Corporate Social responsibility: Shell Oil-Nigeria Case Study
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).
According to Draft, many companies are embracing the notion of share value, which refers to organizational policies and practices that enhance the economic success of a company and advance the economic social condition of the host communities (Draft, 2011). The paper draws its empirical material from the CSR reports and information posted on the website of Chevron, as it relates to Shell-Nigeria. Shell Oil Nigeria its parent company as known in the United States, Chevron Oil Company explores for and extract crude oil in Nigeria, the Niger Delta region. The Dutch oil company, Shell is a global group of energy and petrochemical companies with headquarters in The Hague, the Netherlands, operates in more than 140 countries and territories worldwide. The parent company of Chevron is Royal Dutch Shell plc that is incorporated in England, and Wales. The United States headquartered in Houston, Texas. These oil products are transported and shipped in terms of millions to billions or barrels, to various oil terminals and refined into various product grades, distributed to be sold to various consumers (Mosley, 2000). This paper discusses the corporate social responsibility of Shell Oil-Nigeria, as this relates to the Royal Dutch Shell’s organizational structure, internal environment, organizational culture, and its competitive advantage. Organizational structure
The organizational structural is the framework around which the company is organized, the underpinnings that keep the coalition functioning. According to information retrieved from Chevron’s website, “at the beginning of 2000, the Royal Dutch/Shell Group of Companies (Shell) was emerging from one of the most ambitious and far-reaching organizational restructurings of its 93-year history. The restructuring had involved the shift from a geographically-based to a primarily business sector-based structure, the elimination of over 1,000 corporate positions, the sale of much of its London headquarters, and the redesign of its systems of coordination and control. The restructuring had been precipitated by the...
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