ExxonMobil’s approach to corporate social responsibility.
Last year the BP oil spill in the Gulf of Mexico resulted in the largest accidental marine oil spill in the history of the petroleum industry. In early 2011 The White House released a report attributing BP with nine faults. The report concluded that better management of decision-making processes and better communication both within BP and between BP and other companies would have prevented the incident, along with more effective training of key engineering and rig personnel. With the stigma of this disaster repeating itself, the oil industry’s business practices and ethics are being highly scrutinised and there is now a greater demand for accountability.
This issue, along with corporate social responsibility, was addressed during the Ripples Conference on Corporate Social Responsibility sponsored by AIESEC earlier this year at Hong Kong University. Grace Lam, Vice President, Public & Government Affairs, ExxonMobil addressed Exxon’s approach to corporate social responsibility.
Why corporate citizenship?
ExxonMobil has been in operation for 125 years and is the world’s largest energy company, therefore corporate citizenship is essential. “How we achieve results is as important as the results themselves. At ExxonMobil, we are committed to continuing to meet the world’s energy needs and address environmental and other citizenship challenges…This is not just our philosophy but is central to the way we do business,” said Rex Tillerson, CEO, ExxonMobil.
Key areas of CSR
Lam discussed how the company’s approach to corporate social responsibility is focused on corporate citizenship and sustainability to ensure future generations are not compromised by actions taken today. She stated, “Sustaining means balancing economic growth, social development and environmental protection so Exxon’s business strategy is to keep a balance of these three important areas.”
In establishing corporate citizenship Exxon focuses on six core areas:
- Human rights and security
- Corporate governance
- Economic development
- Managing climate change risks
- Environmental performance
- Health and safety in the workplace
Corporate governance
Lam stated, “Corporate governance means adhering to the highest ethical standards in every aspect of our business.” She said this is particularly challenging when working with developing countries due to corruption and the fact that they would rather not be involved.
Integrity is most important and to this end they have established a framework that governs employee practices called Standards of Business Conduct. This framework ensures that all 80,000 staff members are continually trained in business ethics and supports their commitment to equal opportunities and the laws and regulations of the countries in which they operate. As a result of the framework the company scored ‘ten-out-of-ten’ from Governance Metrics International, putting them in the top 1% of all companies.
On the topic of health and safety, Lam said, “Only when employees are safe and healthy can we have high productivity and protect the public.” She confided that zero injury or illness is a difficult goal, especially for energy companies and it is even harder when companies deviate from best practice and safety guidelines, as was the case with the BP oil spill. Exxon has an operational integrity management system in place, which governs all the procedures and processes. They also provide training to staff on sexual harassment, equal employment opportunity and racial discrimination to ensure all staff understand their human rights.
ExxonMobil’s impact on the environment and CSR
While oil corporations may seem to ‘look the other way’ on the ever-changing climate and the risks that accompany it, Exxon has decided to face the problem, acknowledging that it is serious and everyone has their part to play in minimising the risk. Exxon has striven to reduce carbon emissions, increase energy efficiency and develop technologies to save energy and reduce pollution. Environmental performance is critical in the company’s CSR approach, “Protect tomorrow today,” stated Lam.
Community investments
The company has developed numerous strategic community investments such as the ExxonMobil Malaria Initiative and the Women’s Economic Opportunity Initiative, which develops leaders and builds a foundation for economic growth in the region. Educational partnerships have been formed, establishing special programmes to enhance student’s mathematics and science skills and preparing for the next generation.
Lam summarised corporate citizenship at ExxonMobil as:
Striving to provide the world with energy while holding the social responsibility of reducing the impact it may have on the environment as our prime concern.
Commitment to the health and safety of the communities we operate in and the environment as a whole.
Engaging shareholders in the progress of all business initiatives and CSR programmes.
Paul Arkwright
Publisher
