Saudi Basic Industrial Corporation
Name
Institution
Saudi Basic Industrial Corporation
Introduction:
The Saudi primary industries corporation is a publicly-traded company based in the Middle East, the city of Riyadh, Saudi Arabia, and founded in 1976 by the Saudi rulers. The mandate was to refine oil products into several other essential commodities purposefully. The company deals in products ranging from petrol-based chemicals agricultural fertilizers, polymers used in industries, and heavy metal manufacturing. The company has private investors from within Saudi and beyond. On ranks, the SABIC ranks among the world’s top industrial chemical manufacturers of the world, having been on top of the charts in 2017 and 2018. The significance of the growth of the company relies on its significant asset base, according to Forbes ranks 98th wealthiest companies in the world, leading to the massive success of the company. The company promoted the growth of towns into modern cities, and one of the brightest examples was the village of Jubal, initially a small fishing village.
SABIC’S Corporate Social Responsibility
Corporate social responsibility refers to aspects the community stands to benefit from having the company in the area. The company prides itself on rigorous hiring exercise and always corruption-free activity, being free from favoritism. It helps cultivate and sell the company’s strong values and ethics when dealing with its workforce. It ensures a harmonious working relationship between the community and the company. Corporate social responsibility has four primary categories, namely, legal, environmental, ethical, and philanthropic obligations. The Saudi primary industries corporation has been at the forefront of achieving corporate social responsibility for the areas it operates.
CSR has been made possible through various strategic partnerships with other stakeholders and private organizations (Leonard, 2019). Critical to its core, the company has partnered with governments, staying in line with a bid to tackle issues touching on environmental protection, health, and wellness. It initiated the improvement of health, the building of waterways and supply of water, development of roads, and more on its core. The Saudi Basic Industries Corporation (SABIC) has a board of directors to deal with the issues directly affecting the company. Some problems include expansion conflicts with governments, employee hiring, and employee promotions. The company board is responsible for all the shareholders.
The company is subject to being answerable to the market’s authority under the jurisdiction it operates. It is responsible for inspiring and motivating the employees to carry out their work with enthusiasm. It ensures diversity by engaging the entire workforce in education about their roles and how best they ought to do their jobs (Skye Schooley, 2019). The company buys off small companies and other regional companies in their bid to grow into a local and international giant. The company is continuously looking to expand its limits by acquiring new stakes in different companies, buying assets, hiring more personnel, and claiming new companies. The company holds meetings and resolves its issues by a consensus of the members of the board.
Corporate social responsibility in a business refers to the way the company helps governments to improve the living standards of the community. SABIC is providing millions of companies around the globe with raw materials for its products through various manufactured products. The products made are mainly for sale to billions of people across the world. The company competes on the world stage based on its quality. It sets the stage price, and this is possible because its primary raw material is oil. Oil production takes place in significant quantities by the Saudi Arabian government (Skye Schooley, 2019). It makes it cheaper in terms of logistics and processing. The company was an industry pioneer, meaning they have vast experience in their products and market behavior; they have learned from age.
The company headquarters are in the capital of Saudi Arabia, Riyadh. It ensures that the products get utilized in the country’s industrial city, and the other needs get distributed within time. Among the few practices adopted by Sanbic to ensure active social responsibility include; tree planting activities, provision of internet support, water connectivity, and establishing partnerships with fellow corporates to ensure smooth service delivery. The company has heavily invested in communities with the start of its inception (Leonard, 2019). The company has grown towns into cities, resulting in a tremendous social-economic gain. Employment opportunities provided at the company to the locals and still creating more workforce around the world. The company is committed to improving the world economy by providing jobs.
SABIC company, a global giant, is keen on being on the frontline of issues related to corporate social responsibility. For example, the company has guidelines allowing suggestions from employees on areas they need improvement. It also encourages customers to raise their concerns affecting the company in time to avoid the development of social and environmental issues. The company also does try to enter into alternative methods of conflict resolutions, for instance, dialogue and arbitration. It brings communities on board in the matters it deems critical for the community. It avoids resistance and cases in courts, therefore, reducing the time and resources wasted. By bringing the community on board, the company grows the economy of society. The company has been on the frontline in hiring locals of the places they operate. Thanks to the SABIC, the cities of Al-Jubal and Yanbu grew to industrial standards. The economy has boosted the company, and the towns have raised the way of life. The corporate social responsibility of the company is in an immeasurable manner.
How the company is addressing the issues and concerns of all stakeholders
The first of the problems of SABIC with stakeholders involves compensation. The company identifies the necessary procedures and necessary conditions eligible for compensation. The company is always liable for payment of the contacts it has not yet honored before. It does so by carrying out the rights given to them partially to reduce the damages to other communities. The company also insures all the involved parties against the damage it may pose. Implementing strict strategies to guide the way the company carries out any operations in place. The company came up with an official statement addressing issues arising as a result of stakeholder violations.
The company always allows room for negotiations. It ensures that the affected parties discuss and help reach an agreement amounting to specific compensation. Litigation measures and arbitration have solved more for the company. The SABIC also undertakes contracts and agreements which set a relationship with the stakeholders. The stakeholders on their part have a crucial role to play in safeguarding the company policies, corporate standards, and ethics of the company.
Issues in social responsibility (social issues, consumer protection, corporate governance, and sustainability)
The Saudi Basic Industrial Corporation has had a fair share of problems in social responsibility. The problems range from social aspects, consumer protection challenges, corporate governance, and long-term sustainability of the company. Over the years, the governments of the countries the company operates shrinking and lose power in their legislations. It has brought about the mistrust between businesses and governments. The issue of trying to satisfy the ever-increasing customer needs has forced the company into bad business at least once. The company also faces stiff competition from companies operating in the countries it expands to. However, the challenges have not held back the company. It has contributed to the social wellbeing of the communities by donating to charity, increasing its sales and customer loyalty. The ease of access to capital from financial institutions has helped in the expansion program.
Ethic’s Program
The company ethics program refers to beliefs and customs abided by all affiliates of the given company. Companies built on strong ethical backgrounds survive the test of time and always expand to full potential. SABIC is an excellent example of such a company. Built on healthy morals and ethics, it ensures that the employees, employers, customers, and other industry players affiliated play by. Among the ethical beliefs of SABIC are trust, commitment, honesty, and reliability. The Saudi Basic Industrial Corporation is a company built on the excellent and strict moral background. The company prides itself in honesty; it encourages its employees to raise concerns promptly and channel them to the necessary authorities.
The issues addressed early to ensure the smooth running of operations. The company does this to cultivate honesty and trust in its employees. Trust and reliability in the company do not end in employees. Still, they openly communicate with their customers and the communities as a way of giving and supporting the projects it pledges to deliver. The SABIC also prides itself on transparency, and this is a core aspect of its ethical values. The company’s transparency ethics have come so much into the picture during the hiring of its workforce. The company does not condone issues of favoritism during the staff hiring. It ensures that the best workforce safeguarding its core ethics and its reputation.
The SABIC also has an ethical duty of protecting whistleblowers even if the matter at hand concerns their conduct. By doing this, it cultivates confidence in the employees can report any bad vices going on without being victimized by the same. It also improves the working environment significantly. Another ethical code is leading by example code. The company is a worldwide business leader, prides itself on leading by a good example. It is evident by the company’s stern stands against common vices, for example, money laundering and terrorism. The company also regularly participates in periodic compliances to ensure checks and balances (Leonard, 2019). It straightens out issues to avoid accumulating them, resulting in more problems. Ethical responsibility is a superior move for the company to spot mistakes and get time to brainstorm. It has helped the company to come out with necessary measures to curb it in the future.
The company also has an ethical obligation to comply. SABIC ensures that it cooperates fully with relevant authorities to bring a matter to light and see how to solve it. Instead of avoiding problems, the company looks for ways to deal with the issues. It is essential as it solves problems in matters affecting it. These enables them to learn from mistakes instead of avoiding them. The company cooperation also cuts into the legal part, even in its internal affairs with its company legal teams. Fairness in line of work, the company has an ethical obligation that it does not condone favoritism in its range of work. It ensures professionalism, in turn, helps the company grow more robust and expand rapidly because of the trust.
Improving the CSR
SABIC is an oil company with a considerable asset base. Worldwide presence means to partner with governments to help contain global pandemics. Diseases are ravaging populations in developing countries, for instance, malaria cholera and polio. The company ought to partner with the ministries of health in the countries they operate in (Skye Schooley, 2019. It tries to bring smiles to its people. It is made possible by giving grants and donating essential stuff like mosquito nets or vaccines. They should partner with nonprofit making organization specializing in medical research).
SABIC is a global company, so it should seek to address the challenges of global warming by encouraging employees to be examples. They should organize and hold runs, help people to live healthy, plant trees, and bring essential services to the community(Leonard, 2019). The races will ensure a comprehensive sustainability program, especially when they team with other global giants. The contribution to the world could bring change. It means recognizing and taking part in corporate social responsibility.
Improving the Ethics Program
The SABIC should get into the severe ethical program by revamping the current values it holds. The revamping process is possible by adding more empathy and people serving values rather than have just a few serve its employees and few customers. The ethical significance of kindness should be core. It should allow the company to more service-driven rather than its profit-driven approach. They can achieve a self-driven approach by granting the employees access to a mentor and build other people, especially those less fortunate in society. The acts of kindness may also include finding organizations of charity and be regular donators to their course. They should do this by partnering with them and helping them grow. They should also set aside a day where the employees get time to visit charities, hospitals, and make some contribution to the course. With this change, they will merely be moving from being part of the problem of taking responsibility and looking for ways to solve a problem. Kindness would ride well for the company as this will allow more stakeholders to join hands for the course. Compassion is an organization covering the act of teamwork, instead of employees competing for promotions and creating tensions and grudgery
The company should even start organizing social events, for example, football matches, to bring the people together. By doing this, it will be accomplishing the social aspect of corporate social responsibility. It will enhance the value of empathy for the communities. The company is a global company, and it should partner with stakeholders in sports and culture to incorporate the community together with the employees. By doing this, they will be building a good rapport with the governments and the people who are the consumers of their products. Good rapport ensures that the company can expand into more countries without much strain. Just by merely looking at the track record in the states it exists in. Empathy in an organization is an essential value in the business(Skye Schooley, 2019). It facilitates a pleasant and harmonious working environment. Compassion will boost the state of working and boost the morale of the employees too. Highly motivated employees work well, and that is the basis of success in the company.
SABIC is a modern-day company investing in providing a vital need of the modern, namely, the internet. Availability of support for the youth and encouragement for them to take advantage of the internet to showcase their creative prowess. The company should try to fund connectivity to the internet by partnering with local telecommunication companies to bring the dream of affordable internet to the youth. It would be of great help to people to access information via social media. It will boost the sales of the company further by the launch and use of e-Commerce platforms. It would mean a massive success to the business, making the products available to its customers in the comfort of their own homes.
The world is slowly shifting to online shopping, and any company has to survive must embrace the change. Saudi Basic Industrial Corporation must invest in the improvement of data to send more traffic to their websites. The ethical lesson on this is helping and corporate social responsibility is the improvement of access to the Internet (Skye Schooley, 2019). The governments in whose jurisdiction the company works have to be partners in the same (Leonard, 2019).
The company should also embrace setting a good moral example for the public and the employees. It will go a long way to ensure that the morals the society stands for an excellent example of raising a good community. The company leaders should lead by example. They ought to walk the talk and do precisely what they tell the employees to do. It can be an exciting working environment as the employees are solely responsible for their actions and don’t look for scapegoats to try to justify their actions(Skye Schooley, 2019). A company built on trust, responsibility, and genuine commitment truly wins. The gains of adopting a good example are farfetched. The Saudi Basic Industrial Corporation must put that into consideration to improve the ever-growing community
Conclusion
The Saudi Basic Industrial Corporation dates back to early 1976 when the then ruler of Saudi Arabia formed it. The company is an oil-based company with its headquarters in Riyadh, the Saudi capital. The company deals in the manufacturing of industrial raw materials, polymers fertilizers, and other products. The company currently produces more than 20 different polymers for use in various industrial processes. The production is possible by the government, allowed the company to have affiliate companies, each specializing in more products, pooling the SABIC prowess into one prominent giant manufacturer. The company is a publicly listed company on the Saudi stock exchange market but has private investors among the royal family and other outside investors. The company has an asset base of worth over $59 billion and a yearly profit of slightly over $5 billion (Azhar, 2019). Forbes ranks the company amongst the top 100 wealthiest companies in the world. The company has a strong leadership background with a board of directors headed by a chairman and the management, having a chief executive officer in charge of the daily running of the company.
The company has over the years, expanded rapidly tapping into the European market in France and Germany. The company also has a strong ethical background with rules and regulations, guiding the daily running of the company. The SABIC has a strong corporate social responsibility, having tapped into urbanization and industrialization in the desert cities of Al-Jubal and Yuna. The company has also provided job opportunities to thousands of people over the world. Among the ethics of the company are honesty, trust, responsibility, and accountability. The company stands firm on its core values, and it has proven to serve the employees and owners well for the years. Having broken the record for the most significant oil product manufacturer, SABIC can comfortably boast as being a leader in the manufacturing sector of the world.
References
Leonard, K. (2019). Four Types of Corporate Social Responsibility. Retrieved from https://smallbusiness.chron.com/four-types-corporate-social-responsibility-54662.html
Skye Schooley, S. (2019). What Is Corporate Social Responsibility? Retrieved from https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html