Ethics and Corporate Social Responsibility in Driving Organizational Success for Multinational Companies in Oil/Mining Industry

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ROYAL MELBOURNE INSTITUTE OF TECHNOLOGY GRADUATE SCHOOL OF BUSINESS AND LAW

ETHICS AND CORPORATE SOCIAL RESPONSIBILITY IN DRIVING ORGANIZATIONAL SUCCESS FOR MULTINATIONAL COMPANIES IN OIL/MINING INDUSTRY

Submitted in partial fulfillment of the degrees Masters in Business Administration Lecturer: Eileen O'Leary 2010 By: Albertus Rendy Buntaran (S3264165)

Executive Summary This paper provides a broad definition of ethical behavior and Corporate Social Responsibility (CSR) in the competitive world of oil and mining industries of today. It is also acknowledged that factors behind both ethics and CSR are evolving and therefore, the factors for both ethics and CSR are defined for three different periods. The first period will focus on early 2000 when Enron failed and caused major shift in the world of ethics, during this period, the main factor is commitment and that was the only thing. Commitment for ethical conducts and CSR came with minor implementation. The second period is in present times, where ethics and CSR have already taken place in most of oil and mining corporations. The establishment of Global Reporting Initiative has defined the standardized framework for reporting. Moreover, corporations start to involved in their commitment. Many corporations are extensively using their ethics and CSR concepts as the basis in driving their organizational success. The future is yet to be challenging as the concept of sustainable development emerged as the new goal in relation with CSR and ethics. Each factor is presented with in depth discussion and evaluation to see how it drives organizational success. There are also some study cases included to see how the output of discussion and evaluation applied in the practical world.

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Table of Contents
ROYAL MELBOURNE INSTITUTE OF TECHNOLOGY..........................................................1 GRADUATE SCHOOL OF BUSINESS AND LAW........................................................................1 ETHICS AND CORPORATE SOCIAL RESPONSIBILITY IN DRIVING ORGANIZATIONAL SUCCESS FOR MULTINATIONAL COMPANIES IN OIL/MINING INDUSTRY..................1 ..............................................................................................................................................................1 EXECUTIVE SUMMARY.............................................................................................................................. II TABLE OF CONTENTS............................................................................................................................... III INTRODUCTION.........................................................................................................................................1

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Introduction In today's world of oil and mining industries, many corporations are striving to be more ethical and socially responsible. Initiated by the Enron scandal in 2001 and the rising concern for the environment in both past and present situation, many more companies worldwide now acknowledge the importance of ethical practices and CSR as part of their business operations to reach organizational success. Although movements towards both subjects are getting better, the factor behind it changes as the business world evolves from one stage to another. While corporations are intensively trying to improve its viability and accountability, another challenge for the future is already waiting ahead toward the sustainable ethical operations and CSR programs. Furthermore, there is already established reporting standards and methods to assists corporations such as Global Reporting Initiative (GRI) reporting framework. However, a critical supporting factor that used to be forgotten which is leadership is also needed in order to ensure that efforts being performed by those corporations are happening not because they are being pushed to do that, but rather because it is what they as a corporation wants, integrated as a part...
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