Chevron Corporation Company Factors - Coursework Example

? Company Analysis- Review of Social Performance Introduction The paper is a review of social performanceof Chevron Corporation Company. It examines the company’s performance in terms of fulfilling social needs within society. An aspect of social performance is also analyzed. This review gives light on company’s achievements since beginning of its operation, areas that require improvement currently and what it hopes to achieve in the long run as it operates within the global society. Consideration will also be based on Impact of Chevron Company and various implications of its actions on society. The paper will also discuss primary needs and various concerns of the company’s stakeholders and society. Finally a conclusion is provided from a personal balance discussing the company’s performance in the society. Chevron Corporation It is a multinational energy corporation with branches in more than one hundred and eighty countries. It is based in America with its headquarters in San Ramon, California. It is currently the second largest energy company in United States after Exxon Mobil and it is rated among the six super major oil companies.1 Chevron production is highly integrated in that it deals with production and supply of oil, geothermal energy industries and gas. It is involved in all production processes ranging from exploration production refining and in marketing of various products that it deals with2. The company has employees all over the world and its worldwide marketing network allows it to market and sell its products with ease. It is the current owner of Standard Oil trademark both in western and southeastern parts of United States. The company is involved and leads in deep-water Gulf of Mexico producing several barrels of oil and gas on a daily basis.3 Social Performance Social performance is a measure of how a company or any operating institution has ensured that its goals and objectives work well to generate positive outcomes to communities they operate in. social performance is a wide section in organization responsibilities. It is measured through observation of principles, actions and corrective measures implemented to ensure that they impact well to society. An evaluation of intention design principles is done so as get into certain actions that provides intended positive outcomes to society. It accords that companies have a fundamental responsibility in contributing to growth of the economy and social wellbeing of their stakeholders. Therefore every company strives to invest in taking care of the community both supporting it financially and conducting safe environmental activities. Companies hence make a detail analysis of its development objectives, system and various procedures they have in place.4 They are monitored effectively to ensure that thy progress towards the company’s social performance objectives and goals. Fulfilling Social Needs within Society Chevron Corporation has greatly been involved in meeting social needs within society since it understands that it derives benefits from society. The company has ensured that in its operation to consider and undertake safe and reliable operations. Safety standards have been advocated everywhere in the regions it operates in so that the society is not affected from its operation. It has maintained and reinforced long-standing commitments in ensuring that society is constantly protected. They have also participated and greatly contributed to economic development. That is they invest in micro enterprises and projects that ensure and create sustainable employment opportunities in the society. They have addressed the issue of health in developing countries where they have helped in improving preventive care and treatment. Since healthy people create healthy society Chevron Company is dedicated to strengthening healthcare systems and services. It has supported education especially in the science and research sections. It has ensured continual protection of the environment so that it uses well the resources it exploits. Through focusing on these areas it ensures that it meets the needs of the community since it constitutes building blocks of strong communities5. Areas of Achievement Chevron Corporation is proud of its diversity in terms of service delivery across the globe. It values richness in diversity of ideas experience and skills employees and the public contribute to the company. Because of great performance in operation it has achieved so much. It has been the first in offering domestic partner benefits to its employees and rewarded for corporate equality they provide to their employees. In 2010 it was honored for providing opportunities for women entrepreneurs and recognized as top organization for multicultural business opportunities.6 It has been able to diversify its operation in terms of delivery and creating beneficial relationships with its stakeholders through various social programs and maintained the codes of corporate social responsibility. Chevron Company has managed to deliver its goods and services across the whole world. It has managed to employ over 60000 employees from every section of the world. Its involvement in quality and effective operations has ensured a constant return of profits to its stockholders and maintained its place in the stock exchange market7. Requiring Improvement Chevron company line of operation regarding in the types of products they deal with has led to several conflicts with its environment. Even though it has strict policies regarding safe keep of environment still it has not fully achieved them. It has faced costly litigation for contaminating environment. A great damage has been caused to the Ecuadorian Amazon rainforest and the recent oil spill in Gulf of Mexico. All this areas need a thorough examination and revision of strategies of operation. Improving in this section will avoid conflicts and create undisturbed growth in return and reduction of expenses. Also since most countries are advocating for renewable sources of energy, Chevron Company should therefore put more efforts in research and production of renewable energy.8 Company Hoping To Achieve The continual threat of rise in renewable energy that is being advocated by several countries has made Chevron Company to embrace possibility of renewable future. It hopes that within a short time it should be in a position to supply alternative energy solutions to the current supply in the market. It also hopes that it will be able to greatly reduce the rate of competition it is experiencing and become the best oil producer in the market. The company hopes to increase its level of investment and participation in society issues. Supporting and uplifting living standards of the community it works in will enable it to operate smoothly without problems from society. Therefore it has placed several corporate social responsibility strategies in place and it highly monitors them to ensure achievement9. Every company has a role it plays in society. This ranges from provision of standardized products to general demands of society. Understanding responsibilities that a company has enables it work well with the environment. Support and improvement of social amenities including infrastructure development is essential activities the company undertakes. Stakeholders and Their Primary Needs and Concerns Every company has stakeholders who help and get involved in activities and operations of the business. Some are affected directly with business activities. Chevron corporation stakeholders include stockholders, government, community, external experts, nongovernmental organizations and employees. Stockholders of Chevron Company expect some reward from finance and resources they have provided for company. These returns are in form of profits from business operation. Chevron ensures that it puts in place best strategies that will ensure continued return in profits for resources provided buy stockholders. The governments on the other hand in every country the company operates have their expectations. This range from consumer protection through standardized products and ensuring that chevron keeps its corporate social responsibility. The community contains users and employees of the company. Therefore it is important that chevron creates and maintains beneficial relationships with them. Its involvement in supportive projects beneficial to society indicates that it is concerned with social welfare of the community. This makes it sell a good image hence receiving support from society10. Consumers of chevron products around the world demand goods of high quality. Therefore it is vital that during its business operation consideration be placed on what consumers demand. Consumer demand should be the one to drive chevrons sale and hence focus should be given to analyzing various needs of society. Non-governmental organizations need support from the company for example in ensuring that environment is protected from pollution and activities of the company. External experts from the other side need information about operations of the company, its effects on economy, rating on stock exchange rise and fall in demand to enable them make useful decisions11. Impacts and Implications of Actions upon Its Society and Stake Holders Chevron Company has been on the forefront of supporting the global community in every way it can. Support given to women and entrepreneurs in the society has enabled them to be self-supportive and contribute to economy. Diversification of its products and market share has enabled a constant return in investment hence being beneficial to its stockholders. Involvement of the company in various productive activities enables generation of revenues for the governments from the tax collected during its operation. They have also contributed to appropriate use of natural resources in developing of countries and improving living standards in society. Chevron Company prides in its ability to have employed a great number of workers. It has also increased income of workers hence enabling them to participate in various activities. Educational programs it has supported has enabled in creating an educated society and improving in innovations. Improving healthcare and financing it has enable the company to improve health conditions in several countries. This has created healthy societies who in turn have provided labor to the company.12 Conclusion Every company has duties and responsibilities it is entitled to conduct in the society. Chevron Corporation is involved in several social performance activities so as to provide a suitable working environment for itself. It has improved the living standards of the societies through supporting various projects and programs. All consumers of chevron products across the globe do demand goods of high quality. For this reason it is vital that during its business operation consideration be placed on what consumers demand. Financing of entrepreneurs and women in society and improving health conditions has been one of their great aims and achievements. The company has also remained in a good position through protection of environment through following its environmental policies. Its performance has remained beneficial to all its stakeholders as discussed above. All issues to do with innovation and social performance by Chevron Corporation have been well looked into. The role the firm progressively plays in society will eventually be a deciding factor in its continued growth. A link between business and society must always be sought. Bibliography Bryan W. Husted, Bryan Husted, and David Bruce Allen, Corporate Social Strategy: Stakeholder Engagement and Competitive Advantage, Cambridge University Press, 2011 “Chevron Corporation” http://www.chevron.com/ (Accessed March 20th 2012) Cyrils Belshaw, The conditions of social performance: an exploratory theory, Routledge, 2002 John R. Ogilvie, CLEP Principles of Management: The Best Test Preparation for the CLEP, Research & Education Assoc., 2006, 67. Manuel London and Richard Morfopoulos, Social entrepreneurship; how to start successful corporate social responsibility and community based initiatives for advocacy and change, Taylor & Francis, 2010 Mouawad, Jad, "Oil Innovations Pump New Life into Old Wells". The New York Times, 2007 Tiffany Hsu, "Chevron is putting solar technologies to the test". Los Angeles Times, 2010 Read More