Management & Excellence
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Thursday, February 17, 2005
Shell is the world's most ethicaloil company, followed by ExxonMobil and BP, according to a study by the ethicsmanagement rating firm Management & Excellence (M&E) in Madrid. Despite thecontroversy over the misstatement of oil reserves and the reshuffle ofexecutives at Shell, the company excelled in many of the 120 points examinedin the M&E study.
Shell decreased the oil it spilled to 6,100 tons in 2004, down from18,700 in 1999, increased women in supervisory or professional positions from17.1% (2000) to 19.5% (2003), reduced fatalities among employees andcontractors, and pledged $5 million to Tsunami victims 3 days after thedisaster. Chartered accountant organizations in the UK and Holland recognizeShell's sustainability report as among the best.
Ranking by Total Ethical Performance Position Company % 1 Royal Dutch Shell 82% 2 ExxonMobil 80% 3 BP 79% 4 Total 75% Repsol 75% 6 ChevronTexaco 69% 7 Petrobras 53% 8 Pemex 36% 9 Lukoil 35% 10 PDVSA 13%
Surprisingly ExxonMobil and ChevronTexaco were the most sociallyresponsible firms: ExxonMobil spent $48 million to train 31,000 employees in500 programs while ChevronTexaco publishes its business principles in11 languages and even appoints a "President for Health and Safety." BP andExxonMobil had the strongest environmental programs. BP is certifying 85 outof its 86 major operations according to ISO 14001, the environmentalcertification. ExxonMobil spent $2.5 billion on environmental projects in2004. Repsol and BP did best in corporate governance: The Spanish companyRepsol's Board is overseen by seven committees, including committees fordisclosure, reputation and safety, and it has a policy to rotate itsaccountants every five years.
Brazil's Petrobras, known in the past for its regular spillages, invested$1.9 billion in environmental projects over the last five years in environmentand modernization projects. It now ranks highest among the three LatinAmerican oil firms tested in the M&E study. It meets Bovespa level 2standards, certified all of its plants, and reduced fatalities to 19 throughtraining and quality control programs. Petrobras' "Zero Hunger" program turnsgas stations into schools in training young people.
The M&E study named "Ethics in the Oil Industry 2005" examines roughly120 points of each of the ten companies' ethics, CSR, transparency,environment and corporate governance and is for sale from M&E.
FAQs
Shell is the world's most ethical oil company, followed by ExxonMobil and BP, according to a study by the ethics management rating firm Management & Excellence (M&E) in Madrid.
What are the ethical issues with Shell? ›
According to Amnesty International, Shell was involved in numerous murders, tortures and rapes that were carried out by paramilitary organizations in Nigeria in the 1990s. Shell's executives were probably aware of these atrocities.
What is the most eco friendly gas company? ›
Petrobras is the world's most sustainable oil/gas company according to the fifth annual oil/gas ranking by the sustainability research and rating firm Management & Excellence (M&E, Madrid & Sao Paulo).
What is the Royal Dutch Shell controversy? ›
An advocacy group is accusing the oil giant Royal Dutch Shell of misleading investors by classifying its investments in natural gas as spending on renewable energy.
Who controls Shell oil? ›
Shell Oil Company (SOC), major U.S. oil company that is the principal American subsidiary of Royal Dutch Shell PLC, a giant oil company headquartered in The Hague, Netherlands.
How is Shell ethical? ›
Our Values. At Shell, we share a set of core values – honesty, integrity and respect for people – which underpin all the work we do. The Shell General Business Principles, Code of Conduct, and Ethics and Compliance Manual help everyone at Shell act in line with these values and comply with relevant laws and regulations ...
What are the negative effects of Shell? ›
Shell has known that drilling for oil and gas causes climate change for decades and is among just 100 fossil fuel producers responsible for 71% of the harmful greenhouse gas emissions causing global warming since 1988.
Which oil company is the most ethical? ›
Shell is the world's most ethical oil company, followed by ExxonMobil and BP, according to a study by the ethics management rating firm Management & Excellence (M&E) in Madrid.
Which gas company is the least evil? ›
1) ConocoPhillips
And finally, the best/least evil company on our list is ConocoPhillips. The American oil company is number one on our list purely because their scandals aren't as serious nor are they as frequent. In 2003, Green Alternative sued them for collusion with the Georgian government.
Which is the greenest oil company? ›
A 2020 Morningstar report cited Total, Shell, Equinor, and Repsol as leaders in protecting the environment through research, development, and the creation of green energy.
“Shell's so-called renewable and energy solutions category is pure fiction,” says Zorka Milin, senior advisor at Global Witness. “Overstating investments in renewables and misleading the public is pure greenwashing.
Why is Shell no longer Dutch? ›
Oil and gas major Shell has officially changed its name to Shell plc, after deciding to simplify its share structure, move the headquarters from the Netherlands to the UK and, as a result, remove the Royal Dutch designation from its name.
Is Shell owned by Dutch government? ›
The “Shell” Transport and Trading Company, a U.K.-registered company, has a 40% interest in the group, and the remaining 60% is owned by the Royal Dutch Petroleum Company, a Netherlands company. Collectively, the group is involved in oil and gas exploration, production, refining, transportation, and marketing.
Is it ethical to collect shells? ›
Leave living seashells on the shore
Leal and Kowalewski agree that beachcombers should never collect shells with a living organism still in them. In many areas, including Florida, collecting shells occupied by living organisms is illegal.
What are common ethical issues? ›
What are the most common ethical issues? The most commonly experienced ethical issues include discrimination, harassment, unethical accounting, technological abuse, data privacy, health and safety, and favoritism and nepotism. Most of these concerns are experienced in workplaces.
Why has Shell become the subject of criticism and controversy? ›
Shell is at the core of the issue and criticism because it was the largest and most visible foreign oil corporation operating in Nigeria during those years. As a result, Shell has been singled out as the primary target of the controversy and criticism.
What are the 12 ethical issues? ›
Business ethics is an evolving topic. Generally, there are about 12 ethical principles: honesty, fairness, leadership, integrity, compassion, respect, responsibility, loyalty, law-abiding, transparency, and environmental concerns.
