Business ethics and social responsability-case study

Assignment Help Business Management
Reference no: EM1324686

Business Ethics and Social Responsability


Royal Dutch Shell in the Niger Delta (Frederick Bird)

Shell began oil extraction in the Niger Delta in the late 1950s. Between 1950 and 2000, Shell extracted oil for more than 250 billion dollars. During this time, in 2000, the standard of living of the five million people who live in this region has not improved. In many ways it is even lower than it was 40 years ago. Obviously, a significant number of people have found a job. Shell has more than 2000 employees there, almost all whom are from Nigeria. It offers scholarships to hundreds of promising Nigerian students and built dozens of medical clinics, primary schools and community centers.

Since the early 1970s, Shell is forced to conduct its affairs in Nigeria as a minority shareholder to the Nigerian government, which holds 55% stake, while Shell owns 30% and two state enterprises share the rest. It is the former who manages all activities. The Nigerian government claims a very important part of the wealth generated by oil in the form of royalties, taxes and profit sharing. The country's top leaders have used this wealth to build a new capital, engage in lavish public works which they themselves privileged, gave themselves high remunerations and benefits, and fund the most part of government spending. Over the years, Nigeria has witnessed more than half a dozen strikes against the state. Indeed, various groups, often led by military, overthrow governments to appropriate the wealth generated by petrodollars.

The people of the Niger Delta, in particular, resent this situation. They feel that their environment deteriorates. They protested against the fact that Shell burns by flares 85% of the natural gas that accompanies crude oil during its extraction. They feel that these riches, which in a certain way belongs to them, ends up in the hands of their oppressors. They complain in particular with the difficulty they have in obtaining fresh water. Most often, fresh water must be pumped from an underground aquifer. The most effective way to do this is to use an electric pump that they cannot afford or do not have the means to repair when broken. Several groups of people of Delta are already protesting. In some cases, people are attacking Shell installations, especially pipelines of the region. For Shell, these incidents stem from ethnic conflicts and are the result of vandalism. The company has decided to strengthen its staffing in security forces and sometimes asks military of regional or federal government to come protect facilities. On several occasions the troops have exercised excessive violence against the inhabitants of the delta, killing dozens of people.


1. What is today the responsibility part of Shell in this situation?

2. What actions should Shell now reflect on?

3. How could the company have acted more responsibly?

4. Is it possible to imagine behavior that Shell could have adopted to have a larger portion of the wealth created by the extraction of oil remain in the Niger Delta rather than in the hands of the Nigerian government?

5. How could Shell have gone about in developing closer relations with the inhabitants of the Niger Delta? What could Shell have done to change the practices of the Nigerian government?

6. In general, should companies seek to influence the policies and practices of a questionable government? If yes, by what means?

Reference no: EM1324686

Previous Q& A

  Memory-serial learning-primacy-recency effects

Describe the term serial learning? Please give examples, preferably from your own life experience.

  Explain us law and evolutionary changes

Explain US law and evolutionary changes and the growth and expansion of commerce in the United States

  Area of application giving triz thinking

Check possible new areas of research in the health care or possible new area of application giving TRIZ thinking.

  Determining ethics and leadership

Ethics is a topic that sparks a lot of debate amongst different groups of people; it is hard to keep everyone in an organization happy. Research one ethical issue that is prevalent in the workplace and decide, as a leader, how you would handle it.

  Explain advantages of internet e-commerce

Explain Advantages of internet e-Commerce- Web development, brick and mortar comparison

  Memory-free recall-cued recall-recognition memory

Please give examples, preferably from your own life experience. How is the concept of mnemonics used in learning material?

  Explain b2b functionality of e-commerce

Explain B2B functionality of e-commerce and What new B2B e-commerce activities are firms adding to their infrastructure and why

  Effects of external and internal factors

How might memory be influenced by internal and external factors?

  Explain which fit and reinforcement techniques

Explain Which fit and reinforcement techniques were effective and which techniques were not effective

  Business ethics and social responsability-child labor

The firm Bozabi has the habit of buying most of the clothes that it sells from suppliers located in developing countries. So far, Bozabi is a great success: their clothes are stylish, popular and of good quality. The management of the company boas..


Write a Review


Similar Q& A

  Liquidates the entire inventory

Assuming that Attic's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Chester's Elite product manager must spend in promotion to earn more awareness than Andrews' Attic product?

  Describing trusted brands

Compare a brand that you think has broken its brand promise to its customers to the trusted brand that you think keep their promise to their customers.

  Relationship between marketing also financial management

Illustrates the relationship between Marketing also Financial Management.

  Ethics committee at may morley hospital

You are on the ethics committee at May Morley Hospital in Lincoln Nebraska called in to give an opinion on the following case.

  Target market ethical age limits

Discuss the ethics of allowing advertising in schools. Is there an appropriate age in which advertising could be considered? What other facts would you need to make a decision and how might your decision affect the stakeholders?

  Business ethics in airline

Using the Normative Ethics describe the ethics of this situation in context of benefits and cost to the airline for taking the action for proper reporting and grounding their planes.

  Marketing internationally and export or import practices

Compare and contrast domestic and international marketing. Identify considerations for importing or exporting a product.

  Swot analysis for nike company

Create a SWOT analysis for the company (NIKE) you chose to research. Your analysis should be between one to two pages and identify the company's strengths, weaknesses, opportunities, and threats.

  Pepsico brands competitive analysis

Descriptive explanation about "Pepsico Brands - Competitive Analysis".

  Case study of minneapolis pipelines

Minneapolis Pipelines pays an annual dividend of $.80 per share on its preferred stock. The stock currently sells for $12 per share.

  What are importance and measurement of patient satisfaction

What are the importance of and measurement of patient satisfaction in the evaluation of U.S. health care? In your view what are the most significant steps that could be taken to improve patient satisfaction with health care services

  Using the internet for conducting business

Describe three firms which are using the Internet for conducting business, and speculate as to the underlying technologies which might be in use in these firms.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd