The role of internal controls on CSR in petrochemical Industry

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Case study of Royal Dutch Shell in the Netherlands

This research uses some of the CSRs cases that have adversely affected Shell’s image i.e.

reputation such as Shell Brent Spar case; Shell Nigerian Environmental degradation and human rights violation, overestimation of oil reserve, and Arctic oil drilling cases; to identify the sources of CSRs risks, the implications they had on the company, what a company can do to avoid such mistakes and the lessons that can be learned from Shell experience by other companies.

The lessons learned are that company failure to involve stakeholders in its decision making, ineffective communication about corporate activities, lack of appropriate technology and lack of strong internal controls with supervision on the site may increase the CSRs risks that can not only affect reputation of the company but also endanger financial resources of the company, and lose of the license to operate.

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