Les entreprises TOTAL et CSR (document en anglais)

Paperwork: TOTAL and CSR

PART 1

1.1 Context

1.1.1 Sector and competitors

The company that I decided to analyse is active in the sector of “Resources and Energy”. Total is a global energy producer and provider that covers the oil and gas chain. Its operations span the exploration, extraction, production, refining, and transport and sale of oil, gas and petrochemicals. Indeed, this kind of organizations covers the whole life cycle of projects, from development through operational lifetime to decommissioning, closure and post-closure. Developing alternative energies such as solar, biomass and nuclear power are also one of their principal commitments.

Nowadays, two third of the oil reserves is concentrated in the Middle East: Iran, Irak, Kowet, Unit Arabs Emirates and Saudi Arabia that owns a third of it. The remaining oil is found in Northern America, Mexico, Venezuela and Russia. Lately, new discoveries have been made in Africa (Congo and Angola) and in Kazakhstan, at the borders of the Caspian sea.

Total’s main competitors are ExxonMobil Corporation, BP plc, Royal Dutch Shell, Chevron Corporation and ConocoPhillips Company. Together they form the "Supermajor" group. This is the name used to describe the world's five or six largest publicly owned oil and gas companies. Also called the Big Oil, this group is used to describe the economic power, individually and collectively, of the world’s largest oil companies. Moreover, it illustrates their influence on the politics of a country, including the US. The Big Oil majors are often associated and linked to the Energy Lobby.

Nevertheless, when we analyze the list of other important Oil and Gas Firms, it appears that national oil companies are situated at the top of the register. Indeed, the “Supermajors” group controls around 6% of worlds oil and gas reserves. Conversely, 88% of global oil and gas reserves are controlled by the OPEC cartel and state-owned oil companies, most of which are situated in the Middle East.

In the context of analyzing corporate social responsibility within a company as Total, I will not consider these national Oil companies as direct competitors because they don’t follow the same ethical standards as the “Supermajors” group does. When we analyze Total and its competitors, they also seem to give a big deal of attention to corporate social responsibility. Yearly, they each publish their sustainability report.

Royal Dutch Shell

Royal Dutch Shell is a multinational oil and gas firm. Its headquarter is situated in The Hague and its registered office in London. Operating in more than 80 countries and territories, this global group of energy and petrochemicals employs around 90,000 people. An important deal of its website is dedicated to the chapter “Environment and society”. In this part, they develop in depth issues as sustainable development, environment, Shell Eco-Marathon, Society, Safety, Performance data and Sustainability reporting.

Exxon Mobil Corporation

American multinational oil and gas corporation, Exxon Mobil Corporation is headquartered in Texas, United States. This company is a direct descendant of John D. Rockefeller's Standard Oil company. It employs over 82,000 people worldwide. Since 2011, ExxonMobil ranked first among the “Supermajors” measured by market capitalization, cash flow and profits.

BP

BP is a British multinational oil and gas company headquartered in London, United Kingdom. It also makes deal of the “Supermajor” group. It is the third-largest energy company and fifth-largest company in the world measured by 2012 revenues. Operating in 80 countries, BP has around 20,700 service stations in the world. Its largest division is BP America, which is the second-largest producer of oil and gas in the United States

Chevron Corporation

Active in more than 180 countries, Chevron Corporation (commonly known as Chevron) is an American multinational energy corporation headquartered in California, United States. Chevron operates in the oil, gas, and geothermal sectors. Its activities include exploration and production, refining, marketing and transport, chemicals manufacturing and sales and power generation.

ConocoPhillips Company

ConocoPhillips Company can also be considered as a member of the “Supermajor” group. Created through the merger of Conoco Inc. and the Phillips Petroleum Company in 2002, the ConocoPhillips Company is an American multinational energy corporation headquartered in Houston, Texas in the United States. It is considered as the world's largest independent pure-play exploration and production company. It also makes deal of the Fortune 500 companies.

1.1.2 History

Analyzing the industry as a whole is a first step to a good understanding of the sector. Therefore, I have decided to observe the big lines of the Oil and Gas industry that draw my attention.

Oil has always been a hot topic. It found its beginning in Pennsylvania, around 1870. Sold under the name of « Standard Oil », it was first used to create kerosene lamps. It already didn’t make the fortune of those who exploit it but only of those who transported and sold it. After realizing that oil wasn’t the most adapted resource for electricity and with Henry Ford’s invention and ascension, fuel became the new use of oil.

Founder of the “Standard Oil Company”, the American John. D Rockefeller revolutionized the petroleum industry. It’s often being said that its ascension foreshadows the twenty century’s capitalism. There are two main reasons why this is said.

First and foremost John. D Rockefeller is responsible for the ascension of an oil company, not only on a national but also on an international level. Indeed the period after world war II is considered as the beginning of worldwide capitalism.

Secondly, John.D Rockfeller was an unscrupulous negotiator. Wealth and prosperity of the West, Oil was the source of the most undisclosable manipulations. The “Standard Oil Company” dominated the oil industry and became a monopoly by means of blackmail and spoliation.

1.2 Challenges

1.2.1 Sustainability challenge

To start with let’s understand what sustainability really involves. The following definition comes from ExxonMobil Corporate Citizenship report: “We address the challenge of sustainability-balancing

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