ANALYSIS OF SHELL OIL COMPANYS CODE OF ETHICS

ANALYSIS OF SHELL OIL COMPANYS CODE OF ETHICS
Students Name
Students Number
School Name
ANALYSIS OF SHELL OIL COMPANYS CODE OF ETHICS
Shell Oil Company is one of the earliest firms to be established in the energy sector. It has branches all over the world and it`s therefore a major player in the industry with a wide range of products that include petrol, diesel, cooking gas, engine oils and other related products. The company also invests a lot in carrying out research on products upgrade to suit the changing needs and requirements of its wide customer base .In line with this the company invests in quality assurance laboratories of the latest standards. . This is because the related industries like the vehicle manufacturing firms are constantly upgrading their products. Engine oils that were used a few years ago have undergone upgrading to suit the new engines that are being fitted in today`s vehicles. In its mission statement the firm resolves to engage profitably in oil, oil products and related businesses and to also seek other energy sources to meet the growing global demand (Shell Oil Company Code of Ethics, p.8).
For the company to achieve these objectives it has a clear ethical system that acts as a guide to all operations carried out in the firm. It clearly states what is to be done at what time and provides an elaborate channel of command to guide decision making for the company. It clearly stipulates the company`s best practices to ensure it achieves set goals and targets. This is very important to the stakeholders like businesses that trade in their products and the shareholders who rely entirely on the achievement of set targets; mainly profitability and divided incomes to make their decisions on whether to continue investing in the company.
ANALYSIS OF SHELL OIL COMPANYS CODE OF ETHICS
The ethics adopted by this company ensure that by all means the company adheres to and obeys the laws and regulations enforced by various governments in all its jurisdictions. Having a very wide network of branches across continents means that the firm would not at any cost entertain lawsuits on matters of compliance with the law. This is because such an omission or commission can reverberate across the whole network and do a lot of harm to the business in matters of achieving set targets, investor confidence and customer loyalty. This is in recognition of the hefty fines and penalties that may be slapped on them which in some countries may include withdrawal of their licenses. "Don`t proceed with an import if there is any doubt about legality or propriety" (Shell Oil Company Business Ethics, p.23).
The zeal with which the company enforces these ethics is seen where any employee who errs willingly is reprimanded severely including being sued in a court of law. They are involved in crude oil importation, refining and packaging. Transporting these products from the sources to destined markets calls for multiplicity of logistical procedures that involve shipping, air lifting, boarder controls and sometimes complying with ineffective government regulations especially in Africa. These operations call for clear performance targets for the employees to ensure that the company remains competitive and a going concern in the industry. The company publishes its financial reports in the main media together with its competitors and also indicates any major changes on its operation modes, reporting procedures and boardroom changes. This ensures that any prospective investor can form an opinion based on those reports.
ANALYSIS OF SHELL OIL COMPANYS CODE OF ETHICS
These ethics are put in place to ensure the company protects and increases its market share. This is enhanced through good customer care procedures and productions of quality products that are competitive in the market in matters of pricing models and efficiency. The company also remunerates and frequently appraises its workers in line with globally acceptable standards. This enhances enthusiasm among the labour force and retention of acquired skills.
The company does not suffer from brain drain where all its trained personnel would leave for greener pastures. This ensures that newly recruited staff gains adequately from the wealth of experience provided by their seniors. Continuity is thus enhanced and this demonstrates why the company rarely experiences acts of industrial strikes and legal suits from employees demanding better services. There are clear...