Shell Petroleum Case Study

Register to read the introduction… They were the first major oil to initiate oil production in Nigeria. This led to a major joint venture with the Nigerian government and two other private firms which gave SPDC a major market share of Nigeria’s oil production and exploration industry. However, the activities associated with the oil exploration and production of SPDC proved to clash with the Nigerian culture and led to an internal and external crisis. In this research composition, we will attempt to analyze the mission statement, the internal and external environment, the codes of conduct, the public relations strategy, and the actions of SPDC Furthermore, we look to offer recommendations for the future actions that may help SPDC revamp their international and domestic reputation regarding their activity in Nigeria.

Analysis of Mission …show more content…
The OECD Guidelines for Multinational Enterprises specifies guidelines for multinational corporations like Royal Dutch/Shell Group. Royal Dutch /Shell Group actions in Nigeria both adhered and disregarded particular guidelines set out for multinational companies. However, the balance shifts towards the latter because SPDC’s seemingly disregard for the environment and human rights was borderline inhumane. SPDC adhered to one of the guidelines, contributing to economic progress, by employing nearly 5,000 people from Nigeria. Also, SPDC’s financial structure delivered 90 percent of their net revenue to the Nigerian government. Although this action was in response to their environmental negligence, SPDC became involved in the LNG project which aimed to cease flares of hazardous gases into the air. This action adhered to the OECD guidelines of upholding environmental …show more content…
As being one of the very important aspects of a business, public relation strategies should focus on the company’s external relations primarily with the government, investors, customers and also the communities. In order to regain the lost public trust, SPDC should work with the government to relate to the local community needs like pure water, clean drainage, and education. They need to pay special attention to the communities that have been affected by SPDC’s actions. A periodic disclosure of the current audits and future strategies will bring more transparency into the company’s operations and hence increase public trust. As 57% of the SPDC employees are local people, clear communication of information within the company can also improve public relation with the external stakeholders in terms of local support. Efforts towards environmental protection and conservation by proper disposal of the byproducts can build a positive image of the company.