The Caux principles for business were proposed by business leaders in order to reach an agreement about acceptable business behaviors. These principles are based on essentials which any good and successful business must contain in order to meet some standards. The basis of these principles is to highlight the basic values and ethics which shape up the business practices and can be accepted at the global level.
The company we have chosen to identify and compare the mission, vision and code of ethics with the Caux business principles or CRT principles is a petroleum company which has expanded beyond national borders now. Let us first have a look at the mission and vision of the company.
Mission
The mission of our chosen company is to maximize the value delivered to the shareholder. There are several ways embedded in the mission statement to achieve so. Firstly, the company will ensure that it produces and supplies the oil products to customers so as to satisfy their needs. Obtaining the required levels of operational excellence is also a good way to ensure that shareholders are able to gain maximum value. Being environmentally responsible and offering a safe working environment to employees is a good way to conduct business in an appropriate manner. Lastly, having a workforce which is composed of employees who are highly motivated from within, belong to a diverse background and most of all, capable of delivering excellence is a must for helping the chosen business achieve its objectives.
Vision
The chosen company is operating at the global level where its vision is to become the most admired and top refinery in all the continents of the world. The vision, as we know, is a broad statement of where the leaders wish to see their company is the upcoming decades. The vision of our chosen company is based on this perspective and fully confirms to the philosophy and meaning of vision as mentioned in the CRT Principles for Responsible Business.
There are seven principles mentioned in the CRT Principles for Responsible Business which will be compared one by one with the elements discussed in the code of conduct document of the chosen company.
Principle 1: Respect Shareholders
The first principle of responsible business as given in CRT is based on the value and respect for shareholders. Shareholders are those entities which have a vested interest in the company and include customers, employees, suppliers, manufacturers, stock owners, founders, dealers and many. A company runs successfully when it fulfils the promises it makes to its stakeholders. If the stakeholders of a company are not satisfied with the dealings and offerings of the company or feel that the company is unable to deliver what it has promised in the past or not capable of maintaining or improving its quality standards, then the stakeholders will start to pull themselves away from the association and this can give the company a bad image as well as indulge it into financial losses (Wolfe, Putler, 2002).
The code of conduct mentioned by our chosen company is applied on all employees belonging to lower, middle and senior levels equally. The responsibilities laid down call for individual assessment so that every employee can measure his performance on ethics and job responsibility as per the mentioned behavior yardsticks. It is believed at the chosen company that if an employee understands the importance of ethics and dealing with the employees with trust, respect, and commitments, there is a possibility that the stakeholders will be delighted with the company’s performance. The performance of any company relies on the input and dedication of its employees along with its manufacturing and technical aspects. Once the employees are aware of their responsibilities and build and develop a culture which promotes the well being of all of its stakeholders in a positive way, the business can certainly become a huge success.
Principle 2: Contribution to the Development from Social, Economical, and Environmental Aspect
CRT Principles for Responsible Business are based on the fact that any business can become successful if its business practices are directed towards the achievement of goals which are created from social, environmental and economical perspectives.
The chosen company has taken up many social activities aimed at improving the social standards. For instance, it is taking part in social activities such as providing education to those children who cannot afford it; taking initiatives to improve the poverty rates of the regions where they operate by providing opportunities for employment and also by making the poor people skillful with the help of various workshops. The young talents from universities and colleges are attracted by the company so as to polish their skills and ensure that they are able to contribute towards betterment in future. When a company in the oil sector performs well, the revenues generated also improve the overall structure to economy. Businesses with exceptional performance are seen as a great source of income and reputation for a country. Being in the oil production and refinery business, the chosen company has to operate in an environmentally friendly manner. The waste disposal and plant safety are mentioned very clearly in the code of conduct. The company makes sure that the plants are installed away from populated areas so that no living life experience any form of threat.
Principle 3: Building Trust
Building trust is one of the bases on which a successful business is built. Trust, as they say, makes the foundation on which the strong building of any business stands tall. Without trust and respect for the clients, no business can make profits. The chosen company gives value to trust and respect. The oil company understands that if the element of trust diminishes, there is no way it can ever gain the current level of success again. The policies of the company are such that the employees are pleased as they see the company as a platform for career growth, learning and the best place to work for years to come. The customers trust the company for providing them excellent quality refined oil for the personal and industrial use. The suppliers trust the company because they know the company will always deal with them in a fair manner and regard their relationship.
Principle 4: Respect for Rules and Conventions
Rules must be followed by any business operating in a specific region. This is true for multinational companies because they operate in several locations where rules and regulations, as well as local laws, differ. The chosen company operates in several locations where it has to adopt its policies as per the culture and local regulations of every location. The core objective or philosophy, however, remains the same.
Principle 5: Supporting Globalization
We agree that no business can flourish if it operates within its national borders-businesses have to expand beyond these borders so as to learn about the modern business practices and earn revenues by taking their products and services to global customers. The chosen company is a global company and understands that success lies in understanding and implementing the concept of globalization. Being an oil refinery company, it has to keep into account the business practices of other companies in its industry, analyze the competition and then make its move wisely.
Principle 6: Protection of Environment
All business managers and leaders have agreed on the topic of environmental protection-every business must assess its performance in comparison with the environmental hazards. The concern for the protection of environment and ecosystem must be kept at priority in order to gain competitive advantage. The chosen company has mentioned in the code of ethics that it the waste which gets accumulated during the cleaning, refining, distribution and storage process will be handled with care. Technology and modern waste disposal and recycling methods are employed to ensure that the company fulfills its promise of maintaining environmental safety.
Principle 7: Avoiding illegal activities
As per the CRT Principles for Responsible Business, no business must engage itself in illegal or unethical activities. Businesses ruin their hard earned reputation once they get into acts of fraud and deceit. The chosen company understands how important it is to stay on ethical grounds. It has mentioned very clearly in the document of the code of conduct that every stakeholder has to follow the ethical guidelines as distributed. All the technical procedures are also implemented as per the written code of conduct and all business dealings are also carried out within the same framework of ethical and morality.
Stakeholder Management Guidelines
It is really important for businesses to ensure that the stakeholders which are responsible for its success and reputation are kept at priority. The management guidelines as proposed by the Caux Round Table Conference are compared with the code of conduct of our chosen company and presented in a brief manner.
Customers
Customers’ needs and requirements have to be kept in front while designing policies and code of conduct. Customers are the end users who will be using the company’s offerings and generating revenue. The chosen oil company takes the preferences of its customers into account and then designs its policies and code of conduct.
Employees
The oil company has written instructions and made laws for the protection of rights of its employees such as harassment policy, equal opportunity for all, open door policy, fair performance management system and many. The compensation plan is based on performance and bonuses and incentives are provided to keep the employees going.
Shareholders
Shareholders have a significant role in the success of every business. The shareholders of an oil company are informed well in a time when the shares are offered in the market and the loyal ones are given special rates and discounts and their stock ownership is valued.
Suppliers
The suppliers of oil company have developed a strong relationship with it. Suppliers are few and reliable and the oil company manages to keep them delighted by adhering to its promises. The terms and conditions are well spelled out in agreements and dealings are carried on the basis of trust and respect.
Competitors
The competitors of chosen oil company are several. These competitors are spread out across the globe, however, major threats are being faced by the oil companies and refinery plants in the Middle East. The oil company cherishes the competition game and makes certain that it utilizes its competitive advantage.
Communities
The local and international communities benefit from the revenues generated by the oil company. The oil company sponsors many events, the purpose of which is to ensure the well being of the society in general.
It is really satisfying to understand that when the Caux Principles for Responsible Business were compared with the code of conduct of our chosen oil company, we learned that the company not only thinks about its profits and market share but ensures that all its participants including its stakeholders also enjoy certain rights. The chosen oil company believes that without stakeholders’ contribution, it cannot in any way succeed. Therefore, it has maintained a balance between personal gains and gains of stakeholders.
Reference
Wolfe, R. A., & Putler, D. S. (2002). How tight are the ties that bind stakeholder groups?. Organization Science, 13(1), 64-80.
