Shells Global Social Responsibility Initiatives

Structured Assignment Reference No. CSR0004-2 This structured assignment was written byAbdul Samad under the direction of Muthu Kumar, Icfai Business School Case Development Centre. Copyright 2008, Icfai Business School Case Development Centre No part of this publication may be copied, reproduced or distributed, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or medium electronic, mechanical, photocopying, recording, or otherwise without the permission of Icfai Business School Case Development Centre.

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Shells Global Social Responsibility Initiatives

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STRUCTURED ASSIGNMENT (SA)

SA has a set of logically sequenced questions based on a specific case study. These questions are meant to enhance the logical and analytical skills of the students. Students are advised to attempt a SA only after they have acquired a reasonable conceptual understanding as indicated below. PREREQUISITE CONCEPTUAL UNDERSTANDING (a) To understand Corporate Social Responsibility (CSR) Smith N. Craig, Corporate Social Responsibility: Whether or How?, California Management Review, 2003, Vol. 45, No. 4 [Ref. No. CMR-262] To understand how consumers respond to CSR initiatives Bhattacharya C.B. and Sen Sankar, Doing Better at Doing Good: When, Why and How Consumers Respond to Corporate Social initiatives, California Management Review, 2004, Vol. 47, No. 1 [Ref. No. CMR-295].

(b)

Structure of the Structured Assignment Section I II III Title of the Section Consumerism as a Force to Check MNCs CSR and Shell Sustainability of CSR Number of Questions 3 4 4

Shells Global Social Responsibility Initiatives

INSTRUCTIONS TO THE STUDENTS

This assignment should accompany the case on Shells Global Social Responsibility Initiatives developed by ICFAI Business School Case Development Centre. The learning from this SA can be enriching if it is attempted after having a prerequisite understanding of concepts outlined in the previous page Start working on this assignment after carefully going through the case and grasping the significant aspects of the case, including the central dilemma Refer to the case as often as needed, when you are working on this assignment. This is an open book assignment Write your answers in as much detail as possible. Do not write cryptic or too brief answers in telegraphic language Attempt to answer all questions in all sections For a few questions, there may neither be one answer nor a correct answer. Therefore, give your analysis and logic wherever required. Develop your answers in an integrated manner drawing from your complete understanding of the case Use extra sheets, if necessary The time limit for completing the assignment and the weightages assigned to each section in this SA for the purpose of grading will be announced by the instructor.

For Use by the Student Name of the Student Enrolment Number Programme Course Name of the Instructor To be Submitted on Signature of the Student Date : : : : : : : : For Use by the Instructor Grade Awarded / Marks Awarded Remarks Signature Date : : : :
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Shells Global Social Responsibility Initiatives

Consumerism as a Force to Check MNCs

1. How is globalisation acting as a catalyst for the growth of consumerism?

Shells Global Social Responsibility Initiatives

2.

In these days, news is spreading like wild fire across the globe, through various media. Do you agree that the proliferation of media helps in the emergence of a global consumer? In what way is it affecting the company-customer relationship?

Shells Global Social Responsibility Initiatives

3.

Disappearing geographical boundaries and the emergence of global consumer is affecting businesses worldwide as consumers look for a humane way to do business, rather than mere products and services. How far do you agree with this statement?

Shells Global Social Responsibility Initiatives

CSR and Shell

4. How significant is it for any business to be a responsible corporate citizen in its business practices? What constitutes good corporate citizenship and why is it essential?

Shells Global Social Responsibility Initiatives

5.

The other eye opener for Shell was the public outcry against the execution of Ken Saro-Wiwa and other Nigerian activists. (page 4, para 2 of the case study). What does this statement mean for (rather should have meant for) Shell? Do you endorse Shell distancing itself from that incident?

Shells Global Social Responsibility Initiatives

6.

Shells annual report reads: To conduct business as responsible corporate members of society, to observe the laws of the countries in which we operate, to express support for fundamental human rights in line with the legitimate role of business and to give proper regard to health, safety and the environment consistent with a commitment to contribute to sustainable development. (page 3, para 4 of the case study). Why is the company putting a premium on societal responsibility ? What do you understand by sustainable development?

Shells Global Social Responsibility Initiatives

7.

The case study also notes, In keeping with its policy of sustainable development, Shell began investing in various community development programs across the globe. (page 5, para 1 of the case study). What initiatives did Shell adopt to change its corporate image? As a consumer, how would you examine these initiatives? Do you think they are enough? If yes, how? If no, what else do you suggest?

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Shells Global Social Responsibility Initiatives

Sustainability of CSR
8. In 1997, the Shell Foundation, an independent charity organisation, was established with an initial endowment of $250 million. (page 5, para 1 of the case study). In another incident, the company has invested 43 million to slice up the Spar and use the parts as the foundation for a new ferry terminal in Mekjarvik, a port in Norway (page 4, para 1 of the case study). Are these costly CSR initiatives sustainable in the long run? If yes, why so? If no, what should Shell do to sustain this kind of socially committed investment?

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Shells Global Social Responsibility Initiatives

9.

If you were a manager to approve these cost commitments, how would you weigh this investment in terms of tangible benefits to the company? Would these commitments allow the company to gain competitive advantage in the long run?

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Shells Global Social Responsibility Initiatives

10.

Should some companies work for CSR more than others? Does the type of industry and company size play any role in corporate citizenship? If so, which type of companies and what form of CSR?

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Shells Global Social Responsibility Initiatives

11.

Should the companies focus on profit or goodwill, or both? Are these mutually exclusive? Or can the pursuit of one lead to the other?

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