SUSTAINABLE ENTERPRISE SUSTAINABILITY MONITORING SYSTEM

SUSTAINABLE ENTERPRISE SUSTAINABILITY MONITORING SYSTEM entrancewayThis risingspaper describes ab come out a supervise transcription that monitors the sustainability of a ancestry. It is in truth burning(prenominal) for exclusively business concernes to touchstone their sustainability periodically from the people, major pla sack and service view to make the business trading operations much effective. Business monitoring system does the job of doctors where they use the medical monitoring systems to diagnose problems that cause preventative to the sustainability of patients. The difference is that medical monitoring system monitors the health of patients art object business monitoring system monitors the operations of a business bodily process. Proper monitoring of business bottomland suffice to cast down risk by make proper decisions at proper time. Every business get out piss certain obligations to the people associated with it and alike towards the nature. T he scotch aspect is in like manner every bit important. The ternion crapper line or the 3 pillars people/ kindly, planet/environmental and hit/economic are briefly discussed in the report.The paper in like manner identifies and discusses the sustainability indicators of the leading brawniness and petrochemical association, the royal Dutch mash.DimensionsPeople, Planet and profit also called as the triple roll in the hay line captures the essence of sustainability by measuring the impact of an organisations activities on the world. Variation in troupes profitability and character holders value and its social, human and environmental capital is reflected by the triple bottom line (Savitz, A.W Weber, K, 2006). there is no universally accepted definition for triple bottom line but a positive triple bottom line indicates that the business ope commits in an effective manner. The introduce shows the symmetrys as trinity spheres of sustainability.PeopleThe social impac ts of the company are easier to measure when compared to the economic and environmental. Employee satisfaction, their health and safety, impacts on local comm social unity and consumers are the main factors to be monitored to encounter the social sustainability. The spherical Reporting Initiative (GRI) identifies four core social performance indicators. They areLabour Practices Employment, Health and Safety, trouble relations, kind, Training Education. tender Rights Freedom of association, strategy and management, non-discrimination, collective bargaining.Safety Community, Bribery corruption, political contributions. harvest-festival responsibility Products services, Customer health safety, Respect for privacy.It is a challenge for all the organisations to be socially accountable even though the customers expect the businesses to be so. Polls conducted on corporate social responsibility found 45% of 25,000 respondents believing that higher ethical standards should be quite a little by the companies and olibanum assist to build a better parliamentary law. 40% of them even opined to penalise the companies which are not socially responsible (Miller, E, 2010).ProfitThe economic attribute of sustainability concerns about the impact of the organisation on its stake holders economic circumstances. This dimension directiones on improving the economic post of stake holders rather than the financial status of the company itself. The financial indicators are considered to be the sub set of economic indicators as it focuses primarily on the profitability of the organisation for communicate the stake holders and management (Slater, A, 2004). The economic performance indicators identified by the GRI areSales, Profit, Return on investment fundsTax paidMonetary flowsJobs createdThe economic indicators identified by the GRI divides the stake holders in to five major groups and figure the economic impact on them. The groups and the major factors that indicate th eir economic status are as followsCustomers The monetary flow is indicated by the net gross sales and geographic break down of market places.Suppliers The monetary flow is indicated by the follow of all goods, materials and services purchased.Employees add up payroll and benefits that include wages, pension, redundancy compensation etc indicates the monetary flow.Providers of capital Increase or decrease of the retained sugar at the end of the period indicates the monetary flow.Public sector Total sum of taxes and the factors such as donations to community, civil societies etc are the indicators.PlanetThe bionomical sustainability focuses more on meeting the needs of present generation without bear on the possibilities of future generation to meet their needs (Inge de Groot, 2001). It is important for all the organisations to s jacket special care for nature by preventing the hazards ca utilise to all living organisms by its activities. Companies should integrate the care for environment in to its business. This dimension considers the impact of companys activity on the environment. The environmental performance indicators considered by the GRI areMaterials Volume of materials used and the percentage of recycled materialsEnergy Direct and indirect energy consumption by the primary energy source, energy saved due to conservation, steps taken to reduce energy requirement by promoting re new-sprung(prenominal)able energy ground products and also the steps taken to reduce indirect energy consumption. weewee Total pee withdrawal and the percentage of volume of pee recycled and reused.Biodiversity surface and location of land possess near the protected areas of high biodiversity, Strategies for managing impacts on biodiversity etc.Emissions, Effluents and waste Direct and indirect green house grease-gun waivers and the initiatives to reduce it, emissions of ozone depleting substances, total volume of spills.Transport The environmental impacts of t ransporting goods and materials used for the organisations operations and transporting the members of workplace.Company DescriptionRoyal Dutch lecture is an energy and petrochemical company operating globally which has its headquarter at Hague, The Netherlands. It is currently the global leader in inunct and gas industry and also seeks to reinforce its position in evidence to provide a competitive return to their overlap holders while helping to meet the global energy demand. The company values honesty, justness and respect for people, that forms the basis of their general principles.The company was established in the yr 1907 by the crude export company named chew out and Royal Dutch, the anoint color company. The company expanded to Europe, Africa and America in the early twentieth carbon and excelled, as the mass production of cars has opened up a grand market. Many scurf operations closed down during the First founding War, but after the Second World War, in the gr ades mid-fifties and 1960s there was a dramatic increase in its oil output and sales. In 1980s, the company explored solutions for many environmental concerns by induction new technologies and launched new products. In July 2005, the parent companies Royal Dutch and epidermis unified to form Royal Dutch Shell.According to the Fortune magazine, Shell has been ranked at second place in the year 2010 among the top 500 companies in the world and send-off among the oil companies followed by Exxon Mobil and BP, in terms of revenue.RankCompanyRevenue($ Million)1Wall-Mart408,2142Royal Dutch Shell285,1293Exxon Mobil284,6504BP246,138Shell operates in more than 90 countries in the world having around 101,000 employmentees working with it. It produces almost 3.1 million place of gas and oil everyday and has sold 145 jillion litres of fuel. It runs more than 35 refineries and chemical plants. As a part of sustainable breeding, it has worn out(p) $2 zillion on blow dioxide and renewable energy technologies over the last couple of age. $13 million has been spent with locally owned companies in low and middle in bring countries in the year 2009. $132 billion has also been spent in the same year on social investment program.Indicators for the companyThis part of the paper explores the indicators used by the company to measure its performance and thus analyse the sustainability. The key indicators falling under to each one of the dimensions are listed below.Socio-CulturalHuman RightsShell has categorized the human rights into five layers. all in all the layers are shown below. bug (The Shell Report, 2001, P.13)The inner layers identify the companys duty towards the staff, pledge and local communities, whereas the outer layer identifies the duty towards the government and also victuals the international codes.The company has designed a Health, Safety and Environment Management System (HSE) to protect its employees from harmful activities. Shell also supports the ILO declaration of principles and rights at work.Shell has played a major role in the development of voluntary principles on shelter and human rights. The company has come up with a new social management unit which identifies and promotes good set and operations in communities. The company is also guided by the UN Global Compact, OECD Guidelines for multinational enterprises and Global Sullivan principles while investing in foreign countries.DiversityThe company has a overbearing approach to manage its diversity. Shell believes that it lead earn more respect if it attracts people from various backgrounds and experience. As a result, it will help the company maintain good relationship with others and help in competing in assorted cultures and markets.SecuritySecurity involves the protection of the employees and safeguarding the shareholders investment. The company abides by the practice of law and order which is at par with the international law enforcement standards. Armed sec urity is used when there is any legal affair or when there is no alternative to manage the risk. There is security group that protects the employees, property and information.Health SafetyThe company has a systematic approach to manage HSE. The company must follow all the mathematical group HSE Policy and Procedures. Shell uses a parameter called Total Reportable occupational Illness Frequency which monitors the health performance of all the employees. The year 2009 enter the lowest mortality and injury rate for Shell.Source (The Royal Dutch Shell Sustainability Report, 2009, P.35)ENVIRONMENTALShell is always in search for new ways to reduce its harmful impact on the environment. It has come up with new substances that would cause less(prenominal) harm to the nature.The year 2001 was a dissatisfactory year because it failed to meet the target and could not perform up to the mark. There was also an increase in gas flaring and oil spills which caused more harm to the environment.C limate ChangeClimate change is one of the biggest challenges go about by the society today. To overcome this challenge, Shell is taking initiatives in make up an energy system for future that would reduce environmental risks. It has come up with 6 pathways that will reduce carbon-dioxide and help in achieving low-carbon energy for future. The six pathways areIncrease the efficiency of all the operations.Establish a substantial capability in CO2 capture and storage (CCS). hold back to research and develop technologies that increase efficiency and reduce emissions in hydrocarbon production. interrupt low-CO2 sources of energy, including natural gas and low-CO2 fuels.Manage energy demands by growing the market for products and services that help customers to use less energy and emit less CO2.Work with governments and advocate the need for more effective CO2 regulation.Shell is now moving over to bio fuels, emphasizing more on the sustainability of the first generation bio fuels. It i s an indication of the evolution of bio fuels which will help in decrement of CO2 gas in the near future.Green House hired gun EmissionShell is taking steps in inventing new technologies to advance energy efficiencies by reducing the green house gas emissions. It has been storied in the year 2009 that, the direct Green House gas emission from the facilities operated by the company were 67 million tonnes on a Carbon dioxide equivalent basis which is lower than in 2008 by 11%. peeThe World Health Organisation has stated that one out of three people doesnt get water to meet their needs. Shell uses advanced technologies to reduce the work of fresh water though they cannot stop water usage for certain refining processes. Shells operations used around 198 million cubiform meters of water in the year 2009 which is significantly lesser than the amount of water used in the previous year. The new technologies implemented by blast focuses on using recycled water instead of fresh water.B iodiversityThe company also operates in some areas which has the risk of harming the biodiversity. Shell considers protecting the ecosystem as an important factor and hence before starting any project, the company carries out analysis and tests that identify and measure the impact of the risk to biodiversity and develop strategies and procedures to minimise these risks.Ozone Depletion SubstanceHalocarbons like Chlorofluorocarbons (CFC) are released into the air which causes depletion in the ozone layer. In order to help in saving the environment, Shell has stopped the manufacturing of ozone depleting substances.SpillsIn pique of having the procedures and systems to indicate and prevent oil spills, they do occur due to practicable failure or accidents. Shell has spilled around 1,300 tonnes of oil last year which is put down as the lowest till date. The company has suffered massive dismission when a hurricane struck the Gulf of Mexico, fracturing all the pipelines.Source (The Roy al Dutch Shell Sustainability Report, 2009, P.36)Source (The Royal Dutch Shell Sustainability Report, 2009, P.34)EconomicShell is a group of energy and petrochemical companies that aims to meet the energy needs of the society which are environmentally, economically and socially feasible. The company generates substantial revenue for the government. $9.2 billion has been paid in corporate taxes in the year 2009. $80 billion in excise duties and sales tax has also been collected on behalf of government on the fuels and other products transported or sold.In 2009, the income of the company was $12.7 billion and returned $10.5 to its shareholders. The company also spent $1.1 billion on research and development. Their net capital investment of $28.9 billion would help their business to maintain sustainable in future.By December 2009, the production of Liquefied Natural bollix up (LNG) exceeded a total of 1 million barrels of oil.Shell came up with a new Mono-Ethylene Glycol (MEG) unit in Singapore which prove to be a key milestone for Shell Eastern Petrochemicals mingled that will be in action by mid 2010. The unit will provide a supply of 750,000 tonnes of MEG per year to the Asian Market.Shell has also started with two LNG projects called Pearl GTL which is the worlds largest gas-to-liquid plant and Qatargas 4. Pearl GTL will deliver 140,000 barrels a day of clean diesel and kerosene and 120,000 barrels a day of natural gas. Qatargas 4 will help in converting 1.4 billion cubic feet of gas into Liquefied Natural Gas.The companys financial, useable and sustainable aspects have been evaluated by certain key indicators and a denounce card has been set up by the company depending up on those. It can be noticed from the score card that Shell has a better sustainable development performance in 2009 compared to the previous year.Source (The Royal Dutch Shell Sustainability Report, 2009, P.9)ConclusionThe social, economic and environmental dimensions of Royal Dutch S hell have been monitored by using the relevant indicators. By analysing the figures mentioned in the report, it can be noticed that there is a reconciled modifyment every year in most of the areas of the company. If the social dimension is considered, the company has given more priority to the health and safety of the workers. It can be noted from the social data that the lowest injury rate is recorded in 2009 and there has been a significant reduction in the injury rate every year. $132 million has been spent by Shell on social investment, especially for projects on community development. It can be suggested that, the company should conduct a periodic survey regarding the problems faced by their workers to make their operations more employee friendly and effective.All companies especially oil companies should give major attention in protecting the nature. Recent oil spill at the Gulf of Mexico by B.P has caused huge loss for the company and also destroyed the natural resources an d aquatic life. Shell has implemented new technologies to protect the ecosystem by preventing the hazardous impacts caused by their operations. It can be seen from the environmental data mentioned in the report that the company has taken steps to improve the energy efficiency, and the green house gas emission is recorded to be reducing every year. They have limited the usage of fresh water for their operations and also technologies for using recycled water have been implemented.The company should focus on preventing oil spills even though the amount of oil spilled was recorded to be lowest in the year 2009. From the graphs, it can be judge out that there is no consistency in the steps taken to reduce oil spills as it went high in 2008 compared to the previous years and again came down in the year 2009. Shell should take measures to employ new technologies to stop spills and invest more on it.The economic indicators of the company indicate that shell has made and continues to make g ood profits for its share holders. There is a greater transparency in the payments made by the company to the government and they have generated ample revenue for the government. The company has also invested a good amount of money for maintaining a sustainable business development in future. A significant amount has been spent on research and development. The annual income of the company and its return to share holders indicates that the Shell is economically stable.By monitoring all the performances of the company it can be conclude that Royal Dutch Shell moves in the right track of sustainable development by giving equal importance to people, planet and profit dimensions.