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80% of Nigerian government revenues come directly from oil, over half of whichis from Shell.

Shell continued funding of the military in the Delta region under the auspices of"protecting" Shell from peaceful demonstrators in the village of Umeuchem .

Accumulated neglect of corporate social responsibility Shell, over a significantperiod of time in the oil and gas rich Niger Delta region caused the eruption of

militancy, kidnapping and other vices in the area 2

THE OGONI CRISIS AND SHELL

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Ken Saro-Wiwa

Natural Gas Flaring Oil Spills Pipelines and construction Health impacts

The neglect took the life of Ken Saro-Wiwa, the Ogoni activist and eight others in 1995 amongmany others and caused unprecedented environmental devastation in the region.

3

THE NIGERIAS NIGER DELTA

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The government of Nigeria lost revenue in excess of US$30b in 7 years due to theinstability .

Introduction ofamnesty by the Federal Government of Nigeria in for some calm to return.

A law was also enacted by the National Assembly of Nigeria to make mandatory SocialResponsibility contribution of operating companies into the cleaning up and developmentof the region .

Ogoni Bill of Rights

clean up of oil spills

reduction of gas flaring

fair compensation for lost land, income, resources, life

a fair share of profits gained from oil drilled at their expense

4

GOVT. SOLUTION:

THENIGERIASNIGERDELTA

http://www.mosopcanada.org/info/mosop0370.htmlhttp://www.mosopcanada.org/info/mosop0370.htmlhttp://www.mosopcanada.org/info/mosop0370.htmlhttp://www.mosopcanada.org/info/mosop0370.htmlhttp://www.mosopcanada.org/info/mosop0370.html

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CHALLENGES @NIGERIA

Challenges@Nigeria

Poor trackrecord

Newchallenges

Corporatecitizenship

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S

SPDC has contributed about $31 billion to the govt (20062010)

The Shell Nigeria Exploration and Production Company paid $3.8 billion as taxes

Shell run operations contributed over $161 million to the Niger Delta DevelopmentCommission

additional $71 million - addressing social and economic development challenges in theregion

Economic Empowerment Initiative:

Micro-credit Prog. Launched in1998

assisted more than 30,000 people to establish or expand their businesses

Shell LiveWIRE (2003) - Platform for youth development

facilitate the emergence, survival and expansion of youth owned businesses

The programme has trained more than 3,000 young people since 2003

Cradle-to-CareerScholarship Scheme -brilliant students are awarded scholarships .

In 2010, Shell awarded 2,730 secondary and 750 university scholarships.

Health care - SPDC currently supports 27 health facilities in the Niger Delta. In addition,served 118,000 people through mobile health outreach programmes

The Project, NiDAR Plus

encapsulates HIV/AIDS activities

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ISSUES AT HAND

Shells reputation with regards to Sustainability / CSR is not good. Afterbeing seen as leaders some years ago they are now being perceived as

just putting a lot of money in their communication

Worsening reputation

Over the last few years Shell have not really convinced on the contentand implementation side through innovation at all. This might be theconsequence of not being leaders anymore combined with a lack ofaspiration for bringing their reporting and best practice onto the nextlevel.

Lack of Sustainability / CSR innovation

The corporate context and culture itself at Shell does not fully go handin hand with their Sustainability / CSR messaging .

Perceived indifferent corporate culture

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TAKING ACTION

Shell has made strategicchanges to its businessmodel, supply chain andoperations, in order toincorporate strong principlesof transparency, anti-corruption and businessresponsibility.

Shell co-operates closelywith NGOs, industrialorganisations andinternational bodies totackle collectively theproblem of corruption. Ithas signed up tointernational agreements-

General Business Principles,standards, anti-corruption

principles, values andinitiatives, through regulartraining , induction programs

Shell General BusinessPrinciples through making staffaware of its operations andactivities through clearguidelines.

Shell devised a document formanagement to identify ethical

dilemmas and corruption

Integrity, honesty andrespect . These values

are the foundation ofShells code of conduct,and are in line with thebusiness principles setout by the United NationsGlobal Compact (UNGC)and the OECDguidelines formultinational enterprises. Core

values

Communication

Reporting

Policies

andinitiatives