Sustainability Royal Dutch Shell
Table of Contents Page
1. Executive Summary2
2. Introduction3
3. Definition of Sustainability…….3
4. An Overview of Sustainability ………...……4
5. Shell’s Strategic Approach to Sustainability6
6. Literature focusing three sustainable issues9
7. Theory/Models used to evaluate Shell’s response to sustainability12
8. Recommendation on What Shell could do to become a sustainable business14
9. Conclusion15
10. References 17
Executive Summary
Sustainability in companies is a broad subject. In order for companies to be sustainable, they have to use several business models such as Triple Bottom Line, Natural Capitalism, The Natural Step, Cradle-to-cradle, the Three Tier model and many other (Eklington, 2004; Hawken et al, 1999; Robert, 2002; McDonough et al, 2009 and Sethi, 1975). Sustainability in business terms has several definitions. According to the Financial Times (2013), business sustainability is managing the triple bottom line which is a process whereby companies manage their financial, social and environmental risks. Alternatively, it can be defined as a business that can represent resiliency over a period of time and survive shocks because it is related to healthy economy, social and environmental systems. Other definitions relates to sustainability being the ability of people and organisations to preserve the remaining natural resources and use these resources wisely in order to sustain an environmentally healthy future. It also relates to governments creating policies to better the environment. According to the Brundtland (1987), report by the UN Commission on Economic Development, it described sustainability as that which “meets the needs of the present without compromising the ability of the future
1. Executive Summary2
2. Introduction3
3. Definition of Sustainability…….3
4. An Overview of Sustainability ………...……4
5. Shell’s Strategic Approach to Sustainability6
6. Literature focusing three sustainable issues9
7. Theory/Models used to evaluate Shell’s response to sustainability12
8. Recommendation on What Shell could do to become a sustainable business14
9. Conclusion15
10. References 17
Executive Summary
Sustainability in companies is a broad subject. In order for companies to be sustainable, they have to use several business models such as Triple Bottom Line, Natural Capitalism, The Natural Step, Cradle-to-cradle, the Three Tier model and many other (Eklington, 2004; Hawken et al, 1999; Robert, 2002; McDonough et al, 2009 and Sethi, 1975). Sustainability in business terms has several definitions. According to the Financial Times (2013), business sustainability is managing the triple bottom line which is a process whereby companies manage their financial, social and environmental risks. Alternatively, it can be defined as a business that can represent resiliency over a period of time and survive shocks because it is related to healthy economy, social and environmental systems. Other definitions relates to sustainability being the ability of people and organisations to preserve the remaining natural resources and use these resources wisely in order to sustain an environmentally healthy future. It also relates to governments creating policies to better the environment. According to the Brundtland (1987), report by the UN Commission on Economic Development, it described sustainability as that which “meets the needs of the present without compromising the ability of the future
References: ACCA (2004). Towards transparency: Progress on global sustainability reporting 2004, London. Attah V. N. (2010). Environmental Sustainability and Sustainable Growth: A Global Outlook. University of Pennsylvania. Baskin, J. (2006). Corporate responsibility in emerging markets Journal of Corporate Citizenship, 24 (winter): p.29–47. Business Sustainability (2013) [Online] Available from: http://lexicon.ft.com/Term?term=business-sustainability (Accessed on 11 April 2013) Boycott Shell Essential Action (2013) [Online] Available from: http://www.essentialaction.org/shell/issues.html (Accessed April 12, 2013) Donovan J. (2010). Royal Dutch Shell environmental issues. [Online] Available from: http://royaldutchshellplc.com/2010/09/27/royal-dutch-shell-environmental-issues/ (Accessed April 1, 2013) Eklington, J. (2004) ‘Enter the Triple Bottom Line’ in The Triple Bottom Line- Does it all add up? Henriques & Rocjardspm (eds), Earthscan Elkington, J. (1997). Cannibals with forks. The triple bottom line of 21st century business, Oxford: Capstone Financial Times Lexicon on the definition “Sustainable Growth” http://lexicon.ft.com/term.asp?t=sustainable-growth (Accessed April 10, 2013) Fletcher, S. (2002). Shell continues to press support for sustainability research. Oil and Gas Journal, 100(44), 24. Freeman, R. E. (1984). Strategic management: A stakeholder perspective. Englewood Cliffs, New York: Prentice Hall. Friedman, M Global Environment Centre (2013) [Online] Available from: http://www.gecnet.info/index.cfm?&menuid=55 (Accessed April 12, 2013) Global 500 (2012) [Online] Available from: http://money.cnn.com/magazines/fortune/global500/2012/snapshots/6388.html (Accessed April 13, 2013)