Abstract of Corporate social responsibility (CSR) practices and its importance in ExxonMobil com and Aramco

The research study is focused on the best practices of the Aramco and Exxon Mobile. After analyzing the CSR practices of these companies. The best parties of both of these companies are compared by exploring the importance of CSR practices for any organization. The limitation of these practices for both of these companies is also explained in this study in extensive manners. Aramco and Exxon Mobile both are the world’s largest oil producers. The Aramco is engaged in the utilization of the Triple Bottom Line model. The research study is conducted using qualitative research methods. The case studies of both of the companies are utilized in order to analyze their CSR practices. The CSR practices of both companies are effective, but the policies of the Aramco are focused on the requirements of business transparency as well as ethical behavior. To achieve sustainable development by complying the national and international laws is included in the CSR values of the Aramco. The company’s corporate business strategy business strategies are integrated with the CSR strategy. The CSR practices of the Armco is based on the four basic pillar s that are; Community, Economy, environment, and knowledge.  

The emerging topic is related to the various practices of the firms and their relevant impacts on corporate social responsibility. The social responsibilities are increasing from the last several years by investors, corporations, and governments, and it is considered the urgent and distinctive just because of the global crisis, which is playing a central role in this. The immediate response is required for the breakdown of the financial markets, food shortages and a decline in the severe economic.

The two most important and well-known companies are taken as an example in order to compare the practices of CSR in these companies. Both of these are the public listed companies of the kingdom of Saudi Arabia. It has been used as evidence for conducting the research study. In many firms, the programs of the active investor can be underlines for their executive’s beliefs and the disclosure strategy is known as the tool for creating the critical value. The initial focuses of the firm can evolve from, and the initial focus is on the financial statement, and financial information and the disclosures strategy are also included in this according to all aspects of the performance of the firm. The practices of corporate social responsibility is the well term that is commonly used in the firm for the participation of the environmental sustainability. These companies are; ExxonMobil com and Aramco.

The Exxon Mobile Corporation is the well-known firm that is engaged in doing business as Exxon Mobil. It is considered as American multinational oil Gas Corporation. The headquarters of the Exxon Mobil is located in the Irving, Texas. It is refer as the largest direct successor of John D. Rockefeller's Standard Oil. It was founded in 1999 by the mergers of two companies Exxon and Mobil. In 2017, /Mr. Darren Woods has announced as the CEO of the Exxon Mobil. Exxon Mobil has strong dedication in order to fulfil the requirements and demands of the customers for the power and energy world responsibly. There are round about more than 70000 employees are working under this firm deductively (Corporate Exxonmobil, 2019).

Saudi Aramco is well known organization that is existed in Saudi Arabia. It is officially the well-known Saudi Arabian oil company. The Aramco is offering its services for the natural gas company that are based in Dhahran, Saudi Arabia. The Aramco is known as the one of the largest companies that are engaged in offering the services related to the petroleum, and energy. According to its revenue its largest company in the world. It is most profitable company in the world (Saudiaramco, 2019). This research critically analysis the practices of the CSR in the Aramco and Exxon Mobile and then evaluate the best practices along with the accordance of the firm in order to evaluate that which firm performing CSR practices in effective manners. The case studies of the both companies are given in this study along with accurate practices of the CSR.

Literature review of CSR practices and its importance in ExxonMobil com and Aramco

The purpose of the given literature review is to deliver a source that will research is directed from their and it will afford visualization into applicable preceding exploration concerning CSR inside the Exxon Mobil and Aramco. Major, the chapter will deliver the meaning of CSR. Second, it will describe the idea of sustainability plus CSR. Third, it will familiarize the drivers which main firms to include CSR. Formerly it shall appraisal current research on the fences that avoid by the firms after applying CSR performs.

Benefits of corporate social responsibility of CSR practices and its importance in ExxonMobil com and Aramco

Corporate social responsibility is the most important factor for the benefit of the organization. It helps the organization in different ways as if it gave an employer an active chance to share their positive role in society. It helps to put ExxonMobil com and Aramco towards economic profit in the market. This culture helps to motivate employers and encourage them to give a good performance because they know that their day-to-day performance is noticed, and they definitely got awards for that. It helps to be engaged with your customers and innovate on time that helps to achieve an edge in the market and to sustain or stable in current economic and technological changes. The contemporary business organization is design for the team, virtual as well as the boundaryless organization (Chahal & et.al, 2000)

 There are different from the CSR which naturally mirrors a reason the corporations engage in CSR. In terms of the increased cash inflow the benefits are that ExxonMobil com and Aramco reduced the cash outflows. CSR has different benefits which could also apply to any business regardless of sectors size;

·         Better recognition of the brand

·         Positive Brand reputations

·         Operational Cost savings

·         Reap Free Advertisements

·         Lead to efficiencies & cost savings in the value chain.

·         Positive relationship Increased Customer loyalty

·         Better financial performances

·         Organizational Growth

There is a list of the various benefits that ExxonMobil com and Aramco might estimates;

Reap Free Advertisements of CSR practices and its importance in ExxonMobil com and Aramco

ExxonMobil com and Aramco frequently reaps” free” advertising as a result of CSR, but it is quiet common for companies good deeds, which also receive the coverage on the national and local radio along with televisions. Almost Companies already knew that what is the cost of advertising in the different media outlets (Sprinkle & al, 2010).

Lead to efficiencies & cost savings in the value chain of CSR practices and its importance in ExxonMobil com and Aramco

CSR also efforts might lead the cost and efficiencies in the value chain where the employee's motivations benefit reduction in labour cost and also has development of production along with sales benefits, which are supposed. For example, ExxonMobil com and Aramco used sustainable practices like bio mimicry whereby manufacturing and design efforts are inspired through nature.

Positive relationship Increased Customer loyalty of CSR practices and its importance in ExxonMobil com and Aramco

It is ExxonMobil com and Aramco business responsibility is to get engaged all our customers and communities in a commitment that provides coffee and other items of excellent quality in the world. Starbuck try to make every new place an innovative place for our customers so it present that company is very much loyal with its customers and present great care and attention for their customer and try to maintain long term relationship with them.

 Corporate social responsibility activities of ExxonMobil of CSR practices and its importance in ExxonMobil com and Aramco

There are the following ExxonMobil CSR activities;

·         Waste reduction and Recycling

·         Water Conservation

·         Energy Conservation

·         Climate Change

·         Green Building

·         Ethos water Funds 

There is a list where the ExxonMobil is involved in Sustainability and CSR initiatives (Peloza & al, 2009); 

 Waste reduction and Recycling of CSR practices and its importance in ExxonMobil com and Aramco

The ExxonMobil is implemented the particular and proper lean strategy in order to reduce the waste of their firm. The materials is recycles with proper procedure by considering the environmental sustainability. By local communities the ExxonMobil works with us to create easier recycling. ExxonMobil also offers a ten cent reduction on the different cost which is also brought in the reusable products.

Water Conservation of CSR practices and its importance in ExxonMobil com and Aramco

 ExxonMobil is engaged in the utilization of the sustainable water solutions for the process of the water conservation. Seamed like as another energy producers; the ExxonMobil are engaged in utilization of the water in its numerous operations. It is dedicated in order to safe environmentally responsible policies and practices.

Energy Conservation of CSR practices and its importance in ExxonMobil com and Aramco

In energy conservation; ExxonMobil understands that it creates 90% of the Carbon footprint of a Company, and thus it is significant to conserve the energy along with the boost efficiency of energy for the reduction of the variation of climate change.

Corporate social responsibility activities of Aramco of CSR practices and its importance in ExxonMobil com and Aramco

There are the following activities and initiative that are adopted by the Aramco in order to participate in the sustainable development of the environment. These activities are;

Empowering Communities of CSR practices and its importance in ExxonMobil com and Aramco

In order to aligning its business agenda the Aramco has left no stone unturned and it is paying the accurate attention on the empowerment of the communities. It focus on the requirements of the local communities. The developed communities are consider as the core of the operations for the futures development and progress of the communities. The Aramco offers its services for the empowerment of the communities by offering the enhancement in skills, tools and practices for the broad spectrum of the micro enterprises and craft workers. It also includes the farmers.

Ensuring the employees and communities’ health of CSR practices and its importance in ExxonMobil com and Aramco

The Aramco has developed the several programs in order to ensure the health of their employees and communities that are existing most near to the industries of the Aramco. By offering the transformation of healthcare and medicine in the entire states of the Kingdom of Saudi Arabia Aramco has made its name in the sustainable development.

IKTVA initiative  of CSR practices and its importance in ExxonMobil com and Aramco

These initiatives are taken by the Aramco in order to perform in the development of the vision 2030. The major aim of this program is to enhance the energy service sectors as well as expand the quality and amount of the services and goods in order to deliver the more efficient performance (Abro, 2016).

Limitations of corporate social responsibility of CSR practices and its importance in ExxonMobil com and Aramco

The threats of the company include brand limitation, change of life style and preferences, increase competition, the price of crude oil, cartel prices and economy of the developed country. These closely effect the performance of the company and also going to work as hurdles in the progress of the company.

There are following limitation of CSR in Aramco and Exxon Mobil;

CSR Cost Money to implement of CSR practices and its importance in ExxonMobil com and Aramco

The main limitation of CSR is cost, which falls disproportionally on the small business. But the Major organizations like Aramco and Exxon Mobil could afford to allocate the Money to CSR reporting.

Conflicts by Profit Motive of CSR practices and its importance in ExxonMobil com and Aramco

Even for larger organizations like Aramco and Exxon Mobil, CSR costs could be the obstacles for Company. Thus Aramco and Exxon Mobil management has fiduciary duty for stakeholders and directly opposes CSR (Fooks & al, 2012).

Consumer are Wise to Green washing of CSR practices and its importance in ExxonMobil com and Aramco

To explain the term CSR practice, the green washing term is used which is also appears environmentally and it is responsible without the actual representation of variations in what way company conducts in this business.

Research problem and questions of CSR practices and its importance in ExxonMobil com and Aramco

Research problem of CSR practices and its importance in ExxonMobil com and Aramco

CSR (Corporate social responsibility) is the one of the most important factors and its practices in the various form are considered as the most important. In the last several years the corporate social responsibility has been experiencing as an increasing amount of public awareness just like as the new concepts related to the commitments of the corporates for the environmental and social initiatives and it is used to achieving the widespread popularity for the stakeholders just like suppliers, creditors, investors, managers, customers, policymakers, and employees.  For corporate social responsibility, scholars have dedicated greater attention. This study is conducted to compare the practices of the CSR of two well-known firms that are exclusive competitors for each other. Both of these firms are working in the same industry as oil gas industry. In this industry; the environmental industry can be effected badly.

Research Question of CSR practices and its importance in ExxonMobil com and Aramco

There are the various research question that will answered in the various part of the research studies. These questions are;

·         What are the important CSR practices that are offered by the Aramco and Exxon Mobil?

·         What is importance of the CSR for Aramco and Exxon Mobil?

·         Which company is offering the best CSR practices from Aramco and Exxon Mobil in oil and gas industry?

·         What are important limitation of the CSR for Aramco and Exxon Mobil?

Methodology of CSR practices and its importance in ExxonMobil com and Aramco

The Qualitative research method is particularly used in order to conduct this research study. Qualitative research method is leads towards the understanding of the underlying reasons and opinions which is used for the help of developing the new and innovative ideas in the research and for quantifying the attitudes, behaviours, and beliefs. In order to measure the research problem; the case studies of the Aramco and Exxon Mobl is discussed along with its practicies and limiations. Observation and Polls are utilized in order to collect the data in the qualitative research method and then the results can be suitably compared, summarized and generalized. This method is utlized for explaining, describing, understanding, and exploring the phenomenon of the research. The subjective approach of the research is particularly adopted under this techniques (Greener, 2008).

The reach design is includes as the secondary source data collection. The secondary of the data collection is related to the utilization of the data from the pre-existing projects that are related to the practices of the CSR in oil and gas industry. It also includes the various studies that are particularly conducted to measure the importance, practices and limitation of the CSR in the numerous industries. The significance of the CSR in various industries has been reviewed in order to observe the importance of the CSR. As it has been discussed that the secondary source of data collection and the qualitatively research methods has been utilized in this study. The inductive research approach and the interpretivsim research paradigm will be utilized in this study because case studies of both companies such as Aramco and Exxon Mobl has been observed inj order to comapre the CSR parctices.

Results and discussion of CSR practices and its importance in ExxonMobil com and Aramco

It has been observed in the case studies of the Aramco and Exxon Mobile that both of these compnies are performing effectively for the susatainabilty of the enviroments. Both of these firms are performing various intitaives in order to accomodates in the susatinable environenments.

The companies are engaged in the proper implementation of strategies in order to performing good practices in international market. The benefits, limitation and CSR activities are mentioned in above section of the literature review according to proper requirements. Aramco and Exxon Mobile are the largest organization in the oil and gas industry that performs a great role for refining the crude oils with any danger of the environment. Aramco and Exxon Mobile are kniwn as the laeding firm in oil and gas industry.

Aramco and Exxon Mobile also obtains experience of connected customers to maintain and develop a long term relationship with its customers. It offers fine quality products that develops a strong emotional attachment with the customers. Aramco and Exxon Mobile has continued to diversify its business in order to gain competitive advantages from its inception, which is originally created to provide high end oil and gas products. In the global market, Aramco and Exxon Mobile is known as the oldest product company and modify them into lasting brands, differentiated, and value has laden. Many products of the Aramco and Exxon Mobile are going to become different from others because of low cost that offers a sustainable competitive advantage and source of potential.

 It has been critically analysed in this study that both of these companies as Aramco and Exxon Mobile is offering the good stratgies for the sustainable development.  But according my erson views and perception Aramco is paying more attaention towrads the CSR because the mangaemnt of the CSR is keening for the health of their employees and communities. They ensured for the health of their emolyess and intrdoce the progranms for transforming the medcience and haelth care.  In China Aramco has intrioduced the neumerouys programsd for the edauction of the childerns. The graet deal has been contributed by this company for the common prospensity nad sustainable develoepment by paying attention on the arts, education, poverty allevation and envoronemntal protection (Shenggao, 2017). No doubt, both of these firms Aramco and Exxon Mobile has effectiv practices in CSR but the Aramco has its name at global level for contributing in sustainbale development.

Conclusion and recommendations
Conclusion of CSR practices and its importance in ExxonMobil com and Aramco

Summing up all the discussion it is concluding that all requirements of report are achieved. The benefits, limitation and CSR activities are mentioned in above discussion according to proper requirements. It has been concluded that both firms Aramco and Exxon Mobile are running its business in same industry oil and gas industry and these are well known organization on the map of the world. It has been observed by the case studies of the Aramco and Exxon Mobile that these companies are playing its essential role in the sustainable develoepmnt of the environment. The Aramco performing the various stratagies aropund the globe for the sustainability of the environemnt. It is difficult to compare the CSR practices of the Aramco and Exxon Mobile becuas both of these are well known organozation. These are contributing in the sustaibabilty of the enviotoment by considering the betterment of the well beings. But there are the neumeors source that are playing the role of evidence for the CSR practices of the Aramco such as the study of  (Abro, 2016).   

Recommendations of CSR practices and its importance in ExxonMobil com and Aramco

The companies must has to use proper implementation strategies in order to perform efficiently in the international market because already many strong competitors present in the global market, and people are very much interested in the existing brands, so company has to follow the strategy related to marketing mix strategy to move at global level. It is recommend that the authorities of Saudi Arabia must provide a particular guideline for the firms as well as to the public. The importance of CSR practices must be raised in society for reporting the betterment of the environment of Saudi Arabia.  Saudi Arabia is considered a oil rich country because of the production of oil in Saudi Arabia. The several another item can be included in the index of the study for extracting the more information related to the CSR.