Transformation of Shell

Transformation of Shell

In the late 1990 's , Shell underwent transformation . The key changes that Shell made in the area of organization structure and culture relationship with stakeholders , reporting practices and business principles . They changed their organization structure from a matrix form of organization (where the chief executive of the National operating companies reported to two superiors ) to a single line of command

They undertook a series of interrelated initiatives aimed at improving their social and environment performance and the public 's perception of its corporate citizenship . To do this , they

studied society 's perceptions of the company , reviewed their company 's business principles and adopted a new approach of reporting social and environmental performance to stakeholders . The revised principles were adopted by all operating companies and it was made a requirement that each operating company audited their principles annually for compliance . In relationship with shareholders , Resolution 10 was placed during their AGM . This resolution was to take 3 steps which were to place a director in charge of environmental and corporate responsibility to monitor externally audit and report to shareholders on its environmental and social policies , and to issue a report by the end of the year on the company 's operations in Nigeria . This resolution generated intense media and investor interest . Resolution 10 failed but the company moved in to institute a social accountability team

The most importance cause of Shell 's transformation was a need to change their view to meet society expectations . Their organization was very...