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Learning to Lead

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Related Products Availability Reference No.

Case Study CSR0004

Teaching Note CSR0004-1

Shells Global Social Responsibility Initiatives

Structured Assignment Reference No. CSR0004-2

Thisstructuredassignmentwas writtenby Abdul Samadunder thedirection of Muthu Kumar,

Icfai Business School Case Development Centre.

Copyright2008, Icfai Business School Case Development Centre

No part of this publication may be copied, reproduced or distributed, stored in a retrieval

system, usedin a spreadsheet, or transmittedin anyform or medium electronic,mechanical,

photocopying, recording, or otherwise without the permission of Icfai Business School

Case Development Centre.


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Shells Global Social

Responsibility Initiatives(ECCH Reference No. 704-020-1 )

STRUCTURED ASSIGNMENT (SA)

SA has a set of logically sequenced questions based on a specific case study. These

questions are meant to enhance the logical and analytical skills of the students. Students

are advised to attempt a SA only after they have acquired a reasonable conceptual

understanding as indicated below.

Structure of the Structured Assignment

Section Title of the Section Number of Questions

I Consumerism as a Force to Check MNCs 3

II CSR and Shell 4

III Sustainability of CSR 4

PREREQUISITE CONCEPTUAL UNDERSTANDING

(a) To understand Corporate Social Responsibility (CSR) Smith N. Craig,

Corporate Social Responsibility: Whether or How?, California Management

Review, 2003, Vol. 45, No. 4 [Ref. No. CMR-262]

(b) To understand how consumers respond to CSR initiatives Bhattacharya C.B.

and Sen Sankar, Doing Better at Doing Good: When, Why and How Consumers

Respond to Corporate Social initiatives,California Management Review, 2004,

Vol. 47, No. 1 [Ref. No. CMR-295].


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For Use by the Student

Name of the Student :

Enrolment Number :

Programme :

Course :

Name of the Instructor :

To be Submitted on :

Signature of the Student :

Date :

For Use by the Instructor

Grade Awarded / Marks Awarded :

Remarks :

Signature :

Date :

INSTRUCTIONS TO THE STUDENTS

This assignment should accompany the case on Shells Global Social Responsibility Initiatives

developed by ICFAI Business School Case Development Centre.

The learning from this SA can be enriching if it is attempted after having a prerequisite

understanding of concepts outlined in the previous page

Start working on this assignment after carefully going through the case and grasping the

significant aspects of the case, including the central dilemma

Refer to the case as often as needed, when you are working on this assignment. This is an

open book assignment

Write your answers in as much detail as possible. Do not write cryptic or too brief answers

in telegraphic language

Attempt to answer all questions in all sections For a few questions, there may neither be one answer nor a correct answer. Therefore,

give your analysis and logic wherever required. Develop your answers in an integrated

manner drawing from your complete understanding of the case

Use extra sheets, if necessary

The time limit for completing the assignment and the weightages assigned to each section

in this SA for the purpose of grading will be announced by the instructor.


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Consumerism as a Force to Check MNCs

1. How is globalisation acting as a catalyst for the growth of consumerism?


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2. In these days, news is spreading like wild fire across the globe, through various

media. Do you agree that the proliferation of media helps in the emergence of a

global consumer? In what way is it affecting the company-customer relationship?


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3. Disappearing geographical boundaries and the emergence of global consumer is

affecting businesses worldwide as consumers look for a humane way to do business,

rather than mere products and services. How far do you agree with this statement?


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CSR and Shell

4. How significant is it for any business to be a responsible corporate citizen in its

business practices? What constitutes good corporate citizenship and why is it

essential?


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5. The other eye openerfor Shell was the public outcry against the execution of Ken

Saro-Wiwa and other Nigerian activists. (page 4, para 2 of the case study). What

does this statement mean for (rather should have meant for) Shell? Do you endorse

Shell distancing itself from that incident?


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6. Shells annual report reads: To conduct business as responsible corporate members

of society, to observe the laws of the countries in which we operate, to express support

for fundamental human rights in line with the legitimate role of business and to give

proper regard to health, safety and the environment consistent with a commitment to

contribute to sustainable development. (page 3, para 4 of the case study). Why isthe company putting a premium on societal responsibility ? What do you understand

by sustainable development?


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7. The case study also notes, In keeping with its policy of sustainable development,

Shell began investing in various community development programs across the globe.

(page 5, para 1 of the case study). What initiatives did Shell adopt to change its

corporate image? As a consumer, how would you examine these initiatives? Do you

think they are enough? If yes, how? If no, what else do you suggest?


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Sustainability of CSR

8. In 1997, the Shell Foundation, an independent charity organisation, was established

with an initial endowment of $250 million. (page 5, para 1 of the case study). In

another incident, the company has invested 43 million to slice up the Spar and usethe parts as the foundation for a new ferry terminal in Mekjarvik, a port in Norway

(page 4, para 1 of the case study). Are these costly CSR initiatives sustainable in the

long run? If yes, why so? If no, what should Shell do to sustain this kind of socially

committed investment?


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9. If you were a manager to approve these cost commitments, how would you weigh

this investment in terms of tangible benefits to the company? Would these

commitments allow the company to gain competitive advantage in the long run?


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10. Should some companies work for CSR more than others? Does the type of industry

and company size play any role in corporate citizenship? If so, which type of

companies and what form of CSR?


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11. Should the companies focus on profit or goodwill, or both? Are these mutually

exclusive? Or can the pursuit of one lead to the other?

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