Exxon Mobil-US resist Corporate Social Responsibility (CSR)
Firstly, let us examine the definition of corporate governance, corporate social responsibility, corporate leadership and corporate stewardship.
Corporate governance is the balancing of the interests of a company’s many stakeholders ( Tricker B. 2012). It is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. ( Tricker B. 2012)
Corporate Social Responsibility (CSR) means that “corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications.”. (Australian Human rights commission, 2008)
Corporate Stewardship refers to the responsibility that the leadership of a company have to manage the company impact on the environment. Stewardship can help a business find sustainable practices that will improve its reputation among consumers and investors. (Dennis Hartman undated)
Corporate leadership is about cultivating a successful corporate culture that includes inspiring a growth mentality in employees. ( Kevin Goldberg ,April 17, 2013)
Corporate leadership involves a state of constant learning, and a desire to acquire knowledge..( Kevin Goldberg ,April 17, 2013)
Should Exxon Mobil keep its focus on its mission of ‘developing more oil and gas reserves?
It is true that Exxon Mobil impacts the environment in different ways. It must recognize that part of being a good corporate citizen includes respecting the rights of those who come into contact with it in various ways and doing something about it. ( Tricker B. 2012)
It follows therefore that although Exxon Mobil mission of developing more oil and gas reserves should remain its main goal, it must also consider its impact on the environment which affect the stakeholder who form the market for its products hence their future financial stability might be compromised if they do not incorporate CSR.
How would you make a case for Exxon Mobil to curb greenhouse gas emissions, increase renewable energy research, and develop sources of alternative fuel?
At the moment, the board is resistant to change. It lucks a CSR and stewardship mentality that can help it engage sustainable practices that will improve its reputation among consumers and investors. It only focuses on profit
Exxon Mobil must respond to the fact that many consumers and investors expect it to act in a socially responsible manner. The extent to which it implements a comprehensive CSR program will influence consumer and investor confidence including the John D. Rockefeller great grandchildren. (Australian Human rights commission, 2008)
This will include curbing greenhouse gas emissions, increasing renewable energy research, and developing sources of alternative fuel. This may also include incorporating new learning and new practices from top to bottom. CHANGE
The board of directors must realize that it acts in a stewardship capacity and is responsible to the consumers who include the government and investors. Good environment means good health and as a consequence a healthy market that will eventually lead to higher returns in the long run.