Business Ethics: Shell

Table of Content

We chose to analyze the company Shell Global (M litigation), which had operations running all over the globe and even now, with the financial drawbacks, is still growing. Shell Global started business back in 1833 and has gone through a lot of hardships but also many golden periods, of which many will be mentioned in this report as some of them concern ethical issues. In 1 958 Nigeria became one Of the largest Oil producers for the Shell Group, where Shell has been accused Of many human rights violations especially in the Niger Delta area.

Their corporate and ethical image was heavily damaged ND they soon realized they needed to regain the confidence of society to remain successful compared to their (more ethical) competitors. In this period, Shell produced their first Corporate Social Responsibility reports (1998) and started paying actual attention to human rights and of course which of them they violated. Asking questions such as: What can we do to change? The CARS report included parts about their business principles and how Shell’s Statement of General Business Principles is going to be implemented.

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Though a ‘clean up’ has started in Going, an area in Nigeria, the problem remains because it takes up to 30 years for the nature of that place to fully recover of the damage, according to the UN report. What happens in this area is that the people do not have access to clean drinking water, now the communities drink water which includes Carcinogens (a substance, radionuclide, or radiation that is directly involved in causing cancer).

Even so, oil spillage is the biggest problem for Shell Global in Nigeria since they are the largest and most well-known company in the country and therefor getting all the blame. Shell Global consists of energy and petrochemical companies and has over 93. 00 employees spread over 90 different countries. This makes Shell one of the biggest companies in their line of business, but challenges remain. Their hardest challenge is to give energy a ‘new future’ and keep innovating in order to sustain their competitive advantage.

When we look at Shell from a global perspective concerning operations, what choices must Shell make? Or rather, what choices can Shell make? Is Shell really to blame for all that happened in Nigeria? Nobody is perfect, same goes for companies and their ethical codes, rather the lacking of or ignorance of some, but we have to keep in mind that everyone can change. In this report, we start by describing four different ethical issues revolving about Shell Global, Nigeria. Starting with Human Rights, representing the fundamental rights that people have due to the fact that they are human beings.

Backed by the Labor Laws, which contains information about the ethical thoughts and contemporary issues related to the Labor Law and their relevant stakeholders and of course their corporate social responsibility. Thirdly, the environment. Here we discuss how the natural environment can be considered as a stakeholder in correlation with Shell working together with non-governmental organizations. Part of this section is also Sustainability and Climate Change. And finally, Anti-corruption, answering the question if Shell Global is corrupt or not.

Following we will compare Shell Global to three other multinationals also established in Nigeria, this section is called Benchmarking. At the end of the report, a recommendation will be formulated for Shell Global concerning the Ethical dilemmas previously discussed. Short History Almost 200 years ago, Marcus Samuel a London antique dealer began importing seas shells from the Far East to supply a fashion for exotic decor. His enterprise laid the foundation for a thriving import-export business later run by his sons, Marcus Junior and Sam.

At this time oil was largely used in lighting and lubricants and the industry was based in Baku, Russia, with its large reserves Of high-quality Oil and strategic natural harbor. With the arrival of the internal combustion engine in 1186 a surge in demand for transport fuel sharply raised. Building on their shipping expertise, the Samuel brothers commissioned a fleet of steamers to carry oil in bulk. They revolutionized Oil transport with the maiden voyage Of their first tanker to arrant the Suez Canal. The brothers’ company was named the Shell Transport and Trading Company in 1897, with a mussel shell as its logo.

Shell Transports activities in the East, combined with a search for new sources of oil to reduce dependence on Russia, brought it into contact with a company called, Royal Dutch Petroleum. The two companies joined forces in 1 903 to protect themselves against the dominance of Standard Oil. They fully merged into the Royal Dutch Shell Group in 1907. Shell changed its logo to the Scallop shell, or pectin, which is still used this day. By the end of the sass, Shell was the world’s leading oil company, producing 1 1% of the world’s crude and owing 10% of its tanker tonnage.

The 1 sass was difficult, the group’s assets in Mexico were seized and it was forced to concede generous terms of the Venezuelan government when it nationalized its Oils fields. After HOI, as peace brought a boom in-car use, Shell expanded into Africa and South America. Shipping became larger and better powered. In 1947 Shell drilled the first commercially viable offshore oil well in the Gulf of Mexico. In 1955 Shell had a little over 300 wells, and three years later they began production in Nigeria.

Shells code Of conduct As a company-wide document, the Code of Conduct does not provide detailed guidance about compliance with every local legal requirement in all of the many different countries in which we operate. As a Shell employee, you are responsible for compliance with the local laws and regulations in force that apply to your work from time to time, as well as with the Code. As the code of conduct of Shell consists out of 80 pages, we took a few principles which are relevant to our sub-questions concerning: Human rights, Barbour law, environment, and anti-corruption.

Human rights Conducting our activities in a manner that respects human rights as set out in the UN Universal Declaration Of Human Rights and the core conventions Of the International Labor Organization supports our license to operate. Shell’s approach to respecting human rights consists of several core elements, including adherence to corporate policies, compliance with applicable laws and regulations, regular dialogue and engagement with Our stakeholders, and contributing, directly or indirectly, to the general wellbeing of the communities within which we work.

Our commitments in this area are supported by the Shell General Business Principles, this Code of Conduct and relevant Group policies in such diverse areas as Social performance Human Resources, including Diversity Inclusiveness Contracting and Procurement. We seek business partners and suppliers that observe standards similar to ours. All employees must understand the human rights issues where they work and follow Shell’s commitments, standards, and policies on this topic. Age 9 of Shells’ English code of conduct 2010 Labor law To respect the human rights of our employees and to provide them with good ND safe working conditions, and competitive terms and conditions of employment. To promote the development and best use of the talents of our employees; to create an inclusive work environment where every employee has an equal opportunity to develop his or her skills and talents. To encourage the involvement of employees in the planning and did erection of their work; to provide them with channels to report concerns.

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Business Ethics: Shell. (2018, Feb 01). Retrieved from

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