Overview of Royal Dutch Shell (Nigeria)
The purpose of this report is to provide information about the corporate social responsibilities of the company Royal Dutch Shell (Nigeria), commonly known as Shell. The report briefs the reader about the positive as well as negative activities implemented by the company while initiating their business objectives. The Royal Dutch Shell is a multinational oil and gas company that is headquartered in the Netherlands and incorporated in the United Kingdom. Further, the company is sixth largest organization present in the world in terms of revenue. The company Shell is Nigeria pays attention towards their corporate responsibilities and aims to achieve it. However, many times the company fails also in doing so because of the profit making mind-set of the management. The report explains one positive achievement and one negative aspect related sustainable activities of the company. More details about the report are discussed below:
Considering the impact of oil and petroleum industry on the nature and living of people, the company Shell work with the government, communities and civil societies with an aim to fund and initiate social programs that positively impact on the life of people living in Nigeria. The company initiated various activities in Nigeria Delta with the purpose to develop the community and help the people living in that community to grow in many ways. Before critically analysing the activities of the company initiated in the market, let’s examine the performance of Shell in the market of Nigeria for the purpose of community development activity of CSR. The company invested in the education sector so as to provide qualification to the students that they can use to further grow as an individual. The company initiated the Shell in Nigeria social investment program under which they invested in Church Community Secondary School and the co-located Ebenezer African Church Primary School in Ewupe. Afterwards, the company also invested in modern information technology sector (ICT) along with well-equipped libraries for the students as well. This social cause helped more than 2000 students in the society. Apart from the education sector, the company also invested in the road safety. In the Ota area, the company has conducted more than 5000 safety awareness programs since 2007 that educated more than 5000 people with the road safety measures. In the year 2017, Shell organized a campaign for social cause, with the tagline of “Drug / Alcohol & Driving A deadly combination”. The company targeted the areas that have high rate of accidents in the state. The company also organized Youth Skill Development Program under which they aimed to develop the youth in their host nations by equipping them with adequate tools and skills that are required in a job. #makethefuture is an energy initiative led by the company to acknowledge people with the appropriate use of technology in their business. This campaign motivated the people to make use kinetic energy and solar panels and save rest of energy for the future generation. Lastly, Shell also organized various community health programs under which the company aims to help people by providing them healthcare services. Health-In-Motion is a program that is a mobile health outreach program that provides free medical services to the people at their doorstep. In Niger Delta and other parts of Nigeria, people have used this services and the company has benefitted more than 610,000 people since 2010.
Positive CSR activities of Royal Dutch Shell (Nigeria)
From the above analysis, it can be clearly seen that the company has initiated various several activities in the environment for supporting the nature and community. The company has stepped into various fields only with an aim to uplift the interest of people living in Nigeria. The management of the company also knows that their oil and petroleum extraction activities severely impact on the health of the environment. In response to which, the management tries to coupe up by providing services to the community in various other sectors. Through such actions of the company, it can be clearly seen that the organization Shell is concerned towards the corporate sustainable activities of the company and wants to comply with it as well. The company Shell being an organization present in oil and petroleum industry also aims to rectify their activities and initiate good social performance in the environment. The company has entered in various fields like education, community healthcare, youth development, innovation etc. with an aim to develop the environment and make the country competitive in front of other countries worldwide.
As said above, that the company is present in oil and petroleum industry so it is for sure that the company’s activities lay major stress on the environment and degrade its health as well. There is a reason because of which Shell complies with all the other social requirements of the company. The is reason is that the organization performs activities that degrade the health of the nature, so the company initiate CSR activities in the environment that can compensate with the cause that they have made on the environment. The recent case happened in the early 2000’s is one of the biggest example of the negative CSR that affected the environment. The company made a major oil spill that polluted the environment and hampered the normal lifestyle of people as well. The Bodo oil spill has been a subject to legal wrangling. In the year 2015, the company finally came in front to take claim for the spill; they also agreed to pay the claim of 55 million pounds to the villagers of Bodo. The company also came up to clean the water fills and land. This made two huge oil spills in the Nigeria River Delta that completely polluted the environment and made people face several health issues as well. In the year 2008-2009, the pipeline of the company ruptured which made million litres of crude oil spilled in the creeks and shores of Bodo.
The oil spill had catastrophic impact on the environment that severely hampered the nature of Nigeria. This aspect shows the negligence of the company towards the society and its activities. Even after knowing that the spill occurred due to rupturing of the 55 year old pipeline, the company did not claim for the fault in their business activities and waived off the aspect of corporate citizenship. It is important for the business to take charge of the activities that they initiate in the environment but the company did not follow the same in this case. Shell came forward to accept their fault and started cleaning the environment after 10 years of the case. Thus, it can be clearly seen that the organization did not follow the social responsibility in the given case.
Negative CSR activities of Royal Dutch Shell (Nigeria)
The fact should be noted that the organization Shell imitates several activities related to corporate sustainability in the current environment but in no way they actually follow it when the problem arises. The company is very good at covering up things as the organization develops the community is several other department so that the society forgets about their core business activity and its impact on nature. Further, it should also be noted that it cannot be said that the company completely waive off the corporate social responsibility but they do follow it to manage their work and compensate the impact of their activities as well. However, they need to focus more on the negative impact faced by the nature due to their core business activities.
Conclusion and Recommendation
Thus, in the limelight of above mentioned events, the fact should be noted that the above mentioned report explained about the social performance of corporate Royal Dutch Shell in the Nigeria. It explained the positive way in which the company fulfilled the social requirement and one severe case in which the management failed to come up to the expectations of the stakeholders of Shell. Further, few recommendations should be given to the company that is, they should concentrate more on the core business activity and try to eliminate the risks related with it. Further, the business should also seek feedback from the stakeholders and aim to work on their corporate sustainability issue according. However, the report explains that the company has invested its business in various fields in Nigeria that somehow reduces the negative impact on the society.
Aaron, Kiikpoye K. “New corporate social responsibility models for oil companies in Nigeria’s delta region: What challenges for sustainability?.” Progress in Development Studies 12, no. 4 (2012): 259-273.
Ako, Rhuks Temitope, Lawrence Ogechukwu Obokoh, and Patrick Okonmah. “Forging peaceful relationships between oil-companies and host-communities in Nigeria’s Delta region: A stakeholder’s perspective to corporate social responsibility.” Journal of Enterprising Communities: People and Places in the Global Economy 3, no. 2 (2009): 205-216.
Ekatah, Innocent, Martin Samy, Roberta Bampton, and Abdel Halabi. “The relationship between corporate social responsibility and profitability: The case of royal Dutch shell plc.” Corporate Reputation Review 14, no. 4 (2011): 249-261.
Frynas, J?drzej George. “Corporate social responsibility in the oil and gas sector.” Journal of World Energy Law & Business2, no. 3 (2009): 178-195.
Hennchen, Esther. “Royal Dutch Shell in Nigeria: where do responsibilities end?.” Journal of Business Ethics 129, no. 1 (2015): 1-25.
Hennchen, Esther. “The role of oil mayors in supporting sustainable peace and development in Nigeria: the case of Royal Dutch Shell.” CSR in conflict and post-conflict environments: from risk management to value creation. Barcelona: School for a Culture of Peace (UAB) (2011): 133-145.
Idemudia, Uwafiokun. “Corporate-community engagement strategies in the Niger Delta: Some critical reflections’.” The Extractive Industries and Society 1, no. 2 (2014): 154-162.
Manby, Bronwen. Shell in Nigeria: corporate social responsibility and the Ogoni crisis. (US: SAGE, 2016).
Pegg, Scott, and Nenibarini Zabbey. “Oil and water: the Bodo spills and the destruction of traditional livelihood structures in the Niger Delta.” Community Development Journal 48, no. 3 (2013): 391-405.
Rexler, Jonah. “Beyond the oil curse: Shell, state power, and environmental regulation in the Niger Delta.” Stanford Journal of International Relations 12, no. 1 (2010): 26-31.
Spence, David B. “Corporate social responsibility in the oil and gas industry: The importance of reputational risk.” Chi.-Kent L. Rev. 86 (2011): 59.
Tuodolo, Felix. “Corporate social responsibility: Between civil society and the oil industry in the developing world.” ACME: An International E-Journal for Critical Geographies 8, no. 3 (2009): 530-541.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
