Essay on Cabot Oil & Gas Corporation
Number of words: 1806
The corporation under review is based in Houston, Texas, and is involved in the exploration of hydrocarbon. Cabot Oil & Gas Corporation is involved in the advancement and mining of crude oil and natural gas solely on dry land in the U.S. The exploration of the industry involves various damages to the environment, and the corporation issues yearly sustainability reports to various stakeholders. The corporation intends to increase shareholder value by ensuring economic structures, well-organized capital expenditure, a conformist financial situation, and the decline of goods price risk via planned advertising and shipping agreements.
The corporation strives to be the leader in ensuring responsible and safe operations and in minimizing the effects of its activities on the environment, communities, and employees. Cabot Oil & Gas Corporation has achieved success in developing sufficient eccentric supplies of natural gas and plays a crucial goal in the achievement of the nation’s goals, and minimize the overall gas emission whereas accomplishing energy autonomy. The legacy of the corporation with regard to corporate responsibility places a significant value on functioning with care and admiration for environment, property, and people. Cabot believes such commitment, together with its operational triumph, has assisted in developing a robust value for its stakeholders in the community. The corporation has created a program referred to as EHS, which is directed towards the achievement of various objectives focused on the environment, health, and safety. The corporation’s EHS (Environment, Health, and Safety) management system boosts its capacity to accomplish its visions through the establishment of a corporate governance outline for EHS conformity. A professional team monitors this program, and they partner with various departments and operations on the organization to improve and support its operations[i]. The EHS team has established a partnership with all departments to ensure regulatory conformity. It performs duties associated with stakeholder and personnel education and training, federal and state agency reporting, program evaluation, and preparedness planning.
Cabot has been mentioned for environmental damages across the globe. In 2009, the corporation was linked to the violation of regulation governing the spillage of hazardous substances, like toxic hydraulic fracturing liquids in the United States[ii]. In addition, they were cited for improper construction of a well, which resulted in water pollution. However, the corporation has recognized the various environmental issues affecting the planet, and they have dedicated some of their resources to managing the environmental effects on our planet. Cabot accepted the responsibility, and there are now focused on reducing their environmental impact as a result of their operations. Thus, the company has established various initiatives to reduce the environmental effect of the company, promote environmental awareness, and conserve resources. Internationally, the efforts of the company emphasize a reduction in energy use, emissions, and waste. The organization has established environmental goals to be achieved by 2025, and they will strive to monitor progress to ensure such targets are attained. Cabot also recognizes the importance of water, and they are working across different networks to establish long term water management strategies to assist in, recycling, identifying efficiency opportunities and water reduction.
Labor and Human Rights
The organization aims at ensuring diversity at the workplace and has not been linked to any controversy related to human rights so far. Cabot aims at ensuring equality at the workplace and equal opportunities for all personnel at all levels. One of the core values of the company is its non-tolerance to discrimination on the grounds of physical fitness, gender, race, nationality, political affiliation, and sexual orientation. Cabot complies with the set labor laws in the United States and any collective agreements which have been developed. Safety is also crucial in operations, and the management works attentively to guarantee safety for their visitors, contractors, personnel, and communities. They train their employees regarding the handling of equipment, and they have developed programs to promote the wellness of staff in order to build a more engaged and healthier culture. Concerning human rights, the corporation is dedicated to respecting the rights of various stakeholders. Cabot believes all stakeholders should be treated with fairness, respect, integrity, and dignity. In order to ensure the corporation does not violate any human rights, the management seeks the guidance of the standards developed by the United Nations Universal Declaration of Human Rights, International Labor Organization’s Declaration, International Covenant on Civil and Political Rights, Fundamental Principles and Rights at Work, and International Covenant on Economic, Social, and Cultural Rights[iii]. This has been integrated into the corporation’s Code of Business Ethics as well as the company’s Human Rights Policies. However, the company requires its suppliers, personnel, customers, and shareholders to adhere to the developed Code of Business Ethics. The suppliers of the company are required to comply with the California Transparency laws stated in the Supply Chains Act, which is linked to human rights and labor practices.
Cabot aims at delivering an exemplary performance that makes a difference through the provision of products that have safety, health, and environmental benefits to their consumers. The corporation is also committed to developing innovative products that as well improve the performance of the consumers’ products by imparting properties that extend the life span of products, optimize resources conservation, and increasing fuel efficiency. Moreover, Cabot is committed to growing its involvement in the circular economy through the creation of opportunities to utilize byproducts and wastes as raw materials. As a responsible organization, they will share information regarding environmental safety and the health aspects of their products. Cabot has not been involved in any controversy regarding the quality of products they produce; however, the production process has been linked to environmental pollution. Therefore, the company’s research and development department have been tasked with assessing the risks linked to the materials used in production. According to the management, Cabot strives to attain compliance with the requirements of global products led by regulatory toxicologists and experts from the organization’s Product Support and Toxicology Departmentaliii. In addition, the corporation is dedicated to ensuring transparency in the labeling of their products and sharing wide-ranging supportive information to guarantee individuals involved in the product’s life cycle are well equipped to handle the material with due care. The commitment of the company to ensure product sustainability has been extended to other corporations in the industry through participation and leading in the International Carbon Black Association across the globe.
Corporate Social Responsibility
Throughout the history of the corporation, a robust sense to the community has been maintained. Cabot recognizes the value of partnerships with local communities in their areas of operations, and they believe that flexible and thriving communities are vital for a viable future. The benefits of community engagement to neighbors resonate with the personnel on a personal level and enable the company to function with the confidence and trust of the community. Numerous employees in the corporation are also focused on offering their skills and time to impact the societies around them positively. Cabot has established two principal conduits to enhance community involvement, which includes facility-led initiatives and Cabot Foundation. The Cabot foundation was founded to assist nonprofit organizations, and qualified charities in the U.S. Donations approved by the board are made to the foundation. Decisions on how the funds are going to be distributed are made Board of Directors of the Cabot Foundation. The facilities of Cabot are responsible for nurturing and developing relations in their local communities, and they are devoted to ensuring a significant difference in numerous ways. Community engagement teams have been set up to identify the needs of the community, such as healthcare, education, and safetyi. The team also participates in volunteering events, sponsorships, and charitable giving. In fact, more than 50 percent of the corporation’s facilities have devoted community outreach groups in charge of the preparation of local community engagement plans. Cabot donated $1.4 million internationally in 2018 to needy communities. Such contributions came from corporate as well as the personnel as a way to give back to the communities.
For Cabot, strong financial performance is essential to accomplishing current goals and future business success. Various stakeholders internationally expect the company to succeed in the financial goals through the generation and distribution of economic value. Until today, no cases have been reported linking the corporation to any form of embezzlement or mismanagement of funds. Thus, Cabot is devoted to increasing its earnings annually by 7 -10 percent and making dividends to shareholders of 50 percent. The Board of Directors is responsible for the corporation’s risk profile, capital structure, financial strategy and performance, and market exposure. One of the core financial strategies is extending the company’s leadership in performance material, which is achieved by generating substantial cash flows, investing for growth in key businesses, optimization, ensuring efficiencies, and enabling open innovation. The primary objective of this plan is to ensure attractive and sustained returns to shareholders, founded on income increment and a stable capital allocation plan. The growth strategies and investment decisions of Cabot are steered by a focus on sustainable business practices and compliance with corporate standards, laws, ethics, and business ethicsiii. In order to ensure reliability on strategic and financial planning, the company frequently monitors and assesses both the long term and short term goals and desires. Explicitly, Cabot conducts a quarterly internal appraisal of its financial performance.
Cabot has shown an excellent performance in its sustainability report, which has touched on financial performance, social responsibility, environmental concern, product sustainability, and human rights. No evidence has been found associating the company with unaccountability except two cases of environmental pollution. In other areas, Cabot has proved to be developing plans to improve their involvement in community service, product quality, personnel welfare, and economic value-added. In addition, the company has shown a great concern to the environment. In this regard, my client would find this piece informative with regard to the sustainability of Cabot Oil $ Gas Corporation.
Diagrams and Appendices
Personnel distribution as Cabot strives for diversity
[ii] VanDeveer K. Hydraulic Fracking and Liability: Ely v. Cabot Oil & Gas Corporation. Joule: Duq. Energy & Envtl. LJ. 2015; 3:1.