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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.html7/31/2019 csr 1.6
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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