Accounting
Corporate Social responsibility: Shell Oil-Nigeria Case Study
By
Fatorma Bolley
Abstract
Corporate Social Responsibility, CSR has become an important element in the business strategy of a growing number of companies worldwide. A large number of initiatives have been developed that aim to support companies in developing, implementing, and communicating about CSR, Shell Oil-Nigeria stands out (Arvidsson, 1996). Corporate scandals are becoming the order of the day, thus giving reasons for the escalation of social and ethical commitment of society, putting pressure on companies to be transparent about their CSR. CSR is today the basic tool most multinational corporation initiates for development in third world countries globally. The Royal Dutch/Shell group of companies, the parent company for Shell Oil-Nigeria commenced drilling oil in Nigeria in 1958. The company is not only drilling crude oil for shipment overseas but also refining some in Nigeria. Nigeria’s crude oil ranks high in quality and is a huge supply, thus climbed Shell Oil-Nigeria to the top in 1994 as the company that made more money than any company globally. However, the company fell short of its corporate social responsibility by 1996 by getting involved with unethical practices (Arvidsson, 1996). This paper discusses how shell abused the environment and the human right of the Nigerian people and manipulated local government for profit. According to Draft, CSR is an extension of the idea of managerial ethics and refers to management’s obligation to make choices and take action so that the organization contributes to the welfare and interest for all stakeholders and the community in which it operates is no exception (Draft, 2011).
Introduction According to Draft, many companies are embracing the notion of share value, which refers to organizational
By
Fatorma Bolley
Abstract
Corporate Social Responsibility, CSR has become an important element in the business strategy of a growing number of companies worldwide. A large number of initiatives have been developed that aim to support companies in developing, implementing, and communicating about CSR, Shell Oil-Nigeria stands out (Arvidsson, 1996). Corporate scandals are becoming the order of the day, thus giving reasons for the escalation of social and ethical commitment of society, putting pressure on companies to be transparent about their CSR. CSR is today the basic tool most multinational corporation initiates for development in third world countries globally. The Royal Dutch/Shell group of companies, the parent company for Shell Oil-Nigeria commenced drilling oil in Nigeria in 1958. The company is not only drilling crude oil for shipment overseas but also refining some in Nigeria. Nigeria’s crude oil ranks high in quality and is a huge supply, thus climbed Shell Oil-Nigeria to the top in 1994 as the company that made more money than any company globally. However, the company fell short of its corporate social responsibility by 1996 by getting involved with unethical practices (Arvidsson, 1996). This paper discusses how shell abused the environment and the human right of the Nigerian people and manipulated local government for profit. According to Draft, CSR is an extension of the idea of managerial ethics and refers to management’s obligation to make choices and take action so that the organization contributes to the welfare and interest for all stakeholders and the community in which it operates is no exception (Draft, 2011).
Introduction According to Draft, many companies are embracing the notion of share value, which refers to organizational
References: Arvidsson S., (1996). Journal of Business Ethics, Online research in Philosophy, Communication of corporate social responsibility: A study of the views of management teams in large companies. Entries: 504,043, New the week: 494 (Retrieved 10/2012) Daft R. L. (2011) Organization Theory and Design., Cengage Learning, South-Western, Vanderbilt University, 11th edition Hammer, J. (1996). Harper’s Magazine Foundation, “Nigeria Crude: a changed man and an oil- fouled landscape. (execution of ken Saro-Wiwa)” Web Journal Retrieved 10/19.2012 Mosley, Alisa L. “ A Quantitative Approach to Management: Management in Today’s Organizations.” Journal of Management Studies, 2000.