Shell mission statements reports PDF

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Company Profile: SHELL INTERNATIONAL Excellence in Corporate Communication.

The Spoken Word Part A. Most people have heard of the modern-day company Shell, but very few know how it was founded, and how it got its name. Listen to the first part of a conversation about the history of Shell, then tick T (true) or F (false) below. True or False? T F   1. In 1833 Marcus Samuel opened a London shop that sold antiques and sea shells from the Far East.   2. The first tanker ship was commissioned by Samuel's son to ship* kerosene to Russia.   3. In 1907, two companies - a British company and a Dutch one-merged to form the Royal Dutch/Shell Group.   4. Mass production of automobiles in the early 20th century helped the oil industry to grow.   5. Shell fuel was used for the first non-stop flight across the Pacific Ocean.   6. During WW2, Shell supplied tankers and properties for the Allied governments

Now listen to Part B. Take notes on the history of the company logo, and then answer the questions below using the information you have noted down. You may need to listen twice. The Shell logo throughout the years. 1. When and how was the word "Shell" first used by Marcus Samuel and Company in promoting their products? 2. What is a "pecten"? 3. In what year was the Shell Transport and Trading company formed? 4. Who was Graham? 5. What symbol was adapted for the Graham family coat* of arms? 6. What is the most likely origin of the red and yellow colours used in Shell's logo?

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Company Reports One of the most important means that companies use to get their messages across is through the publication of a wide range of formal reports and documentation about their organizations, and Shell strives* to provide in-depth*, up-front* information about the company and how they are dealing openly with the issues they face. A small sample of the reports Shell prepares on its local operations around the world was shown on the first page of this chapter. Now, take a closer look at the range of basic documentation published annually regarding Shell International and the Royal Dutch/Shell Group and answer the following questions: 1. What are the main kinds of documents Shell publishes? What is the purpose of each one? 2. Which of these documents were designed exclusively for internal use by employees, and which for external use by the public and investors? 3. Why do you think Shell publishes both a summary and an unabridged version of its reports?

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Shell's Mission statement One of the most concise documents that companies use today is the mission statement. Mission statements sum up the overall policies and objectives set by the company, sometimes outlining how they expect to achieve them. Mission statements can be just a few words or sentences ("We aim to offer the highest quality goods and customer service at the lowest possible prices"), or can be longer documents meant to serve as a sort of pact with the public and a constant reminder to all employees. They are written in language that is easy to understand, and underline the message the company wants consumers to associate with them. Today, many companies provide specific mission statements regarding company ethics in facing social issues or environmental concerns. This information is meant to give the general public information about the company's efforts to behave responsibly, as companies realize that not only green activists, but also socially concerned consumers and investors, want to be sure that they have sound* environmental policies, respect human rights and produce safe and useful products. Mission statements are generally written in the present simple, because the English language uses this tense to present factual information, as well as actions and situations that are generally true. What's more, some verbs are almost always used in the simple form, including those which describe: mental states: believe, think, want, desire, strive, seek, recognise, maintain, intend, trust, distrust, hope, be skeptical*/pleased/dissatisfied etc. possession: have, own, possess, belong to, contain, include perception: be aware of, realize, understand, see, hear, smell, taste being: be, exist, consist of, depend appearance: resemble, appear, look like, seem likes & dislikes: like/dislike, love, loathe*, hate, despise*, admire, want, wish Summaries or abstracts at the beginning of reports and mission statements are written in the present simple, too. Below are examples taken from the 2002 Shell Report. For each verb, identify the reason why the present tense was used. "This report shows the progress in 2002 of the Royal Dutch/Shell Group in contributing to sustainable development. We also provide more in-depth case studies that give an insight into how Shell people are contributing to sustainable development in their daily work. We hope this report helps you make up your mind about our progress and stimulates your thinking on practical steps that governments, industry and consumers can take towards a more sustainable energy system."

shows: provide: hope:

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Complete the extracts from the "Introduction" to Shell's Statement of General Business Principles, using the correct forms of the verbs given in the box. Some verbs can be used more than once. apply - be (3 times) - believe - conduct- - describe - determine - have (3 times) - intend reaffirm- - recognise

"This document _______________(1) the general business principles that govern how each of the Shell companies which make up the Royal Dutch/Shell Group _______________(2) its affairs." "The Shell Group _______________(3) a decentralised, diversified group of companies with widespread activities, and each Shell company _______________(4) wide freedom of action. However, what we _______________(5) in common is the Shell reputation. Upholding the Shell reputation _______________(6) paramount: we are judged by how we act. "Our underlying values _______________(7) our principles. These principles _______________(8) to all transactions, large or small, and _______________(9) the behaviour expected of every employee in every Shell company in the conduct of its business. "Shell companies _______________(10) as their core values honesty, integrity, and respect for people. Shell companies also firmly _______________(11) in the fundamental importance of the promotion of trust, openness, teamwork and professionalism, and pride in what they do. "Shell companies _______________(12) that maintaining the trust and confidence of shareholders, employees, customers and other people with whom they do business is crucial to the Group's continued growth and success." "We _______________(13) to merit this trust by conducting ourselves according to the standards set out in our principles. It _______________(14) the responsibility of management to ensure that all employees are aware of these principles." The Written Word Now quickly skim through the following (next page) extract from Shell's mission statement, its Statement of Business Principles, and answer the following questions: 1. What are the 9 main points or "principles" listed? 2. What is Shell's basic business objective? 3. What types of policies does Shell promote to reach this objective? 4. What positive adjectives and verbs can you find to describe Shell's business principles? 5. In your opinion, what is the overall "message" of this document? Why do you think Shell's "mission statement" is so detailed? To answer this question, consider the company's field of business and the challenges it may face.

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OUR BUSINESS PRINCIPLES Principle 1 - Objectives The objectives of Shell companies are to engage efficiently, responsibly and profitably in the oil, gas, chemicals and other selected businesses and to participate in the search for and development of other sources of energy. Shell companies seek a high standard of performance and aim to maintain a long-term position in their respective competitive environments. Principle 2 - Responsibilities Shell companies recognise five areas of responsibility: To shareholders- To protect shareholders' investment and provide an acceptable return*. To customers- To win and maintain customers by developing and providing products and services which offer value in terms of price, quality, safety and environmental impact, which are supported by the requisite technological, environmental and commercial expertise. To employees- To respect the human rights of their employees, to provide their employees with good and safe conditions of work, and good and competitive terms and conditions of service, to promote the development and best use of human talent and equal opportunity employment, and to encourage the involvement of employees in the planning and direction of their work, and in the application of these Principles within their company. It is recognised that commercial success depends on the full commitment of all employees. To those with whom they do business- To seek mutually beneficial relationships with contractors, suppliers and in joint ventures and to promote the application of these principles in so doing. The ability to promote these principles effectively will be an important factor in the decision to enter into or remain in such relationships. To society- To conduct business as responsible corporate members of society, to observe the laws of the countries in which they 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 their commitment to contribute to sustainable development. These five areas of responsibility are seen as inseparable. Therefore, it is the duty of management to continuously assess* the priorities and discharge* its responsibilities as best it can on the basis of that assessment. Principle 3 - Economic principles Principle 4 - Business integrity Principle 5 - Political activities: of companies and of employees Principle 6 - Health, safety and the environment

Principle 7 - The community Principle 8 - Competition Principle 9 - Communication

Talk about it The explanations of Principles 3-9 are not included. In pairs discuss these points and the information on company ethics you imagine may be given in them. Then, compare your ideas with the document provided on the CD-ROM.

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Word Focus Large corporations have stockholders, that is, people who have an interest in the profitability of a company because they own shares, or stock in it. If the company does well, this stock will increase in value, and investors may earn dividends. Traditionally, annual reports and accounts were published to inform these investors of the company's financial situation. Modern economic and management theory also recognizes another group of people with a legitimate interest in the successful and correct operation of a firm: its stakeholders. Take a quick look at the excerpt below. This message from Sir Philip Watts, the Chairman of Shell in 2002, served as an Introduction to the company's annual special report entitled The Shell Report: Meeting the Energy Challenge, which provides less technical information of interest to all the company's stakeholders. (This report can be found on the CD-ROM accompanying this textbook).

Dear Stakeholder, Across the world, concerns about the economic and political climate and the threat of terrorism have all combined to make us feel less secure. In these difficult times it becomes even more important that Shell companies live up to the highest standards. Taking a long-term view is essential to operating in a sustainable manner. That long-term approach was central to the World Summit on Sustainable Development in Johannesburg. It was a great privilege to be present at the Summit and I am proud of the role played by Shell, and other progressive business leaders, in developing projects that will impact the lives of many people.

Just who is a stakeholder is not easy to define, and there are contrasting opinions on who should be accorded this "status". What is clear is that stakeholders are people who can influence or be impacted by a company's decisions and policies. Their support is important to firms: if stakeholders withdraw* their support, the firm may suffer; if the firm fails, the stakeholders might in turn suffer some sort of loss. Most definitions of stakeholders include the following groups:  "investors" in the firm's success, which can be "internal" (employees, managers, or shareowners) or "external" partners or allies (suppliers, distributors or debtholders*). Each of these resource suppliers makes a commitment for which commensurate* benefit is expected.  "influencers" such as political and environmental activists, NGOs*, governments, media, potential investors, consumers, local communities, labor unions, associations, or even competitors (direct, indirect, potential).

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Read the following extract from Shell's Annual Report. Then find the answers to the questions:

Working with stakeholders We affect - and are affected by - many different groups of people, our stakeholders. We aim to recognise their interest in our business and to listen and respond to them. Working with a full spectrum of stakeholders We work with a wide range of stakeholders: governments; our customers and business partners, such as suppliers and manufacturers; our employees; and the communities where we operate. We also work with NGOs and academic institutions, including the Smithsonian Institution, the World Conservation Union (IUCN) and Fauna and Flora on biodiversity (page 20), the Pew Center, Environmental Defense and the World Resources Institute on climate change (page 21), Amnesty International, the Danish Centre for Human Rights and Pax Christi on human rights (page 15) and Transparency International on business integrity. See www.shell.com/workingtogether for details on our approach.

1. What attitude does Shell have toward its stakeholders? 2. What groups does Shell recognise as legitimate stakeholders? 3. Where can you find more information about Shell's collaboration with its stakeholders? 4. Why do you think Shell's report on the challenges in the Energy industry is directed to its stakeholders and not only to its stockholders? 5. Think about the university at which you are studying, or the company you work for. List at least nine different categories of its stakeholders. The Spoken Word Part C. Listen to the recording about Shell's business activities and complete the exercise by filling in the blanks below. The Shell group works worldwide in _______________ countries and employs _______________ people. The company is best known for exploring and producing oil and gas, but its other activities include transporting and trading _______________ and _______________ , marketing _______________ _______________, producing and selling fuel for _______________ and _______________ , generating _______________ and providing energy efficiency _______________. Shell companies produce _______________ of global gas and _______________ of the world's oil, as well as _______________ of the world's solar panels. Every _______________ seconds a plane is refueled by Shell Aviation; in that time, _______________ cars visit a Shell service station. The company also produces and sells petrochemical building blocks that go into _______________ , _______________ and _______________ used to make many modern products such as fibres and textiles and medical equipment.

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Read the list of Shell's main areas of business below. Label the illustration with the correct areas. 6 main areas of business:

Main activities:

a. Exploration and Production

Searches for, finds, produces and brings to market oil & gas.

b. Other activities

Shell Consumer, Shell Hydrogen and Shell Trading.

c. Oil Products

Markets fuels, refines, supplies, trades & ships crude oil.

d. Gas & Power

Liquefies & transports natural gas use for clean fuel & electricity production.

e. Renewables

Generates "green" electricity through solar & wind power; manufactures & markets solar systems.

f. Chemicals

Produces and sells petrochemicals.

Shell's Annual Report and Accounts Annual Reports and Accounts describe the financial situation, activities and achievements of a company during a specific year. In the past, annual reports and accounts were dry, sterile documents meant to give investors and shareholders an accurate picture of a company's financial situation. They tended to consist of only brief comments accompanied by a long series of charts and graphs outlining information on income, return on profits, assets & liabilities*. Today, companies use their financial reports not only as tools to communicate their "message" but also to inspire trust in their organizations. Recent financial scandals, such as the Enron and Parmalat cases, have led to an even stronger need to inspire trust and explain company finances and activities in a straightforward* manner. This has led to changes in the form and language used. As you will see, these documents now tend to use warm, optimistic wording and clear, non-technical language which is accessible to a wide variety of readers.

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Skim the following excerpt from the Introduction to Shell's 2002 Annual Report and think about the following questions: 1. Which adjectives are used in the first paragraph to describe the results obtained in 2002? In what way are they reassuring? What kinds of emotions do they evoke? 2. The past simple, and not the present perfect, is used to describe 2002. Why? 3. What nouns and adjectives are used to convey a sense of the company's strength and solidity? 4. What effect do the verbs used in paragraph 2 produce? 5. Why does the use of the present perfect tense in paragraph 2 provide a sense of reassurance?

Dear Shareholder, 2002 was a pivotal* year for the Group. We delivered robust and competitive profitability in a testing* environment - in line with our business principles - while taking decisive steps to pursue our strategic goals. Shell companies have the resilience to manage economic and political uncertainty maintaining momentum in uncertain times. In a troubled* world we have made plans to safeguard* our people and fulfil our responsibilities to customers. We are well placed to take advantage of economic recovery. I thank all Shell people - as well as those who worked with us - for their skill and commitment* which delivered this success and gave us confidence for the future.

Word power In the previous extract, Sir Philip Watts used not only different past tenses, but also the present simple. In English, we use the present simple with certain verbs when "doing by saying": when we say these verbs, we perform the action they describe. For example, if we say "I apologise", we are doing just that: apologising for something. In the text, you read "I thank all Shell people for their skill and commitment...." Many other verbs are used in this way. Complete the sentences below using the words in the box. admit - advise - agree - approve - demand - give up - recommend - resign

1.

"I ________________ I was wrong."

2.

You're right. I ________________ with you, 100% !

3.

"I ________________ you give the job to Max. He's extremely well qualified.

4.

"I ________________ you apologise ! Your behaviour was outrageous !"

5.

"I _...