How Does Operating in Highly Corrupt Countries Impact Shell's Approach to Operating Ethically and with Corporate Social Responsibility?

4598 Words May 21st, 2014 19 Pages
Extended Essay
Business and Management

Research Question
How does operating in highly corrupt countries impact Shell's approach to operating ethically and with corporate social responsibility?

Candidate Name: Lucas Pontes
IB Candidate Number: 000416 - 0070
School Name: International School of The Hague
Advisor: Jane Austin
Date Submitted: 11 February 2014
Word Count: 3863
Abstract’s Word Count: 223

Abstract
This essay is aimed at answering the question ‘How does operating in highly corrupt countries impact Shell's approach to operating ethically and with corporate social responsibility?’
In order to answer the question Business and Management tools and theory have been applied to Shell’s way of doing business, focusing
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Ethics is about doing the right thing towards stakeholders, in a way that would benefit and be fair to the firm’s external and internal stakeholders. There are many benefits from acting ethically such as; brand image, customer loyalty and support from external stakeholders. However, for some firms, acting highly ethically is not seen as worth it, as it increases costs and therefore reduces profit. For Shell, behaving ethically is extremely important. The firm needs the support of all its external stakeholders, and sometimes these stakeholders can have very conflicting views. For example, in 1995 Shell proposed to dispose of the Brent Spar, a redundant oil storage facility in the North Sea, by dumping it in deep water. This approach was agreed to the UK government following Shell's study of other options, which showed both that the overall environmental impact of deepwater disposal would be less than that from the energy use of cutting it up

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