Shell Nigeria’s activities included “exploring and producing oil and gas onshore as as offshore and gas sales and distribution. Shell also has an interest in Nigeria’s largest liquefied natural gas plan (NLNG)”. Shell Nigeria was founded in 1938 and obtained a licence to search for oil throughout Nigeria. In 1956 Shell found commercial oil and then the first export of this oil occurred in 1958. The Niger Delta area is a poor area where the majorities of Shell’s operations were, and still are being carried out. Niger Delta is rich in natural resources with 85% of Nigeria’s Gross Domestic Product coming from the area. Before 1995 when Shell’s CSR strategy hadn’t became scrutinized, Shell’s strategy focused on reputation management and risk. In 1995 this changed as members of the MOSOP activist group were protesting for a fairer share of the wealth from oil and also for compensation for environmental damage were brutally executed by the National army who were funded and aided by Shell. However, these initiatives have annoyed locals and they are seen as once off acts of charity. These initiatives won’t bring sustainable change. Locals believe …show more content…
Shell Nigeria has placed a strong focus on the local community and developing it that will bring sustainability amongst local people: “Shell Nigeria places great importance on making a difference in the environment in which people live and work, fostering and maintaining relationships with communities, taking care to be a good neighbour and contributing to sustainable development initiatives”. There is no doubt that shell has shifted its and placed an emphasis on a CSR approach. However, a question mark remains over Shell Nigeria about how stringent they are on implement CSR strategies, as Shell Nigeria are constantly in the headline for the wrong
First the story of the Standard Oil Company briefly describes the limits of power. When Rockefeller was trying to take over the market he formed the “South Improvement Plan. When this occurred the public grew very angry with the price of trains, so nobody went on the railroads and Rockefeller eventually got the bill, until prices changed. This is an example of how the consumers, make the company run and when nobody wants to buy your product the individual must adjust. Another example would be when the Standard Oil Company was primarily the only oil company and was forced to split into thirty nine different independent companies. This shows that one business cannot control the entire market and interventions will need to be done accordingly so that a company does not have all the power.
“positive” change. There has been significant debate whether these activists are truly adding value to
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
The Shell Oil Company involves a group of energy and petrochemicals companies that operate globally. Shell employs over 92,000 employees and operates in more than 70 countries and territories. Shell is considered a prominent gasoline provider, offering products that range from energy fuels, lubricants for businesses, and petrochemicals for detergents, packaging, carpets, and computers. The Shell corporation is also making strides to embrace renewable energies “by creating hybrid energies with traditional fuels such as natural gas” (Shell Global, n.d.). Shell is building hybrid power plants that combine renewable energies, including those produced by sun and wind, with traditional fuels. By investing in emission-free energies, Shell seeks to improve its operations and competitive posture as renewable technologies advance.
of Nigeria. While Nigeria was still under British rule, in 1958, Shell started oil production,
Petroleum seepages, in some form or another have been around since ancient times for boat caulking, road mending, and as medicine, however, the modern petroleum industry was truly born with the first drilled oil well in August 1859 by Edwin L. Drake at Titusville, PA. (Laudon, 347) At first, in the United States, oil production was controlled by small operators but by the late 1870's John D. Rockfeller had purchased most of the nation's refineries-controlling the United States industry. The Sherman Anti-Trust Act of 1911 split Rockfeller's Standard Oil Trust into three smaller companies; today they are known as Mobil, Chevron, and Exxon. (Lynch, 214) Since that time, oil has become a major part of everyone's way of life. Oil is used to provide fuel for automobiles, tractors, trucks, aircraft and ships. Petroleum products are the basic materials used for the manufacture of synthetic fibers for clothing and in plastics, paints, fertilizers, insecticides, soaps, and synthetic rubber etc... (Lynch, 207) Due to this demand, companies are constantly searching for more oil deposits.
...n Africa. As mentioned in the main body of the essay, the Indian oil company seem to be the leading the way as they look to be resolving all these issues by dedicating some of their time to solving serious issues of the world. Moving on, the advantages seem to outweigh the disadvantages because some companies who are using the CSR approach to show themselves in a positive light in the eyes of the public are, on one hand helping the problems in the world and at the same time, gaining good publicity. It is also worth mentioning that companies who are looking of finding new ways of motivating their staff then from the survey by Net Impact will be a real wind in their sails because by using CSR it will not only motivate the employees but also allow them to make a little pay cut. Surely, if these are the advantages of taking CSR then it will certainly be worth it.
The measure of petroleum abundance and production in Nigeria is measured by the United States. According to the statistical data and the U.S. measures, Nigeria reserves make the country the tenth petroleum-richest nation, and by far, one of the most affluent countries in Africa. In the middle of 2001 its crude oil production was averaging around 2.2 million barrels per day. Though, there is a very prominent market for offshore rigs, nearly all of Nigeria’s primary reserves are in and around the delta of the Niger river. Ever since Nigeria became independent, it is one of the few oil producing countries that can increase its oil output drastically. The g...
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
The oil companies are using a structured power approach while addressing the land use issues with the locals. The oil companies use formal authority, legal prerogative, and association to strengthen their side of the conflict. The Nigerian government has a history of being influenced by foreign money and influence, which gives big business a huge advantage over monetary decisions. The Nigerian government has gone as far as creating laws and legislation to benefit the oil companies because of the significant economic contributions the companies bring to the country. Omeje (2005) states “Oil is the mainstay of Nigeria’s economy and the state is largely dependent on oil rents, taxes and royalties paid by transnational oil companies (TNOCs) and on profits from its equity stakes in the TNOCs’ investments.”
Case Study:Hindustan Unilever Limited. Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endowed the company with a combined volume of about 4 million tonnes and sales of Rs.10,000 crores.
Nigeria 's economy dominated by oil . 16 Jan. 2002 . BBC news. 22 Apr. 2005 .
The indigenes of oil producing areas have been exploited. Foreign oil companies come into Nigeria to dig for oil which they refine and sel...
power, and rail. In additions, extensive reforms are in progress in the power, ports, and domestic air transport sectors. However, there are still challenges that exist. Water and sanitation is still a problem in Nigeria with declining levels of piped water coverage. Roads are in poor condition because of lack in maintenance and air transport safety is low. In order to develop a better infrastructure will require around $14.2 billion per year for the next decade. Due to a great amount of revenues that is generated through oil, providing capital should not be a problem (Foster 1). From an economic standpoint, a couple of advantages of doing business in Nigeria are that not only is the population growing. The country has abundant supply of oil meaning that revenues for the countries will be stable. However, infrastructures such as access to clean water are a problem. Also, crude oil is Nigeria main industry and even though there is an abundant supply of crude oil, it may eventually run into financial problems when supplies are limited.
Our organization encourages the Nigerian government to reduce its reliance on oil revenue, therefore diversifying the Nigerian economy. Today oil accounts for 80% of government revenue in Nigeria, although oil accounts for only 15% of the GDP. Our organization plans to work with Nigerian authorities to make agriculture their first economic priority. The Nigerian government must understand the importance of agricultural development in sustaining large growing populations. Therefore, in order to facilitate self-sufficiency Akinwumi Adesina, Nigeria’s agriculture minister, said last year, “In Nigeria, we’re making agriculture the new oil.”(Adesina, 2014) by developing agriculture in Nigeria the economy will diversify reducing the impact of oil supply and demand on the economy. Further increasing Nigeria’s ability to develop sustainable agricultural production reducing dependency on imported agricultural