Assessment Of Shell 's Corporate Social Responsibility

Niger Delta region, placing the Nigerian oil output down to a third of its capacity” (Klare 3).

  Corporate social responsibility is a common topic in the world. CSR is a business method that promotes sustainable development by providing economic, social and environmental benefits to all stakeholders.  ⑵（ Andriof

One of the most dominating concepts of business reporting is Corporate Social Responsibility. It has become mandatory for every business to include a policy with regards to CSR and produce a detailed report with regards to its activities. CSR can be defined as the relationship between a corporate company and the society in which the company operates. The concept of CSR became famous during the late 1960’s and since then it has helped corporations to sustain itself in the market.

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

For example, Shell Oil, an MNC (Multi National Corporation), extracted 50% of Nigeria’s yearly crude output, and 14% of its own output from the Niger delta region (The Changing Nature of Third World Exploitation, 1995). Though a large number of the local populace was recruited by Shell to serve as the basic labor force, there has been no change in the deplorable conditions the locals were living in. Over a period of 15 years, due to massive and widespread oil spills, heavy land degradation of the alluvial soil has taken place. The locals, who come from an agriculture based society, have in effect, been deprived of their ancestral way of life, their heritage, all due to the greed driven actions of the partly

The documentary Big Men chronicles the story of foreign involvement and corruption in the oil and gas industry in West Africa. It juxtaposes an old oil exporter, Nigeria, and a new discoverer of oil, Ghana and highlights their connections to outside foreign investors as well as multinational corporations. The overarching theme of this documentary is to reveal the exploitation of natural resources by outsiders and centralized governments at the expense of the local populations. This paper will first discuss the two countries of interest and will then discuss the U.S. Company Kosmos and the significance of foreign involvement in African economies.

Nigeria, with a population of 190,584,690 people is the most populous country in West Africa. Marked with huge reserves of oil and natural gas, oil exploration in Nigeria first began in the year 1908, with long breaks during the first and Second World War. After the further discovery of commercial oil fields in Oloibiri in 1956, crude oil has since being produced in large quantities. Today, the country produces a maximum capacity of 2.5 million barrels of crude oil per day, and is the world’s sixth largest producer of crude oil. Crude oil export, accounts for 90% of Nigeria’s earnings. Oil exploration occurs onshore, on land and swamps, while off-shore operations occur mainly in water depths reaching 2500m. Currently, crude oil is

The "Curse of the Black Gold" is what they call it. The greasy money-making liquid can also cause the undoing of countries. Oil companies like Shell sometimes make as much money as the country they do business in. The hazards that come with extracting oil is understated while the rewards are often praised. To the companies, we are not important, it is the money we carry in our pockets that they care about. Shell, a billion-dollar making oil company, is slowly gaining a lot of recognition in countries as it is causing a lot of corruption due to several accidents as well as its influence on global warming. The company is most known for its fracking practices as well as its impact on Nigerian villages.

The poor relationship between the oil companies and the communities in the Niger Delta is not sudden, it 's historical context dates back to as early as the 1930 's and 1950 's. It was 1937 when two British oil companies merged into what today is known as Shell. Shell replaced the initial German oil company in the area from 1908 (Umejesi, 117). Shell set up impressive human and material forces and conducted their first drilled oil well in 1951 in the city of Iho. Worry quickly struck everyone in Nigeria. Shell worried they would not find

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

Promulgated in 2000, the NDDC Act highlights the importance of addressing the “problems” which arise from the exploration of oil minerals in the Niger-Delta area […]” .Section 2(1)(b) of the NDDC Act sets out rules for the composition of the Niger Delta Development Commission reflecting the need for a stronger representation of the oil producing states. In addition, Section 2(1)(c) provides for the representation of non-oil producing states while Section 2(1)(d) calls for a deeper integration and cooperation between these states and oil operators . The major mandate of the NDDC among others is the conception, planning and implementation in accordance with set rules and regulations, of projects and programs for sustainable development of the Niger delta area in the field of transportation including roads, jetties, water-ways, health, employment, industrialization, agriculture and fisheries, housing and urban development, water supply, electricity and telecommunications. That mandate includes the formulation of policies and guidelines for the development of the Niger Delta Area. Unfortunately, as Ojukwu laments, much work has to be done in order to ensure the fulfilment of this goal notwithstanding the efforts made by the government in this direction, .

Most children in the Niger delta have little or no education, due to lack of funds from their parents who have lost their lands and have no jobs because of limited opportunities. The Niger delta government and the oil companies have refused to look into the situation; instead they favor their close relations neglecting the masses. Corruption in the Niger delta has led some youths in taking drastic measure in order to put food on their table. For example, Ikechukwu Efe an indigene of the Niger delta said that some of his friends created their own “oil refinery”, which is made up of crude oil in metal barrels with controlled heat from fire woods. This is a dangerous process in refining crude oil but the degree of poverty in the state left his friends with no choice. If only the government of the Niger delta have created jobs with the wealth of the state Ikechukwu’s friend would not have to put their lives in danger. Until corruption is put to an abrupt the people of the Niger delta will continue to live in poverty.

Esther Henchmen is a PhD student at EASED Business School – Universi dad de Ramon Lull, Barcelona. She has participated in non-governmental organizations including UNICEF, World Bank and Oxfam Intermon. This has led her in expertise about development management and human rights. Dealing with issues such as the involvement of corporations in major environmental disasters such the oil spill that occurred in Niger delta by shell. Her title “Royal Dutch Shell in Nigeria: Where Do Responsibilities End?” explains the problem of fractured responsibility coupled with harm produced by collective action. Her journal focuses on the cause, integrity and reputation of the perpetrators involved in the ongoing Niger Delta oil spill. She discusses the dispute over the corporate social responsibility, malpractices and legal preceding of its operating licensure. Since corporations are artificial persons in the law, it is difficult to isolate perpetrators based on causality in fact it’s not realistic, so they could be sued for failing to meet standard of care.

This thesis sets out to examine the accounting, accountability and governance practices of the Nigerian Content Development and Monitoring Board (hereafter, NCDMB) and the International Oil and Gas Companies (hereafter, IOCs) in the implementation of, and compliance with, local content sustainability rules in petroleum contracts in Nigeria. The aim is to apply an accountability-based conceptual framework of accounting to address three major accountability issues within the context of the broader natural resource governance practices. Firstly, to critically establish, within the context of the Nigerian oil and gas industry, the relationship between local content and the three tenets of sustainability (social, economic and environmental), the issue that has received relatively little attention from scholars. Secondly, to evaluate the extent of the NCDMB’s accountability by assessing its ability to enforce compliance with the local content sustainability rules as provided by the law. Finally, to investigate the extent of accountability of the IOCs operating in Nigeria by their ability to comply with and align between the mandatory and the voluntary local content reporting practices in their attempt to support sustainability through oil and gas contracts.

The petroleum sector began to add significant role and shape to the Nigerian economy and the political arena and destiny of the country in the early 1060s. However, when Nigeria became an independent nation in 1st October 1960, Shell – BP began to give out its acreage and its exploration licenses were converted in to prospecting licenses that allowed development and production ( Bamberg, 2000; Vassilion, 2009). Following the increase dominance of the Nigerian