A stakeholder is anyone who has an interest in what a business does or an influence upon the business. Shell’s headquarters are situated in The Hague – Netherlands. The parent company of the shell group is Royal Dutch Shell plc, this is incorporated in both England and Wales. Shell sells transport fuel to around 10 million customers a day, and has a fuel retail network of Shell has roughly 44,000 service stations. Overall, 2% of the world’s oil and 3% of its natural gas is provided by Shell. Shareholders play a vital part in the life of the business, as they provide a significant part of the capital, which is required in the starting and every day running of the business. Another significant group is the employees. Shell employs over 100,000 people worldwide.
Mistakes can be costly to the reputation of Shell and go on to affecting many of the other aspects, for example the living of other employees. One of the ways in which Shell tries to satisfy their employees, is through its priority to respect its people. It strives to provide safe working conditions and competitive terms of employment, this results in having a positive influence on the employees as it keeps them not only motivated but also a safe work environment. Suppliers, along with shareholders and employees are also international stakeholders.
Shells core values are what the business’s reputation relies on, and as consequence are very important to shell – so much so that if the contractors and other partners in the supply chain do not demonstrate these values then Shell does not use them. External stakeholders are those who have an interest in what Shell does, but of whom are not part of the business. Examples of these are the customers and the local community. Customers are basically what allow a business to exist, and so are extremely important to a business and its future. Shell deals with this by carrying out extensive market research to which it can then respond to customer views.
An example of this happening is through Shell aiming to help customers to emit less CO2, as customers have grown increasing concern for environmental damage. Shell also seems to care for their local communities, aiming to gain the trust of the people by combating their concerns. The business works in the community providing health facilities and supporting the development of local schools and universities. Furthermore Shell have set up an online community for young entrepreneurs – allowing them access to materials, so that they could turn their ideas into reality.
Other External Stakeholders are interest groups, Such as the government, business community, other oil companies, the media and NGOs – of who can make decisions that could affect Shell. One way in which Shell handles these external stakeholders is for example the NGOs. Shell does this by only operating in areas where it is able to follow its business principles, as Shell is very committed to respecting human rights and helping communities.
Prior to making a major decision or investment in any one Shell has set up three points of criteria to look at: “the economic impact of the activity is likely to yield a good return for shareholders”; “the social impact will be suitable for employees and communities”; “the long-term effect of its activity will harm the environment”. Overall we see that Shell claims responsibility to – its shareholders; its customers; its employees; its suppliers and to society.