Political Economic and Civil Spheres in Exxonmobil Chemical

ExxonMobil Chemical: Analyzing Three Spheres / Political, Economic and Civil Spheres in ExxonMobil Chemical

Economic Sphere

Political Sphere

Civil Sphere

What company says about itself

Personal Take

What Stakeholders said

ExxonMobil Chemical, XOM, leads the world in the petrochemical sector, applying cutting-edge, patented technology for developing products that enrich the lives of people across the globe (ExxonMobil, 2015).

Economic Sphere

The company concentrates on developing its supplier capabilities and human resource, alongside their strategic local community investments. Emphasis is primarily placed on the training and education of local personnel; skills and capacity enhancement of local suppliers who can deliver the company requisite services and material; and, improvement in community members' livelihoods by means of strategic community-centered investments. ExxonMobil customizes local content to every location's specific requirements. The company formulates plans at the local level on the basis of factors, like development priorities of the government, regulatory environment, infrastructure present (and its quality), stakeholder expectations, social capacity, and the business environment. It is involved in a number of different working groups and committees pertaining to local content, and co-chairs the local content committee of the International Petroleum Industry Environmental Conservation Association (IPIECA) (ExxonMobil, 2014a).

Local Hiring and Training

Placing members of the local community under the company's wing can assist with advancing economic progress in nations where ExxonMobil operates, while ensuring and supporting operational continuity. The company offers local contractors and staff members' leadership and technical training, which proves valuable all through their career (subsequent to working on the company's ventures, as well). This strategy improves overall, long-term workforce capability. For example, in ExxonMobil's Angola branch, 82% of employees are Angolan nationals, out of which 15% hold managerial or supervisory posts (ExxonMobil, 2014a).

Local Supplier Development

Developing and employing local suppliers for the purpose of procuring company operations-related goods and associated services, form a key part of the business strategy of ExxonMobil. This is with regard to cultivating entrepreneurship, and promoting competitive businesses. Its aim is forging and retaining a sustainable, economical, and competent supply chain in all its areas of operation. For instance, in Liberia, ExxonMobil's affiliate, EMEPLL (ExxonMobil Exploration and Production Liberia Ltd.), puts in efforts to connect the local suppliers to established international firms, hence filling the gulf with competent suppliers (ExxonMobil, 2014a).

Political Sphere

The company feels that registration and voting, working with civic agencies, remaining well-versed with political matters, and national-, state- and local- level office-holding, and canvassing, are fundamental duties and rights of a democratic nation's citizens (ExxonMobil, 2014b).

Corporate Contributions

The company, whenever allowed, makes licit political donations in its home country (USA), to political organizations, parties, candidates, and associations. Governing organizations are made aware of the aforementioned contributions, whenever the law mandates it. On the international platform, the only nation wherein an affiliate of the company is permitted to contribute to political causes is Canada. ExxonMobil's majority-owned subsidiary in Canada, Imperial Oil Limited, contributes limited sums of money to political candidates, parties, and riding associations. It adheres to stringent guidelines while making such contributions, all of which are made public by the provincial Chief Electoral Officers. For example, New York's corporate contribution was 5.0 last year (ExxonMobil, 2014b).

ExxonMobil PAC

As is the custom in a number of companies, ExxonMobil provides retiree shareholders and some qualified employees a chance to take part in America's political system by way of a contribution to a Political Action Committee (PAC), sponsored by the company. PAC engagement is entirely voluntary, and an account of any political contribution, which is made via the Committee, is given to the U.S. FEC (Federal Election Commission) on a monthly basis; the contributions become public records. Thus, one can access a comprehensive list of the company's PAC contributions in the U.S. Texas' PAC contribution, for example, was 76.9 in 2014 (ExxonMobil, 2014b).

Civil Sphere

The company has major positive effects on world economy by means of exploration and capital outlays, tax payments and shareholder distributions that amounted to 196 billion dollars last year, in addition to supplying energy all over the world (ExxonMobil. 2014c). Apart from this, periodic stakeholder engagement facilitates company improvement, and enables it to continue acting in an ethically responsible manner. The organization engages its stakeholders through several avenues, such as social media, the Internet, community meetings, one-to-one and collective meetings, and corporate publications (ExxonMobil. 2014c).

What the Company Says About Itself

ExxonMobil claims to be one among the world's largest petrochemical firms. The chemical company offers the basic units for a vast range of goods, including plastic bottles, packaging material, solvents, synthetic rubber, automobile bumpers, and innumerable consumer products. It counts among the leading producers of polyolefins (like polyethylene and polypropylene), and olefins (like propylene and ethylene) in the world; olefins and polyolefins constitute the elementary units (raw material) employed in manufacturing a number of everyday items, such as packaging film, polyester fiber, and automotive parts (ExxonMobil, 2015c).