Discuss About The Encyclopedia Corporate Social Responsibility.
The primary purpose of this paper is to outline and discuss the business operations of Shell which is the growing firm in the international market. The main aim of Shell group is to engage profitably, efficiently responsibly in gas, chemical, oil and other business for contributing in search for formation of energy sources and to fulfill the demands of the customers in the global market. The responsibility of Shell is to deliver the gas and oil profitably in environmentally and socially responsible ways. The paper also explains the mission, vision and objectives of Shell Company. Along with this, here is the brief discussion about the challenges and issues that encountered and handled by the firm in the marketplace. Moreover, it also depicts ample of information about the Hana platform that helps the company to flourish the business worldwide. More detail of the task has been detailed below.
Royal Dutch Shell Plc is known as Shell which is a British Dutch multinational oil and gas Company. The company was incorporated in 1907 in the United Kingdom having headquartered is situated in Netherlands. It is one of the sixth oil and gas companies and it is the sixth biggest company in the world evaluated by 2016 revenue. It is also listed in the top 500 global and largest companies. It is a global group of energy and petrochemical corporations having approx 86,000 employees in around 70 countries. The firm uses advanced and innovative technologies to build and develop a sustainable energy future (Shell, 2018). It has been found that Shell brand is the most familiar and well known brand in the world. Shell code of conduct includes various areas such as manager and individual responsibilities, people, culture, behaviors, communication and information.
The mission of the company includes the following:
The vision of the company is to be a global leader by providing energy and petrochemical products to the customers in the international market (Epstein and Buhovac, 2014).
The objective of Shell Company is to engage responsibly, efficiently, profitably in the oil, gas, chemical and other selected business and to contribute in the search for expansion and development of other sources of energy.
Although, Royal Dutch Shell is improving and enhancing its reputation in today’s modern world but there are ample of issues faced by the company in today’s competitive world that affect the success and growth in the international market. Some of the issues have been discussed below.
It is noted that the firm is conducting now an internal investigation and the Securities and Exchange Commission (SEC) and the US financial watchdog is running one out as well. Some researchers analyze and identify that SEC is partly at fault just because it has failed to clear and reduce the issues as per the guidelines. Some analysts believe that SEC guidelines are too conservative and not effective. There is a discrepancy between SEC guidelines and industrial reality that are affecting the profitability and outcomes of the firm. This issue is also reducing the market values and market share (Davies, 2016).
Along with this, Shell was accused of bribery practice with Nigeria officials to attain goals and objectives in 2010. Shell bribed Nigerian officials to make it easy and flexible for them to import equipments and goods, ignore customers and get lower taxes. Pollution is another issue in Shell that could affect the profitability and outcomes of the firm (Hennchen, 2015).
Resource challenge is also one of the biggest and dynamic issues that is being encountered by the company. Global warming is a threaten for Shell Corporation. In addition, human resource is another issue in the company (Ermida, 2014). The firm is unable to recruit and select right and appropriate candidates for performing roles and responsibilities in the workplace. Finding and evaluating a right person is the biggest challenge for Shell Company (Ben-Menahem et al, 2013).
There are ample of micro and macro environmental factors that are influencing the trends of the industry in a large extent. The macro environment factors include political, social, cultural, economic, environmental and technological factors. It has been noted that new creative lines would leak out of the upstream ground towards midstream foundation, petrochemicals offices. Along with this, there would be a steady change in the oil and petroleum sector that might affect the sustainability of the firm. It has been found from the various analysis that various competitors such as Exxon Mobil Corp, BP Plc, and Conoco Phillips Co. These competitors also affect the outputs of the firm adversely. In addition, ample of undesirable situations and problems can be created in the organizational structure and along with this correspondence holes can produced just because of the social contrast in the business substance. All these challenges are becoming a serious concern for the firm (Rasmussen and Ulrich, 2015).
Skill development is another issue that is being faced by the company in today’s competitive world. The company is unable to provide training and development coaching to the workers due to high cost involvement. The human resources function plays a significant and foremost role at Shell Company. Due to high employee turnover and absenteeism, the firm is failed to appoint technical specialist such as project engineers and geoscientists (Charles Jr, Schmidheiny and Watts, 2017). On the job training is not providing by Shell due to lack of adequate resources. It also affects the working environment and operations of the firm. It is noted that Shell’s Arctic drilling is harmful to the environment and company. Equal opportunities are not being provided by the company to its stakeholders. Along with this, the firm does not provide adequate values and profits to them thus it affects the goodwill of the firm. Maintaining a strong and reciprocal relationship is one of the major concerns in front of Shell Company. Apart from this, supply chain issues are also influencing the growth and progress of the firm. The environmental damages and furthermore human rights violations also committed by Shell Company. The firm is unable to protect the rights and interest of the shareholders in the competitive market. Advertising complaints are done by various stakeholders that affect the outputs and returns of Shell Company. The organization needs to focus on these issues and challenges to make a dynamic image in the minds of the customers. Further, it also helps in maximizing the profitability of the firm (Vertigans, 2013).
SAP HANA platform plays a fundamental role in each and every company to gain competitive advantages in the marketplace. It is one of the significant types of the ERP system that is initiated by Shell. HANA stands for high performance analytic appliance that may be defined as a application that uses in memory database technology which permits the processing of massive amounts of real time data in a short time. The in memory computing engine permits HANA to process data stored in RAM as against to reading it from a disk. The 10 business requirements to handle above mentioned issues based on the Hana platform have been discussed below.
Transparent system: There should a transparent system to handle the key issues and challenges related to bribery and fraud. It will provide support to Shell Company to prevent the any misconduct and fraud at the workplace. This system will also help the company to fulfill the needs and requirements of the customers in the competitive market. Only Hana platform will provide transparency to the company. The main purpose of the Hana platform is to resolve and handle the all kind of complex queries in the global market. The in-memory technology at Hana platform helps in analyzing the biggest data volumes within the organization. The transparency system will also provide ample of benefits the stakeholders (de Ruijter, 2016).
Performance management system: It is one of the effective and unique business requirements of the business that should be fulfilled by Shell Corporation. This performance management system helps the company to analyze and evaluate the performance and efficiency of the workers (Hahn and Packowski, 2015). In this way, the company can improve and enhance the efficiency, talents and skills of the workers. Hana platform facilitates a much simple and unique data model (Sandberg and Holmlund, 2015). This Hana platform will provide end to end process support to the employees as well as customers. The main and primary benefit of the Hana platform is to render a customer centric application to the customers (Morrison, 2018).
Optimum data management: The Company needs to use optimum data management system to reduce the data delays and to maintain reliability at the workplace. This can be done with the help of Hana platform. Shell Company can reduce the operation monitoring cost with the use of Hana platform. Through Hana platform, Shell company can direct report from their ERP data bases. By using this tool, the managers and top management can make quick decisions related to the operations and business.
Simplification: It is biggest and unique requirements of the business that can help the firm to reduce the issues and conflicts and it also promotes one source of truth. It is noted that Hana platform helps in bringing simplicity to the administration and management of the complete IT landscape, and it also helps in processing. The simplification includes varieties, fewer, parts and changes in the products and it also reduces the risk of obsolescence and manufacturing operations. It also reduces the oil and energy products range.
Innovation: The Company needs to do innovation in terms of technology and resources to beat the competitors in the international market. Cloud computing is one of the foremost needs to the business that shall be used by the firm. The cloud renders a platform for different software vendors and suppliers to provide magnificent products that sum up and extend the ability of Hana. It needs to focus on the business process to stand out against the competitors in the competitive market (Weiblen and Chesbrough, 2015).
Resume operations: It has been found that the company needs to resume the operations and activities to attain satisfactory ROI within the organization. This will also help the firm to determine and analyze the performance gaps in the organization.
Training: It is the basic requirements of the business that can help Shell Company to train the employees for performing roles and responsibilities effectively and efficiently. Training is also significant to ensure that employees are comfortable with the new and innovative process, procedures, approaches, new report requirements and capabilities and new software. The training sessions and programs also are good place to promote and encourage the advantages of the changes. Hana platform will help the company to provide training and coaching to the workers at the workplace. At Hana platform, the leaders will provide a road map to the employees for developing their careers. The company has been able to conduct training and development sessions with the help of Hana platform. This platform helps in saving the time and cost of the company easily. Training programs help in providing ample of knowledge and experience to the employees. Shell Company can hold training and development sessions, seminars and programs by using Hana platform (Pande and Padwalkar, 2014).
Well functioning EU emissions trading system: This is an effective requirement of the business. The company needs to focus on EU emissions trading system to stand out against the competitors in the global market. This step will also protect the environment of the country (Kolieb, 2014). Along with this, sustainability can be maintained with the help of well functioning EU emission trading system. It will also help in mobilizing low carbon investment and also enables the energy technologies to compete on the basis of a meaningful carbon price. The ETS is a cost effective way to decline the emissions. The HANA platform will help in well functioning EU emission trading system. It is noted that the company is helping to meet growing and leading global energy demand and limit CO2 emission by producing more cleaner burning natural gas (Erasmus and Daneva, 2013).
Decisive policy support: The Company needs to make effective and unique decisive policies to run the business activities and operations successfully and effectively. The decisive policy support is needed for the industrial demonstration of emerging low carbon technologies like storage, carbon capture and renewable that would be essential to fulfill the EU’s climate and energy objectives. The HAND platform helps in making effective and unique policies and strategies to grow and expand the business globally (May et al, 2015).
Customer relationship management: It is another foremost requirement of the business at Shell Company. The company should focus on the customer relationship management to handle the queries and complaints of the customers in the marketplace. Hana platform also helps in maintaining reciprocal and strong relationship with customers. This platform provides right and adequate information related to the energy and oil products. Quick decisions are taken by the company with help of Hana platform. No company can survive and grow its business activities and function without using customer relationship management (Baboo and Kumar, 2013). All these business requirements need to be fulfilled by the company to attain desired goals and objectives. It will also help Shell company to make a dynamic and effective image and goodwill in the eyes of the customers. The customer relationship management also helps to set the appropriate prices of the oil and energy products (Morrison, 2018).
It has been noted that Shell is using SAP ERP system since a long time period to attain mission and vision. It uses SAP HANA to increase agility and productivity in the competitive market. At Shell, ERP system integrates business processes across the departments into a single enterprise wide information system. ERP system provides support in strategic planning and controlling.
Conclusion
On the above mentioned analysis it can be concluded that Shell is one of the leading companies in oil and energy sector. The company is complying all the safety protocols to fulfill the needs and requirements of the business and customers as well. The management of the firm is unique and effective that helps Shell to understand the demands of the customers. It is analyzed that the firm is rapidly improving the reliability and safety of the chemical plants, and distribution facilities. It also analyzed that the organization is fulfilling its corporate social responsibilities towards the community in the best manner. The above mentioned analysis show that how Shell Company is facing plenty of issues in today’s competitive world. Various issues related to management, operations and technology are being faced by the company in today’s modern world. All these challenges affect the sustainability and CSR practices of the firm adversely. In addition, here is the discussion about the business requirements that need to be fulfilled by the company while conducting the business operations and activities. Apart from this, HANA platform also has been explained in the task.
References
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Ben-Menahem, S.M., Kwee, Z., Volberda, H.W. and Van Den Bosch, F.A., 2013. Strategic renewal over time: the enabling role of potential absorptive capacity in aligning internal and external rates of change. Long Range Planning, 46(3), pp.216-235.
Charles Jr, O.H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case for sustainable development. Routledge.
Davies, A., 2016. The globalisation of corporate governance: The challenge of clashing cultures. Routledge.
de Ruijter, P., 2016. Scenario based strategy: navigate the future. Routledge.
Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
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Ermida, G., 2014. Strategic decisions of international oil companies: Arctic versus other regions. Energy Strategy Reviews, 2(3-4), pp.265-272.
Hahn, G.J. and Packowski, J., 2015. A perspective on applications of in-memory analytics in supply chain management. Decision Support Systems, 76, pp.45-52.
Hennchen, E., 2015. Royal Dutch Shell in Nigeria: where do responsibilities end?. Journal of Business Ethics, 129(1), pp.1-25.
Kolieb, J., 2014. Kiobel v Royal Dutch Shell: A Challenge for Transitional Justice. Macquarie LJ, 13, p.169.
May, N., Böhm, A., Block, M. and Lehner, W., 2015. Managed Query Processing within the SAP HANA Database Platform. Datenbank-Spektrum, 15(2), pp.141-152.
Morrison.A. 2018. The 6 key business benefits of SAP HANA[Online], Available from https://www.zarantech.com/blog/the-6-key-business-benefits-of-sap-hana/, [Accessed as on 13th June 2018].
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