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Corporate Social
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Responsibility in Royal
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Dutch Shell
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Table of Contents
Abstract ...........................................................................................................................................................
1. Introduction .......................................................................................................................................... 4
2. Problem definition ................................................................................................................................ 5
2.1 The Earth facing a quandary ......................................................................................................... 5
2.2 Academic relevance and examples ............................................................................................... 5
2.3 Research questions and objectives ............................................................................................... 5
2.4 Sub-questions................................................................................................................................ 5
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3.1 Corporate Social Responsibility (CSR) ........................................................................................... 6
3.2 The development of CSR ............................................................................................................... 7
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3.3 Royal Dutch Shell .......................................................................................................................... 7
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3.4 Current and recent affairs ............................................................................................................. 7
3.5 Ishikawa diagram .......................................................................................................................... 8
4. gh
Methodology......................................................................................................................................... 9
4.1 Data collection method................................................................................................................. 9
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4.2 Data analysis method.................................................................................................................. 10
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e. CSR and its relevance to the past, current and future success of Shell ...................................... 14
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5. Discussion............................................................................................................................................ 16
6. Summary and conclusion .................................................................................................................... 17
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References .................................................................................................................................................. 18
Bibliography ................................................................................................................................................ 19
Appendices.................................................................................................................................................. 20
B. Information letter ........................................................................................................................... 20
C. Signed consent forms...................................................................................................................... 21
a. Interviewee 1 .............................................................................................................................. 21
b. Interviewee 2 .............................................................................................................................. 22
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
c. Interviewee 3 .............................................................................................................................. 23
d. Interviewee 4 .............................................................................................................................. 24
D. Interview questions ........................................................................................................................ 25
E. Transcripts....................................................................................................................................... 26
a. Interview 1 .................................................................................................................................. 26
b. Interview 2 .................................................................................................................................. 32
c. Interview 3 .................................................................................................................................. 37
d. Interview 4 .................................................................................................................................. 41
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a. Interviewee 1 .............................................................................................................................. 47
b. Interviewee 2 .............................................................................................................................. 49
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c. Interviewee 3 .............................................................................................................................. 50
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d. Interviewee 4 .............................................................................................................................. 52
G. Evaluations ...................................................................................................................................... 54
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Interview 1 .................................................................................................................................. 54
b. Interview 2 .................................................................................................................................. 55
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c. Interview 3 .................................................................................................................................. 56
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d. Interview 4 .................................................................................................................................. 57
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
Abstract
The objective of this paper is to examine how pivotal Corporate Social Responsibility, otherwise known
as CSR, is in regards to the past, current and future success of Royal Dutch Shell. This has been examined
through conducting structured interviews and analysing each participant’s answer to match prevailing
themes as well as comparing their answers to those of others. The participants have been recruited by a
method of snowball sampling. The results of the research evidently reveal that CSR is a key concept in
determining consumer buying behaviour and the sustainability of a company. The employees of Shell
whom have been interviewed show high levels of employee satisfaction and their answers provide
detailed insight that Shell is ethically responsible towards its Western market which includes Western
employees and customers. Consequently, companies like Shell should continually invest in renewable
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large decision-making factor in the longevity of a company.
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Word count: 177
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
1. Introduction
Each year, numerous non-government and non-profit organisations create pitches to corporate bodies,
such as Royal Dutch Shell, to aid projects they account as good for the environment. According to the
Charities Aid Foundation (2015), the number of people worldwide donating money to NGOs increased
from 1.2 billion in 2011 to 1.4 billion in 2014. By 2030, the number is expected to grow to 2.5 billion.
Alongside that, a multitude of people believe that they will receive some sort of benefit in return from
their investments. Many corporate bodies perceive themselves to be corporately and socially
sustainable and thus is remains difficult to judge which companies are and which are not.
Our current globalised world is a complex one where the consumer decision-making process is
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take into account the production processes behind a particular product as well as how a company
behaves towards its customers and the environment. Consequently, companies, such as Shell, are
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exhorted to behave ethically towards its environment and consumers. Nowadays, companies are
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starting to prioritise the concept of Corporate Social Responsibility, or CSR, to improve their overall
success. To hold one particular party accountable for sustainability is tough because there are a myriad
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of parties and individuals involved. The leading party whom is accountable is patently the company
itself, Shell.
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The focus of this paper is on the relevance of CSR and why it is prevailing in today’s world. The objective
is to find how pivotal CSR is in regards to the past, current and future success of Shell. This will be
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examined through conducting structured interviews and analysing the answers of participants for
comparison.
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
2. Problem definition
2.1 The Earth facing a quandary
For the longest time, companies have evaluated their degree of success in terms of profits. This is still a
salient factor when measuring success, however, the issue here is that solely maximising profits does
not give assurance that a company will be sustainable in future. A possible causation of this is the
company’s way of thinking and operating. This issue is a growing concept in today’s world as individuals
have come to realise that a company’s behaviour should also be held accountable in regards to its
sustainability and the world’s future.
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widespread, one of the recent issues being a large oil spill on the 17th of May in 2018 from the Trans-
Ramos Pipeline in Nigeria. In this case, it was a mechanical failure where Shell failed to maintain their
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pipelines. A more recent incident happened in 2019, where Shell is being held responsible for violating
the human rights of Nigerian Shell workers. The apparent cause is that Shell is not giving its workers job
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security or proper healthcare, resulting in an appalling decline in the workers’ standard of living and
general safety. Therefore, it is useful to conduct research into how being responsible affects the
longevity of corporations. gh
2.3 Research questions and objectives
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Central question:
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Why is the concept of Corporate Social Responsibility pivotal to the past, current and future success of
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Research objectives:
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In summary, the principal aim of this study is to gain a richer, in-depth understanding of the relationship
between Corporate Social Responsibility and its influence on Shell with regards to ethical
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responsibilities, resource sustainability and safety. The end result will entail a detailed answer to the
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central question stated above and the sub-questions followed below based on questionnaires. Using the
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results of this study, one can extrapolate the findings to future situations provided that existing trends
will continue.
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2.4 Sub-questions
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The following sub-questions have been created to help answer the central question:
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
3. Literature review
3.1 Corporate Social Responsibility (CSR)
Morals are described by Gert, Bernard and Gert, Joshua (2016) as certain codes of conduct suggested by
a society or group. Concepts such as morals are increasingly becoming more important in the success of
a business nowadays, hence why sustainability is a concern on the rise. Before we can define CSR, one
needs to understand what sustainability is. In its literal sense, a common definition of being ‘sustainable’
means that one needs to meet the needs of the present without compromising the ability of future
generations to meet theirs (United Nations Bruntland Commission, 1987). This means that companies
cannot deteriorate the future of our society by their current actions and behaviour. CSR, or Corporate
Social Responsibility, narrows the concept of sustainability down to a socioenvironmental level.
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impact of your business operation on man, the environment and society.” It is a self-regulating business
model that aids corporate businesses to be socially accountable to itself, its stakeholders and the
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environment. The EU Ecolabel (2019) recently revealed that as of March 2019, 1,575 licences have been
awarded for 72,797 products and services available on the market resulting with an increase of 88%,
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since 2016, of the number of EU Ecolabelled products and services. This shows that sustainability is an
increasingly important factor in the buying behaviour of consumers. Companies that are aware of how
they affect society and the environment are one step closer to being sustainable. Therefore, CSR is
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valuable because it influences the decision-making process of consumers and has an impact on the
relationship between corporations and their employees.
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The concept of CSR can be explained visually using a pyramid (Carroll, 1991). In this pyramid, Carroll
identifies four key components:
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
At the lowest end, economic responsibilities are illustrated where being profitable is the fundamental
basis of any business. This leads the way to legal responsibilities where corporations need to obey
certain laws in order to conform to society. From then on, ethical responsibilities come into the picture
as to what is expected by society. That is not to harm individuals, or the environment, in order to remain
sustainable. Being ethical is not a black-on-white rule unlike being legal, hence why this section of the
pyramid is referred to as ‘expected’ by society and not ‘required.’ The final level delineates philanthropic
responsibilities which entails corporate citizenship. Again, this is what is ‘expected’ of society and not
‘required’ because there are no definite rules that indicate corporate citizenship is mandatory.
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Society began to acknowledge that human rights, and the ecosystems that fuel the planet, are vital in
the future of mankind and the Earth. It was not until the 1990s that CSR shifted from being a voluntary
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concept to a key factor of success. Businesses began to realise that they need a healthy, educated
workforce alongside sustainable resources to compete effectively in their market. It is now known that
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organisations’ responsibilities surpass the sole maximisation of profit; they need to include the
wellbeing of their company, as well as customers, in order to become successful. Society relies on the
economy which in turn relies on the world’s resources. gh
3.3 Royal Dutch Shell
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Shell was formed in 1907 and now operates in over 70 countries worldwide. They employ just over
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82,000 people and produce 3.7 million barrels of oil a day. It is a global energy company which focuses
on the exploration, production, refining and marketing of oil, natural gas and chemicals. Their purpose is
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to provide more and cleaner energy solutions to our world. Their headquarters are located in The
Hague, the Netherlands, and their Chief Executive Officer is Ben van Beurden. Their strategy includes
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increasing shareholder returns, responding to society’s need for convenient energy and providing a
positive contribution to society’s activities.
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Oil spills into the Nigerian Delta is unfortunately not new news. A recent incident occurred in 2018
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where yet again one of Shell’s pipelines, the Trans-Ramos Pipeline, caused spillage due to a mechanical
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failure. It was a huge dilemma, “The impact of the ecological devastation from this oil spill on the
community, its citizens, and our way of life is tremendous. This tranquil community of fisherman,
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farmers and people who, for centuries, have relied upon our natural resources for life-sustaining
purposes will be changed forever,” stated Dr. Odubo (2018). The spillage caused a detrimental impact
on the Nigerian ecosystem; they heavily rely on the productivity of mangrove forests for food and clean
water. Members of the Nigerian House suggested that Shell should have given medical provisions and
alternative water supplies (Agbedi, 2018). This incident demonstrates that Shell is not communicating
their CSR efficiently because it has left many communities in Nigeria in a burden.
Furthermore, in 2019, claims were made against Shell about violating the rights of Nigerian contract
workers. Workers have filed complaints saying that they are not paid on time alongside little to no
healthcare provisions. Again, this insinuates that Shell may not be living up to their ‘fair’ standards and
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
thus CSR is not demonstrated, specifically on Nigerian grounds. The verdict in Nigeria continues with
Shell denying involvement in the execution of activists such as Ken Saro-Wiwa in 1995.
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
4. Methodology
4.1 Data collection method
In order to research further into this complex topic, interviews will be conducted. The chosen method of
interviewing will be a structured one to ensure that each interview is conducted in the exact same way
which consequently leads to a good opportunity for fair comparison when analysing each individual’s
answers. Trends can easily be observed because all interviewees answer the same set of questions. A
structured interview leads to lesser interviewer bias because the exact wording of the questions are pre-
determined. This in turn makes the methodology more consistent. The execution of the interview will
therefore also be quicker because there is no room for improvisation. Moreover, structured interviews
allow for easy repetition in future to check the reliability of the data.
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readily available. The participants found may be asked to recruit other current, or ex, Shell employees
whom they know or know of. Initially, the participants will be found by word-of-mouth as well as
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contacting Shell itself. Snowball sampling allows this research to be conducted because otherwise the
research may lack participants. The sampling criteria for participants is that they are current or ex
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workers of the company Shell within the last fifteen years.
The topics that will be analysed, or the main themes, are employee satisfaction, ethical responsibility,
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resource sustainability and safety. These four themes are the prime basis that will proved answers for
the research and sub-questions. Through summarising answers and matching them with their
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corresponding themes, a transparent comparison can be made. Employee satisfaction is a salient theme
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in regards to CSR because this theme will provide relevant answers into how satisfied employees are
with the company. If employees are satisfied, the CSR of Shell increases. Ethical responsibility is another
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key theme because if Shell behaves ethically, they consequently also act socially responsible. A good
society leads to a good environment. However, a good environment does not mean a good ecosystem
which is why resource sustainability is the third key theme which will be examined. If Shell uses the
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world’s resources sustainably, it is only then that the ecosystem can be marked as ‘good’ as well. Lastly,
the theme safety is separately discussed although it goes hand-in-hand with ethics. It was a chosen
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theme because Shell works primarily with oil and gas which are hazardous compounds.
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23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
Table of topics and summarized answers (see appendix H for full color-coded table)
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mentioned that is Sea
entitled the women’s
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mentoring network
which promotes the
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ability of women in the
organisation to find
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their way in what can
be a complex
organisation gh
Employees feel like There are designated Shell invests in solar If underwater
they are involved in independent people power engineers identify a
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something important that employees can hazardous situation,
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executives to talk to
Shell provides a ‘Honesty, integrity and They focus on liquified Shell has their own
supportive, collegiate respect for all people’ natural gas which is process of approval; if
environment is deeply in the ethos cleaner than oil employees are not
of the company approved by Shell,
regardless of their
certificates and
diplomas, the job
cannot commence
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
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other people and gives them customers make more
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job opportunities sustainable choice
Colleagues’ attitudes Shell has breached They have introduced
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may not always be in personal privacy on hydrogen into fuelling
line with one another one occasion by
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releasing the
November actuals
document before their
harming the
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
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interviewee three states that a part of CSR is “being able to have a say in the company about the
running of the projects and that everybody listens to everybody.”
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b. Employee satisfaction
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Employee satisfaction is key to CSR because this consequently leads to a happy corporate environment.
The first three interviewees are highly satisfied with their occupations and environments. They describe
their jobs to be intellectually stimulating, congruent with their personal values, professional and reliable.
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The first three participants also felt that they were treated honestly and respectfully. In particular,
interviewee three shares that the Shell representatives he works with communicate very well and listen
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to the needs of employees. Interviewee four shares the opposite where the attitude of colleagues were
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not always in line with one another. This suggests that Shell may need to assemble teams in a more
careful manner to ensure that live up to their supportive, collegiate environment.
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for their employees and customers. Interviewee three shares a lot about how Shell handles their safety
and states that Shell is “always taking safety into high regard.” This contrasts the findings in the
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literature review where claims were made against Shell for not giving their Nigerian workers adequate
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healthcare systems. Moreover, the participant continues to share that Shell listens to their employees
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when their employees identify hazardous situations. Employees such as underwater engineers, and
commercial divers working for Shell, are allowed to stop any operation at any given time if they feel that
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it is too dangerous, regardless of their rank and position. He shares that Shell never pushes him to do a
particular job and that Shell allows their employees to rewrite their project plans if need be. These are
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Furthermore, the first participant shares that Shell has multiple mentorship programs; there is a
women’s mentoring network that promotes the ability of women in the organisation. There are also
designated independent people in the organisation that employees can talk to; an independent whistle-
blowing route. Ethical breaches are also seriously dealt with and publicised in annual sustainability
reports. There are also specific programs which address ethical issues, these are mandatory for
employees. However, the fourth participant shared that Shell breached personal privacy. A document
entailing November actuals was unrightfully released with the participant’s ‘leaving package.’ The
participant was fired because of a redundancy scheme in an attempt to cut costs due to low oil prices.
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
d. Resource sustainability
Resource sustainability is salient in CSR because it shows that a company holds itself accountable for the
impact on its ecosystem. Shell invests in windmills, specifically in parts of the North Sea, as well as solar
power and electrically-driven cars. They have bought a ‘fast-net’ in The Netherlands, as stated by
interviewee two, and have put emphasis on liquified gas which is cleaner than oil. They also have
specific sectors that concentrate on renewable energy and sectors that concentrate on the
environmental impact. Shell also tries to help their customers make sustainable choices.
e. CSR and its relevance to the past, current and future success of Shell
From the research findings, it is evident that Shell makes major attempts to be sustainable and
responsible in regards to its society, environment and ecosystem. In the past, Shell has invested in
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resources more sustainably. Here in the present, Shell is also listening to employees by giving them a say
in Shell’s operations and also providing forms of counselling through mentorship programs. In future,
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Shell needs to continue to carry through these attitudes to increase longevity of the company.
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
Overall, the research is reliable. The interviews were free of random errors; there was no nervousness or
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them. In order to mitigate measures for reliability, all interviews were conducted in quiet spaces which
eliminated any external interruptions such as background noise and distractions. Lastly, in order to
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eliminate technical issues, two recording devices were used in case one failed. Neither of the devices
failed so every interview has two clear recordings of the interview.
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On the contrary, the validity of the research is adequate but not perfect. Since humans themselves are
the instruments to qualitative research, it is impossible to avoid bias. The interviewer themselves
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sampled their participants through snowballing and this in turn led to the interviewer using their own
network. However, the participants met the criteria for the research. Out of four participants, it was
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only one participant that the interviewer personally knew themselves. However, the interview remained
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professional. The interview questions were not particularly leading but they did not allow for
participants to add extra information due to its structured nature. This may mean that participants
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might have had more to say than they did in reality. Lastly, personal interest leads interpretation of the
participants’ data. The interviewee had to categorise answers into themes and omit several words or
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phrases. This means that what a participant themselves deem an ‘important’ answer may not always be
in line with what the interviewer deems an ‘important’ answer.
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
5. Discussion
The purpose of this study is to gain a richer, in-depth understanding of the relationship between
Corporate Social Responsibility and its influence on Shell with regards to ethical responsibilities,
resource sustainability and safety.
The framework developed in the literature review is relevant because in order to do research into the
concept of CSR, one needs to know how to define it. According to the Netherlands Enterprise Agency
(n.d.), CSR is defined as “taking responsibility for the impact of your business operation on man, the
environment and society,” which is just one definition of CSR. Furthermore, this is supported and
complemented by the research findings where interviewee one refers to CSR as “acting in support of
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framework provides a solid basis into understanding the fundamental principles of the research. In
future, the same framework approach should be taken.
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The data collection method was appropriate for the research in the sense that it would have been a
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challenge to sample participants in a way other than snowball sampling as the participants are not
readily available. This, alongside the chosen method of interview, method should be done in future as
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well because structured interviews allowed for a transparent comparison between all the participant’s
answers. However, in future it may be useful to conduct an even bigger study with an unstructured
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interview because it would allow participants share more information if they wish to which may be
relevant to the research.
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From the literature review one can deduct that the impact of the ecological devastation from Nigerian
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oil spills leads to a poor ecosystem and a hazardous environment for citizens. Participant two dealt that
Shell often compensates for the damage they deal to the environment and its people. Therefore, it is
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suggested that when adversities such as oil spills occur, Shell should continue to compensate for such
adversities through providing adequate healthcare and watering facilities. This in turn will improve the
CSR of Shell because even though they are negatively impacting their environment, they are behaving
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
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employees. In regards to safety, it is evident that Shell sets high standards. From the research one can
see that employees have a say in the company’s projects. For the most part, these examples all
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insinuate that Shell is ethically responsible for their Western employees.
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In terms of the environmental impact, it will always remain hard to be sustainable especially as an oil
and gas company. Shell evidently invests in windmills, solar energy and liquified gas which shows their
interest in renewables. They have special designated sectors that concentrate on renewables as well as
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their environmental impact. They also help their customers make sustainable choices which in turn
educates their clients to be more sustainable as well. However, it is hard to avoid environmental impacts
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in its entirety because occurrences like Nigerian oil spills will always be hard to prevent when Shell is
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constantly trying to meet their supply and demand. If Shell were to be perfectly sustainable, their
operations would have to be perfect and that is an extremely hard concept in itself.
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Overall, Shell acts corporately and socially responsible, specifically in the Western world with regards to
this research. In future, it is important that Shell continues to undertake actions to be sustainable
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ethically as well as resourcefully because this impacts consumer buying behaviour. People are
increasingly becoming more aware and interested how Shell produces its energy and whether it is
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sustainable or not. Therefore, Shell needs to continue to invest in renewables in order to keep a content
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clientele. This in turn will ensure its ongoing profits are maintained. However, Shell may need to invest
more in their projects abroad to ensure that not only the Western world is treated fairly but also the
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Eastern world. Education programs for Shell employees working abroad may need to be emphasised
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because working alongside foreigners is not as easy as it appears on paper. Giving Nigerian workers the
same rights as Western workers may be food for thought.
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Nicolette Lunsingh Tonckens
23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
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23th of October 2019
Corporate Social Responsibility in Royal Dutch Shell
Rotterdam University of Applied Sciences
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