Shells Actions example essay topic

We have highlighted in this report all about Shell's 'unethical' environmental and alleged socially unacceptable practices, in the Niger Delta region of Nigeria. But, has Shell recognised its wrongdoings and bad practices and the implications of these actions on the local environment and population? Over the last eight years, Shell has undergone a massive change in its projected public image. In the last decade Shell was frequently receiving media attention for all the wrong reasons, from Brent Spar to human rights in Nigeria. However, Shell has worked hard to convince the world's press and governments that it now practices sound social and environmental decisions. In doing so Shell has internationally committed itself to many, publicly seen as 'ethical' ideals.

For instance in 1995, Shell announced that as an organisation it would practice the idea of 'Sustained Development'. This is the concept within a business that growth and economic values are based on environmental quality. As a practice, this concept discourages natural resource consumption and high energy use. Although, this idea at face value is excellent, in that it gives a good framework for environmental decisions, many of the world's population may not understand what the ideals of sustained development are. As Shell is one of the world's largest natural resource consumers it is contradictory, as one of its targets for 2002 was a 3% increase in production of oil. Shell met this target by acquiring Enterprise Oil UK.

As a concept and ideal, sustained development is there to provide guidelines, as mentioned earlier one of which is to discourage the consumption of natural resources. Shell cannot fully commit to this practice, as its main product is a natural resource. It seems laughable that shell even forwarded the concept in the first place as a basis for their environmental decision making. If Shell is to practice this ideal successfully then it must actively promote the use of renewable sources of energy. It must be at the forefront of research into developing new sources of energy that won't have negative impacts on the environment and its occupants.

It must learn and be willing to show how to make these sources of energy available to the world's population in an efficient and economical way. In society today, concerns for the environment and the rights of workers and many stakeholders, are now being made aware to organisations on a larger and more frequent scale than ever before. It is therefore imperative that new models must be applied, and values and methods changed in order for organisations to deal with these concerns effectively. In the case of Shell and its wrongdoings in Nigeria, the organisation has viewed the situation from a singular perspective, and that is of financial gain. This drive for profits in this region would have been enhanced as Nigeria as a country was not economically developed.

Shell has attempted to abstract itself from the scenario, and distance itself from the controversial issues that have arisen due to the company's actions in the region. In distancing itself from the problem, it has led to Shell 'relying solely on local site managers to sort out problems that are clearly beyond them'. Resolving these problems, experienced international personnel must meet with the local community in the Niger Delta, local site managers and representatives from the local government. Only by doing so can some of the cognitive barriers in place be removed, so that the situation can be dealt with as unique, and not simply one mass of 'awkward' information.

A meeting such as this would enable quantifiable, measured results to be obtained, and more importantly for the 'Ogoni' people changes that they can see and feel, that are beneficial to them. The demand for oil around the globe is immense and as long as this need is still present, oil companies such as shell will exist. As a result, these companies will still search for areas such as the Niger River Delta and more recently the Tarim Basin in Northwest China to extract their wealth. In this process, such areas will occasionally suffer from environmental disasters as accidents do and will happen. However many can be prevented by using safe and modern up to date equipment.

Many of the 2976 oil spills that have happened in Nigeria between 1961-91 have occurred on pipes that are almost 30 years old. In the Shell annual report 2002 it stated '... to give proper regard to health, safety and the environment consistent with are commitment to contribute to sustainable development', this indicates that shell obviously understands the requirement of safe equipment. Unfortunately the Ogoni people in Nigeria have suffered an average of 4 oil spills per week on their homeland, often destroying the livelihoods of many a family. Shell must be more responsive to these disasters in all aspects from cleaning up and returning the environment to it's a original state, to compensating the local community for any loss or damages they may have incurred due to shells actions.

Reaction times from shell must also improve, as in the case of Bernard Agbagwa he reported a spillage on the 28/08/00 and three years later is still waiting for shell to take action. Mr Agbagwa is 90 years old. So, what can shell do to improve its stance on human rights, its performance concerning this aspect in Nigeria has been well documented. Shell is finally beginning to admit that it has to take action. Sir Phillip Watts has commented on the need for international regulation on corporate social responsibility, so that markets can work properly and meet society's needs. In order to help build relations with the Ogoni people Shell must publicly call for and cooperate in, an independent judicial inquiry into the situation in Ogoni, including the role of Shell staff and contractors, as well as the security forces, in past human rights violations.

Shell must adopt company policies in support of human rights and establish procedures to ensure that company activities do not result in future human rights abuses.