QUESTION
Sustainability
Choose a Middle Eastern company that you can easily research. Write a 4-5 page analysis, not
including the cover and reference pages, of this company with regards to its corporate
commitment to sustainability. Review available public documents relative to the organization’s
corporate mission statement, standards and codes of conduct, and the impact of government
regulations on the company’s ability to exhibit its commitment to sustainability.
Your required readings this week provide insight which will aid you in your analysis. Make sure
to cite and reference any information gleaned from those documents. Additionally, include two
current and scholarly sources beyond the course materials and readings to support your
analysis. Current sources are those published in the most recent five years. Scholarly sources
come from peer-reviewed journals.
Use Saudi Electronic University academic writing standards and APA style guidelines, citing
references as appropriate
ANSWER
Table of Contents
SUSTAINABILITY ANALYSIS
Introduction
The corporate mission statement of Saudi Aramco
Codes of conduct and standards
Impact of government regulation on Saudi Aramco to exhibit their commitment to sustainability
Conclusion
References
Introduction
Sustainable analysis of the company is an important concept in proposing proper business strategies. It is identified by the leaders that the sustainable approach of the business is beneficial in the making long term profit. It is important for the company to improve their infrastructure for the systematic approach of the business. It is vital for the business to make sure that they follow the standard codes of conducts in the execution of the business and do not adapt inconvenient means to maximise their profit in the operating market. The motive of the business to make a profit while competing to the other business in the market loses the concept of sustainability and effects of the business to the culture. The role of the government is very effective in making proper rules and regulations by avoiding the companies to follow and include legislation in order to maintain sustainability. This assignment will focus on the sustainable analysis of the company Saudi Aramco which is oil based company. It also includes the code of conducts and the regulation of the government on the company.
The corporate mission statement of Saudi Aramco
The use the effective and goal oriented motives are very useful for the company in achieving their desirable aims (Atalay, Biermann & Kalfagianni, 2016). The Saudi Aramco aims to maximise their profit within the year 2020. They aim to spread their business in the UK and increase their profit level. As stated by RafieiSakhaei (2016), the facilitation of the sustainability and diversification of the business will help the business to operate at a global level and will be helpful in vibrating the energy sector of Saudi. The company aims to meet the local as well as global demand of the energy by the sustainable approach of the business. The missions are effective in meeting the cultural sustainability and are helpful to the business in the long run (saudiaramco.com, 2019).
Codes of conduct and standards
The company ensures that the proper code of conduct is maintained. As opined by Galpin, Whitttington & Bell (2015), the business maintains their ethics and is helpful in the maintenance of the proper business culture with the proper application of the guidelines, codes and policies. The employees of the company are bound to follow the rules set by the company for the effective execution of the business (Anifowose & Odubela, 2015).
The compliance programme of the business is shaped with the help of the set codes. Different codes are maintained with the consultancy, suppliers, contractors, affiliates as well as the joint ventures.
The support, monitoring and development are done by the department of the corporate complaints of the company. The external legal policies are followed in the case of regulatory developments (Sherif, Shalaby & Altan, 2016).
The policies related to the business ethics and conflict in the interest needs a proper review of the employees. This is helpful in ensuring that the company is reviewing the policies related to ethics in an organised manner (Gaisina et al.2017).
The Hotline provides security to the employees about their venue whether outside or inside the company. As stated by Porter, Gallagher & Lawong (2016), the report related to fraud, irregularity, unethical conduct is against the company’s rules and codes. The employees of the company hold a high level of code of conducts and want their suppliers to follow the same. The healthy practice of the business with fair trade practices is important. The conflict of interest, bribery, frauds is some aspects of this code.
Code of Conduct of the Suppliers is essential for the business to maintain necessary policies for the suppliers of Aramco is cooperative and is helpful in promoting the extends and values of maintaining the standard of ethics by the suppliers and is helpful for the business to make a profit in the long run (saudiaramco.com, 2019).
The effective running of the business of the Saudi Aramco is possible only by the proper execution and maintenance of a code of conducts of the company. The employees as well as the suppliers of the Saudi Aramco follow the code of conduct properly and is able to execute the business with proper ethics.
Impact of government regulation on Saudi Aramco to exhibit their commitment to sustainability
The government of Saudi Arabia has incorporated numerous laws for the effective execution of the corporate business without hampering the ethos and culture. The rules implemented by the government abide the company operating in the country to follow the rules and operate their business according to the set code. As mentioned by Unruh et al. (2016), these regulations restrict the business to operate within a proper decorum without harming the beliefs of some other business. The business found not following the government regulations are subjected to punishment. The general Environmental regulation aims to protect the environment of Saudi Arabia from the company affecting the environment in the process of operating business. Article 3(2) includes that business needs to maintain the safety of the environment which operating their business in order to maximise their profit in the market (Saudi.gov.sa, 2019). Article 5 consists of the criteria in which the company needs to have a proper license from the government in order to operate their business smoothly without any restriction. The government makes sure that the business of the company is safe and is ethical. The Article six consist of the fact that the company starting a new business or modifying the existing business needs to aware the government about their intention before making any change to the existing business of the company (Saudi.gov.sa, 2019).
Article eight of the General environmental regulation states that the business needs to use the resource sustainability. The rational use of the natural resource is essential of the sustainable analysis of the business. The proper corporate and coordination with that of the Competent Agency are helpful in maintaining the developing the ecosystem. Article ten of the Law ensures that the aspect of the environment is kept in the consideration while making development objectives for the business. According to Article thirteen of the law, all the business engaged in the production is responsible for the protection of the environment. The National Ambient Water Quality Standard of 2012 makes sure that the water is not polluted in the process of transportation of the petroleum which is very harmful to the environment as well as to the marine ecosystem (Saudi.gov.sa, 2019).
Conclusion
Hence, it can be concluded that the business operating in the Saudi needs proper approach to sustainable analysis. The use of the standard code of conducts shall be beneficial for effective running of the business. The company needs to follow the business ethics and must not adopt any wrong means to make a profit. The rules and regulations of the government are helpful in maintaining the sustainable approach of the business. The company needs to get a proper license from the government before starting their business in the market. Any change in the existing business, as well as the increase in the dimension of the business, needs proper concern of the government. The smooth running of the business in Saudi Arabia is only possible by the effective rulemaking by the government. The business also makes their own codes with their employees, partners as well as the suppliers to run their business in a systematic manner without adaptation of any inconvenient means.
References
Atalay, Y., Biermann, F., & Kalfagianni, A. (2016). Adoption of renewable energy technologies in oil-rich countries: Explaining policy variation in the Gulf Cooperation Council states. Renewable Energy, 85, 206-214. Retrieved on 12.1.19. Retrieved from: http://www.academia.edu/download/38037450/1-s2.0-S0960148115300689-main.pdf
Anifowose, B., & Odubela, M. (2015). Methane emissions from oil and gas transport facilities–exploring innovative ways to mitigate environmental consequences. Journal of Cleaner Production, 92, 121-133. Retrieved on 12.1.19. Retrieved from: https://core.ac.uk/download/pdf/30620108.pdf
Galpin, T., Whitttington, J. L., & Bell, G. (2015). Is your sustainability strategy sustainable? Creating a culture of sustainability. Corporate Governance, 15(1), 1-17. Retrieved on 12.1.19. Retrieved from: https://www.emeraldinsight.com/doi/abs/10.1108/CG-01-2013-0004
saudiaramco.com (2019), Saudi Aramco. Retrieved on 12.1.19. Retrieved from: https://www.saudiaramco.com
Porter, T. H., Gallagher, V. C., & Lawong, D. (2016). The greening of organizational culture: revisited fifteen years later. American Journal of Business, 31(4), 206-226. Retrieved on 12.1.19. Retrieved from: https://www.researchgate.net/profile/Tracy_Porter2/publication/311243995_The_greening_of_organizational_culture_revisited_fifteen_years_later/links/5a68bfde4585151ee4d9c1f8/The-greening-of-organizational-culture-revisited-fifteen-years-later.pdf
Unruh, G., Kiron, D., Kruschwitz, N., Reeves, M., Rubel, H., & Zum Felde, A. M. (2016). Investing for a sustainable future: Investors care more about sustainability than many executives believe. MIT Sloan Management Review, 57(4). Retrieved on 12.1.19. Retrieved from: http://www.truevaluemetrics.org/DBpdfs/ImpactInvesting/MITSMR-BCG-Investing-for-a-Sustainable-Future-2016.pdf
RafieiSakhaei, M., Barazandeh, B., Moosavi, A., Fekri, M., & Bastani, K. (2016). Supply and demand dynamics of the oil market: A system dynamics approach. In The 34th International Conference of the System Dynamics Society. Retrieved on 12.1.19. Retrieved from: https://www.researchgate.net/profile/Mohammadhussein_Rafieisakhaei/publication/310770450_Supply_and_Demand_Dynamics_of_the_Oil_Market_A_System_Dynamics_Approach/links/5836600808ae503ddbb39766.pdf
saudiaramco.com (2019), Annual report. Retrieved on 12.1.19 Retrieved from https://www.saudiaramco.com/-/media/images/annual-review-2017/pdfs/en/2017-annualreview-full-en.pdf
Sherif, A., Shalaby, H. M., & Altan, H. (2016). Towards the Second Sustainable City in the Middle East: Retransforming Ras El Khaimah Coastal City with the Estidama First Model of the Abu Dhabi Master Plan 2030. International Journal of Environment and Sustainability, 5(2). Retrieved on 12.1.19. Retrieved from: https://www.sciencetarget.com/Journal/index.php/IJES/article/viewFile/671/191
Gaisina, L. M., Belonozhko, M. L., Maier, V. V., Abdrakhmanov, N. K., & Sultanova, E. A. (2017). Deliberate reorganization of the system of social relations in oil and gas companies in the period of changes in economics. Espacios, 38(48), 12-12. Retrieved on 12.1.19. Retrieved from: https://www.sciencetarget.com/Journal/index.php/IJES/article/viewFile/671/191
Saudi.gov.sa (2019) Environmental Protection in the Kingdom of Saudi Arabia Retrieved on 12.1.19. Retrieved from: https://www.saudi.gov.sa/wps/portal/snp/pages/environmentalProtection
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