Ethics
University
Name

PART A
Question 1
The Three Gorges dam project in China is a venture of monumental magnitude. Its impact is global, regional and local. The Hydro Electric Power project when completed can generate over 22 500 MW of electricity. That is a clean source of power as opposed to the traditional coal that emits huge amounts of carbon into the atmosphere. The proponents of the project said it would lead to better health and higher living standards. Excessive carbon in the atmosphere has been the cause of global warming. That implies that the residents, some of whom do not have access to electric power will have it in their homes. Electricity implies greater comfort and leisure such as TV and better studying for the students. The long-term benefit is better academic performance and therefore a better life. The fast-growing Chinese economy is another major beneficiary from the project. It will be able to supply cheap electricity to the industries and so increase their output. The improved capacity enables them to meet the needs of the fast-increasing number of the middle class of the population. Additionally, there is the prestige that comes with the title of the biggest Hydro Electric power project on earth. That would bring tourists to view the wonderful scene of the dam and an artificial lake. The reservoir lake would create an inland water way that got into Chongqing. The economy of the area would benefit greatly (Tan, 2007).
The project has faced criticism on its environmental and social impacts both locally and internationally. The project led to the displacement of over 1.4 million people who lived there initially. The lake flooded the rich agricultural land where they previously did their farming. In an effort to compensate them for their lost land, massive deforestation took place on the neighboring lands. Critics argue the burning of trees also emitted huge amounts of carbon into the atmosphere.
The reservoir would disrupt the natural ecosystem of the river. In the long-term, it would affect fishing activities on the river. Whereas previously the river carried any waste materials to the sea, the dam would now block the solid waste and effluence leading to water pollution. There is also the fear of increased silting of the river course. In later times, that would hinder movement of shipping vessels along the river (Gleick, & Cooley, 2009). It can also lead to slow speed of the water, causing massive flooding. The geological stability of the area would also get affected. The massive additional weight of water sitting on an already unstable area would increase the possibility of earthquakes and landslides. The water reservoir would destroy beautiful natural scenery and limestone cliffs. That would be a permanent loss.
Question 2
The environmentalists tend to view only the short-term environmental impact. Hydro Electric Power, HEP is a more sustainable than the use of coal. The long-term benefit of the project on the environment is greater than short-term losses. The government of China, on the other hand, should consider the fear of the environmentalists and address them satisfactorily. The inherent fear among the environmentalists is that the government will go ahead and initiate the massive project, focusing only on the economic benefits while neglecting the environmental impacts.
PART B
The public corporation is the Royal Dutch Shell. It is an Anglo-Dutch company that started in 1907. It has its headquarters in the Netherlands, but also operates on the London Stock Exchange. The company is one of the six major oil and gas companies globally. It deals on the exploration, production, refining, distribution and marketing of petroleum. The company is a multinational present in over 90 countries globally. It produces approximately 3.1 million barrels of oil on a daily basis. The primary listing is on the London Stock Exchange, but also on the Amsterdam Stock Exchange. It operated separately as two distinct companies until 2004 when it completely merged its operations with its registered office in London. When it merged, the initial stakeholders shared the company in the ratio of 60/40 (A History of Royal Dutch Shell, 2007).
Over time, the company has started to engage more actively in sustainable energy. It has put in place several measures to this end. In meeting the ever-growing global demand for energy, the company has had to engage in activities that will enable it meet its obligation while ensuring minimal impact on the environment. The company operates under tight environmental standards that seek to reduce the greenhouse emissions into the atmosphere. The continued release of carbon dioxide over many years into the atmosphere has led to increasing global temperatures. The ozone layer that protects the earth from harmful ultraviolet rays from the sun has also increasingly become depleted. The health implication is that rare types of skin cancers affect people in various places where the ozone layer has gotten depleted. Additionally, the ice that have been in the polar regions have begun melting due to the increasing temperatures. The further impact has been a change in seasons and rain patterns across the world thus affecting farming practices across the world. The biggest offenders in releasing the CO2 into the atmosphere are the automobiles and production industries that consume petroleum (Hulme, 2009).
The Shell Company in realization of the adverse effects of continued release of CO2 into the atmosphere embraced a technology called Carbon Capture and Storage, CCS. The technology captures the carbon released from its various industrial activities and stores it underground rather than release it into the atmosphere. Shell continues to work with several environmental agencies to assess the environmental impact of its operations around the world. Organizations such as Wetlands International and Earthwatch help it assess environment impact. It also engages in conservation efforts of various natural attraction sites across the world. In Canada, for example, it works on the Shell Buffalo Conservation Ranch that covers several thousands of acres to conserve hundreds of birds’ species. That is part of its effort to conserve and protect biodiversity.
Shell seeks to conserve the naturally available freshwater sources. That is in line with the United Nations projection of increasing global demand for fresh water. It has cut down its consumption of freshwater. It manages efficiently and recycles the water in its plants. Several centers have been set aside in its plants to recycle water. Shell seeks to reduce its use of energy. The company also recycles its deep water facilities and reuses them in other forms. That, in the long-term, will ensure that the naturally available reserves of energy and resources do not get depleted.
In view of climate change and in an effort to further curb the amount of carbon that get into the atmosphere, Shell has focused on producing natural gas. Natural gas produces half as much carbon-dioxide as carbon. It is clean and safe. In 2012, Shell produced as much natural gas as petroleum. The natural gas gets liquefied for transportation. That was a great achievement towards protecting the environment from destruction. The corporation also got into a joint project in Brazil. The Razen joint project produces low carbon bio fuel for use by automobiles. The project involves raising sugarcane plantations from which ethanol get produced. The bio fuel reduces carbon emissions by 70% compared to petroleum. It already sells fuel from this project in its US market (Downie et al 2009).
Shell also actively engages with the communities where it works. Wherever they work, they have to explain to the community the long-term effect of their programs on their lives. A social performance plan usually gets introduced to the community in various meetings. Those steps naturally elicit goodwill and support of the community. A better relationship with the community enhances their operation. The aim is to contribute to their development and impart skill to them. The benefits accruing from their work get shared with the community. They create jobs thereby leading to economic empowerment. Their operations seek to limit any possible interference with the lifestyle of the community. If necessary, they may change their plans to accommodate the local opinion. A community feedback mechanism usually helps it to get a response from the locals. An example was Appalachia where they set up a feedback mechanism for 18 months. Several social amenities such as roads, schools and hospitals also help build ties with the community. They have a program that educates students to prepare them for careers in oil and gas industries. The LIVEWIRE initiative is a program that encourages young people to initiate their businesses. In 1997, it launched The Shell Centenary Scholarship Fund, TSCF. It awards ninety scholarships every year for students to study in the UK and Netherlands. In the case of relocation, compensation has to be adequate to ensure those displaced can continue their lives normally. Shell fully compensated those displaced in Iraq.
Shell also effectively guarantees the security of its employees and the community. Strict rules regarding personal safety get followed. All its employees operate under its twelve life-saving rules. It also investigates and learns from major industry accidents. Comprehensive insurance policies for its workers and the community build their trust in the company. Shell operates deep water exploration in countries such as Brazil, Malaysia and Nigeria. These require maximum safety standards to avoid deep water accidents that are usually very costly.
Shell continuously invests in research and development to expand its technical level. It also helps it come up with environment-friendly products. An example is the Carbon Capture and Storage facility in Canada. In 2012, it spent over $ 1.3 billion in research and development.
Section 1
There have been strong external forces that have compelled Shell to adopt environment-friendly activities. Several international Agreements have been signed to limit the emission of Green House Gases into the atmosphere. The United Nations Convention on Climate Change is one of them. In 2010, it sought to reduce the global warming level to below 20c (Hulme, 2009). The aim of the agreement is to limit the extent of human interference in the world climate system. It champions the use of renewable energies such as solar power and wind energy. In 2005, the UNFCCC got amended, and the Kyoto protocol came into effect. Countries who ratified the protocol committed themselves to reduce the level of emission of Green House Gases into the atmosphere. Any increase or stagnation in the level of emissions is against the pact. The US ratified the protocol among several other nations. It places the burden of reducing the gas emission on the developed countries. Such international pacts are binding to any industry; Shell included. Particular countries where Shell operates have laws and policies that regulate the use of natural resources. For example, in the US there is Energy Star. Some countries levy taxes on corporations based on the level of tonnes of toxic gases they release into the atmosphere. These and many others have compelled it to adopt renewable energy consumption.
Another strong, compelling external factor has been activities of the civil societies and lobby groups. Several of Shell business ventures have caused widespread uproar on environmental and human rights grounds The negative publicity that come with such events has always forced Shell to devise activities that encourage positive publicity. Lobby groups, as well as individuals, have filed lawsuits that have always sought to deter the company from its activities. The Greenpeace activists opposed the Arctic project because the site should be a natural sanctuary (Newman, 2011). Several lawsuits got filed to stop the exploration process. It had the overall effect of slowing down the intended pace of exploration. In 2014, Shell had to ask the Obama administration for an extension of their lease period because, by 2017, some of the leases would be already expired. They shut down several Shell petroleum stations across London and in Edinburg.
Back in 1995, Shell wanted to dispose of the Brent Spar, an oil storage platform by sinking it in the North Sea. Greenpeace activists opposed the move arguing the oil in the machine had the potential to disrupt aquatic life and pollute water. The opposition was in spite of the government permission for the process. Shell in response opted to tow the machine to Norway where they dismantled it. On dismantling, it got proven that the amount of oil in it was not sufficient to disrupt aquatic life. Greenpeace offered an apology for that.
In Nigeria, Shell has experienced an equal measure of accusations and controversies. The exploration work in the Niger Delta in Nigeria is in partnership with the Nigeria government. Shell got accused of collaborating with the government to deprive the locals of any benefit from the oil deposits. There were further allegations of bribery in order to win contracts from the government. The local Ogoni tribe complained of environmental degradation as a result of the exploration activities. In 1995, the local Ogoni tribe led by Ken Saro-Wiwa, an author, organized a peaceful demonstration to protest against Shell activities. The demonstration turned violent, and several people got killed. The leaders got arrested and charged for treason. There was international pressure on Shell to procure the release of the prisoners. Ken Saro-Wiwa and eight others got executed for treason. There was widespread condemnation of the act; some saying the charges were false (A History of Royal Dutch Shell, 2007).
The US market faced some problems a few years ago. The gasoline Shell sold to its customers in the US had traces of sulfur. The strange chemical made the fuel gauges to malfunction. When it got discovered, Shell offered to replace the fuel gauges for the customers depending on the various types of the vehicles they had. The Shell in the US had to pull out of Global Climate Coalition. That was a group that sought to play down the evidence on global warming and so abdicate any corporation from responsibility for the same. Oil leaks and spills have also made Shell rethink its safety standards. For example, in 1989 a Shell pipeline burst into the River Mersey killing several sea birds and other forms of aquatic life. There were allegations that the pipes got corroded, and monitoring system could not detect problems with the oil flow. A huge fine of $ 1 million got placed on Shell.
Section 2
Internal forces that have influenced Shell towards sustainable operations include favorable publicity and increased goodwill. In operating in foreign cultures and areas, Shell has sought to build close ties with the local communities. They compensate any displaced locals fully in order for them to continue with their lives normally. Social amenities such as schools and roads improve the standards of living of the community. The TSCF offers good scholarships to 90 students every year. These help to earn the company the goodwill of the community. It ensures their infrastructures are safe from possible vandalism, as it has happened in Niger Delta and elsewhere whenever the local community gets ignored.
Sell also buys locally available raw materials for their use from the community. These improve their corporate image and earn them favor with other governments for prospective contracts in the future. Other firms will also love to deal with a company that has a clean corporate image. Their staff also gets motivated from working for that firm. The good image in turn maintains the market for their products and services (Schermerhorn, 2011).

Section 3
In view of the climate change phenomenon, the sustainable activities of Shell are going a long way to combat it. The global temperatures have been on the rise due to the constant release of the Green House Gases, CHG into the atmosphere. Ices melting at the Polar Regions, changes in world climate patterns, change in disease distribution patterns and many others have been the result of the climate change. The combustion of carbon that produces CO2 has been one of the catalysts for global warming. Since Shell is resorting to more environment-friendly activities, the level of carbon in the atmosphere will gradually reduce (DiMento & Doughman, 2007).
It has pioneered the Carbon Capture and Storage (CCS) technology. The technology captures the carbon and stores it underground rather release it into the atmosphere. Its Razen joint project in Brazil produces bio fuel that is cheap and produces much less amount of carbon than the traditional petroleum. The company also engages actively in producing natural gas. Natural gas is a clean source of energy that produces less amount of carbon than petroleum. These measures mitigate the effects of global warming. Several other businesses have sought to follow in the steps of Shell in embracing environment-friendly activities. An example is the General Electric that recently announced its intention to reduce the level of its carbon emissions by 1%.
Section 4
Shell embraces several cutting-edge technologies in meeting its objective of sustainable development. The Carbon Capture and Storage (CCS) is one of them. It captures carbon dioxide that come from its industries and buries it underground rather than releasing it into the atmosphere. The Quest project in Alberta, Canada seeks to capture millions of tonnes of Carbon dioxide in a year. The captured CO2 gets stored in deep underground below several layers of rock (Beloff et al. 2005).
In Brazil, Shell also engages in a joint project that produces bio fuel. The process involves raising sugarcane plantations and processing ethanol and then the bio fuel from it. Bio fuel produces a lower amount of CO2 on combustion than natural petroleum. These among others help Shell continuously reduce the level of GHG emissions.

REFERENCES
Hulme, M. (2009). Why we disagree about climate change: Understanding controversy, inaction and opportunity. Cambridge, UK: Cambridge University Press.
Schermerhorn, J. R. (2011). Introduction to management. Hoboken, NJ: Wiley.
A History of Royal Dutch Shell. (2007). Oxford: Oxford University
Beloff, B., Lines, M., & Tanzil, D. (2005). Transforming Sustainability Strategy into Action: The Chemical Industry. Hoboken: John Wiley & Sons.
DiMento, J. F., & Doughman, P. (2007). Climate change: What it means for us, our children, and our grandchildren. Cambridge, Mass: MIT Press.
Downie, D. L., Brash, K., & Vaughan, C. (2009). Climate change: A reference handbook. Santa Barbara: ABC-Clio.
Newman, J. A. (2011). Climate change biology. Wallingford, Oxfordshire: CABI.
Gleick, P. H., & Cooley, H. (2009). The world's water, 2008-2009: The biennial report on freshwater resources. Washington, DC: Island Press
Tan, Y. (2007). Resettlement in the Three Gorges Project. Hong Kong: Hong Kong University Press.