ExxonMobil is a multinational corporation and one of the largest publicly traded oil and gas energy providers and chemical manufacturers to supply the next generation of technologies and sustain the needs of the growing world’s population. It has produced oil, gas energy, chemical products, and biomass in developed and underdeveloped countries worldwide. The company analysis will explain the social, economic, and environmental sustainability safety in regions for its operations.
Also, this analysis will look at ExxonMobil’s sustainability reporting and its role within the corporate social, economic, and environmental sustainability standards used to promote safety in its region of operations. On the other hand, the analysis will substantially explore the importance of sustainability leadership, shareholders endorsement and recognition, and, more importantly, the assessment and recommendation for ExxonMobil’s improvement. Indeed, “ExxonMobil has just announced plans that it will commit to reducing the emissions at about at least 30% reductions in the greenhouse gas emissions in upstream operations and about 40% to 50% decrease in flaring and methane emissions in 2025.” (On company: website,2020).
Sustainability reporting
In ExxonMobil’s world, social and environmental sustainability must contribute to and improve financial performance and employee retention. ExxonMobil cares much about social, economic, and ecological sustainability to protect and help improve the lives of the local communities surrounding the vicinity of operations. Social, economic, and environmental sustainability has become the most priorities for improving global warming- climate change. “Since the United Nations has issued and adopted some measures for sustainable development goals to achieve significant progress on the global economic, social and environmental to 2030.” (Company: Sustainability reporting Profile 2020).
ExxonMobil’s business practices are aligned with sustainability and innovation for the benefit of current and future generations. ExxonMobil also releases its sustainability report every year, known as the corporate citizenship report, explaining basic information about its shareholders, including social, economic, and environmental sustainability performance for that year. This sustainability report can easily be found on ExxonMobil’s website. The website will redirect and provide information concerning the present issues from social, economic, and environmental sustainability performance to find out more about the released sustainability report.
Environmental Management
ExxonMobil’s environmental management has put out diverse portfolio projects guided by the logic of potential environmental impacts of the operations and a commitment to the sustainability of the development and maintenance for long-lasting improvement operations. The analysis will provide crucial details about how ExxonMobil management has improved its operations and describes global economic, social, and environmental sustainability. The sustainability report highlights ExxonMobil’s operations management approaches and enhancing social, economic, and ecological safety. These three topics are essential.
ExxonMobil management is dedicated to delivering the best tactical approach to dealing with the impact its operations can cause worldwide (Company: Profile 2020). ExxonMobil has put three main themes under its sustainability reports on its billboard: the importance of keeping its promise. Those three themes include environmental, social, and governance. The table below contains the list of each activity obtained from the corporate sustainability reporting profile.
Environment
Social
Governance
environmental management system
Safety
Ethics and integrity
Engaging in climate change policy
Workplace security
Board of leadership
Managing climate change risks
Community investments
Engaging with government
Developing innovative product and technology
Working with local communities
Shareholders
Managing impacts on air and water
Human rights
Plastic waste management
Spill performance
Supply chain management
A healthy and engaged workforce.
Environmental, Social, and Governance
Environmental
The above table shows that ExxonMobil has become one of the leading energy corporation providers committed to improving and providing the best quality for social, economic, and environmental sustainability. As articulated on its website, the environment management system deals with climate change and global warming. As it has been operating for 135 years, ExxonMobil has understood that doing a booming business should be the priority when the local communities that host the relationship have the opportunity. This is the one promising strategy put forward by the management of ExxonMobil Corporation (on the company website,2021).
Engaging the local communities to participate in the workforce is vital, so ExxonMobil is well-known worldwide today. ExxonMobil approached things differently because of the environmental probe, creating more development invocation products and technology opportunities. This means exploring and encouraging to protect and invest in the climate change risk. ExxonMobil’s principle is reducing the impacts that may pollute the air and water in the environment. ExxonMobil is committed to providing a quality ecosystem by ensuring the air and water remain clean and safe from chemicals and other exotic materials.
Societal
Under societal, the main focus is to enhance safety for employees and local communities near the operations. ExxonMobil has promoted a high safety standard for employees and the local communities who live around the area of operations. This idea is tied to international rules and regulations to protect and give the proper thing priority in safety. This priority includes ensuring workplaces are much more secure from abuse and other illegal activities. However, ExxonMobil continues to work hard with local communities by investing more resources for social promotion and helping foster human rights worldwide.
ExxonMobil works together to increase awareness by giving more training to its employees and introducing a healthy and engaging workforce that helps its employees and the local people. Also, supply chain management is a factor that needs to be prioritized for a corporation to receive its products and provide them to consumers (ExxonMobil: website,2021). ExxonMobil has devoted itself to standing up for the local communities’ rights and human rights abuse, which is the key to driving business growth. ExxonMobil does not tolerate the violation of human rights abuse.
Governance
ExxonMobil has laid out guidelines for leadership roles as the primary safeguard for the company regarding governance. Additionally, ethics and integrity have been the tools that consumers and local communities trust in ExxonMobil (found on the company website,2021). The board of leadership engages in how the corporation performs regarding financial and other resources needed to excel in its operations. The board of administration and shareholders must work together to create a meaningful project for research and other things that add value to products produced by ExxonMobil Corporation.
The leadership must engage with the governments by working cooperatively with the local, state, country, and non-governmental organizations to stay current with the new global economic, social, and environmental information. Working with local communities and governments can also build relationships between the parties (on the company website,2021). On the other hand, the shareholders must have complete information about the corporation to know how the corporation’s progress is heading every year, depending on the principles of the corporation.
CSR leadership Roles and responsibilities
With ExxonMobil being an oil and gas corporation, the CSR leadership role is the priority. The critical environmental blueprint is greenhouse gas emissions because the demand for oil and gas will increase by about 30% and 26%. In 2022, ExxonMobil committed to renewable fuel using Global Clean Energy’s patented Camelina crop, which can significantly reduce greenhouse gas emissions (according to ExxonMobil, which expands renewable fuels agreement with Global Clean Energy Holdings). Therefore, the CSR leadership role determines what it takes to find another alternative to increase energy production since the demand for oil and gas rises globally.
The pipeline hack that caused the demand for gas to rise was one factor ExxonMobil had to choose for more alternatives to minimize oil and gas shortage disruption in the United States and worldwide. This incident shocked some states in the United States, and if it continues, it can affect the entire world. Similarly, ExxonMobil has committed to the environment initiative that includes more diversity and inclusion of human rights, environmental safety, and rights of the local communities.
To promote CSR’s leadership role, among other things, ExxonMobil has solely decided to conduct the required feedback from its customers to track the progress of its performance. Does CSR have an essential leadership role? “It is probably clear that the CSR has a role in leadership in presenting a corporation’s position in sustainability initiative” (Ram Nidumolu, C.K Prahalad and R.M Rangaswami,2019). Of course, the CSR leadership role always guides the corporate social responsibility that prevents the corporation’s reputation from damaging so that customers and other stakeholders continue supporting business growth through investment opportunities.
Stakeholders
ExxonMobil Corporation is “one of the largest publicly traded energy providers that build a strong relationship with customers, shareholders, and investors for decades. However, the corporation has lost its shareholders at the annual meeting of 2021” (Washington Post: “A bad day for Big Oil”2021). ExxonMobil has released its 2020 report that explains the exhibition and the failure it has experienced in cutting emissions. ExxonMobil’s CEO expressed commitment to working with other companies that usually address climate change while at the same time engaging shareholders. “ExxonMobil’s commitment indicates potential progress; society should be well informed of solutions to deliver affordable products” (Addressing shareholder engagement and climate change before our annual meeting,2021).
The CEO has outlined some possible solutions that could help combat societies’ increasing supply demands because of the cyber-attack on a gas pipeline in the US. The CEO suggested that shareholders should be informed through “our energy and carbon summary” to understand how ExxonMobil corporation approaches risks related to climate change. “The report analyzes potential impacts to business under 2C scenarios in which demand for products may be influenced by policy, technology, and consumer choice.” Shareholders have the right to know how ExxonMobil runs business inside and outside all its activities concerning financial performance (On ExxonMobil website,2021).
On the other hand, “ExxonMobil expanded shareholder engagement for more than five years, indicating that there were more than 85% engagements with investors, pension funds, and other organizations on environmental, social, and governance issues.” (On Company: Website,2021). By doing this, shareholders would have obtained adequate knowledge about ExxonMobil’s financial transparency. This would grant the power to shareholders and investors to decide and choose the best alternative. ExxonMobil believes a sound public policy should include input from a wide range of shareholders. Therefore, “ExxonMobil eventually recognizes public policy decisions made from all levels of government could have significant effects on its current and future operations.” (On company: website,2021). ExxonMobil is proud to exercise its right to support policies that promote stable investment.
Recommendation
2019, during the COVID-19 pandemic, ExxonMobil quickly acted “as a multinational corporation operating in more than 50 countries around the world, preparing to offer support to local communities COVID-19 mostly affected.” While simultaneously working meticulously to keep employees and contractors safe and ensure that vital energy and chemical products are moving. ExxonMobil has worked hard to end the COVID-19 pandemic and find a way of doing things differently, such as manufacturing and producing sanitizer for the time of need at the local facilities. This response is “special deliver: supplying sanitizer to frontline workers and professionals.”
ExxonMobil was doing its part as one of the largest corporations in the world by supplying 160,000 gallons of sanitizer and donated to essential workers and first responders. Sanitizer and other supplies have significantly impacted local communities, workplaces, schools, hospitals, and the military. In addition, “ExxonMobil maximized the productions of high-performance polymers to make face masks and high-performance plastics that help reduce the spread of COVID-19.” (On company: website,2020).
This commitment provided by ExxonMobil has reduced the spread of the virus. Employees were trained to watch their hands and use hand sanitizer regularly. In foreign countries where ExxonMobil operates, employees are encouraged to raise awareness among the local communities they serve to educate them about social distancing. ExxonMobil always continues to take measures to respond, recuperate, and build back economic growth while also considering how to keep the support to the local communities in this post-pandemic time.
Conclusion
ExxonMobil is a multinational corporation and one of the largest publicly traded oil and gas energy providers and chemical manufacturers that supply the coming generations of technologies and sustain the needs of growing populations worldwide. ExxonMobil produces oil and gas in many countries around the globe. Environmental sustainability is of paramount importance to the corporation. ExxonMobil’s annual sustainability report details its social, economic and ecological sustainability. This report includes relevant information about the internal and external activities.
Though ExxonMobil has adapted sustainability efforts, it also believes that innovation and environmental safety are essential for business success. ExxonMobil continues to support local communities by improving education skills and technology inequalities. ExxonMobil has been universally known as a top workplace because of innovations and approaches to culture and diversity. So, in terms of environmental sustainability, it is committed to decreasing emissions and the overall carbon footprint in the world. On the other hand, ExxonMobil has been focused on quickly turning the COVID-19 pandemic into an opportunity by using engineering polymers and other chemical products to fight the coronavirus. The innovations include ensuring that manufactured products stand firmly at the weather temperature.
Although the pandemic made it more challenging to run smooth business operations, ExxonMobil never gives up on maintaining its focus on changing coronavirus disruption by increasing the processes around the world. With more people vaccinated, ExxonMobil continues to make great strides to impact the local communities positively. After all, ExxonMobil is a world-class multinational corporation that takes pride in producing and preserving a sustainable environment. ExxonMobil is known for innovation, technology, and social, economic, and environmental sustainability.
After all, improving its roles as an informally responsible entity within the local communities remains.
References
Sustainability reporting.
Corporate Governance.
How does corporate social responsibility contribute to firm financial performance? “The mediating role of competitive advantage, reputation, and customer satisfaction.”
ExxonMobil Expands Renewable Fuels Agreement with Global Clean Energy Holdings.
Ram Nidumolu, C.K Prahalad and R.M Rangaswami, ‘Why Sustainability is now the key driver of innovation?”
We are addressing shareholder engagement and climate change before our annual meeting 2020.
Extraordinary delivery: “Supplying sanitizer to frontline workers and professionals.”
A framework for thinking ethically.
A lousy day for Big Oil.
A message from Darren Woods.
Delivering tangible results to address the risks of climate change.
Strategic Management Journal. Strat.Mgmt.J.,38:163-183(2017) Corporate Social Responsibility as an Employee Governance Tool: Evidence from a Quasi-experiment
WIKI SouthSudan 
Leave a comment