GCSR INTERNAL ASSIGNMENT

Question: If you were Chairman of a large MNC producing oil

(eg: Shell), what initiatives of CSR would you take on and why?

Answer:

About Shell
Shell is a global group of energy and petrochemicals companies and their presence
is spread in more than 90 countries and territories.

Shell’s business

Upstream

Shell businesses are largely grouped into two organizational units: Upstream
Americas (Covering the Americas) and Upstream International (Covering the
rest of the world)

Shells businesses explore for and extract crude oil and natural gas, often in joint
ventures with international and national oil companies. Shell liquefies natural
gas by cooling and transports it to customers across the world. Shell also
convert natural gas to liquids (GTL) to provide cleaner burning fuels.
Upstream markets and trades natural gas and power in support of their
businesses.

Downstream
Shell Downstream organization is made up of a number of businesses. Collectively
these turn crude oil into a range of refined products, which are moved and marketed
around the world for domestic, industrial and transport use. These include fuels,
lubricants and bitumen.

My View while assuming the role of chairman

Sustainable Development

I would strongly believe that a company of this size and nature shall contribute to
sustainable development by helping to meet the world’s growing energy needs in
economically, environmentally and socially responsible ways.

I would aim to deliver benefits and reduce our impact through the choices we make
about which projects to invest in, by making more energy efficient products, and by
reducing the impact of our operations.
I would emphasize to develop products and services to help meet the need for clean,
convenient and affordable energy – for example by producing more cleaner-burning
natural gas, and by working to develop a transport biofuels business.

I would also emphasize towards one of the major goals to improve the ways to
design, build and run the operations to lessen environmental impact and to benefit
local communities.

What is Good for business?

I would stress more on Shell’s contribution to sustainable development which would

add value to Shells business, by appealing to customers and business partners by
helping shell to attract and retain staff.

For Example We can do this by developing cleaner products and services to meet
customer needs by staying up to date with our customers’ values and closely
monitoring changes to regulatory requirements.

We can take an approach to reduce operational and financial risk further by listening
to local communities and addressing their expectations, cutting the chance of
project delays, approval failures or disruption to our operations.

New and cleaner technologies can also help to increase the efficiency of Shell’s
operations and make savings on the current and future costs of emissions. They can
even create fresh income streams, such as through carbon credits.

Social responsibility

• I would emphasize on high level of security norms to ensure lowest injury rate
and launch safety programmes to achieve zero accidents or fatalities.
• I would emphasize on company wide code of conduct to help all employees
meet shells global expectations.
• I would strongly recommend for setting up global helpline and website to
allow staff to seek advice and report concerns over bribery or fraud.
• I would also emphasize on launching golden rules for health, safety and
environment to raise awareness and increase personal accountability
• I would recommend establishing social performance management unit to
advise on and support how Shell can work with local communities

Environmental responsibility

Shall emphasize on eco and environment friendly products and services and ensure
protection of global environment.

• I would emphasize on long-term collaborative partnership with Local

communities and international organization/bodies to work together on
biodiversity conservation
 • I would advocate Shell Energy Scenarios and step up climate change
advocacy efforts with local governments
• I would promote and launch Shells Fuel Economy Formula which can help
improve Drivers fuel efficiency.
• I would ensure introduction of company-wide global environmental standards

Economic responsibility

• I would recommend increase of global liquefied natural gas capacity from

localized production centers.
• I would recommend creating Sulphur Solutions to find new ways to use
sulphur removed from petrol and diesel to make it more environmental
friendly.
• I would advocate to incorporate renewable into our main businesses

I would emphasize more on Innovation and set a tag line

“Delivering energy through innovation”

While assuming the position of CEO for Shell I shall look for the historical
achievements and shall draft the future plans and challenges to come,

Q. What were the high points of the previous year?

A. I have observed that the previous year was a good year in which Shell delivered
on their operational and strategic goals.

• In the area of safety, for instance, Shell managed to sustain the trend of
improvement of recent years.
• Shells operational performance picked up and achieved better results due to
their sharper focus, in oil and gas production, on our refining margins and in
our chemicals business.
• Shell also generated higher revenue and made good progress in their
marketing activities and in the way they managed costs.
• Some of our major projects came on-stream and Shell has increased their
portfolio options. But I assume we must not become complacent. There’s still
a lot to be done. One good year is no reason to think you’ve finished the job.
As Shell, we must keep moving ahead, always.

I will set up few questions for myself and work around them for the progress and
development of the company and be ready to face any challenges for the growth of
the company.

Q. What should be Shell’s investment strategy during the current global

economic conditions?
A I’m convinced we’re climbing out of the recession, even though recovery is still
patchy in some parts of the world but I foresee strong growth.

Despite economy being his by the worst ever recession I would recommend Shell to
continue investing throughout the cycle this should enable us to continue growing
until the end of the decade. For the period after that we’ve created opportunities
such as new possibilities of gas production and oil production.

Q. How the investments should be focused

A. With the gas revolution going on I strongly feel that there is enough potential to
increase natural gas resources and Shell should focus their investment in natural
gas. As it is abundant, acceptable and affordable. Shell should be producing more
gas than oil.

Natural gas resources can be also developed at a cost which makes it affordable to
the consumer.

And don’t forget that generating electricity with gas is much less capital intensive
than coal or nuclear energy. Or take the comparison with offshore wind. That energy
source requires three to four times more capital than gas – even assuming all the
technological improvements that still have to be achieved in the wind sector.

Q. And innovation is important if we are to go that extra step?

A. Innovation is vital for a company like Shell and I think our partners and others see
us as the energy company that drives technology the most. But we must continue to
drive our success in this area even further.

Technology is opening doors to new business in emerging countries and shall is not
an exception. Shall should become more open to co-operation with partners and
bring third-party knowledge into Shells technology and innovation.

We’re now top of the list of innovative companies in our industry based on
technology strength and the patents we hold, according to the Patent Scorecard
published recently in the Wall Street Journal. This suggests that our strategy is
making a real impact. Our approach to innovation is putting us on the right path for
the long term.

By
Bipin Kumar Singh (A30601909021),
4th Semester, MBA (2011),
Amity Global Business School, Hyderabad.