Transocean Ltd is one of the international providers of offshore contract related drilling services across the globe for both gas and oil wells. It was established on 18th, August 2008. Its main role entailed contracting various drilling rigs and therefore they are the major oil producer in the world. It is situated in Vernier Switzerland. Additionally, it has more than 20 offices across the world, and these are located in different countries such as India, Norway, Canada and United States of America among others (Crawford, 2015 p.985).
The company works in a single global market where it offers the contract drilling services. Also, it is clear that the equipment used for drilling by the Transocean Company can be used both for development and drilling purposes. However, it carries out both the categories of drilling (Zheng and Smith, 2017 p.240). There are various drilling units used by the company, and they include, high specification jackups, ultra-deepwater floaters, deepwater floaters, mid floaters and riser and environment floaters.
The company is committed towards an upholding of corporate governance which are of high standard and also other conduct of business activities. The directors of the board regularly reviews the documents relating to corporate governance including the governance practices of the company (D’Northwood, 2017 p.480). Also, the corporate governance committee is responsible for the review of the different practices of governance by the company. There has therefore been certain new trends and developments such as private ordering, globalization, technology and shareholder activism among others and this is typically in corporate governance field which have all been taken into account by Transocean Limited Company.
Documents of Corporate Governance
There are numerous documents which outlines the different practices of corporate governance in the company and they include, tax principles statements, modern slavery act statement, code of integrity, organizational regulations, articles of association and corporate governance guidelines (Kan, 2018 p.180). Apart from the above mentioned documents, there are also other documents such as gender pay gap regulations, FIRST shared values and the mission statement.
Charters of Committee of the Company
There are various committees of the company with a variety of roles to perform with the aim of ensuring that Transocean has good corporate governance. Such committees include the following as discussed in the paper below;
Corporate Governance Committee
The directors of the board of Transocean Ltd is entrusted with the appointment of the members of the corporate governance committee. The committee has different roles to play in the company, and this entails the following;
The committee is composed of three members since this is the minimum number required of the members (Fraire and Fuentes, 2018 p.120). It is expected of the committee members to meet up with the experience and independence requirements such as Rule 16b-3 of the securities exchange act of 1934. The directors of the board is responsible for the appointment of the chair and members of the committee, and this is by the recommendations of the committee. However they can also be dismissed by the board of directors.
Audit Committee
The directors of the board of the company appoints the members of the audit committee. Such a committee typically plays a key role to ensure that the following are done by the organization;
Membership of the Committee
According to the policies and practices of the corporate governance of the company, there should be at least three members of the committee who are members of the board of directors. However such directors must be independent. Further, a retired officer of the company is not allowed to become an audit committee member (Rakhorst et al.2017 p.630). The board of directors appoints both the members and chair and this is on the basis of the recommendation of the corporate governance committee. However, the board can dismiss them in case of non-compliance with the rules and regulations.
Finance Committee
The directors of the board of the company is responsible for the appointment of the members of the finance committee (Pröllochs and Feuerriegel, 2018 p.8). The company is appointed by the board of directors to help it in the oversight role of capital structure, financial policies, and financial strategies. Such an oversight role helps in ensuring that the fiscal policies, risk management and values of the company are consistent with financial policies and strategies.
Membership of the Committee
Based on Transocean policies, the members of the committee should not be less than three and that they should be appointed by the directors of the board on the basis of the recommendations of the corporate governance committee.
It is considered one of the committees of the board of directors. It performs a number of functions such as;
Membership of the Committee
According to the policies and rules of the company, there should be a minimum of only three members. Such members must meet all experience and independence requirements such as the New York Stock Exchange (Akca and Çal??kan, 2018 p.30)). During the annual general meeting, the committee members are elected by the particular shareholders, and this is typically on the recommendations of the corporate governance committee. If there are certain vacancies within the committee, the members are appointed by the board of directors, and this is usually from amongst the board members. The board is also responsible for the appointment of the chair of the committee based on the advice of the corporate governance committee.
The board of directors of Transocean Company appoints the members of the above mentioned committee (Trautman, 2016 p.275). Such a committee assists the members of the board to oversee the management of risks in certain areas such as health, safety, and environment of the company.
Membership of the Committee
Based on the company’s policies and laws, there should be a minimum of three members of the committee, and they are to be appointed by the board of directors on the recommendations of the corporate governance committee. Besides, the appointment of the committee members, the board can also dismiss the members in case of non-compliance with the existing rules and regulations.
The primary aim of the corporate social responsibility of the company is to ensure that their activities carried out within the company are done in a manner which is considered as ethical. It typically entails taking into consideration the economic, social and environmental factors to benefit all the particular stakeholders. Based on the 2017 annual financial report, the company was ranked as one of the top 50 firms across the world, and this was issued in the Carbon Disclosure Project. In such a project the firms are ranked based on the climate change disclosure (Arora and Lodhia, 2017 p.1290). When there is a high score displayed by a particular company, it is an indication that such a company has good internal data management and it also comprehends a variety of issues which have a great impact on the company. Additionally, the company has been ranked among the top companies with a high score in the performance scoring initiative, and this is typically in the energy sector. It was considered one of the top performing companies in the energy sector. In regards to the 2017 annual report, the company’s corporate social responsibility was ranked in comparison with certain other companies as indicated below in the figure;
Source (Arora and Lcorodhia, 2017 p.1290)
Transocean limited company provides a variety of levels of corporate social responsibility, and this is as discussed below.
Governance
According to Werhane (2016 p.10), It takes into account the disclosure of the procedures, concerns of the stakeholder’s diversity and in dependence of the board, policies, executive compensation, and an assessment of the ethical leadership culture including its adherence to the above mentioned elements. According to the company, corporate governance is defined as the values and structure of leadership which are used in the ascertainment of the ethics, performance and corporate direction. The corporate governance also entails a variety of elements such as the corporate practices and policies which aligns to the goals of sustainability. The principal goals of sustainability in the company include proper engagement of the employees in the management of the company, appropriate management of the stakeholders and integration of the sustainability principles. The primary focus of governance entails ensuring that the management of the company is committed towards corporate social responsibility and sustainability in all the particular levels.
Community
The community part seeks to ensure that the company is committed and effective in terms of its operation at various levels that are a local, national and global community. It is typically a reflection of the company’s volunteerism, charitable giving, and citizenship towards a particular society (Oudhuis and Tengblad, 2018 p.85). The community part of the corporate social responsibility also contains the human rights record and its supply chain treatment. Apart from the above mentioned aspects, it also entails the social and environmental effects of products and services offered by the company including the technologies, processes, and establishment of the sustainable products.
Environment
It takes into account all the interactions of the company with the environment, and this entails the effects of the activities of the company on the earth’s ecosystem and the use of natural resources by the particular company. This particular category of corporate social responsibility assesses a variety of factors such as the pollution prevention programs, corporate environmental performance, mitigation of environmental footprint, energy efficient operations, adherence with the regulations of the environment and the development of the renewable energy (Otusanya, 2016 p.70). There are also other elements that this particular category of corporate social responsibility of Transocean. They include, programs which can be used for measuring and engaging the various stakeholders to enhance environment, enforcement of the natural resource conversation and efficiency programs, disclosure of certain environmental risk sources and also the actions which can be taken minimize the exposure of the risks, energy efficient operations and consolidation of the sustainability and responsiveness of environment with the directors of the board and management of Transocean Ltd.
Employees
The category of the employees entails a number of aspects such as the provision of information on performance in diversity, programs, policies, compensation, benefits, labor relations and labor rights, health and safety and training of the employees. It also assesses various elements in the company in relation to the employees such as the proactive management initiatives, quality of programs and policies and adherence with the national regulations and laws (Statman and Glushkov, 2016 p.140). Apart from the above mentioned aspects, there are also certain elements which this particular category of social responsibility analyses and they include, fair treatment of all the employees, strong labor codes, inclusive diversity policies, employee health and safety policies, robust training and programs and a comprehensive benefits. Other aspects which are evaluated by the category are, positive safety performance record, safety management system and industry and basic safety training offered by the company.
The diagram below illustrates how the different levels of the corporate social responsibility have typically contributed to the ranking of Transocean Ltd with other firms among those producing oil across the globe.
Source (Statman and Glushkov, 2016 p.140).
In comparison with other companies, the following figure indicates the ranking in terms of the percentage of the company with the other companies.
Source (Statman and Glushkov, 2016 p.140).
Boardroom Organization and Management of Transocean Ltd
The boardroom of the company is such that at the top level of the management is the chief executive officer of the company who is also at the same time the president of the firm. Currently, the president of the company is called Jeremy Thigpen. It is believed that he owns the biggest fleet of offshore drilling rigs (Mills and Koliba, 2015 p.85). It has been two years since he came to the company and he served as the chief financial officer.
The president is typically in charge of the management of the offshore contract drilling services of the company for the gas and oil wells. Apart from the president, there are also numerous vice presidents in charge of various functions such as administration, operations of the company, asset and tax management, finance, general counsel, marketing, industry relations and innovation, corporate control, technical services and operational integrity (McLeod, 2016 p.5). The other vice presidents are in charge of investor relations, human resource, sustainability and community relations, global supply chain and auditing services.
Further, there are also the members of the board of directors, and they are about ten of them who are tasked with various roles in the company (Tilba, 2016 p.300). The directors of the board members are appointed to become members of different committee members such as audit committee, compensation committee, corporate governance committee, finance committee, and House committee.
Proactive and Reactive Measures
According to Chang (2015 p.465), the proactive measure entails actions which are used in reducing the possibility of occurrence of an accident. Such measures mainly aim at decreasing number of injuries, workers compensation claims and response time to encourage the safety of the employees within the company. The proactive measures sued by the company entails, sufficient employee training, monthly fire drills, evacuation drills, and accident safety and prevention advocacy. The reactive measures, on the other hand, involve spontaneous actions in response to a particular accident within the company (Garcés-Ayerbe et al.2016 p.1125).
Reputation Management by Transocean Ltd
Transocean Ltd uses the review trackers reputation management software which has enabled it to appear online for numerous reviews by different consumers all over the world. It has therefore been easy and simple for the company to manage its reputation. The reputation of the company is a fundamental aspect which has to be managed properly by the employees including the top level of management. A good reputation enables the company to position itself as a critical leader in the offshore drilling industry. There are a variety of ways through which the company manages its reputation, and this entails;
Taking Proactive Actions
According to Seybert (2016 p.88), it entails the company seeking for numerous reviews usually for most of their customer base. The company ensures that a positive reputation is developed at the beginning of any particular business transactions and thus prevent certain adverse experiences which may have a negative impact on their ratings by a variety of customers.
Being in Control
The company employs the review alerts which have been written by different customers. If there are certain issues relating to the products and services of the company, they are resolved immediately to establish a positive reputation (Dijkmans, Kerkhof, and Beukeboom, 2015 p.65). Additionally, it utilizes the different feedbacks posted by a variety of customers in the online platform to maintain a positive brand of the company.
Enhancement of Experiences of the Customers
Transocean Ltd has in the past been employing the reviews tracker reporting tool with the aim of comprehending the different experiences of the customers. Thereafter the certain operational changes can be made on the basis of the locations of complaints (Seybert, 2016 p.88). The pain points of the customers are also identified and typically resolved before they become large-scale complaints. Apart from the above mentioned ways of improving the customers’ experiences, the other way entails, harnessing the different feedbacks of the customers by predicting the trends and later innovating the company on the basis of changes in the expectations of the customers across the world.
Establishment of Trust of Customers in Every particular Location of the Company
The company has installed a reputation management software which it uses to create and establish long-term relationships of the customers. Such a trust is built through the provision of immediate feedback to the particular reviews made on the firm by a variety of customers all over the world (Aula and Heinonen, 2016 p.175). The firm communicates directly with the customers who are usually offline and later respond to the complaints they make to them. Further, they thank the reviews made by the public, and this is especially for taking their time to write such positive reviews about the company. It, therefore, implies that the organization values their customers and thus serve them to their satisfaction.
Management of Reputation at a Glance
Transocean Ltd typically uses a picture of every particular branch of the company to check the ones who are doing well, and such a performance is measured in relation to the review trackers’ proprietary algorithm (Chondrogiannis et al.2019 p.240). It, therefore, receives summarized information including the spot trends of the company’s reputation at various levels such as local, regional, national and international levels.
Asking for Reviews from Loyal Customers
The company usually sends a certain request for reviews to some of the most loyal customers across the globe. Such an action is usually taken to increase the number of reviews of the company in a variety of sites such as Facebook and Google (Doorley and Garcia, 2015 p.100). The customers are typically directed to the review sites using the review trackers technique, and this is mainly in certain sites which often need more reviews. The more reviews have enabled the company to have strong ratings and increased reputation anywhere in the world.
Conclusion
To conclude, Transocean is a leading oil producer in the world because of the effective management who handles most of the tasks within the company. However, there are certain key areas which the company needs to improve on to avoid being overpowered by the key competitors in the industry. For example, it should give more attention to the customers’ complaints and responses to offer quality products and services to them.
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