Kellog Brown & Root in Nigeria Corruption Case

The biggest problem with the government of Nigeria in regard to its malpractice towards the people is the unchecked corruption. “A

According to Shell Global (n.d.) one of the largest branches of Shell Company is Shell Petroleum Development Company (SPDC) in Nigeria which has joint venture with Nigerian Government’s Nigerian National Petroleum Corporation (NNPC). The ratios are divided in a method of 55% to Nigerian Government, 30% to Shell Company, 10% to ELF Petroleum Nigeria Ltd and 5% to AGIP. The operation of SPDC in Nigeria has added $38 billion to the Nigerian Government in the past five years (2007-2011) together with the taxes and royalty payments. The Nigerian Government receives 95% of its profit from SPDC onshore oil and gas production in Niger Delta. In relation to Shell Company’s relation following are some key aspects.

In today’s 21st century, it takes good ethics for every company to strive competitively to maintain as the best top competitor in their industries; and has its provocations of smart goal as to how successfully they anticipate their business to function, when it comes to finances, attracting and recruiting employees, begin an admirable corporation to citizens, and while showing customers and employees love, courteous, and appreciation. Companies forestall unethical behavior of bad reputation to uphold the organization values. These atrocious speculations can permanently cause decreased revenues and will degrade the company name, sometimes irreparably damaged.

It is clear from the case study that Alistair knows the contract is unorthodox. The problem he faces is whether he should overlook the bribe or report it to the board. The board of directors expects Alistair to tell the truth and report the bribe because of: his position as Chief Legal Officer, the board has a very strong ethics policy and they are wary of unethical activities.

Many companies have ethical decisions that need to be and sometimes those decisions can affect many individuals or just a few. Making ethical decisions may be placed solely on one person’s shoulders or it may be a decision that multiple individuals must be involved in. There are several ethical issues in the Richardson Drilling case that should be considered. For instance, bribery, purchasing substandard parts with lack of disclosure that causes injuries, and revealing sensitive information. One potential ethical concern that could arise has to do with ongoing health insurance and the employer’s responsibility.

More than 30 percent of these businesses had lost overseas business due to the Act. Recent reports have revealed that exports have actually improved in the areas that embrace corruption. Asia and Africa have started to develop business as well. For example, the United States have been expanding the oil market in Nigeria under this act (Deming, 2011).

Business ethics since the beginning of this decade has been slowly eroding; if we are to believe what we see and hear in the media. Several times a day, one can view some derogatory piece of information concerning a business. However, it must also be considered that these companies are contributing to that stigma. There have been a variety of companies and individuals who have figured prominently in the media concerning their unethical behavior.

Nevertheless, such facts about Nigeria as fear of Ebola epidemics spreading across its territory, growing rates of corruption, a presence of Boko Haram Islamist group, and a great dependence of the national currency from oil prices stand against drawing Canadian companies to it. In this case, understanding and possibility

These legal responsibilities are coupled with ethical responsibilities. Due to poor ethical business practices, WorldCom management participated in illegal endeavors.

Jonah Gbemre instituted a lawsuit on behalf of himself and the Iwhereken Community in Delta State, in the Niger Delta area of Nigeria against Shell Petroleum Development Company Nigeria Ltd, NNPC and the Attorney General of the Federation . Alleging violations of both constitutional provisions and those of the African Charter under the fundamental rights enforcement procedure in the Nigerian constitution, the Plaintiffs claimed that sections 33(1) and 34(1) of the constitution, their right to life and the dignity of the human person and articles 4, 16 and 24 of the African Charter had been violated by the oil exploration and production activities of Shell, which led to incessant gas flaring . In addition, the plaintiffs alleged that the continuous gas flaring by the MNCs had led to the pollution of the environment, exposing the community to the risk of premature death, respiratory illnesses, asthma and cancer . Their crop production was alleged to have been ruined by pollution thereby adversely affecting their food security . Furthermore, many of the natives were said to have died with many more were suffering from various illnesses causing the Plaintiffs to complain that the community had been left in a state of gross underdevelopment . One of the many grounds on which the defendants hinged their case, according to Amao, was that the quoted articles of the African Charter , under the Nigerian fundamental rights enforcement procedure, do not create enforceable rights . Due

(Panza & Potthast, n.d.) Ethics is very important to a company’s success. Ethical behavior can bring benefits to a business. They can attract customers, which can lead to a boost in sales and profits. It can attract the right employees and increase productivity. It can also attract investors and keep the company’s share price high. Unethical behavior on the other hand can damage a company’s reputation and make it less appealing to stakeholders. It could also result in lower profits.

Bad criticisms have been the lot of the exercises of the commission lately. In spite of the measure of funds (running into billions of naira) that the Federal Government had invested into the running of the commission, yet the hunch back that has visited the region has ascended to an extraordinary level as of late, rather, in this manner driving the Federal government to intercede by sending in the Nigerian army into the creeks and villages of the oil belt to contain militant activities and calls for

oil in Nigeria. Nigeria’s large supply of high quality crude oil helped Shell climb to the top,

     Violation of Human Rights, destruction of the environment, and denial of freedom of speech and congregation are the ethical issues raised in this case. The Human Rights violations are many. The Nigerian special police force raped, tortured, and murdered hundreds who spoke out against the tyrannical government. All together they killed 2,000 Ogoni, razed 27 villages and displaced over 80,000 people who fled into the bush as refugees. The oil spills by the Shell Company, the lying of the pipeline across farmlands, and

Every organization also has a profession responsibility to conduct business honestly and ethically. Our readings reported, “Experts estimated that U.S. companies lose about $600 billion a year from unethical and criminal behavior” Kinicki and Kreitner (2009). The organization could avoid having ethical issues by meeting the