). Identifying Stakeholders’ Needs Abu Dhabi National Oil Company attempts to come up with a comprehensive understanding of their stakeholders. The company puts the thoughts of the stakeholders first since they care about their stakeholders and they constantly relate their initiatives to them. This idea seems simple and most organizations tend to neglect this process of giving first priority to their stakeholders. Therefore, Abu Dhabi National Oil Company performs a comprehensive scan of their stakeholders in order to identify the number of disparate stakeholders who are involved in the company’s operations. This helps the company better understand the specific needs and interests of each and every stakeholders (Cleveland, 2010). Engage as Early as Possible The company also utilizes this strategy to take care of their stakeholders’ specific needs. In nature, no one prefers to be surprised by any change therefore; the company always attempts to involve their stakeholders in any process undertaken in the company (Cleveland, 2010). The company reaches out to its stakeholders and invites them in any inception of ideas and encourages active participation of the stakeholders throughout the progress of the company (Cleveland, 2010). In addition, the company gives the stakeholders a sense of involvement and also educates them on the possible benefits of strategic sourcing and reasons why their products are being considered. Conclusion Stakeholders of ADNOC have various needs that include economic, social change, time, environment, safety and security. For instance, environment creates a sense of protection of open space to some stakeholders and safety improves policing in high crime environments and encourages security to the stakeholders. ADNOC has responsibilities towards its stakeholders including the local community, the government, customers, employees, shareholders and partners to name a few. The company offer conducive working environment to the employees, offer quality and safe products to the customers, endeavour to reduce environmental pollution and participate in social sustainability. References ADNOC. (2009). About ADNOC & its Group Companies; environmental, Social and Economic Performance. Sustainability Report. Cleveland, C. J. (2010). Corporate Responsibility. Retrieved from Chevron: http://www.chevron.com/corporateresponsibility/ Michael Baker. (2013). Corporate Social Responsibility . Retrieved from Indian Oil: http://www.iocl.com/Aboutus/corporatesocialresponsibility.aspx\ Sharma R. (2008). The 6 Principles of Stakeholder Engagement. Supply Chain Management Review. Read More

 

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