...TMG 610 Global Trends in Technology Case #8: Royal Dutch / Shell: Ethical Issues, Human Rights and Resource Extraction Case Study Report Ozel Kirkland 29 March 2014 I. Introduction – In General Terms What is this case is about? Why is it relevant to TMG 610? Whether the extractive industries like it or not, the nature of their involvement with host nations is a precarious balance between competing interests (Dicken, 2010), and firms are either obligated to conduct themselves responsibly when dealing with developing nations like Nigeria, or mitigate the negative effects of their choices after the fact, like Royal Dutch / Shell was compelled to. Unfortunately, some extraction companies have a reputation for embracing their short-term self-interests, exploiting developing countries rich with oil like Nigeria, instead of acting ethically. Many of the extractive resources of the world are found in poorer, or developing countries. The question is how can these resources be exploited without foreign assistance. In the earlier part of the twentieth century, many of these extractive industries originated from colonial powers that had expanded into these countries and invested in these companies. This expansion was singularly intended to expand the grip for these foreign countries over mineral resources, used to support their home country and the growing manufacturing and infrastructure growth in those home nations. However the relationships between these host...
Words: 2214 - Pages: 9
...their business. Most of the international environmental forces are; Cultural, Physical, Political, Intellectual, Legal, International Monetary system and Financial forces. These force are very important for a company to consider carefully before it ventures into any country for business. International companies that did not manage these international environmental forces properly have gone out of business. Most Multinationals in recent times have dedicated departments that handle these forces. This capstone project will discuss the impact of international environmental forces on Shell Petroleum Development Company. Shell is a Royal Dutch company that has many locations globally, and is one of the major oil companies in the world. Most of its international environmental forces issues will mainly focus on Nigeria, where the company has been operating since 1937 and also the United States. One ethical issue the company has face in the international business environment will also be analyzed. Finally, there will be conclusion that will restate the major points of the paper and the various points mentioned. INTERNATIONAL ENVIRONMENTAL FORCES The seven International environmental forces are Cultural, Physical, Political, Intellectual property, Legal,...
Words: 3050 - Pages: 13
...corrupt countries impact Shell's approach to operating ethically and with corporate social responsibility?’ In order to answer the question Business and Management tools and theory have been applied to Shell’s way of doing business, focusing on corrupt countries. The essay takes into consideration the causes of corruption or unethical behaviour, and links to what Shell could do, or have done, to prevent such behaviour. The information of this essay has come from the public domain as well as Shell’s internal policies such as their Code of Conduct, their General Business Principles and other websites listed in the bibliography. The way in which Shell is considered a business, which has a corporate social responsibility approach, was assessed by using external business tools such as SWOT analysis and Cause and Effect diagram. The analysis allow us to see that Shell is trying to minimise the level of corruption and unethical behaviours among Shell and its employees by adopting several policies, long term and short term business controls, and an organisation structure that adopts various checks-and-balances which helps Shell to decrease its level of corruption and unethical behaviour. Operating in corrupt countries is seen to require greater diligence in how the controls are implemented, and how safeguards are built in to the organization. Table of Contents Abstract...
Words: 4599 - Pages: 19
...Critical Essay- Shell Dann Sokol: 14679766 Word Count: 1665 Oil products are controlling aspects of how people and societies go about everyday activities and life. Thus, the ever-growing corporations such as Royal Dutch Shell and BP, who supply these products, are subject to immense public scrutiny to the quality of these products and more recently the ways in which they are manufactured. The focus of this argument involves the ethical aspect of Shell’s management with regards to the issue of human rights in the regions they operate in, as well as their engagement with their employees and other stakeholders. According to their website the Niger-Delta region, which Royal Dutch Shell produces a quantity of their oil, the company provides funds to the government and commissions. Under law of the Niger Delta Development Commission and operations through the Shell Petroleum Development Company of Nigeria (SPDC), Shell contributed up to $82 million in 2008 ($56.8m and $25.2m, respectively). The contributions through the SPDC “promote and support small businesses, agriculture, skills training, education, healthcare, micro lending and capacity building.” They also have contributed through royalty payments amounting to “$36 billion in taxes and royalties from 2005-2008.” Although the government will ultimately decide how to allocate the funds, Shell firmly believes that through their contributions “these funds can be used to promote development, reduce poverty and support economic...
Words: 1742 - Pages: 7
...Corporate Social Responsibility: Shell Introduction An Overview to Shell Shell is a global company dealing in energy and petrochemical products. The company has its operation spread in more than 80 countries and has employed around 90,000 employees. The organisation helps to satisfy the rising energy demand in socially, environmentally and responsible way. During last few years, corporate social responsibility has been gaining more and more prominence and Shell had been one of the first organisations to weave corporate social responsibility into the firm’s business Philosophy. The group undertook a number of projects which all aimed at the sustainable development of those regions where the company carried out its operational activities. Across the globe, the Shell foundation, which was founded with an initial endowment of USD 250 million from Shell, has been actively involved in a number of sustainable development projects. The group’s initiatives were well appraised by World Environment Council. Corporate Social Responsibility Modern business is oblige to satisfy demanding environmental, ethical, commercial, ethical and public standards as specified by the wider society (Crane et. al., 2007; Burchell, 2008). It is an appraised fact these days that economic value enhances through voluntary cooperation between the companies and its stakeholders (Schwartz, 2011; Bacher, 2007). In Nigeria Delta, Shell has been accused of poor stakeholder management (Idowu...
Words: 2748 - Pages: 11
...The Socially Responsible Oil Company: An Examination of Corporate Ethics by Peter Fischer A Paper Submitted in Fulfillment of the USD School of Law Writing Requirement Energy Law Professor Burleson Spring, 2009 Table of Contents Introduction 2 Background 3 The Need for CSR at Home and Abroad 7 Case Study Analyses: Four Critical Events in the Oil Industry and their Effect on CSR Case Study #1: The Exxon Valdez Oil Spill 9 Case Study #2: Occidental and the Piper Alpha Disaster 12 Case Study #3: A Two-Part Analysis of Shell in the Mid-1990s a) Shell’s Human Rights Violations in Nigeria 16 b) Shell’s Response—Outsource CSR 21 Case Study #4: BP’s Major Advances in CSR 24 Ethics and the Problem of the Public Relations Quick Fix 27 Analyzing the Current Corporate Culture: Failure to Meet the Triple Bottom Line 32 Conclusion 38 Works Cited…………………………………………………………………...…………41 Introduction Over the past twenty years an irrefutable shift in the oil industry has occurred—the shift to Corporate Social Responsibility (CSR).[1] The purpose of this paper is to analyze the motivation behind this shift and determine if these CSR practices are genuine. In other words, does the adoption of CSR denote a tangible change in the way oil companies operate, or is it merely an elaborate public relations exercise? To answer...
Words: 12105 - Pages: 49
...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
...PERSONAL ASSESSMENT GROWTH PLAN | ORGANIZATIONAL BEHAVIOR (BUS 5450) | ABIOYE TOLULOPE | PERSONAL ASSSESSMENT AND GROWTH PLAN A convenient starting point for a discourse of this nature would, expectedly, be to provide a brief sketch of my background. My formative years of knowledge- acquisition were spent at various educational institutions in Nigeria. Specifically, between the year 2004 and 2008, I was at the University of Ibadan, Oyo State for degree program leading to the award of Bachelor of Science in Geography. My inquisitive and adventure loving nature steered me easily to the sciences. I chose to study Geography because the earth in itself provides an immeasurable source of instantaneously occurring mysteries. I then went ahead to start my career in sales at a reputable Telecommunications company in Nigeria. After four years mastering the art of sales I decided a career change or at the least career advancement was needed to succeed in this competitive world, hence my decision to pursue a Masters in Business Administration to hone my analytical skills. There are various principles that shape my vision, goals, path and my life’s journey. Amongst the factors that drive me is a passion for excellence, excellence in everything I set out to do however minute the task is. The need to be a pacesetter, a trail blazer, someone that questions the status quo is inherently ingrained in me. Also, having an acute dislike for mediocrity is another factor that has an impact on...
Words: 2735 - Pages: 11
...effective cost-cutting that tends to affect workers the most. India, China, Nigeria and other African countries have joined the growing list of countries in the Outsourcing business. The HR function has a central role to play in the process of Outsourcing in the organisation. The HR practitioners must, at least, be aware of the Outsourcing process, its challenges and be equipped to support the management in addressing them. The HR function must demonstrate this in order to go beyond being an aspiring business partner to become one of the drivers of the business. This paper outlines the reasons for Outsourcing, its different types and benefits for the organisation. The paper also highlights the key issues in the global practice and provides insights, based on available data, on the Nigerian industry outsourcing practice. In Nigeria, the industry is as its nascent stage and not much data is available across sectors of the economy for in-depth analysis. In spite of this, the Federal Government’s policy framework on Outsourcing and Outsourcing practices involving Zain Nigeria and Bharti Airtel in the telecommunications sector as well as Shell Nigeria in the oil and gas sector have been reviewed. The role of the HR function as the ‘conscience’ of the organisation in managing the challenges of outsourcing is then discussed. The HR function as the ‘conscience’ of the organisation would be more ethical, more humane, more tolerant, less egoistical, more helpful, more compliant...
Words: 401 - Pages: 2
...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
...scandals tainted the reputation of large companies such as Shell, Wal-Mart, and Nike. Cases of employee abuse in factories and sweatshops in Asia and Africa have raised awareness of human rights violations and have inspired people all around the world to continue to fight together to end human rights violations. One case of human rights violations occurred at a Shell oil facility in Nigeria. “Shell is different from other oil companies because it stations its facilities in Nigeria, rather than in the United States, where the company was founded” (Kaeb, 324). By doing this, the company has a higher risk of human rights violation incidents because the distance makes it much harder to monitor what goes on in Nigerian factories and refineries. When the American public gained knowledge of employee abuse in Shell facilities in Nigeria, Shell responded saying that employee abuse is not simply an issue of cruelty within the company, but rather “within a nexus of corruption, poverty, poor public services and infrastructure, government instability, and other factors which make it difficult for business to operate” (Kaeb, 329). This means that Shell argued that the problem of employee abuse in Nigeria is an issue with a lot of grey areas rather than black areas versus white areas. The problem lies in a combination between flaws in the company and flaws in the environment of the nation in which the abuse is occurring, in this case Nigeria. But, if a...
Words: 2776 - Pages: 12
...responsibility first surfaced in the 1970s as both companies and governments began to look beyond financial performance, for a more comprehensive understanding of the company’s long-term value-creating potential. In subsequent years, a number of high-profile disasters, such as the 1984 Union Carbide gas leak in India brought the issue of corporate accountability and transparency to center stage. Following a series of other disasters involving corporate giants like Shell with its human rights violations in Nigeria and Exxon Valdez spill in the 1990s firm stakeholders and indeed the wider public started asking what the price of doing business was…was it enough to round of a year of negative publicity by a bottom line figure? Environmentalists and human rights activists were particularly critical of the human rights violations of Shell headquartered in Netherlands and its neo-colonialists business tendencies in Nigeria that led to the hanging of 9 human rights proponents in Ogoni in 1995. Particularly damaging was that many world figures appealed for clemency after judgement was delivered by the draconian government believed to be fully in cohorts with Shell. Some investors as well as the public temporarily lost...
Words: 993 - Pages: 4
...Business Operations Spring 2012: F 9:30 - 12:30 Focus/Perspective Joe Hatfield, President and CEO of Wal-Mart Asia. Responsible for implement Wal-Mart’s business model Every Day Low Prices (EDLP) to China. Recommendation & Plan for Implementation Wal-Mart has to implement their business model EDLP and define a different strategy for Chinese market and culture. Internal & External Strategic Issues Wal-Mart faces several environmental, cultural, political, economical, social and legal issues and challenges that may act as obstacles for being successful in China. Several internal issues include: * Employees * Shoplifting Wal-Mart pays low salaries and does not offer any type of share for employees. As a result, high rate of managers turn over and unhappy workforce, makes very difficult reproduce domestic business model in China. Corruption and delinquency are very common in under developed countries. China is not the exception, having a high rate in corruption, is another obstacle for Wal-Mart to be efficient amd keep low prices. Several External issues include: * Chinese Consumer Behavior * Too Many Competitors * Diverse Population * Local Protectionism * Backward Infrastructure * Regulatory restrictions Chinese behavior in terms of consumption is hard task to define. Chinese are not predictable. First, because of lack of infrastructure and automobiles, customers use bicycles and walk and therefore they go every day and make...
Words: 2480 - Pages: 10
...vary as companies operate in different industries. Introduction of the Royal Dutch Shell Corporation. According to the words of CEO Peter Voser who introduce sustainability report of 2010 year the aim of the business is to heel meet the energy needs of society in ways that are economically environmentally and socially responsible. These goals are directly projected to all plans and affiliates which are scattered in 90 countries with 93000 employees. The structure of the Shell group is divided by three main branches: 1. Upstream, 2. Downstream, 3. Projects and technology. Upstream consists of two companies: Upstream International and Upstream American which are responsible for searching and discovering new oil and gas, extracting oil from oil sands for conversion into synthetic crudes. Wind power is part of activities of Upstream. Upstream International coordinates sustainable development policies and social performance across the company. Downstream manufactures, supplies and markets oil products and chemicals worldwide. Supply and manufacturing business consists of refineries, supply and distribution of feedstock and products. Downstream trades crude oil, oil products and petrochemicals primarily to optimize feedstock for all manufacturing activities. At the same time business also includes activities in biofuels. Project and technology branch provide the Shell group with projects and researches and development programs; technical services and technology...
Words: 3013 - Pages: 13
...two different countries. In the case analysis compare and contrast the differences in political, ethical, economic and legal differences and their impact on management decision making. Introduction: The aim of this paper is to identify the key political, ethical and economic differences between Apple, based in the USA and Shell, based in Holland, and then compare the differences based on management the individual decision making processes in the subject countries. The ethical conditions will also be discussed, with regard to laws on corporate social responsibility of the companies, as well as the environmental laws of the countries and the impact on the companies. Shell Holland Royal Dutch Shell plc, also known as shell, is a global group of energy and Petrochemicals Company with more than 100,000 employees in almost 90 countries. Shell is a worldwide oil and gas company, which is headquartered in the Netherlands and with its registered office in the United Kingdom. It is the largest energy company and the second-largest company in the world measured by revenues, It is management controlled and is active in every area of the oil and gas industry, that includes exploration and production, refining, distribution and marketing, power generation and trading. It also has major renewable energy activities, hydrogen, solar and wind power. The Royal Dutch Shell Group “RDSG” is a global group of energy and petrochemical companies, the subject company plays...
Words: 2331 - Pages: 10
