Risks and Opportunities That Are Considered Important by SABIC Stakeholders - Speech or Presentation Example

Leadership Strategy In 2013, SABIC chemicals was named the world’s fourth largest company in the chemical production sector. This manufacturing company is based in Riyadh in Saudi Arabia. Apart from chemicals, SABIC produces a wide variety of products such as petrochemicals, industrial polymers, fertilizers, and metals. Being the largest public company in the Middle East, SABIC's shares are owned by both the public investment fund of Saudi Arabia and other private shareholders. This company began in 1976, with the rapid development it has encroached into 50 different countries with remarkable operations. This company enshrines its sustainability strategy on materialistic analysis (SABIC sustainable report, 2017). This critical analysis of materials enables SABIC to produce resources that specifically address stakeholder issues and ensures success. In the attempt to ensure success in material sustainability, SABIC focuses on three issues. These issues include; prioritizing stakeholder engagements, organize and document the contents of sustainability reporting and develop strategic goals and other metrics for measuring performances. Additionally, by showing commitment in the alignment of strategies using the above methods SABIC focus its resources on the risks and opportunities that are deemed of importance by the stakeholders (SABIC sustainable report, 2017). SABIC’s commitment to sustainability is further demonstrated in their exploration and adoption of the currently formulated sustainable developments by the United Nations. In this exploration, SABIC is able to formulate procedures of improving human welfare, improve innovation among its workforce and above all how these strategies can enhance industrialization and promote inclusivity. The metrics will allow for periodic assessment of focus areas through materialistic analysis. These focus areas include areas with constant changing risks and opportunities (SABIC sustainable report, 2017). SABIC's mission statement is "responsibly providing quality products and services through innovation, learning, and operational excellence while sustaining maximum value for our stakeholders" (Alotaibi, 2015.) It is the belief of SABIC that in order to succeed in a global market, sustainability must be aligned with the procedures of doing business. For this reason, SABIC poses a deep understanding of the megatrends that are capable of hindering their success throughout their business operations. Additionally, SABIC prioritizes and integrates these megatrends in their daily business processes (Elamin & Tlaiss, (2015). This is because at SABIC it’s a belief that businesses are essential in developing solutions to challenges brought about by emerging megatrends in the market. SABIC collaborates with its stakeholders and other business partners in developing sustainable solutions to megatrends with a larger scale such as environmental and social megatrends. SABIC mission for sustainability recognizes the technicality in developing a permanent solution to environmental and social desires of the society. However, this company outlines two countermeasures towards these technicalities. First, periodic reexamination of both the achievements and challenges incurred. Secondly, regarding sustainability as an entity that requires continuous learning, adaptation, and improvement. Moreover, SABIC indicates that in order to achieve its mission and to optimize their impact they must now set their priorities right and evaluate their core business strategies using sustainability as a metric of measure. SABIC has a good reputation for producing quality products to its consumers. Its products are always considered superior when compared to other manufacturing companies having the same line of production. From 1983 when it established its first petrochemical plant, SABIC’s commitment to quality has been grown with an equal growth rate of its operations. With their quality standards being demonstrated in their Total Quality management (TQM) programs. All of SABIC manufacturing procedures are aligned with the provisions in their TQM programs. For this reason, SABIC's manufacturing standards have qualified for international Standards for quality, for example, ISO 9001 certification. To remain current and competitive especially in the current technological world, SABIC has been involved in various collaborative and joint activities with other leading global companies. This collaboration has enabled SABIC to build world-class manufacturing plants and also be able to diversify their production lanes ranging from chemicals to metals. In addition to these accomplishments, this company was also able to adopt the highest international quality standards in all its manufacturing plants. Further, SABIC has been on the forefront in terms of the application of technological solutions to its processes to enhance quality. The global collaboration does not only aid SABIC in meeting their customer expectations but also add value to their entire manufacturing businesses. SABIC holds compliance with its ethical provisions fundamental in improving their production value and upholding their reputation. In addition to ethical observation, SABIC regards integrity key in gaining stakeholders trust and it's also considered the greatest value. Therefore it is expected of every employee to observe the codes of conduct, policies, and procedures at all cost within this organization. In order to promote employee’s compliance with the outlined codes of conduct, this organization carried out compliance leadership workshop all over the world in 2017. This arrangement focused on imparting leaders with skills needed in ethical leadership to improve on their compliance to the pre-established ethics within the company. Being the biggest company in Saudi Arabia, SABIC does not only limit ethic compliance to its employees and other stakeholders but also to society. This expansion of ethical compliance helps in creating a friendlier ethical playing field and create confidence among investors. The code is responsible for inspiring their employees by providing a uniform elaboration of the ethical boundaries, engaging the various workforce to observe respectful and welcoming attitude within their workstations. Moreover, this code also creates a common integrity framework that promotes innovations that observe the pre-established standards. SABIC’s corporation code of ethics include three Articles; the first article contains corporation values, the second contains rules of conduct and code of ethics and the third article contains consequences of Abiding by the code of Ethics. Public Environment Law of Saudi Arabia is responsible for creating a framework and developing rules and guidelines tailored towards conserving the environment. The flexibility of mixed-feed cracker exhibited in Saudi Arabia government comes with several benefits to the companies involved in this line of production. For example, SABIC incurs less feedstock, cheap energy, and cheaper capital loans. Additionally, these chemical substance regulations fall under the following subsections; chemical and pesticide regulations, occupational safety, waste management, and safety data sheets (Global Business Briefing, 2009) SABIC's 70% shares are owned by the government this means it its operations are determined by the government. Additionally, because of the interest, the government poses in this company, the government, therefore, establishes regulations that are tailored towards ensuring success and continuity of SABIC chemical company. This is because corporations with high state-owned enterprise shares are intensely traded and always subject to benefits of unfair advantages granted to them by the local government (Cuervo-Cazurra, Inkpen, Musacchio, & Ramaswamy, 2014). Further, these advantages are always considered in consisted with both the national and international regulations. References Alotaibi, H. J. (2015). An assessment of the connection of elements in a strategic plan: a case study of SABIC company. International Journal of Advanced Research in Management and Social Sciences, 4(10), 19-36. Cuervo-Cazurra, A., Inkpen, A., Musacchio, A., & Ramaswamy, K. (2014). Governments as owners: State-owned multinational companies. Elamin, A. M., & Tlaiss, H. A. (2015). Exploring the relationship between organizational citizenship behavior and organizational justice in the Islamic Saudi Arabian context. Employee Relations, 37(1), 2-29. Global Business Briefing, (2009). Chemical Regulation in The Middle East. Chemical Watch, https://chemicalwatch.com/58290/chemicals-regulation-in-the-middle-east-an-overview SABIC sustainable report, (2017). Building a better future. The chemistry that matters, https://www.sabic.com/assets/en/Images/Sustainability-Report-2017-English_tcm1010- 12631.pdf Read More