This report will focus on Royal Dutch Shell, a multi-national oil and gas company (Shell, 2015) and its business and environmental practices. While Shell has engaged in unethical practices in parts of the world such as the Philippines, Brazil, South Africa, USA and Russia, this report will focus on their unethical practices and how it has damaged the environment specifically in Nigeria.
Shell Petroleum Development Company of Nigeria (SPDC) first set up its operations in Nigeria in 1937 (Burger, 2011). However, in recent years, Shell has more than doubled its production. The drastic increase in production has caused severe environmental damage to Nigeria, specifically to the Bodo Community which is part of Ogoni land in Gokana Local Government …show more content…
Shell has faced huge financial losses including its previous USD$30 billion annual earnings (Facing Finance, 2014) in the Ogoni region and the USD$83.5 million compensation to Nigeria (Faul, 2015). Also, when the world found out about the situation with the Ogoni people and Shell, many felt indignation towards Shell and activists in Europe responded by setting fire to Shell stations, resulting in more costs for Shell. There were surveillances and protests involving Nigeria’s suspension from the Commonwealth, an international body, and the international boycott of the company’s products, hence damaging the country financially (Vidal, 2010). This shows how a business’ practices can affect the government if the government behaves …show more content…
The company has also engaged in heavy Corporate Social Responsibility (CSR) practices in Nigeria involving community development projects. “Specific community development programs include our micro credit scheme and health scheme. We have about 27 clinics in the delta. We are a major supporter of education of young children, with over 17,000 children on Shell scholarship at any point in time.” - SPDC Managing Director Mutiu Sunmonu stated (Shell, 2011). As of late 2010, SPDC has established 8 local dredging firms, granted 10 UK scholarships, equipped about 1900 service providers with training in general contracting and more than 3000 people in different skill sets (Burger, 2011).In the same year, Shell provided financial assistance to local community projects amounting to more than USD$22.85 million. In 2014, SPDC contributed USD$5 million out of the USD$14.8 million to scholarships and education
Shell Petroleum Development Company of Nigeria (SPDC) first set up its operations in Nigeria in 1937 (Burger, 2011). However, in recent years, Shell has more than doubled its production. The drastic increase in production has caused severe environmental damage to Nigeria, specifically to the Bodo Community which is part of Ogoni land in Gokana Local Government …show more content…
Shell has faced huge financial losses including its previous USD$30 billion annual earnings (Facing Finance, 2014) in the Ogoni region and the USD$83.5 million compensation to Nigeria (Faul, 2015). Also, when the world found out about the situation with the Ogoni people and Shell, many felt indignation towards Shell and activists in Europe responded by setting fire to Shell stations, resulting in more costs for Shell. There were surveillances and protests involving Nigeria’s suspension from the Commonwealth, an international body, and the international boycott of the company’s products, hence damaging the country financially (Vidal, 2010). This shows how a business’ practices can affect the government if the government behaves …show more content…
The company has also engaged in heavy Corporate Social Responsibility (CSR) practices in Nigeria involving community development projects. “Specific community development programs include our micro credit scheme and health scheme. We have about 27 clinics in the delta. We are a major supporter of education of young children, with over 17,000 children on Shell scholarship at any point in time.” - SPDC Managing Director Mutiu Sunmonu stated (Shell, 2011). As of late 2010, SPDC has established 8 local dredging firms, granted 10 UK scholarships, equipped about 1900 service providers with training in general contracting and more than 3000 people in different skill sets (Burger, 2011).In the same year, Shell provided financial assistance to local community projects amounting to more than USD$22.85 million. In 2014, SPDC contributed USD$5 million out of the USD$14.8 million to scholarships and education