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Question: Syncrude Wants to Be a Good Neighbour

Fort McMurray, Alberta-based Syncrude is "the largest nongovernmental employer of Aboriginal people in Canada." The company, the largest producer of light sweet crude oil from oil sand, is strongly committed to working with the Aboriginal community. According to Syncrude's website, "Commitment to the Aboriginal people of our region is not only motivated by our responsibility as a good corporate citizen, but by our desire to be a good neighbour." In order to make sure that members of the Aboriginal community are employable, Syncrude provides them with skill training before they are even considered for hiring. This makes it possible for Aboriginal people to compete for jobs in the oil sands industry on an equal footing with nonAboriginal people. Nora Flett, Syncrude's Aboriginal development program coordinator, explains that companies cannot just hire Aboriginal people directly without training, "because you don't just take someone from a small community, put them in a big corporation environment and expect that people will survive there, because that's quite a bit of a culture shock."

In addition to being sensitive to the employment needs of the Aboriginal community, Syncrude is committed to being a good neighbour in the community. The company gives preference to local suppliers to help the local population benefit economically from Syncrude's presence. Syncrude supports literacy programs for schools. As well, employment counsellors offer advice about the company, helping Aboriginal families learn about the company and what is expected of its employees. Questions

1. What benefits do you think Syncrude might derive from being a good neighbour in Fort McMurray?

2. Should the company engage in practices that help the Aboriginal community, even if it means that the return to shareholders is not as large?

3. How does social responsibility explain what Syncrude does?

Management Theories, Management Studies

  • Category:- Management Theories
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