Sustainable development is sustaining a delicate equalize between the human needs and to improve the life style and feeling of wellbeing and also safeguarding natural resources and ecosystems for the future generations on which we or they can depend upon.
Elkington's Triple Bottom Line: " Triple bottom line" term was conceived by John Elkington in 1994. The term triple bottom line is used as a features for calculating and
Computing comprehensive action about economic, social and environmental circumference. The view of Triple bottom line is the company is not only focused in the economic value they adjoin or abolish but also in social and environmental value. The elements are described briefly as follows:
Fig: the three components of sustainability
Social perspective: It has appear from concernment about the collision of business activities on local communities in less developed countries. The main issue in social perspective is about the social integrity, welfare, employment, security.
Economic perspective: The limited view of economic perspective is on the economic performance of the business. The important responsibility of the management is to enlarge, manufacture and to promote the product which sheltered long-term economic performance of business.
Environmental perspective: the principle of environmental perspective is about the successful management of physical resources of environment and to conserve for the future. It is about the biodiversity, ecosystem function, species protection and forest healthy.
The approaches of shell with the components of sustainability are described briefly as follows:
2.2 Economic perspective: shell carry out a activities over 100 countries and territories. The largest of their business activities oil and gas( including oil and gas connected profits from exploration and production, Gas and power, oil sands and oil segments),reports only about 90% profit in 2008. After than shell company market in more countries than other oil company, than they have strong position in industrialized countries and also in developing countries. In 2008 shell grade among the world's major chemical companies in selling, where the chemical segment reported around 9% of profit of shell.
2.3 Social perspective: shell is supplying a energy to assist and support economic growth and development. Shell is also investing in different filed like in shell education service. In science skills such as sponsoring science museum, geological society, donating for the rotunda museum and sponsoring the science college. Shell company in Nigeria support and invest in a broad series of community development to bring advantages to local communities where they work. Shell is also taking part in NGO's organisation.
2.4 Environmental perspective: shell are dealing with the challenges of a new energy future. They are building up a technologies to reduce co2 emission from their action and also to produce more proficient fuels to the consumer. They are requesting government for the establishment of policies which will encourage to reduce the emission of co2 gas.
3.Corporate social responsibility(CSR) and shell react in CSR:
3.1 Introduction of CSR and Carroll's model:
CSR is the commitment of companies to carry out their business in the ethical way. It is taking description of their social, economic and environmental impact and concern of human rights. It involves working with local communities, developing relationship with employees and consumer and environmental protection and sustainability. The four components of social responsibility are economic, legal, ethical and philanthropic.
Carroll's model:
Fig: the pyramid of social responsibilities(Carroll's 1991)
The components of Carroll's model social responsibilities are written briefly as follows:
Economic responsibilities: The initial layer of CSR is economic responsibilities which is basis for all the successive responsibilities. It is important responsibilities because economic is needed in every sector and is to earn the profit.
Legal responsibilities: It is also important responsibilities because for the society's honourable views laws are needed.
Ethical responsibilities: This responsibility is to force business to do the right and fair.
Philanthropic responsibilities: This is for the charitable donations or expectation of community.
Shell company responding with CSR in the way of Carroll's model are described as follows:
3.2 Economic strategy of shell:
profit is the most essential for staying in the business and to discharge other responsibilities. Without profit or strong economic it is not possible to fulfil the responsibilities. It is important to the allocation of the essential business and also to maintain the continuing assets required to build up and produce future energy deliver to meet the need of customer.
Though shell company work for changing social ,political and economic environment but they believe that interest of consumers or communities can be serve up most capably by a market economy.
3.3 legal strategy of shell:
Shell companies perform in a socially accountable way inside the laws of countries. Shell company never take parts in party politics nor make payments to the political parties, association or their legislative body. However shell companies while dealing with government have the right and the responsibility to create the location well known on any matter which affect the consumer , employee, local community or shareholders in a method which is in agreement with business principles.
3.4 Ethical strategy of shell:
Ethical components is important to identify that business integrity and ethical behaviour go ahead of simple fulfilment with laws and regulations. In 2006 shell position of the most sustainable and ethical company. It progress about 89% from 82%(2005). Shell supports 12 codes of human right. It is accomplishing 120 biodiversity project globally and offers criticism channels for employees in over 50 countries. Only shell company has a transparent study . It is providing a performance data and sustainability report for costumer. After being caught for misrepresenting its oil reserves now shell bring out a 40 page report which is a ethical performance of the company.
3.5 philanthropic strategy of shell:
It is important for manager and employees to take part in voluntary and charitable work within the local communities. Shell companies are supporting development projects in some way through the shell foundation and also in independent charity which is mainly focus on poverty and environmental charitable trust. Shell are also working openly with national programmes on community development related to their business. They works for education and skills development, health and safety. In education they have sponsor science college and science museum and donating for rotunda museum. Shell are sponsoring postgraduate students to study in UK from Netherlands and developing countries. They are also working to help the people from HIV/AIDS and to slow the broaden of aids.
4.Shell performing towards stakeholders:
4.1 Introduction of stakeholders:
The person or the group of person who are interested in an organisation and are affected by the activities, operations and goals of the organisation are called stake holders. The types of stakeholders are internal(managers, employee), connected(shareholders, financers, consumer), external( government, community). The key stakeholders in the business are:
4.2 Shell conducting towards shareholders:
According to The Sunday times(2005,UK) when the shell companies merged than British investors in Dutch arm of the firm lost about 25% of their holding. Among them most are elderly investors who have conserved the shares for abundant year and face tax bills to ten thousand of pounds after their supply was exchanged into shares of the united company. Thousands of uk shareholders in royal Dutch an estimation of £77m fund gain tax bill subsequenting its unification with shell transport and dealing and the oil giant offering a compensation. One of the shareholder of shell from south west London says that "They have exposed a total lack of view for their shareholders. They were capable to class things out for American and Dutch investors, but have ridden roughshod in excess of those in Britain."
4.3 Shell conducting towards NGO's:
The Niger Delta Aids Response(NiDAR) plan initiated by the Shell Petroleum Development Company (SPDC) provide service for five hospitals in Abia, River, Delta, Edo and Bayleso states which are providing high quality HIV/AIDS services. They provide comprehensive counselling, care and treatment for the people living with HIV/AIDS. SPDC works personally with communities, national and state agencies to control HIV and also enabled the upgrade of 5 hospitals and training of medical staff and management system. Shell companies are the members of several International Chamber of Commerce and also support in the work of Earth watch which is an environmental NGO and of Wet lands International.
4.4 shell conducting towards local community:
Shell companies are providing jobs and creating investment in the community which is benefit for the local people. They also encourage economic and social development as plummeting any negative impact of their function. The benefits bring by shell company to the local people includes jobs, tax returns, contracting and business opportunities and social assest. Shell company work for the management of any pessimistic effect on the living, health , safety, lifestyle, safety and economic development of communities.
shell conducting towards management:
5.Ethical decision making model and shell :
5.1 Introduction of ethical decision making:
Decision making is the process of selecting a path of action for dealing with the dilemma or chance, where ethical decision making is the procedure of identifying a dilemma, generating alternatives and selecting among them as a result the selected alternatives capitalize on the most important ethical values for achieving the intended goals.
Situational factor
Individual factors
Fig: frame work for ethical decision making.
The steps in decision making are
define the problem
identify the criteria
allocate weight to the criteria
develop alternatives
evaluate the alternatives
select the alternatives
The factors influencing the ethical decision making(ford and Richardson,1994) are:
Individual factors: these factor are the exclusive factors for the person to make a good decision. These factors includes age, gender and experience gained by experience and socialisation.
Situational factors: these are the factors which will make the decision ethical or unethical. These factors include job roles, organisation culture and linked with the problem itself.
http://actrav.itcilo.org/actrav-english/telearn/global/ilo/code/royal.htm#3. ECONOMIC PRINCIPLES
http://www.shell.com/home/content/environment_society/society/our_neighbours/impact/
http://www.shell.com/home/content/nga/environment_society/shell_in_the_society/health/hiv_aids/
http://www.shellscandal.com/week36/sunday_timesshellrobs11sept2005.htm
http://tutor2u.net/business/strategy/stakeholders-introduction.html
