Multinational Companies and Their Social Responsibilities (Α Case Study of Shell, Nigeria)

15078 Words Mar 9th, 2012 61 Pages
CHAPTER TWO
2.0 AN OVERVIEW OF SHELL DEVELOPMENT COMPANY IN NIGERIA
2.1 Introduction This chapter will provide basic knowledge of Shell Nigeria Oil Company and its operation in Nigeria, in particular regarding its ethics, performance, social involvement, contribution to national income and its contribution to keeping the environment green. Since the Rio Conference of 1992 the code of conduct for all extractive industries including crude oil mining companies has underlined the following principles that should be respected in doing business:
i. Social and economic development of host communities ii. Provision of basic social services iii. Regard for Human Rights iv. Good governance and civil society involvement. There have also been some
…show more content…
They want the protection of the ecosystem and biodiversity of indigenous and local community territories; iv. They want the revenue sharing formula based on derivation revived at 50 percent to derivation, 35 percent to distributable common pool and 15 percent to the central government;
v. They want Shell and the Nigerian government to adopt policies that will recognize indigenous communities as rightful owners in the crude oil business; vi. They want Shell to clean up their environment after many years of ecological devastation and comply with all international standards. Shell environmental legacy and community relations’ efforts deserve priority attention. What is however involved is the totality of the existence of the communities and their environment, their farmland, economic development, education health, water management, spirituality and cultural heritage – which are daily being threatened.

2.2 Introduction and Discussion of Theories and Models from the Literature In this section we would look at the Royal Dutch Shell Oil company operations worldwide and in particular the Nigeria operations from several different angles. We will look at how Shell Nigeria operations can impact upon the three stakeholders; The CEO of Shell, an investor and a local Shell employee. Then we would look at this wicked problem with the oil spill in the Niger delta. Shell is a global group of
Open Document