Introduction
Organizations in recent times, are struggling to introduce new and innovative functions in order to accomplish the needs and requirements of the current generation without negotiating the rising ability of the upcoming generation to meet their respective needs and desires. It can be noted that, several organizations have been approached to take responsibilities and sustainability for the establishment of operations that would result in societal impact as well as the natural environment (Hack, Kenyon & Wood, 2014). The term sustainability however is responsible for a company’s actions. Corporate Social Responsibility also known as CSR is referred to make the business practices obvious and transparent on the basis of ethical values and norms, compliance to lawful obligation and value as well as respect and honour communities, individuals and the environment. The primary objective of this report is to shed light on one of the leading multinational oil and Gas Corporation situated in Irving, Texas, Exxon Mobil Corporation. The report highlights the company’s CSR activities and critically evaluates the governmental impact upon the CSR practices of the company. It further evaluates the nature of the inter connection between the administration, civil society organization and corporate alliance in connection to the governance of CSR practices of Nigeria.
Background of ExxonMobil Corporation
ExxonMobil is known as one of the leading companies across the world. Exploration and development of oil and gas production occurred during 1970’s outside the Middle East regions catering the Gulf of Mexico, Africa and Asia by Exxon, Mobil along with various other companies. Founded in the year 1999, this American multinational organization catering in the oil and gas industry is considered as the largest refiner in the world. However, it must be taken in account that ExxonMobil has faced few criticisms for the incident concerning Exxon Valdez oil leak in Alaska in 1989 (Ihlen & Roper, 2014). The organization has its engagement in the lubricants and gas supply, delivery, production, shipping as well as marketing. ExxonMobil has established reservations of almost twenty billion barrels of oil equivalent with a facility of 4.9 million factories (Clare et al., 2015). The primary activities of this organization lie on the exploration, shipping, production as well as trading of crude oil, natural gas along with petroleum products.
Critical Evaluation of ExxonMobil’s CSR activities and Exploration of its Scope and Nature
ExxonMobil Engaging Stakeholders in the Growth of Sustainable Water Solutions
The company has been further condemned for its actions such as contributing climatic changes sceptics, causing immense impact on American foreign policy and its association with the tar sands of Canada. In accordance to ExxonMobil’s archives of Corporate Social Responsibility, the company focuses on the following CSR approaches:
The company with its immense growth in oil and gas industry has influenced the environment in few ways. The company because of its energy production has been experiencing challenges related to environmental risks and hazards. Managers of this company are therefore been suggested to adapt an ethical resolution with natural resources and eco-friendly method of production. This includes the involvement of the company into environmental risks and degradation. The last decades have witnessed an explosion of stratum of chemical poisons causing hazards to residential areas and further causing health hazards and risks for people residing in that region (Brown, 2015). This has led ExxonMobil to experience several challenges and accusations to abolish the harm and destruction.
The organization’s alliance with its stakeholders have facilitated in the promotion of enduring viability of source waters, watershed as well as other associated ecosystems in their functional regions. The collaboration of the University of Qatar and ExxonMobil aided to conduct an investigation on the technologies related to the reuse of industrial wastewater. The organization has taken up a dual responsibility in the development of water resource management in order to reduce their operational influence and further to supply to the communities located at their operational regions (Crane, Matten & Spence, 2013). However, the organization has these principles have come into practice with the process of two fundamental oil industry first-rate practice regulations namely Operating Responsibly and Building Capacity.
ExxonMobil’s Water Management Project in Western Canada is one of the most significant projects, which the company has developed in order to adapt procedures in conducting corporate operations with stable environmental as well as financial communitarian needs of the areas they operate. The company has involved itself in alternative water sources such as saline groundwater and produced irrigation rather than using freshwater at times of economically achievability. ExxonMobil has effectively established Water Management Plans catering all the regions in Western Canada. According to Mitchell, Mitchell and Marcel, (2015), these plans have successfully measured the water usage of each facility. This plan conducted by this organization has also facilitated in recognizing prospective and probable opportunities for conservation and further establish processes for surface as well as groundwater quality prevention. However, it must be noted that the company also has involved itself in investing for potential fraud by withholding data related to the increase in temperature level due to fossil fuels (Vengosh et al., 2014). As per the stakeholders, the union to alter the issues has been regarded as one of the strongest reformations ever. Financers with almost $8tn under the supervision have indicated to acknowledge greater appreciation regarding issues related to climatic changes (Raufflet, Cruz & Bres, 2014). In the process of freshwater usage diminution, ExxonMobil has efficiently utilized produced water extracted from the Husky Ram River Wastewater Pond in order to dispose two gas wells situated in the Foothills instead of making use of clean water extracted from the adjacent Clearwater River. However, it must be noted that, several measures have been introduced for surface prevention and value of ground water that involve berms for several leases as they facilitated the assortment of runoff water sources and further tested before making any release. It has been stated that ExxonMobil annually accomplishes the groundwater-monitoring plan required at all facilities in order to ascertain the safety and protection of adjacent groundwater supplies.
Exploration of the interconnectedness among Government, Civil Society Organization and Business Process of Nigeria
A few decades back, it was noted that third world organizations or enterprises were considered to be involved in corruption, incompetence and undependable to perform trading with. Third world organizations often introduces methods to shorten the procedure, evade taxations, deceive partners and associates and is responsible for involving in practices related to the labour class conditions of facility. The performance of the private sectors situated in Nigeria has been unproductive, weak and further results in exploitation despite of profit generation. Deals and contracts with governments and rent seeking attitudes have led to the result of profiteering (Ogwo, 2016). The flow of first lubricants from its third drilling centre, this organization’s Erha in the northern development at the Nigerian offshore in water depths up to the level of 1750 metres entered into the new phase. A number of firsts were documented with Erha water development which involved the first oil extract from subsea manifolds in Nigeria along with the primary Subsea Systems Integration Test situated in Nigeria as well as West Africa. It is referred as a provision that can offer service as a regional domain for the upcoming subsea element analysis for international deepwater development assignments. As per the Nigerian government, the entire project was engaged into providing worldwide resources to accomplish the schedule. The company’s facility mechanism as well as final equipment evaluation was fulfilled in parts of Paris, Houston and structural development in Nigeria, Malaysia. The reliability and dependence of Nigeria on incorrect and unlawful things leads them to an escape route that eventually creates obstruction in the advancement of Nigeria (Nwagbara & Kamara, 2015). Government CSR related policies and programmes can be observed with the help of four associations such as CSR present in public administration, role of CSR in the responsible for the relation of government and business, CSR’s role in government and societal relationships and lastly CSR in government-corporate-civil society alliance also called ‘relational CSR’. The Nigerian Government has implemented the provisions of CAMA that is the Corporate Affairs Commission (CAC). The company has further tried to focus on education by concentrating on science as well as technology, which are regarded as the fundamental aspects of the oil industry as well as emphasizing youth progress, empowerment programs and literacy infrastructure growth and expansion. ExxonMobil has affiliated several employees of the Nigerian Government. In order to work on its commitments with the Nigerian government, the company has carried out corporate behaviour in the way that will safeguard and protect its employees and the Nigerians. The Exxon Mobil Nigeria has indulged in conducting processes to evaluate safety awareness as well as measures during urgent situations.
The level of morale of employees has declined because of underpayment, uninformed and arbitrary recruitment and unemployment. Issues related to social responsibility have not been a subject of concern in Nigeria until twentieth century. However, several companies and corporate organizations at the time of the emergence of corporate liability concerns in late 1980s experienced a sudden decline and sense of burden (Egunjobi, 2014). The country’s Corporate Social Responsibility being weak, several organizations have expressed unwillingness to provide investment in social services to this country related to education, health, transportation, and safety procedures. Direct investments of foreign policies are immensely encouraged in Nigeria. The country is no longer lagging behind in the usage of Foreign Direct Investment (FDI), an approach to meet and achieve financial expansion and growth. Nigeria attracted a vast range of investors and stakeholders with the discovery of lubricants and oil in the country during 1970s (D’Alessandro, 2016). By the end of the twentieth century, began to decrease to a mono-income based economy. This rule had noticed the dishonour and disregard for constitutional and fundamental rights, legal legislations, and high level of monopoly performed by firms with the support of military government. Civil Society Organizations are referred to a set of associations and organizations that result in the inter-relation amongst state, corporate domain, and family structure. It is responsible to play a vital role in the correlation and interdependency between business and society in developed nations of North America along with Western Europe (Haynes, 2013). Nigeria is also reported to have similar set up as per the established nations as all societies claim to secure and protect the needs and interests of their citizens in diverse ranges of the CSR spectrum. The subject concerning the obstacles and hindrances created by certain issues regarding the productive alliance for national growth and development between government and civil society must be evaluated at three segments like, structural, institutional as well as social. For structural aspects, Nigeria, for instance, is one developing nation where transparency in relationships is yet to be implemented between civil institutions and the state (Egharevba & Chiazor, 2013).
Nigerian Governmental Impact on ExxonMobil’s Water Resource Development
ExxonMobil’s water resource development in Nigeria is regarded as a three level responsibility constituting Federal, State as well as Local Government body. As a result, water resource has often been considered as a vital campaign issue related to the political domain (Danjuma, 2017). According to the Nigerian government, the degree of water supply in the regions of Nigeria is immensely significant despite the unpredictable value because of non-sustainability of interventions caused previously. It must be noted that majority of the oil resources of Nigeria has originated from the Nigerian Delta district occupied by a mosaic of aboriginal communities. According to the Nigerian government, another source of pollution related to lubricant resources is the release of effluents into the adjacent environment by the ExxonMobil. During the exploration by ExxonMobil the usage of drill cuttings, fluids were executed for production stimulation and further used chemicals at the time of seismic activities (Olsson, Weichgrebe & Rosenwinkel, 2013). In the water resource development, all these elements were dispersed and further submerged which might have created casualties of local bottom living species. Further to the toxic elements and pollutants introduced into the air by ExxonMobil from investigation and exploitation function, waste emitted from the oil plants have resulted to the potential land, air as well as water impurities. The disposal of waste into seawater from ExxonMobil’s oil plants has severely influenced the fish stocks. The harmful effects of the oil pollution due to the emission of the company’s waste emission had severely influenced the environment as well as wellbeing of the aboriginals of Nigeria. The impacts of lubricant emission are as follows:
Adverse Effect on Bio-Diversity: The most crucial impact of oil pollutants in certain areas of Nigeria has far-reaching effects on the cultural and traditional aspects of the aboriginal communities. This has resulted to the total failure of biodiversity and damage of habitats largely because of soil degradation (Nwagbara & Kamara, 2015). The contaminated and toxic crude influences the underground plants and shrubs, whereas the microbial creatures, which form significant groups, were further damaged.
Impact on Socio-Economic Aspect: The influence of socio economic aspects involves the nutritional and scarcity of food, damage of conventional means of livelihood, the influence on cultural ideals as well as spirituality and immigration. One major outcome of oil pollution has influenced the conventional localized financial sustainable procedure of agriculture of that region. According to the African Commission of Social and Economic Rights Action Centre, the attitude of the government towards the indigenous has desecrated all the rights and authorities to food by permitting other oil companies to destruction of food sources under the stipulations of the African Charter (Ite et al., 2013). Another repercussion of oil pollution is related to the destruction of biodiversity, which has further rendered the agricultural domain of Nigeria. This has resulted to the joblessness of the population because of the unsustainable condition of agricultural and fishing in Nigeria. The oil spill has immense impact on the cultural and traditional values of the region as well. This destruction has affected to the great degree of casualties as well as potential extinction of medicinal herbs, which have been considered as a conventional medication and sacred significance to the aboriginal communities. However, it must be taken into account, that as per the Nigerian law and amendments, an authorization of an oil mining company is prohibited from executing its mining lease whereby the land is considered as a sacred forest.
Physico-Health Implications: The most affecting aspect of oil pollutants in these regions in the incidence of certain sickness, which were previously not acknowledged by the people of these regions. One of the severe threats caused by oil related pollutants emitted by ExxonMobil is the impact of the underground water supply of the regions (Ite & Ibok, 2013). The underground water which runs into streams as well as wells are considered as the sole source of local water supply within the community that has caused in the increase of water borne ailments. These had severely affected the relationship that the people had with the concept of water.
The company, known as a chief petrochemical manufacturer is accountable for its vast production and supply to almost twenty thousand global gas stations. The marketing trade of ExxonMobil’s oils and fuels have far-reaching consequences globally with the association of numerous channels to promote and supply a varied customer base (Edward, 2014). However, it has been evaluated that the organization’s revenue experienced considerable decline of more than fifty percent in the range of 2012 to 2016 (Mbat, Ibok & Daniel, 2013). Monetary equivalents have been transformed by forty eight million dollars in between the years 2015 and 2016 (Ebegbulem, Ekpe & Adejumo, 2013). The company further arrived with an in-house course known as EMFORCE that is also known as ExxonMobil Fundamentals of Regulatory Compliance and Environment) in 2005, that provides employees of the company with expertise and knowledge to guide the workforce with an environmental friendly ambience (Peeples & Depoe, 2014).The case of Western Canada operations can be taken as an example. The aim of EMFORCE was to promote the incorporation and integration of environmental judgments into its regular business and to stimulate the division of skills and finest practices. The approach further emphasized in the contribution of providing essential foundation of information to enable the understanding of ecological and regulatory concerns.
Conclusion
Therefore, from the above discussion it can be analysed that ExxonMobil Corporation has a significant interrelation with the Nigerian Delta region for its production and manufacturing processes. The externalities of oil extraction had immense effects on the fundamental influence on conventional lifestyle as well as livelihood of the communities living in certain areas of Nigeria where ExxonMobil as its operations. The report has elaborated on a brief background of the company stating its contributions in the oil and gas industry along with the regions it caters. This paper further focuses on the ways the company is performing to manage and uphold several climatic risks and hazards through its CSR activities. The report has also highlighted the impact of the actions of delta avengers on the CSR activities and performance as well as the interconnectedness and dependence of the government, civil society organization in relation to the business process of the country.
References
Brown, D. A. (2015). Climate change refugees. Law, human rights and ethics. Towards a refugee oriented right of asylum.
Clare, T., Lucas, Z., McLeod, B. A., & Frasier, T. R. (2015). Procedures for optimizing the recovery of DNA from mammalian carcasses. Conservation Genetics Resources, 7(2), 333-335.
Crane, A., Matten, D., & Spence, L. (2013). Corporate social responsibility in a global context.
D’Alessandro, C. (2016). What Can Gulf States Learn From African Countries?.
Danjuma, I. A. (2017). Oil and the political economy of conflicts in the niger delta region of nigeria. Socialscientia Journal of Social Science and Humanities, 2(2).
Edward, A. D. D. O. (2014). Tourism and’fracking’in Western Newfoundland: Interests and anxieties of coastal communities and companies in the context of sustainable tourism. International Journal of Marine Science, 4(2).
Egharevba, M. E., & Chiazor, A. I. (2013). Political corruption and national development in Nigeria. International Journal of Social Sciences and Humanities Review, 4(1).
Egunjobi, T. A. (2014). Poverty and unemployment paradox in Nigeria. IOSR Journal of Humanities and Social Science (IOSR-JHSS), 19(5), 106-116.
Hack, L., Kenyon, A. J., & Wood, E. H. (2014). A Critical Corporate Social Responsibility (CSR) Timeline: how should it be understood now. International Journal of Management Cases, 16(4), 46-55.
Haynes, J. (2013). Democracy and civil society in the Third World: Politics and new political movements. John Wiley & Sons.
Ihlen, Ø., & Roper, J. (2014). Corporate reports on sustainability and sustainable development:‘We have arrived’. Sustainable development, 22(1), 42-51.
Ite, A. E., & Ibok, U. J. (2013). Gas flaring and venting associated with petroleum exploration and production in the Nigeria’s Niger Delta. American Journal of Environmental Protection, 1(4), 70-77.
Ite, A. E., Ibok, U. J., Ite, M. U., & Petters, S. W. (2013). Petroleum exploration and production: past and present environmental issues in the Nigeria’s Niger Delta. American Journal of Environmental Protection, 1(4), 78-90.
Mbat, D., Ibok, E., & Daniel, E. (2013). Exxon-Mobil and Corporate Social Responsibility in Akwa Ibom State, Nigeria: Past and Present. Public Policy and Administration Research, 3(3), 21-29.
Mitchell, J. V., Mitchell, B., & Marcel, V. (2015). Oil and gas mismatches: finance, investment and climate policy. Chatham House for the Royal Institute of International Affairs.
Moncada, L. G. G., Asdrubali, F., & Rotili, A. (2013). Influence of new fac tors on global energy prospects in the medium term: compar ison among the 2010, 2011 and 2012 editions of the IEA’s World Energy Outlook reports. Economics and Policy of Energy and the Environment.
Nwagbara, U., & Kamara, H. Y. (2015). Corporate Social Responsibility (CSR) Leadership and Poverty Reduction: The Case of Nigeria and Sierra Leone. Petroleum-Gas University of Ploiesti Bulletin, Technical Series, 67(2).
Ogwo, P. U. (2016). Analysis of Management of Revenue Generation and Accountability in public Enterprises in Nigeria (a Study of Selected Parastals in Nigeria) (Doctoral dissertation).
Olsson, O., Weichgrebe, D., & Rosenwinkel, K. H. (2013). Hydraulic fracturing wastewater in Germany: composition, treatment, concerns. Environmental earth sciences, 70(8), 3895-3906.
Onoh, J. K. (2017). The Nigerian oil economy: From prosperity to glut. Routledge.
Peeples, J., & Depoe, S. (2014). Introduction: Voice and the Environment—Critical Perspectives. In Voice and environmental communication (pp. 1-17). Palgrave Macmillan, London.
Raufflet, E., Cruz, L. B., & Bres, L. (2014). An assessment of corporate social responsibility practices in the mining and oil and gas industries. Journal of Cleaner production, 84, 256-270.
Vengosh, A., Jackson, R. B., Warner, N., Darrah, T. H., & Kondash, A. (2014). A critical review of the risks to water resources from unconventional shale gas development and hydraulic fracturing in the United States. Environmental science & technology, 48(15), 8334-8348.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download