Preview

Shell Oil in Nigeria

Powerful Essays
Open Document
Open Document
1184 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Shell Oil in Nigeria
Shell Oil in Nigeria

1. What are some of the factors explaining why corruption and bribery are so high in Nigeria? Nigeria is considered to be one of the most corrupt countries in the world. Many different forms of corruption are familiar to Nigeria including political corruption, bureaucratic corruption, electoral corruption, embezzlement, and bribery. Corruption has even been said to be a viable enterprise in Nigeria due to the involvement of citizens, government officials, and private corporations alike. Two main factors help explain why corruption and bribery are so high in Nigeria, these factors include Nigeria’s complete dependence on the petroleum industry and profit-focused companies taking advantage of a less developed, vulnerable country’s government and social systems. Companies operating in Nigeria have a reputation for being a main driving force behind the corruption. They are constantly accused of allowing and actively participating in corrupt practices to ensure their strategic goals are accomplished. Besides bribing government officials and misrepresenting figures these companies decline to engage people who are trying to fix the system. Instead of participating in the problem, companies as large as Shell should be setting an example for ethical business practices in developing regions. They should be ensuring that their investments in the community are being funneled to the appropriate channels for improving things like infrastructure and the standard of living for Nigerians.
The weak government is easily influenced by bribes and other kickbacks, and companies like Shell are quick to take advantage. Shell has been known to use bribery as a means to get secure new licenses and territories and circumvent customs laws. This type of activity is so common that it has become somewhat of a local culture. The losers in this scenario are the general public in Nigeria whose land is exploited and destroyed by oil pipelines and spills. These

You May Also Find These Documents Helpful

  • Powerful Essays

    Shell Nigeria

    • 4462 Words
    • 18 Pages

    Describe some of the conflicting social, economic, and environmental costs, benefits, and issues associated with construction of the Three Gorges Dam. Remember to consider the global as well as local and regional issues and impacts (or potential future impacts) of construction and operation of this dam (25 marks).…

    • 4462 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    Little Bee By Chris Cleave

    • 1600 Words
    • 7 Pages

    Nigeria was very rich in oil and many of them were depending on it to carry out their day to day activities. However, it had to stop as some English company came to take over the oil business and the local officials started to destroy their illegal mines. “White man been giving me this finger all my life. Today you can give it me to keep. Now cut off your middle finger mister and give it me” (113).…

    • 1600 Words
    • 7 Pages
    Better Essays
  • Good Essays

    In Nigeria, the country has been knocked hard by the recent global financial meltdown. There have been recorded failures of many public and private sector organizations. Undoubtedly, the failure has been blamed on…

    • 906 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The impact to their image resulted in Royal Dutch/Shell taking a weak stance against the corrupt Nigerian government. As the largest oil company in the world, Royal Dutch/Shell controlled 60% of Nigeria’s known oil reserves, providing them the opportunity to positively impact the Ogoni people and the Nigerian Delta as a whole. Poor leadership and lack of a strategic plan resulted in turmoil for Royal Dutch/Shell and the surrounding Ogoni community.…

    • 900 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Gopinath C. (2008). Recognizing and Justifying Private Corruption. Journal of Business Ethics, Vol. 82, pages 747–754. DOI 10.1007/s10551-007-9589-8…

    • 3870 Words
    • 16 Pages
    Best Essays
  • Better Essays

    However, Chapter 1 in the text “Royal Dutch Shell in Nigeria: Operating in a Fragile State,” will provide information and recommendations pertaining many challenges that Royal Dutch Petroleum and Shell Transport and Trading. Subsequently, the analysis will discuss Shell’s operations in Nigeria more at risk and simultaneously more valuable. Furthermore, the analysis will provided an explanation of the implications of the economic system found in Nigeria and what political risks that Shell facing in this country. Explanation will be providing of how important the role of the government is influential of Shell’s Nigerian investments, operations, and future stake in the oil industry.…

    • 1296 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    The following analysis evaluates the challenges faced by Royal Dutch Shell Oil Company involving their monumental proposed investment into their Nigerian operations. When global companies experience extreme criticism such as Shell, they are usually tasked with identifying optimum solutions to reverse the negativity. In addition to assessing the challenges, this analysis provides some potential strategies that can be implemented to resolve the issues within this case.…

    • 1950 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Nigeria Oil Crisis

    • 347 Words
    • 2 Pages

    This article displays a vivid picture for us about the conditions in Nigeria due to the oil reserves. Though Nigeria contained the potential to strive and become a wealthy oil nation, leaving the cocoon of poverty encompassing Africa- it became trapped in a lot of corrupt dealings. Today, the Niger Delta in Nigeria has caught the attention of world wide humanitarian and environmental activists. The article states how in the past, the corrupt government ruling Nigeria was funded by Western governments and large oil corporations. Together, the group have benefited from the fossil fuels that are in abundant supply in the delta region. However, the mines are not the only things that are in this area, there are people of the Niger Delta who have been harshly affected for decades due to this illegal mining.…

    • 347 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Nigerian Oil Conflict

    • 461 Words
    • 2 Pages

    a. Nigeria oil is a main part of the countries’ source of income and comprises 95% of their total exports. The nation is the 8th largest oil producer and the fifth largest supplier to America. Even though oil is so profitable, over half of Nigeria’s population lives below the poverty line.The extraction and demand for oil makes the government reckless in their pursuit for money, making Nigerian government corrupt. The population living below the poverty line live on two dollars day.…

    • 461 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Ch 5 Case Study

    • 632 Words
    • 3 Pages

    Many developing countries do not have the legislation or the infrastructure to combat corruption. This is most likely because they have an ineffective or even corrupt government. Companies that engage in unethical activities may be drawn towards countries with weak or compliant governments that can be controlled or bought. While a company may provide jobs for these developing countries, if there is a lack of competition, bribery, or other forms of corruption taking place, all of the benefit generally goes to the company and not the workers. Without the proper legal system to outlaw this kind of corporate behavior, citizens may find themselves stuck with unethical organizations.…

    • 632 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The recent one-week shut-down of Nigerian economy following government’s fuel subsidy removal cost the economy $1.3b (Wagstyl, 2012). People resisted the good intentioned policy; they perceived that it would aggravate hardship. The resulting annual savings of $8 billion was to be re-channeled to infrastructure (Yusha 'u, 2012). It would also eradicate corruption (Wagstyl). During the crisis, local petroleum prices and global oil prices increased by 115% and 0.9% respectively (Yusha 'u). Jonathan partially reversed the decision on 16th, setting per-litre price at N97.00 (£0.40).…

    • 813 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Nigerian Scamming

    • 3088 Words
    • 9 Pages

    Smith, D.J. "Introduction." Introduction. A Culture of Corruption: Everyday Deception and Popular Discontent in Nigeria. Princeton, New Jersey: Princeton UP, 2006. N. pag. Print.…

    • 3088 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Shell refuses to recognize them as the landowners as it pays very little or no compensation for their land and trees destroyed as a result of oil prospecting; The 20 percent rent and royalties that should be paid to them is instead paid to the Nigerian central government, in addition to the petroleum profit tax (PPT);…

    • 15086 Words
    • 61 Pages
    Powerful Essays
  • Powerful Essays

    ghdhdh

    • 20561 Words
    • 100 Pages

     A country has a comparative advantage in producing a good if the opportunity cost of…

    • 20561 Words
    • 100 Pages
    Powerful Essays
  • Good Essays

    Nation Building

    • 883 Words
    • 4 Pages

    References: Victor E. Dike (Oct 2007) “Tackling Corruption through Character and Moral Education” Online Nigeria Village Square…

    • 883 Words
    • 4 Pages
    Good Essays