Royal Dutch Shell 59417 225602877 2008-07-14T14:39:36Z 72.71.174.239 /* External links */ added link to org chart {{Infobox Company | name = Royal Dutch Shell | company_logo = [[Image:Shell logo.svg|171px]] | type = [[Public company|Public]]<br> ([[London Stock Exchange|LSE]]: [http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB00B03MLX29GBGBXSET3B03MLX2RDSA RDSA] / [http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB00B03MM408GBGBXSET1B03MM40RDSB RDSB])<br> ([[NYSE]]: [http://www.nyse.com/about/listed/rdsa.html RDS.A] / [http://www.nyse.com/about/listed/rdsb.html RDS.B]) | foundation = [[1907]] | location = [[The Hague]], [[Netherlands]] | area_served = [[Worldwide]] | key_people = [[Jeroen van der Veer]] <small>([[CEO]])</small><br>[[Jorma Ollila]], <small>([[Chairman]])</small> | industry = [[List of petroleum companies|Oil and gas]] | products = [[Petroleum|Oil]]<br>[[Natural gas]]<br>[[Petrochemical]]s | market cap = [[United States dollar|US$]] 256.03 Billion (''2008'') | revenue = {{profit}} [[United States dollar|US$]] 355.782 Billion (''2007'') | operating_income = {{profit}} [[United States dollar|US$]] 48.986 Billion (''2007'') | net_income = {{Profit}} [[United States dollar|US$]] 31.331 billion (''2007'') | assets = {{increase}} [[United States dollar|US$]] 269.470 billion (''2007'') | equity = {{increase}} [[United States dollar|US$]] 123.960 billion (''2007'') | subsid = {{flagicon|U.S.}} [[Shell Oil Company]]<br>{{flagicon|Nigeria}} [[Shell Nigeria]]<br>{{flagicon|Canada}} [[Shell Canada]] | num_employees = 108,000 (''2008'') | homepage = [http://www.shell.com www.shell.com] | intl = yes }} '''Royal Dutch Shell''' [[public limited company|plc]], commonly known simply as '''Shell''', is a [[multinational corporation|multinational]] oil company of [[United Kingdom|British]] and [[Netherlands|Dutch]] origins. It is the second largest [[private sector]] [[energy]] corporation in the world, and one of the six "[[supermajor]]s" ([[Vertical integration|vertically integrated]] [[private sector]] [[oil exploration]], [[natural gas]], and [[petroleum]] product marketing companies). The company's headquarters are in [[The Hague]], [[Netherlands]], with its registered office in [[London]], [[United Kingdom]] ([[Shell Centre]]).<ref>{{cite web | title = Investor Centre - Investor contacts | publisher = Shell International B.V. | date = 2007-06-27 | url = http://www.shell.com/home/content2/investor-en/contact.html | format = HTML | accessdate = 2007-08-30 }}</ref> The company's main business is the exploration for and the production, processing, transportation and marketing of [[hydrocarbons]] (oil and gas). Shell also has a significant [[petrochemicals]] business ([[Shell Chemicals]]), and an embryonic [[renewable energy]] sector developing [[wind power|wind]], [[Hydrogen economy|hydrogen]] and [[solar power]] opportunities. Shell is incorporated in the UK with its corporate headquarters in The Hague, its tax residence is in Netherlands, and its primary listings on the [[London Stock Exchange]] and [[Euronext]] Amsterdam (only "A" shares are part of the [[AEX index]]). Shell's revenues of $318.8 billion in 2006 made it the third-largest corporation in the world by revenues behind only [[ExxonMobil]] and [[Wal-Mart]]. Its 2006 gross profits of $26 billion made it the world's second most profitable company, after ExxonMobil and before [[BP]]. [[Forbes Global 2000]] in 2007 ranked Shell the eighth largest company in the world. Also in 2007, ''[[Fortune (magazine)|Fortune]]'' magazine ranked Shell as the third-largest corporation in the world, behind [[Wal-Mart]] and ExxonMobil. Shell operates in over 140 countries. In the [[United States]], its [[Shell Oil Company]] subsidiary, headquartered in [[Houston, Texas]], is one of Shell's largest businesses. The company has been the subject of [http://www.shellnews.net/PDFs/Guardunlov15Nov1997-1.pdf criticism] for its business practices and environmental record. ==History== [[Image:Shell Centre, London, UK, June 2004.jpg|thumb|161px|[[Shell Centre]] building next to the [[London Eye]] in [[London]], [[United Kingdom|UK]]]] The Royal Dutch/Shell Group of companies was created in February 1907 when the Royal Dutch Petroleum Company (legal name in Dutch, N.V. Koninklijke Nederlandsche Petroleum Maatschappij) and the "Shell" Transport and Trading Company Ltd of the [[United Kingdom]] merged their operations – a move largely driven by the need to compete globally with the then predominant American oil company, [[John D. Rockefeller]]'s [[Standard Oil]]. The terms of the merger gave 60% of the new Group to the Dutch arm and 40% to the British. To celebrate its centenary in 2007 Shell launched a scholarship fund.<ref>{{cite web | title = The Shell Centenary Scholarship Fund | publisher = Shell Centenary Scholarship Fund | date = 2007-09-17 | url = http://www.shellscholar.org/ | format = HTML | accessdate = 2007-08-30 }}</ref> Royal Dutch Petroleum Company was a [[Netherlands|Dutch]] company founded in 1890 by [[Jean Baptiste August Kessler]], along with [[Henri Deterding]] and [[Hugo Loudon]], when a Royal charter was granted by king [[William III of the Netherlands]] to a small oil exploration company known as "Royal Dutch Company for the Exploration of Petroleum Wells in the Dutch Indies" (now Indonesia). The "Shell" Transport and Trading Company (the quotation marks were part of the legal name) was a [[United Kingdom of Great Britain and Ireland|British]] company, founded in [[1897]] by [[Marcus Samuel]] and his brother [[Samuel Samuel]]. The company was engaged in the trading of opium and other commodities with oriental countries. In 1919, Shell took control of the Mexican Eagle Petroleum Company and in 1921 formed Shell-Mex Limited which marketed products under the "Shell" and "Eagle" brands in the [[United Kingdom]]. In 1931, partly in response to the difficult economic conditions of the times, Shell-Mex merged its UK marketing operations with those of [[British Petroleum]] to create [[Shell-Mex and BP]] Ltd, a company that traded until the brands separated in 1975. In November 2004, following a period of turmoil caused by the revelation that Shell had been overstating its [[oil reserves]], it was announced that the Shell Group would move to a single capital structure, creating a new parent company to be named Royal Dutch Shell plc, with its principal listing on the [[London Stock Exchange]] and the [[Amsterdam Stock Exchange]] and its headquarters in [[The Hague]] in the Netherlands. The unification was completed on [[20 July]] [[2005]]. Shares were issued at a 60/40 advantage for the shareholders of Royal Dutch in line with the original ownership of the Shell Group. Under the old capital structure, Shell's [[American Depositary Receipt|ADRs]] were traded on the [[New York Stock Exchange]] under RD (Royal Dutch) and SC (Shell). ==Origin of the Shell name and branding== <!-- FOLLOWING DIV CONTAINS SPECIAL FORMATTING - BE CAREFUL WITH EDITING! --> <div class="thumbcaption"> {| width="135px" align="right" style="border: 1px solid #CCCCCC; margin-left: 8px; background-color: #F9F9F9;" | [[Image:Shell logo from petrol station.jpg|51x126px|A Shell service station's price board with the pecten brand]] | align="left" valign="bottom"|<span class="thumbcaption">A Shell service station's price board with the pecten brand</span> |} </div> The origin of the brand name Shell is linked to the origins of The "Shell" Transport and Trading Company.<ref>{{cite web | title = About Shell - The history of the Shell logo | work = About Shell | publisher = Shell International B.V. | date = 2007-06-15 | url = http://www.shell.com/home/content/aboutshell-en/who_we_are/our_history/history_of_pecten/history_of_the_pecten_23112006.html | format = HTML | accessdate = 2007-08-30 }}</ref> In 1833, the founder's father, also [[Marcus Samuel]], founded an import business to sell [[seashell]]s to [[London]] collectors. When collecting seashell [[specimens]] in the [[Caspian Sea]] area in 1892, the younger Samuel realized there was potential in exporting lamp oil from the region and commissioned the world's first purpose-built [[oil tanker]], the Murex (Latin for a type of [[Murex|snail shell]]), to enter this market; by 1907 the company had a fleet. The Shell [[brand]] is one of the most familiar commercial symbols in the world. Known as the "pecten" after the sea shell, the giant [[scallop]], ''pecten maximus'', on which its design is based, the current version of the brand was designed by [[Raymond Loewy]] and introduced in 1971. The yellow and red colours used are thought to relate to the colours of the [[flag of Spain]] as Shell built early service stations in the state of [[California]] which had strong connections with Spain.<ref name=Superbrands>''Business Superbrands'', Editor: Marcel Knobil, Author James Curtis (2000), Superbrands Ltd. ISBN 0-9528153-4-6, p. 93.</ref> ==Businesses== [[Image:HK Shell depot.JPG|thumb|161x201px|Shell oil depot in [[Kowloon]], [[Hong Kong]]]] [[Image:Oil platform.jpg|thumb|161x201px|The [[upstream (oil industry)|upstream]] provides two thirds of Shell's revenues]] [[Image:ShellMartinez-refi.jpg|thumb|161x201px|A Shell [[oil refinery]] in [[Martinez, California]]]] One of the original [[Seven Sisters (oil companies)|Seven Sisters]], Royal Dutch/Shell is the world's second-largest private sector oil company by revenue, Europe's largest energy group and a major player in the petrochemical industry. ===Core businesses=== Shell has five core businesses: Exploration and Production ([[upstream (oil industry)|the "upstream"]]), Gas and Power, Refining and Marketing, Chemicals ([[downstream (oil industry)|the "downstream"]]), and Trading/Shipping, and operates in more than 140 countries. Shell's primary business is the management of a [[Vertical integration|vertically integrated]] oil company. The development of technical and commercial expertise in all the stages of this vertical integration from the initial search for oil (exploration) through its harvesting (production), transportation, refining and finally trading and marketing established the core competencies on which the Group was founded. Similar competencies were required for [[natural gas]], which has become one of the most important businesses in which Shell is involved, and which contributes a significant proportion of the company's profits. While in the past the [[Vertical integration|vertically integrated]] business model gave significant [[economies of scale]] and provided Shell with the opportunity to establish [[barriers to entry]] both geographically and on a more global scale, this has been less a possibility in more recent times. As a result although the [[vertical integration]] remains there is much less [[interdependence]] between the businesses and each is now charged with being a self-supporting independent business without cross subsidies from other parts of the business chain. Shell's oil and gas business is increasingly an assembly of independent and globally managed business segments each of which must be profitable in its own right. This can be a source of criticism, as some consumers see huge profits accruing from upstream income whilst price rises instituted by the independent downstream business anger motorists and other consumers. The downstream, which now also includes the Chemicals business, generates a third of Shell's profits worldwide and is most recognised by its global networks of more than 40,000 [[petrol station]]s and its 47 [[Oil refinery|oil refineries]]. ===Diversification=== Over the years Shell has occasionally sought to diversify away from its core oil, gas and chemicals businesses. These diversifications have included [[nuclear power]] (a short-lived and costly joint venture with [[Gulf Oil]] in the USA); [[coal]] (Shell Coal was for a time a significant player in mining and marketing); metals (Shell acquired the Dutch metals-mining company [[Billiton]] in 1970) and [[electricity generation]] (a joint venture with [[Bechtel]] called Intergen). None of these ventures were seen as successful and all have now been divested. In recent years Shell has moved tentatively into [[alternative energy]] and there is now an embryonic "[[Renewables]]" business that has made investments in [[solar power]], [[wind power]], [[hydrogen]], and [[forestry]]. The forestry business went the way of nuclear, coal, metals and electricity generation, and was disposed of in 2003. Shell is, however, one of the world's largest investors in several renewables fields, such as solar<ref>{{cite web | last = Jiménez | first = Viviana | title = World Sales of Solar Cells Jump 32 Percent | work = Eco-Economy Indicators | publisher = Earth Policy Institute | date = 2007-10-22 | url = http://www.earth-policy.org/Indicators/2004/indicator12.htm | format = HTML | accessdate = 2007-08-30 }}</ref> and wind.<ref name="HWFPTPL">{{cite news | author = The Associated Press | title = Huge wind farm proposed to power London | work = U.S. News | publisher = MSNBC | date = 2005-06-07 | url = http://www.msnbc.msn.com/id/8131404/ | accessdate = 2007-08-30 }}</ref> In 2004, Shell ranked fourth worldwide in terms of sales of solar products.<ref>{{cite web | last = Shobha | first = Ramswamy | title = Sunny side up | work = Tata BP Solar | publisher = Tata Sons Ltd | date = 2004-01-05 | url = http://tata.com/tata_bp_solar/articles/20040104_Sunny_side_up.htm | format = HTML | accessdate = 2007-08-30 }}</ref> Shell is also one of the world's largest investors in wind energy - Shell WindEnergy is to have a major share in what is planned as the world's largest wind farm, the [[London Array]] (1GW).<ref name="HWFPTPL" /> The company's partnership in the USA with Nedpower Mt Storm wind power project has proceeded less well, however, with delays, cost overruns and legal challenges.{{Fact|date=August 2007}} <!-- http://www.uswindpower.info -- this site appears to be a protest/lobby site, and hardly worthwhile as a NPOV cited reference --> Shell also is involved in large-scale hydrogen projects. HydrogenForecast.com describes Shell's approach thus far as consisting of "baby steps", but with an underlying message of "extreme optimism".<ref>{{cite web | last = Stanley | first = Dean | title = Shell Takes Flexible Approach to Fueling the Future | work = Executive View | publisher = Corland Publishing | date = | url = http://www.hydrogenforecast.com/ArticleDetails.php?articleID=250 | format = HTML | accessdate = 2007-08-30 }}</ref> ===Business priorities=== Shell's principal focus remains on its core business activities. The strategy is described as "more upstream and profitable downstream".<ref>{{cite web | title = About Shell - Shell's strategy | work = Our strategy | publisher = Shell International B.V. | date = 2007-06-15 | url = http://www.shell.com/home/content/aboutshell-en/general/terms_and_conditions_17112006.html | format = HTML | accessdate = 2007-08-30 }}</ref> Capital investments in 2006 totalled $24.896 billion of which $418 million was in businesses (including Renewables) other than the core Oil, Gas and Chemicals sectors.<ref>{{cite web | title = Investor Centre - 4th Quarter and full year 2006 unaudited results | work = Quarterly Results | publisher = Shell International B.V. | date = 2007-06-23 | url = http://www.shell.com/home/Framework?siteId=investor-en&FC2=/investor-en/html/iwgen/quarterlyresults/2006/zzz_lhn.html&FC3=/investor-en/html/iwgen/quarterlyresults/2006/q4_2006_results_01022007.html | format = HTML | accessdate = 2007-08-30 }}</ref> ==Ownership== Prior to unification on [[20 July]] [[2005]], the group was a [[dual listed company]]. The two holding companies were the Royal Dutch Petroleum Company of the [[Netherlands]] and the Shell Transport and Trading Company plc of the [[United Kingdom]]. These two companies jointly owned all the operating companies in the group, although some also have local shareholders and are traded on local stock markets. The Shell interest in subsidiaries was always divided 60/40 in favour of Royal Dutch. In many cases, subsidiary companies are held in partnership with other companies or [[governments]]. The company's shares are divided into two classes, A and B, representing the former Royal Dutch and Shell shares respectively. This arrangement is probably for tax reasons.{{Vague|date=March 2008}} Although to meet company law in all countries, there were executive and non-executive nominated directors of both Royal Dutch and Shell Transport and Trading, the Group had in fact been run by an executive body called the "Committee of Managing Directors" (CMD), whose members were the (executive) Managing Directors of the two parent companies. There has been speculation that merger/takeover opportunities with [[BP]] would create the world's largest company.<ref>{{cite news | last = Macalister | first = Terry | title = BP should consider the 'mother of all mergers' with Shell | work = Business | publisher = Guardian News and Media Limited | date = 2004-07-15 | url = http://business.guardian.co.uk/story/0,3604,1261452,00.html | accessdate = 2007-08-30 }}</ref> <ref>{{cite news | last = Jivkov | first = Michael | title = Market Report: BG lit up by talk that Shell will pounce on it | work = Business Analysis & Features | publisher = Independent News and Media Limited | date = 2006-09-19 | url = http://news.independent.co.uk/business/analysis_and_features/article1619279.ece | accessdate = 2007-08-30 }}</ref> <ref>{{cite news | title = BG shares soar amid Shell takeover talk | work = Business | publisher = BBC | date = 1999-06-07 | url = http://news.bbc.co.uk/1/hi/business/the_company_file/363192.stm | accessdate = 2007-08-30 }}</ref>. ==Management== ===Executive committee=== Shell's executive committee consists of: * [[Jeroen van der Veer]], Chief Executive * [[Linda Cook (business)|Linda Cook]], Executive Director Gas and Power * [[Malcolm Brinded]], Executive Director Exploration and Production * [[Peter Voser]], Chief Financial Officer * [[Pete Barritt]], "Professor" Chief Environmental Advisor * [[Rob Routs]], Executive Director Downstream Oil Products and Chemicals In March 2007 it was [http://www.shell.com/home/Framework?siteId=media-en&FC2=/media-en/html/iwgen/news_and_library/press_releases/2007/zzz_lhn.html&FC3=/media-en/html/iwgen/news_and_library/press_releases/2007/jeroen_de_veer_update_28032007.html announced] that Mr. van der Veer's contract as CEO would be extended to June 2009, some twenty months beyond his normal Shell retirement date of October 2007.<ref>{{cite press release | title = Royal Dutch Shell plc updates on Chief Executive | publisher = Shell International B.V. | date = 2007-03-28 | url = http://www.shell.com/home/content/media-en/news_and_library/press_releases/2007/jeroen_de_veer_update_28032007.html| accessdate = 2007-08-30 }}</ref> He will be the first modern [[executive director]] of Shell to stay in office beyond the age of 60.{{Or|date=September 2007}} There has been speculation in the news media about candidates to be Chief Executive of Royal Dutch Shell Plc when van der Veer retires, with the front runners seen as Brinded, Cook, and Voser.<ref>[http://business.guardian.co.uk/story/0,,2044948,00.html Shell chief to stay an extra year beyond company retirement age | Business | The Guardian<!-- Bot generated title -->]</ref><ref>http://money.cnn.com/news/newsfeeds/articles/djf500/200712310938DOWJONESDJONLINE000149_FORTUNE5.htm</ref> ===Non Executive Directors=== On [[4 August]] [[2005]], the board of directors announced the appointment of [[Jorma Ollila]], then Chairman and CEO of [[Nokia]], to succeed Aad Jacobs as the company’s non-executive Chairman from [[1 June]] [[2006]]. Ollila is the first Shell Chairman to be neither Dutch nor British. Other non-executive directors include [[Maarten van den Bergh]], [[Wim Kok]], Nina Henderson, [[John Kerr, Baron Kerr of Kinlochard|Lord Kerr]], Adelbert van Roxe, and Christine Morin-Postel. ==Financial Data== {| class="wikitable" border="3" |+ '''Financial data in millions of US$''' ! Year ! 2002 ! 2003 ! 2004 ! 2005 ! 2006 |----- | [[Sales]] | 179 315 | 201 728 | 265 190 | 306 731 | 318 845 |----- | [[EBITDA]] | 26 941 | 33 211 | 44 866 | 55 590 | 59 820 |----- | [[Net Results]] | 9 656 | 12 313 | 18 183 | 25 311 | 26 311 |----- | [[Net Debt]] | 19 691 | 20 127 | 14 422 | 12 900 | 6 800 |} ::::::''Source :'[http://www.opesc.org/fiche-societe/fiche-societe.php?entreprise=SHELL OpesC]' ==Corporate responsibility and reputation== {{Citations missing|section|date=August 2007}} {{Main|Controversies surrounding Royal Dutch Shell}} {{Main|Royal Dutch Shell environmental issues}} Shell's operations have been subject to particular scrutiny by stakeholders – especially environmental and [[human rights]] groups and local communities. Over the years, Shell has been criticised in respect of a number of its operations. These have included its businesses in [[South Africa]] and [[Conflict in the Niger Delta|Nigeria]], notably in relation to protests of the [[Movement for the Survival of the Ogoni People|Ogoni]] and Nigeria's execution of journalist [[Ken Saro-Wiwa]], who spoke out against what he viewed as Shell's destruction of his tribe's homeland.<ref>[http://www.myhero.com/myhero/hero.asp?hero=k_sarowiwa The My Hero Project - Ken Saro Wiwa<!-- Bot generated title -->]</ref> Militants in the delta enjoy widespread support as 20 million people remain rooted in poverty despite the enormous wealth generated in the oil-rich area, putting Nigeria among the leading Opec nations. Shell is the largest oil producer in Nigeria.<ref>[http://www.corpwatch.org/article.php?id=13121 CorpWatch : NIGERIA: Shell may pull out of Niger Delta after 17 die in boat raid<!-- Bot generated title -->]</ref> Protests also regard the company's attitude to the environment, e.g. the disposal of the [[Brent Spar]] production platform in Britain.{{Fact|date=August 2007}} Shell's response to the problems of Brent Spar and Nigeria was to launch an internal review of processes and an external communications campaign to persuade stakeholders of their commitment to [[corporate social responsibility]]. In response to criticism of its track record on environmental matters Shell published an unequivocal commitment to [[sustainable development]], supported by executive speeches reinforcing this commitment.<ref>{{Citation | last = Ek Kia | first = Tan | title = Sustainable Development in Shell | date = 2005-04-19 | format = PDF | url = http://www.shellchemicals.com/chemicals/pdf/speeches/sydney_speech_april_2005.pdf | accessdate = 2007-08-30 }}</ref> At the same time Shell Oil (the US subsidiary) was one of the first companies to leave the [[Global Climate Coalition]], a lobby group which had opposed restrictions on greenhouse gases, and the Royal Dutch/Shell Group itself was never a member.<ref>[http://www.exxonsecrets.org/html/orgfactsheet.php?id=38 ExxonSecrets Factsheet: Global Climate Coalition<!-- Bot generated title -->]</ref> Shell Chairman [[Philip Watts]] gave a 2003 speech in [[Houston]] calling for skeptics to get off the fence and take action "before it is too late".<ref>{{cite news | last = Macalister | first = Terry | title = Shell chief delivers global warming warning to Bush in his own back yard | work = Special report | publisher = Guardian News and Media Limited | date = 2003-03-12 | url = http://www.guardian.co.uk/climatechange/story/0,12374,912530,00.html | accessdate = 2007-08-30 }}</ref> Shell is also a founding member of the [[World Business Council for Sustainable Development]], which Watts led as Chairman in 2002/2003. Delivering the annual business lecture hosted by [[Greenpeace]] in 2005, Shell chairman Lord Oxburgh said that we must act now on global warming or face a "disaster", and encouraged governments to provide a regulatory framework to encourage the reduction of greenhouse gas emissions. {{Cquotetxt|Our job is to respond in a positive way to a regulatory environment that has to be determined by government ... given the urgency, we have to start now.|[[Lord Oxburgh]], Shell Chairman.<ref>{{cite news | last = Shah | first = Saeed | title = Shell boss warns of global warming 'disaster' | publisher = Independent Newspapers UK Limited | date = 2005-01-26 | url = http://findarticles.com/p/articles/mi_qn4158/is_20050126/ai_n9693285 | accessdate = 2007-08-30 }}</ref>}} Shell's compliance to corporate social responsibility also includes its LiveWIRE programme. This initiative has over 21 years experience of encouraging young people to start and develop their own businesses in the UK and elsewhere in the world (26 countries).<ref>{{cite web | title = What is Shell LiveWIRE? | publisher = Shell LiveWIRE | url = http://www.shell-livewire.com/new/whatis/ | format = HTML | accessdate = 2007-08-30 }}</ref> ===Shell whistleblowers=== ====Official website for whistleblowers==== Shell has said that it is committed to listening to stakeholders.{{Fact|date=August 2007}} This included the setting up of a global Internet-based facility for [[whistleblower]]s to report alleged violations of the law or of Shell General Business Principles, a voluntary [[ethical code|code of ethics]] pledging [[transparency (market)|transparency]], [[integrity]] and [[honesty]] in all of Shell's business dealings.<ref>{{cite web | title = Environment and Society - Shell General Business Principles | work = Environment and Society | publisher = Shell International B.V. | date = 2007-05-05 | url = http://www.shell.com/home/Framework?siteId=envirosoc-en&FC2=&FC3=/envirosoc-en/html/iwgen/making_it_happen/our_commitments_and_standards/shell_general_business_principles/%20sgbp_13042007.html | format = HTML | accessdate = 2007-08-30 }}</ref> The introduction on the Global Helpline website says ''"Reporting and addressing suspected violations of the law or the Shell General Business Principles (SGBP) is of critical importance in protecting our reputation and the value of the Shell brand."'' Whistleblowers are asked to provide identity details but [[Anonymity|anonymous]] reports are also accepted. The Global Helpline operated by Global Compliance, Inc. is available to ''"customers, suppliers, partners, advisers and employees of Shell''".<ref>[https://www.compliance-helpline.com/Shell.jsp Shell<!-- Bot generated title -->]</ref> Information from a document downloadable from the Helpline website via the link ''"Notice about the Shell Global Helpline"'', indicates that the Global Helpline was introduced as a way for ''"employees and others to raise concerns or dilemmas, or to seek advice on a matter related to compliance with the law and our ethical standards, in full confidence and without fear of retaliation."'' Allegations which can be reported include infringement of antitrust or competition law; acts of bribery and corruption; conflict of interest; money laundering; health, safety, security and environment issues; equal opportunity, harassment, substance abuse; sanctions breaking; improper use of intellectual property or IT resources; infringement of data privacy and ''"theft, fraud, forgery and the abuse of assets".'' The same document warns that ''"misuse of the system to make a false allegation maliciously will not be tolerated and may result in disciplinary action. Attempts to trace an anonymous reporter may be made in these circumstances."'' A regional case manager assesses the information reported by a whistleblower and determines the appropriate action to be taken. At the conclusion of an investigation, the local Shell operating company ''"will decide on what action or actions should result in the event that an allegation has been found to be true."'' ====Unofficial website for whistleblowers==== A number of newspapers have commented on an unofficial website used by Shell whistle blowers. On 18 March 2008, The [[Wall Street Journal]] described it as [http://www.shellnews.net/images/wsjshelladdresses18march2008 a Web site regularly used by Shell whistle blowers"]. [[Reuters]] has described the website as [http://www.reuters.com/article/companyNewsAndPR/idUSL0484679120070904 an unofficial company Web site"] which "acts as a conduit for whistleblowers at the company..." ===Corporate communications=== Much of Shell's reputation-building advertising concentrated on the embryonic [[renewable energy]] business despite the fact that this remains a very small business compared to the core hydrocarbon extraction, processing and marketing operations. The corporate advertising campaign was (like a similar campaign by [[BP]]) described as "[[greenwash]]" by some [[non-governmental organization]] critics,<ref>{{cite web | last = Bruno | first = Kenny | title = Greenwash Award to Shell for Clouding the Issue | work =Campaigns | publisher = CorpWatch | date = 2002-01-24 | url = http://www.corpwatch.org/article.php?id=1348#gwaward | format = HTML | accessdate = 2007-08-30 }}</ref> but praised by other commentators.<ref>{{cite web | last = Gelbspan | first = Ross | title = A modest proposal to stop global warming | work = Energy Features | publisher = Sierra Club | date = | url = http://www.sierraclub.org/sierra/200105/globalwarm.asp | format = HTML | accessdate = 2007-08-30 }}</ref> In response to questions which focused on the small percentage of its capital investment programme that was directed towards [[alternative energy]] Shell said that it would be "pointless" to say exactly how much of capital expenditure was going into renewable energy schemes. Chief Executive Officer [[Jeroen van der Veer]] indicated that the investment in renewables was small, saying it would be "throwing money away" to invest in alternative energy projects that were noncommercial and people could not afford to buy.<ref>{{cite news | last = Macalister | first = Terry | title = Profits up a fifth but Shell emits more CO2 than most countries | work = Business | publisher = Guardian News and Media Limited | date = 2007-02-02 | url = http://business.guardian.co.uk/story/0,,2004173,00.html | accessdate = 2007-08-30 }}</ref> ===Oil reserves=== In 2004, a disclosure about the overstatement of oil reserves was seen as the most serious crisis encountered in the Group’s nearly 100 years of history. ''[[The Economist]]'' asked in an article dated 11 March 2004 whether Shell could be seen as "another Enron", but answered its own question with "importantly, Shell's shifting of reserves (from “proven” to “probable”) simply cannot be compared with the phantom profits and bogus assets booked by Enron. That is because the oil and gas actually still exists, and Shell still owns them as real, usable assets".<ref>[http://www.shell2004.com/2004%20Documents/efodds/economistenron.htm ROYAL DUTCH SHELL GROUP .COM The Economist<!-- Bot generated title -->]</ref> The crisis led to the dismissal of the chairman of the Committee of Managing Directors [[Philip Watts]], and prompted a major reorganisation of the Group. ===Other recent problems=== Royal Dutch Shell's image suffered another blow when problems arose with the massive [[Sakhalin-II]] project in [[Russia]] and the controversial [[Corrib Gas Field]] development in [[Ireland]]. Shell's social investment initiative the [[Shell Foundation]] has also run into some controversy. In 2007 [[Friends of the Earth]] alleged that the damage caused by Shell's oil activities to local communities and the wider environment could be assessed at $20 billion.<ref>{{cite news | last = Macalister | first = Terry | title = Campaigners urge Shell to put profits into clean-up | work = Business | publisher = Guardian News and Media Limited | date = 2007-01-31 | url = http://business.guardian.co.uk/story/0,,2002276,00.html | accessdate = 2007-08-30 }}</ref> ===Health and safety=== {{Main|Royal Dutch Shell safety concerns}} A number of incidents over the years led to criticism of Shell's [[health and safety]] record, including repeated warnings by the UK Health and Safety Executive about the poor state of the company's North Sea platforms. ==Combination of Royal Dutch and Shell== [[Image:ShellgebouwAmsterdam.JPG|thumb|161x201px|Shell Research and Technology Centre, [[Amsterdam]]]] On [[28 October]] [[2004]], the company announced its proposal to merge Royal Dutch and "Shell" Transport and Trading into one entity, Royal Dutch Shell plc, to be "incorporated in the UK but headquartered and tax resident in the Netherlands". On [[28 June]] [[2005]] investors in both Shell Transport and Trading and Royal Dutch approved, at their Annual General Meetings, plans to merge the Group's dual-ownership structure and create a single company worth £120bn ($219bn). The new company's primary listing is on the [[London Stock Exchange]] and it employs around 104,000 people in 110 countries.<ref>{{cite web|title=Shell Global Home Page | url=http://www.shell.com | accessdate=2008-05-19}}</ref> This type of business structure was not legally possible in 1907 when the Group was established, and the unique form of organisation that was then adopted by Shell, although durable, had come under criticism in recent years. Some critics thought that as the two parent companies had separate boards, with separate memberships, this meant that there was a certain amount of (undesirable) independence of each of the companies from the other. Others felt that the real power in Shell lay not with the two parent company boards at all but with the Committee of Managing Directors, which had no legal status but nevertheless took all the key operational decisions. The new organisational structure follows a more conventional business model in line with most other private sector oil companies and most commentators have commented favourably on the change, which they believe will establish a more transparent and accountable corporation.{{Fact|date=April 2008}} The Committee of Managing Directors was abolished under this new structure; board meetings will be more executive in character, and there will only be one Annual General Meeting per year. ==Corporate governance== Traditionally, Shell was a heavily decentralised business worldwide (especially in the downstream) with operating companies in over 100 countries each of which operated with a high degree of independence. The upstream tended to be far more centralised with much of the detailed technical and financial direction coming from the central offices in [[The Hague]]. Nevertheless there were very large "Exploration and Production" companies in a small number of major oil and gas production centres such as the [[United Kingdom]] (Shell Expro, a Joint Venture with [[Exxon]]), Nigeria, Brunei, Oman etc. The downstream business, which in some countries also included [[oil refining]], generally included a retail [[petrol station]] network, lubricants manufacture and marketing, industrial fuel and lubricants sales and a host of other product/market sectors such as [[LPG]], [[bitumen]] etc. The custom and practice in Shell was that these businesses were essentially local in character and that they were best managed by local "operating companies" – often with middle and senior management reinforced by [[expatriates]]. In the 1990s this paradigm began to change and the independence of operating companies around the world was gradually reduced and today virtually all of Shell’s operations in all of its various businesses are much more directly managed from London and The Hague. The autonomy of “operating companies” has been largely removed as more "global businesses" have been created in all sectors. London is the headquarters of the [[downstream (oil industry)|downstream]] and other businesses and services whilst the management of the [[upstream (oil industry)|upstream]] business is the primary activity in the offices in The Hague. ===United States and Canada=== [[Image:Shellgasstationlosthills.jpg|thumb|161x201px|Shell [[filling station|service station]] near [[Lost Hills, California]]]] Through most of Shell's history, its business in the United States, [[Shell Oil Company]] was substantially independent with its stock ("Shell Oil") being traded on the [[NYSE]] and with little direct involvement from the Group’s central offices in the running of the American business. This also changed in the 1990s when Shell firstly bought out the shares in Shell Oil that they did not own and then took a more hands on approach in the running of the business. In Canada, also previously very independent, Shell has completed its purchase of the shares in [[Shell Canada]] that it did not own in order to apply the new global business model to its Canadian operations. ===Australia=== {{Main|Shell Australia}} [[Image:Coles-express-clontarf-queensland.JPG|thumb|161x201px|Coles Express service station in [[Clontarf, Queensland]]]] In [[Australia]], retailer [[Coles Myer]] (Coles now part of [[Wesfarmers]], Myer now part of Newbridge Capital) purchased the rights to the retail business from the existing [[Shell Australia]] multi-site franchisees in 2003 for an amount less than [[Australian dollar|A$]]100 million. This was in response to a popular discount fuel offer by rival [[Woolworths Limited]] launched some years earlier. Coles Express' only affiliation with Shell is that Shell is the exclusive supplier of fuel and lubricant products, leases the service station property to Coles, and maintains the presence of the "pecten" and other Shell branding on the price board and other signage. Coles Express sets fuel and shop prices and runs the business, provides convenience and grocery merchandise through its supply chain and distribution network, and directly employs the service station staff. ===Norway, Sweden and Denmark=== On [[27 August]] [[2007]], Royal Dutch Shell and [[Reitan Group]], the owner of the [[7-Eleven]] brand in [[Scandinavia]], announced an agreement to rebrand some 269 service stations across Norway, Sweden and Denmark, subject to obtaining regulatory approvals under the different competition laws in each country.<ref>{{cite press release | title = 7-Eleven and Shell join forces at 269 petrol stations | publisher = Shell International B.V. | date = 2007-08-27 | url = http://www.shell.com/home/content/media-en/news_and_library/press_releases/2007/shell_scandinavia_08271054.html | accessdate = 2007-08-30 }}</ref> ==See also== * [[Algae fuel]] * [[Coles Express]] * [[Henri Deterding]] * [[Lensbury]] * [[Marcus Samuel, 1st Viscount Bearsted]] * [[MESC]] * [[Philip Watts]] * [[Qatar Science & Technology Park]], at which Shell will conduct gas-to-liquids R&D * [[Royal Dutch Shell environmental issues]] * [[Shell Guides]], a series of [[guidebook]]s * [[Shell Pakistan]] ==References== {{reflist|2}} ==External links== {{commonscat|Royal Dutch Shell}} * [http://www.shell.com/ The Royal Dutch/Shell Group of Companies] * [http://biz.yahoo.com/ic/50/50019.html Yahoo! - Royal Dutch/Shell Group of Companies Company Profile] * [http://www.hoovers.com/global/sample/co/factsheet.xhtml?COID=50019 Profile @ Hoovers] * [http://royaldutchshellplc.com/2007/09/30/free-research-on-royal-dutch-shell-plc-over-17000-articles/ free online library containing over 20,000 articles relating to Royal Dutch Shell] * [http://www.webzinemaker.com/admi/m12/page.php3?num_web=46834&rubr=4&id=319006 Interview Shell President Venezuela] * [http://www.shell-livewire.org Shell Livewire website] * [http://www.shell-livewire.com Shell Livewire global website] * [http://www.cogmap.com/chart/royal-dutch-shell-plc Royal Dutch Shell Organization Chart] ==Bibliography== * "A Century in Oil" by Stephen Howarth [1997] ISBN 0 297 82247 0. A History of The "Shell" Transport and Trading Company. * "A History of Royal Dutch Shell" by Stephen Howarth and others [2007]. ISBN 978 0199298778 * "Seven Sisters" by Anthony Sampson (1981) ISBN 978 0553234695 * "Shell Shock: The secrets and spin of an Oil Giant" by Ian Cummins and John Beasant [2005]. 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