Business - Corporate Accountability Essay Example | Topics and Well Written Essays - 1000 words

Business - Corporate Accountability - Essay ExampleIn simple terms, corporal accountability is the ability of individuals affected by a corporation to take charge of the actions of the enterprise. It involves changes in the legal framework of how a company operates within affable and environmental parameters. Corporate accountability ensures that the legal framework within which a corporation operates is enforceable. This means that the corporation can be held accountable if it fails to meet the crop requirements. It offers legal rights over the relevant stakeholders to seek compensation incase they suffer from the companys operation (Friends of Earth, 2005). Corporate accountability ensures corporations operate with the view of minimizing and avoiding affectionate or environmental risk and harm. The concept of corporate accountability has brought various enlightened sectors of the corporate world together. Environmental organizations, trade unions, consumers, human rights and go vernments have wholly united behind the concept of corporate accountability (Friends of Earth, 2010). Corporations regularly may exploit weak regulatory systems in poor and developing countries making citizens in such countries vulnerable to corporate human rights abuse. Corporations also exploit such weak domestic regulatory systems due to the lack of international corporate accountability. ... As companies expand internationally, regulation measures have not been put in place to ensure compensation for individuals whose human rights become violated. Large and multinational companies have an liability to protect human rights within their trading operations. Corporate accountability provides corporations with an opportunity to have a look at its operations and impact on people as well as the environment (Isaleem, 2010). This paper will focus on a case study on corporate response of the Shell vegetable oil company towards corporate accountability resulting from consumer and polit ical pressure. CASE STUDY SHELL OIL COMPANY Shell Oil Company is the fifth largest company in the world according to Forbes magazine. It is a global oil and gas company. The companys registered office is in London while its headquarters are located at The Hague, Netherlands. The companys primary business involves oil exploration, harvesting, transportation and trade. In its oil operations, the company has come under severe scrutiny regarding to its function in environmental pollution and human rights abuses in several countries. It has become particularly criticized over the effects of its operations in Africa which has led to several protests against the company. Its operations in the Niger-delta located in Nigeria have resulted to extreme environmental issues (Amnesty International, 2005). Oil spills resulting from old and corroded pipelines has contributed to the death of vegetation, fish and general environmental degradation in the Niger-delta. This has led to mass protests ag ainst Shell by the local population in Niger-delta and particularly Amnesty international. The environmental pollution has also led to calls to