Csr for Cnooc

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  • Topic: Petroleum, Oil well, Petroleum industry
  • Pages : 15 (5485 words )
  • Download(s) : 69
  • Published : April 10, 2013
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Introduction:
With the rapid development of cross-border industry and increasing number of international trades, the corporate social responsibility requirements of a multinational enterprise has reached a height that had never been before. And the acceleration of global warming raised people’s awareness of the necessities of the environment in certain degree. However, the lessons the managers learnt from those incidents that damaged or polluted the environment happened in the past, was not able to ensure the corporate social responsibility can be conducted properly. Therefore, it is significant to assimilate the knowledge to protect both the company and its stakeholder, by analyzing the behaviors of the senior managements involved in this case research, which probably provides an optimal resolution for the companies that may be caught in the similar troubles. In this research, the researcher will elaborate the accident which happened in 2011, Bohai Bay, China, where a China government controlled company, namely, China National Offshore Oil Company cooperates with a US-based company, ConocoPhillips to explore and drill oil. In the project, the two companies collaborating, the CNOOC accounts for 51% of the shares, and CONOCOPHILLPS accounts for 49% of it, whereas the minority, CONOCOPHILLPS, is responsible for conducting the real exploration and development. Unfortunately, in late June, 2011, some oil trace was discovered on the sea surface near the No.19-3 marine drilling platform in Bohai Bay. And the following information also proved that the 19-3 marine drilling platform was leaking the oil into the sea, while the amount of the leak oil kept increasing. The government had urged CONOCOPHILLPS and CNOOC to prevent the oil leaking into the sea water, while both of the companies did not prevent the tendency successfully. What is worse, the new leak point was kept being discovered in the following months. During this period the report that came after another reported the indifferent attitude the CONOCOPHILLPS had, and the incapability of the strategies adopted by the government, with an enormous loss to the fishing industry, the biological damage, and the ecology disturbance caused by the floating oil, which triggered a strong condemn from the public media and the civilians. By September, the government has prohibited CONOCOPHILLPS to continue to explore any oil from anywhere both terrestrial and celestial. Under the great pressure from the government and media, on 7th, September CONOCOPHILLPS announced the company will establish a special fund to compensate the loss caused by this accident. But the changed attitude did not protect the company from being accused. The government decided to prosecute the COFON to compensate the massive loss. In this report, the researcher will stress the senior management’s behavior suggest which sorts of view of value, how a multinational enterprise performed its social responsibility in which the cultural background and cognitive perception are different from where the corporate was founded, and the divisions of responsibility in a united entity and cooperate commercial project.

Literature review
ConocoPhillps is one of the world famous international integration energy companies; it was merger by Conoco and Phillips oil companies and setting up a new company called ConocoPhillps. The mainly business of ConocoPhillips is engaged in the petroleum and natural gas exploration, operations, machining and marketing. Also, because of the new established ConocoPhillps inherits the rich experience and advanced technology from the original two companies, it become to the third biggest energy corporation in United States. With the corporate headquarter was founded in Houston and it has already have connections with over thirty companies all over the world. China National Offshore Oil Corporation (which is short for CNOOC) was established in Beijing in 5th February, 1982. It is one of the biggest...
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