...Shell in Nigeria Shell is a multinational corporation that for 50 years has been intimately involved in Nigeria’s economy, politics and overall development. Company generates billions of dollars in export earnings while providing the federal government with half or more of its revenue. Shell has also been implicated in government military actions that have resulted in the killing of non-violent community, human rights and environmental activists and local villagers, as well as the oppression of ethnic minorities. They’ve been seen as being complicit in widespread corruption and as a large contributor to the self-enrichment of government officials and powerful, local interests. They’ve also been viewed as a principal agent of widespread environmental degradation in what’s recognized as one of the world’s biodiversity hotspots. Urbanization, industrialization and deforestation are taking a heavy toll on the Delta region’s soil, land, water and air. The country’s forest area has been reduced by around half between 1990 and 2008, which is degrading the region’s agricultural productivity and water resources. Local activists and residents, as well as local and foreign scientists and researchers, have decried the fouling of the Delta region’s air, land and water, much of it attributed to pollution associated with oil and gas exploration and production. Shell has been harshly criticized for the effects its exploration and production in Nigeria. Seventy-five percent of oil spill incidents...
Words: 1075 - Pages: 5
...to both national politics and the oil industry help put Shell Oil Company’s operations in Nigeria into context. Nigeria, an English speaking country in West Africa, is the most populated country in Africa with 180 million people; and has one of the largest and fastest growing economies in the world with five percent growth in GDP every year. Further, Nigeria is one of the world’s largest producers of oil in the world and is part of the Organization of the Petroleum Exporting Countries (hereafter “OPEC”). RDS, a British and Dutch multinational gas and petroleum company headquartered in Holland, has many subsidiaries such as the Shell Oil Company (American Subsidiary) and Shell Petroleum Development Company (Nigerian Subsidiary hereafter referred to as “SPDC”). SPDC has been the biggest fossil fuel company in the Nigeria and it accounts for over twenty percent of Nigeria's total oil production. Shell was first established in Nigeria in 1937 and was given a license of exploration in 1938. Four years before Nigeria’s Independence from Great Britain in 1960, Shell Nigeria discovered economically feasible oil in 1956. In 1957, Shell established the first oil field in the Delta region of Nigeria, located in the land owned by the Ogoni tribe. By 1958, Shell had begun exporting oil from Nigeria for the first time commercially. I. Question of Ethical Breach? Since the 1970’s, Shell has consistently been accused of major environmental and...
Words: 703 - Pages: 3
...through Globalisation in Nigeria An analysis of Shell & the IMF Structural Adjustment Programs Sven Bokhari 820619-P291 Fabrizio Del Duca 791225-P114 Group number: 1983 Summary Date: Level: Authors: 2008/06/03 Master thesis in International Business and Entrepreneurship, 10p (15ECTS) Sven Bokhari Västerås Date of birth: 19820619 Fabrizio Del Duca Västerås Date of birth: 19791225 Title: Economic Development through globalisation in Nigeria. An analysis of Shell & the IMF Structural Adjustment Programs Leif Linnskog, Ph.D. Tutor: Research Question: Can globalisation be seen as positive or negative for the Economic Development of Nigeria? A focus on Shell and the International Monetary Fund Research Issue: Globalisation in its current form is viewed in the Western world as a positive influence for the Economic Development of under developed countries. However these views on the benefits brought to developing countries have been frequently disputed. The research we are undertaking is a pilot study based on documentary research. Our source of information is secondary data such as books, articles, newspapers and journals. The study employs a qualitative approach. Even though globalisation is often viewed as positive we have discovered that this is not always the case in relation to its effects in Nigeria. Judging from our analysis, globalisation through the IMF and Shell has had an overall negative impact on Economic Development. However, Shell is attempting to act...
Words: 22560 - Pages: 91
...tempered by care for the environment and concern for people - both now and in the future. This meant that if Shell wanted to stay in business, prosper and grow in the future, it had to find effective ways to incorporate the principles of sustainable development into its business practices - not as an option but as a necessity to survive. Shell reviewed all aspects of its activities in light of what it learned about sustainable development and society's changing expectations towards the behaviour of business. In 1997, Shell decided that, in parallel with its efforts at internal transformation, it would launch a new global, social investment effort that would concentrate on working with external partners to advance sustainable development worldwide. This decision ultimately led to the establishment of the Shell Foundation. Shell’s worldwide social investment initiative promotes sustainable development. Their main aim is to maximize benefit to the society and environment and to have integrity in their operations. The main aim is to maximize benefit to the society and environment and to have integrity in their operations. There are 6 main programs under the Shell Foundation namely: Aspire, Trading UP, Embarq, Breathing Space, Excelerate, and Climate Change ASPIRE: Through a long and close partnership with GroFin - a specialist business developer and financier - Shell Foundation helped pioneer a new business model specifically designed to service the Growth Finance sector...
Words: 1134 - Pages: 5
...In 1890, Aeilko Jans Zijlker located oil in the Dutch East Indies and found Royal Dutch. The company partnered with Shell 17 years later, keeping 60%. Shell took care of the transportation and storage while Royal Dutch processed and refined the oil. The companies became world leaders in the oil industry after WWII. Shell partnered with British Petroleum and unwillingly, with the Nigerian government that ended up owning up to 35% of the partnership. Nigeria was Africa’s most highly populated nation. The Nigerian National Petroleum Corp owned 55 percent of the Shell Petroleum Development co of Nigeria Limited joint venture. They settled similar deals with other oil companies like Chevron, Texaco, and Mobil. In the late 90s, oil counted for about 90% of the country’s foreign exchange profits and placed it among the top 10 oil producers and distributers in the world. In the Niger Delta, which most oil was extracted from, 20 tribes could be found. The Nigerian government had promised to invest to help these tribes but the organization in charge of the project claimed to have never received funding from the government. On the other hand, Shell had spent about $22M in community development projects to appease the tribes near the Niger Delta. Around that area, because of oil extraction, refining, storing, and transportation, the environment had been severely damaged. The people provoked oil spills in response to the environmental damage and with the intention of generating spill-cleaning...
Words: 362 - Pages: 2
...Shell in Nigeria: The Ethical Issues Ethics are moral principles, as of an individual, a country or a religion. A lot of people have different perspectives of the world and carry different opinions involving what is ethical and what is not. Ethics are a major concern in International Business and companies face ethical issues very frequently. Royal Dutch Shell, commonly known as Shell, is a fusion of over 1,700 companies around the world. Shell Nigeria is one of the largest oil producers in the Shell Group and more than 80% of the oil extractions in Nigeria is in the Niger Delta. The Delta is a home to many small minority ethnic groups, such as Ogoni, all of which suffer exploitation of human rights, environmental rights, and economical and health issues by big multinational oil companies, mainly Shell. Emanuel Nnadozie, A famous writer, has said "Oil is a curse which means only poverty, hunger, disease and exploitation for those living in oil producing areas.” This paper will focus mainly on the case of Shell’s ethically immoral attitudes towards Ogoni, but one must keep in mind that there are dozens of other groups that suffer the same exploitation of resources and injustices, both environmentally and economically. Firstly, Ogoni continuously faces human rights violation from Shell. Oil from Ogoniland provides close to $30 billion to the economy of Nigeria and the people of Ogoni see only very little from their contribution to Royal Dutch Shell. According to The Essential...
Words: 983 - Pages: 4
...Royal Dutch Shell in Nigeria For Shell, there are a few key issues that must be addressed. Since the company is located in Nigeria, the company faces a certain animosity from the native Nigerians specifically the Ogonipeople. One of the main key issues in this case comes from Ken Saro-Wiwa who is an avid Ogoni protestor to foreign companies stealing resources and suggesting that the Nigerian government gives nothing in return to the Ogonipeople. Ken argued where the Nigerian Bill of Rights had been compromised by the multinational corporation. From this conflict, violence escalated and people have died in protests against the government and Shell. Another key issue is the fact that the environment of Niger Delta is affected by the process of natural gas flaring and oil spills. Though Shell claimed that the oil spills were from the effects of corruption, their operations have damaged the land with acid rain and water contamination. This case at the time is concerned with Shells pending decision to take action in politics and violate business ethics or to sit back and face contempt of court exposing the company to judicial sanctions. Some of the key stakeholders in this case involve the government, Shell employees, CMD managers, and Shell investors. The Nigerian government relies on Shell to be profitable. At a point in time, the Nigerian government had owned between 25% to 80% through the Nigerian National Petroleum Corporation. The Nigerian government wantoil companies to...
Words: 666 - Pages: 3
...Oil Spill in Nigeria ATURDAY, JULY 3, 2010 Oil Spill: Environment Practitioners Want Compensation from Shell From Onyebuchi Ezigbo in Abuja and Okon Bassey in Uyo, 06.30.2010 The leadership of Environmental Health Service Providers Association of Nigeria has asked the Anglo-Dutch oil exploration giant, Shell Petroleum Development Company to commence the process of remediation of all areas affected by its operations and to also ensure that the affected communities are adequately compensated. Their demand is coming as Mobil Producing Nigeria (MPN) Unlimited, an affiliate of American oil giant, Exxonmobil is battling to contain the effect of oil spill recorded June 20, 2010. The company has also just recorded another spill from its facility. The latest spill was reportedly discharged into the Atlantic Ocean from the Yoho production platform within the Qua Iboe oil fields. The Association’s National President, Chief Herbert Anyadike, who spoke to journalists in Abuja said based on the experience of the massive oil spill in the Gulf of Mexico where the company was compelled by the United States to pay compensation totalling about $20 billion, Shell should also be made to make similar commitment to the people of the Niger Delta. "You know what use to be in the riverine areas where oil will spill and remain there for many years without anyone taking care of it. Those people who have been here living with this problem over the years and have been clamouring for compensation...
Words: 527 - Pages: 3
...Case Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 1 Royal Dutch Shell ◦ 1907 - Merger of Shell Transport & Trading Company Ltd. and Royal Dutch Petroleum Company (Shell) ◦ 1936 - Shell operations started in Nigeria – Shell D’Arcy (Shell Nigeria) ◦ “Royal Dutch Group of Companies proved more than 50% of Nigeria‟s oil and gas reserves” – (Parboteeah, 2011) Nigeria ◦ Formed by Britain in 1914 - “…the colony and Protectorate of Nigeria, governed by „indirect rule‟ through local leaders” (BBC News, 2010) ◦ High poverty and deteriorated political and security stance since existence ◦ Worldwide economic importance – Huge oil reserves ◦ 80 % revenues to Nigerian Government through oil reserves Global Business Strategy: Case Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 2 Compliments ◦ Support to Nigerian economy Criticism ◦ Oil Pollution (Jolly, 2011) ◦ Development of communities ◦ “Shell invests $1bn on Nigerian oilfield” (BBC News, 1999) ◦ “Currently the Delta gets 13 percent with the balance going to the central government and other states” (Ruseckas, 2009) ◦ Employment for Nigerians (Parboteeah, 2011) ◦ Involvement in violence – Ken SaroWiwa (Pilkington, 2009) ◦ Bribery (Wyatt, 2010) Ken Saro-Wiwa in 1993. Photograph: Greenpeace/AFP Shell’s Bonga offshore oilfield - Nigeria Global Business Strategy:...
Words: 1228 - Pages: 5
...A Study of Shell Oil and its Stakeholders in Nigeria Part 1 (Week Six) A Review of Basic Issues Regarding the Background and Interests of Stakeholders of Shell Oil Company in Nigeria Chapter 1 Introduction The complexity of understanding the Shell Nigeria oil spill and applying critical analysis and leadership theories to the problem is a challenging debate. A reader would tend to assume that Shell is at fault and should take all the blame for this corporate and ecological mess. Therefore, the introduction needs to provide the reader with sufficient historical information and background of stakeholders such as Royal Dutch Shell Company, Nigeria (country), Niger Delta (province of Nigeria) and its directly affected tribal communities of the oil spill. The introduction is thorough as to avoid explaining in other key elements of this research paper. The Royal Dutch Shell was ranked No1 as the largest organisation in the world in 2012 by Global 500. Shell has boosted its first quarter earnings of 2012 by 11% compared to that of 2011. Shells long term projects that have just commenced creating; a gas to liquids plant in Qatar and further projects in Canadian oil sands, have in part contributed to these revenues. Royal Dutch Shell has 87000 employees globally (Global 500, 2012) The first Shell Company in Nigeria was started in 1936 by The Royal Dutch/Shell Group. The Royal Dutch/Shell Group then founded Shell D’Arcy. Two years later in November 1928...
Words: 3193 - Pages: 13
...i. Summary Royal Dutch Shell is a Dutch and British based company that in 2009 was named the world’s largest corporation by Fortune and world’s second largest corporation by Forbes. Stuck in a quagmire of violence and political issues in Nigeria, Royal Dutch Shell’s challenge was to establish socially responsible business practices to enable the company to sustain and expand its operations in Nigeria and the Niger Delta in particular. A conflict resolution and public policy consultant was brought in how to develop some constructive ideas on how best to address the problems Royal Dutch Shell faced in Nigeria. This case is intended to introduce students to some of the complex the complex issues faced by multinational corporations in developing countries. Although Shell is very lucrative company that makes millions of dollars a day, they would be very hurt to lose business operation base in Nigeria. Shell went from an egoistic operation in Nigeria to a benevolent and principle based operation. If Shell even took on a larger sense of social responsibility, they would have gained a larger competitive advantage over the competition. ii. Chronology 1. This case begins when Benjamin Aaron, a conflict resolution and public consultant, receives a request from one of his important clients, a potential new member to the board of Royal Dutch Shell, to provide advice on how to address the problems that Royal Dutch Shell faced in Nigeria. 2. The case goes on to review the turbulent...
Words: 639 - Pages: 3
...are not to neglect the environment that would tarnish their image. Royal Dutch Shell Plc is ranked seventh among the top global oil producing companies for year 2012 by Forbes (Christopher Helman 2012). Despite its prominent reputation and its claimed aim of achieving the worldwide energy demand in a responsible manner, it does negate the fact their business operations have impacted the environment of Nigeria. The pressing argument that will be discussed in this paper would be the interminable oil spills due to the defective facilities and insufficient checks of equipments which are identified as the one of the main sources of the environmental contamination by Shell in the Niger Delta, how these irresponsible activities have implicated the environment which leads to unfavourable circumstances for society and stakeholders such as institutional investors, and the efforts made by Shell to counteract the situation. Background of Oil Spills in Niger Delta Before Shell tapped on the Delta, the eastern area of Nigeria was resource wealthy. However what thought to be a profitable activity for the corporations as well as Nigerian people too turned out to be a severe environmental threat and has been evolving for a few decades since 1956. Shell did acknowledge that their operations have caused oil spills, but did not agree on the extent of it. Analysts have recorded that in the year 1995 to 2006, Shell has committed an average three hundred spills annually which results to more than...
Words: 2192 - Pages: 9
...Shell Company Analysis Dr. Scruton Methodist University Management and Organization Abstract Shell Oil is a global company in the oil industry. This long established company has withstood the test of time in this competitive market. Management practices have established the resources necessary to overcome the obstacles of a global company. This detailed analysis of Shell Oil focuses on management in order to provide an understanding of how the company is able to succeed. The organizational analysis provides insight into Shell’s goals, culture, and resources. An example of a specific problem that Shell faced, oil spills in Nigeria, continues off of the company analysis. Nigeria is a major extraction location for shell, but sabotage and oil leaks grew to be a major concern. Shell faced court cases in search of relief in Nigeria, but the majority of the oil leaks were a result of sabotage; therefore, shell was not responsible. However, people believed that it was shell’s responsibility to safeguard the oil lines and prevent sabotage in the first place. Shell funded the cleanup of previous oil spill sites along with a major advertising campaign to avoid a negative impact on its business. Some people still believe that Shell should be taking more responsibility for the oil spill crisis in Nigeria. Shell Company Analysis Oil is a resource that has been in great demand since the production of combustion engines, as well as other industrial machines. Royal Dutch...
Words: 3492 - Pages: 14
...1. Shell makes a close relationship with the Nigerian military regime during the early 1990s. The oil company requested an increase in security and provided monetary and logistical support to the Nigerian police. Shell frequently called upon the Nigerian police for “security operations” that often amounted to raids and terror campaigns against the Ogoni. In response to growing Ogoni opposition shell and the Nigerian government coordinated a public relations campaign to discredit the movement, falsely attributing airplane hijackings, kidnapping and other acts of violence to Ken Saro-Wiwa and MOSOP. Shell was involved in the development of the strategy that resulted in the unlawful execution of the Ogoni Nine. Shell told the Nigerian regime they needed to deal with Ken Saro-Wiwa and MOSOP. Shell monitored Ken Saro-Wiwa, and closely followed the tribunal and his detention. Prior to the trial, Shell Nigeria told its parent companies that Saro-Wiwa would be convicted and told witnesses that Saro- Wiwa was never going free. Shell held meetings with the Nigerian regime to discuss the tribunal, including with the military president Sani Abacha himself. Shell's lawyer attended the trial, which, in Nigeria, is a privilege afforded only to interested parties. Brian Anderson, the Managing Director of Shell’s Nigerian subsidiary, met with Owens Wiwa, Saro-Wiwa’s brother and offered to trade Saro-Wiwa’s freedom for an end to the protests against the company. At least two witnesses who testified...
Words: 610 - Pages: 3
...A Study of Shell Oil and its Stakeholders in the Niger Delta Being a Leader – Final Project (part2) A basic review on the background of Shell Nigeria, its Stakeholders, Interests and Responsibilities. Contents: Chapter 1 • Introductions o Shell Global overview o Background on Shell Nigeria Chapter 2 • Historical Background of Shell in the Niger Delta • Corporate Social Responsibility and Ethics of Shell • Stakeholders , Problems and Models o The Chief Executive Officer of Shell o The Local Employee of Shell Nigeria o The Investor of Shell Global or Shell Nigeria Chapter 3 • Various Approaches to Leadership Skills o Trait approach o Contingency approach o Situational approach o Constitutive approach o Transactional leadership o Charismatic leadership o Transformational leadership o Situational leadership • Points I have learnt about myself • How would I bring resolution to the problem Chapter 4 • Conclusions and Recommendations Reference list Chapter 1 Introduction Shell Global overview Shell Global is one of the largest companies in the world, growing from a small shop in London nearly 200 years ago to one of the biggest global groups of energy and petrochemical companies in the world, with more than 90,000 employees currently employed in more than 80 countries worldwide, being led by the Chief Executive Officer (CEO), Peter Voser based in the global headquarters in Hague, the Nederland’s, with the...
Words: 4105 - Pages: 17
