Transformation of Shell

The Transformation of Shell

The key changes Shell made in the areas of organizational structure and culture, relationships with stakeholders, reporting practices, and business principles were stopping the use of the matrix form of organization. This allowed them to make decisions faster and also focus better on the company’s needs and those of its customers. Another key change was deciding that its corporate responsibility was to be made public to both shareholders and other stakeholders and also to society at large. Shell started to publish not just financial reports but also environmental and social reports that were proven by independent companies. The company also started to discuss with stakeholder organizations such as Amnesty International, a human rights company and Pax Christi, a Catholic organization for world peace on how to better help and serve to make society a better place where human rights are respected. I believe that the changes Shell made were all in the right direction and the best thing to do would be to continue along that road.

In my opinion, the most important cause of Shell’s transformation was the way society treated the company and its products because of the separate major issues, both environmental and human rights violation that it was involved in. This was starting to hurt not only the company’s public image but also hurt the company financially as well. I believe that it was a combination of both external and internal pressures. It is my belief that Shell was sincere in the transformation and changes it made to its organizational policies and the society also.