By Veronica Rose,2014-08-08 16:54
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     The Times 100 Business Case Studies

     Shell Balancing stakeholder needs

     Introduction to Shell

     One of the world??s largest multinational companies 100,000 people worldwide Provides 2.5% of world??s oil; 3% of its natural gas Core values of Honesty, Integrity, Respect for People Contribute to Shell??s Business Principles and define its behaviours

     Challenges facing Shell

     Growing world population Higher standards of living Greater demand for energy - oil and gas (non-renewable resources) How to balance all stakeholder needs without conflict

     Internal stakeholder needs

     Employees, including managers

     Want secure employment, good benefits, safe conditions Give high standards of service to maintain industry leadership


     Want continuation of business Must reflect Shell values


     Provide capital and strategy through Board of Directors Want return on their investment

     External stakeholders ?C

     customers and communities

     Customers (business and individual)

     Concerned about environmental impacts Want cleaner, more efficient fuel at good prices Shell sets global environmental standards

     Local communities

     Want high levels of safety in their location Benefit from Shell??s local partnerships, e.g. health/ education facilities or the creation of jobs

     External stakeholders ?C

     Interest Groups and Pressure Groups

     Decision makers and opinion formers which include Governments Give approval for Shell operations globally Media Positive press coverage helps to attract customers Non-governmental organisations (NGOs) Able to influence planning and decision making Academic, financial and business communities Providing commercial and economic benefits Oil industry competitors Partnerships enable major projects e.g. pipelines Pressure Groups, e.g Friends of the Earth, Greenpeace Dealing with environmentally damaging impacts such as the disposal of old oil rigs

     External stakeholders ?C

     Pressure Groups

     Groups with specific aims and interests which raise awareness of major issues, e.g.

     Friends of the Earth, Greenpeace Dealing with environmentally damaging impacts such as the disposal of old oil rigs

     Human Rights issues

     Shell??s Business Principles help to determine where it will operate without exploiting local communities

     Resolving stakeholder conflict

     Shell needs to

     make profit to protect shareholder value develop new energy research and products invest for the future and retain competitiveness

     To avoid conflict, it assesses

     Economic Social, and Environmental impacts of any decision


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