Corporate Social Responsibilities

Group 9

Team Members:

Oliver Nolan

Akanksha

Huang Mei

Boran Yu

Osama Al Hajji

Outline

• Statoil Overview

• Stakeholders

• Responsibility

• Compliance

• Partnership

• Reporting

• Strategies

• Conclusion

CEO’s Statement

“Our ambition is to be the industry leader in HSE. We must therefore improve in this area, and HSE must be the first priority in everything we do. Should a conflict arise, safety must always take precedence over production.”

President and CEO Helge Lund

Statoil Overview• Energy company operate in 36 countries with more than 23,000employees

• Operates in the oil and gas industry

• One of the world’s largest sellers of crude oil

• The world's largest operator in waters deeper than 100 metres

• World leader in carbon storage

• The second largest exporter of gas to Europe

http://www.youtube.com/watch?v=g_CTheXeCmg

Stakeholders

Main Responsibilities Economics responsibilities;

Environmental responsibilities;

Responsibilities to the local community;

Governance responsibilities- preventing corruption;

Responsibilities for the supply chain;

Product safety and quality;

Endorsement or support of particular causes;

Responsibilities to employees and human rights;

Mind MAP Of Responsibilities

Environmental responsibilities

Responsibilities to the local community

Governance

Using advantage technology to capture Carbon and store it for reducing CO2 emissions.

Statoil has become a world-leader in this technology's development and application.

Contributing to the development of the local educational system.

Providing universities with necessary equipment, literature and materials for efficient academic activity.

In 2004, in order to get secure contracts in Iran, Statoil was found guilty of bribery and fined $2.9 million.

Compliance

• Importance in the business

• Human rights and Labor standards

a) Tie-up with International Labor standards 1998 and International Bill of Human Rights

b) Efforts for fairness with them (good wages, working hours, environment)

c) Purpose of making rules and follow the standards

d) Reduce the possibility of disputes between employer and employee

e) Under age workforce

Compliance

• Ethics, Anti-corruption (Code of Conduct)

a) Responsibilities and obligations on employees

b) Norway Penal Code of Corruption (Section 276a, b, c) includes bribery and unhealthy business activity

c) US Foreign Corrupt Practice Act (FCPA) 1977 (causes and punishment)

• Environment and Climate

a) International Association of Oil and Gas production

b) Kyoto protocol for CO2 emission

Bellona Case against Statoil for polluting water in Norway

PartnershipStatoil maintain a strong relationship with governments from all over the world. Including countries in Asia ,Europe, U.S the Caspian region and northern Africa, as well as Russia.

Statoil also works with the company from the same industry including : ExxonMobil, Shell, Atlantic Petroleum ,BP and Sonatrach, etc.

Statoil has energy operations in 36 countries . More than 800 employee in managing the supply chain across 20 countries.

Company have kept the formal partnership with more than 20 organizations . Including Bellona , NGOS.

Government Industry Group

Supply Chain

Other Partners

Statoil

Partnership-unpleasant events

• Hugo Chavez government in the Venezuela

The election of Hugo Chavez in the Venezuela in 2006, following a strike and abortive coup. Putting on increasing pressure against the western oil companies , including Statoil. Statoil and other western firms close the position in the latest preliminary contract round for the Orinoco area.

• Bellona( NGO) formally oppose Statoil activity

In Oct, 2013, Bellona filed a police report against Statoil in leaking 3,428 tons of hazardous chemicals and oil based drilling fluids over six years at the Njord site, Norway .

Reporting

Reporting Standard

• Global Compact, Global reporting initiative , Explicit support to the ILO Conventions• BLIHR,WBCSD, Kompakt (Norway), transparency International

Reporting Content

• Economical and social impact, human right and integrity, low carbon technology, oil sand, Arctic operations, shale gas and tight oil

• Operation in the country with weak governance, technology and innovation.

Target Group ,current status, improvement suggestion

• Stakeholders , customer , employee, Norway government• The Canada Sand Oil , mentioned in 2006 annual report, did not mention• Air quality and water quality decreased over the years, increasing cancer rates • The Corrib project , was disappeared in Statoil annual report after 5 landowners was in

jail for 94 days in 2005 • We could suggest that company take more consideration related to the environmental and

human right, business ethnical, health impact of the projects and enhance the transparency of the reports.

• A CSR/sustainability report to be provided to stakeholders on regular basis .• All worldwide divisions need to produce individual reports.

Strategy

Transparency/Anti-corruption;

Reporting honestly and timely;

Need to do more communication with local people.

Overall

5. Transforming

4. Integrated

3. Innovative

2. Engaged

1. Elementary

Citizenship ConceptStage 5: Transforming (Change the game)

Strategic IntentStage 3: Innovative (Create the business case)

LeadershipStage 3 : Innovative (Steward on top of it)

StructureStage 3: Innovative (Cross-Functional)

Issues ManagementStage 2 : Engaged (Reactive Policy driven)

Stakeholders RelationshipStage 4: Integrated (Partnerships, alliances)

TransparencyStage 2: Engaged (Public relations)

Thank You