Shell planned to dispose of its Brent Spar oil storage facility by sinking it in the deep sea, which was approved by UK authorities. Greenpeace opposed this plan and launched a media campaign, boarding the Brent Spar and broadcasting their opposition. This generated significant public backlash against Shell in Germany. Shell's brand and gasoline sales suffered as a result. Ultimately, Shell conceded to dismantle the Brent Spar on land due to the social pressure created by Greenpeace's campaign.

1. Chapter 4
Case A.4
Presented By:
Bugingo, Marie Paule
Cook, Christie
Demale, Kristin
Derby, Amanda
May 28, 2020
Case: Shell, Greenpeace, and Brent Spar
Prepared For:
Bruce MacKeen, Instructor
ECON3340: Business and Its Environment
Northern Alberta Institute of Technology
Edmonton, Alberta

2. AGENDA
01 Issues
02 Interests
03 Institutions
09 Conclusion
04 Information
05 Media Involvement
06 Private Politics Strategies
07 Greenpeace Strategy
08 Shell Strategy

3. Introduction
This case explores several organizations and their
involvement in the disposal procedures of large offshore
petroleum facilities, namely the Shell UK oil storage facility
and tanker loading buoy called the Brent Spar.

4. Issues
Brent Spar operated 1976 to 1991 when it was concluded that
refurbishing the 14,500 tonne facility was economically
unjustifiable
Shell had two options to dispose of the large storage facility:
horizontal on-shore dismantling and deep-water disposal
Deep-water disposal was decided upon due to many factors:
health, safety, cost, and engineering complexity
February 1995, the British Energy Minister accepted Shells Best
Practical Environmental Option (BPEO)
Strong private politics opposing deep-water disposal by Shell in
Europe, mainly Germany, even though BPEO disposal plan was
approved by the UK
Greenpeace objected the acceptance of the BPEO

5. Organized Interests
Shell UK
Shell Germany
Royal Dutch/Shell Group (parent)
British government
Official designated parties to BPEO
Scottish National Heritage
Joint Nature Conservancy Committee
Legitimate users of the sea, mainly fisherman associations
Greenpeace activists
Governments of Germany, UK, Netherlands and surrounding North
Sea regions
Interests
Unorganized Interests
Public (Influenced by media)
Motorists

6. ● European Union
International Maritime
Organization
German TV
Institutions
United Kingdom Internation
al
Global
● UK legislature
British authorities
British Department of
Energy (Tim Eggart)
● News Media
Social Media
All include,“Public sentiment composed of societal expectations and
norms of behavior that arise from ethics and culture” (Baron, 2000, p.
4)

7. Information
Study commissioned by Shell recommended deep-sea disposal
University of Aberdeen research team recommended deep-sea disposal
February 1995, Shell’s BPEO was accepted, no European governments officially
protested
Study commissioned by Greenpeace recommended on-shore dismantling of the
Brent Spar
Two British geologists from the university of London stated metals from the
Brent Spar might be beneficial to the deep-sea environment
Switzerland's Worldwide Fund of Nature thought deep-sea disposal seemed to
be the least harmful option

8. Information
Private politics in Europe allowed government officials to generate opinions
about the deep-sea disposal before the plan was approved.
Greenpeace's strategy of confrontational private politics engaged the press and
media to generate disapproval by the public, creating social pressure.
Shell UK and the British government neglect to inform the public of the benefits
of deep-sea disposal as opposed to other forms of petroleum facility disposal.
The public’s perspective was shaped by the critical opinion of Greenpeace so
naturally the majority of people were against deep-sea disposal.

9. Media Involvement
UNANTICIPATED
EVENT
IMPACT
Greenpeace confronted Shell UK by drawing attention
to the method chosen to dispose of the Brent Spar.
Activist journalists were able to board the Brent Spar
and broadcast media through Greenpeace’s satellite
communication equipment.
The public and government officials retaliated against
Shell by boycotting Shell products and the mayor of
Leipzig banned city vehicles from using Shell gasoline.

10. Media Involvement
The issue is high on societal significance, and Shell should not have left a
Media Vacuum for Greenpeace to fill with their study.
● Estimate of sludge in the Brent Spar used in the Greenpeace study was
grossly overstated by 98% (Diermeier, 1995, p. 94).
● Had this estimate been more realistic, the conclusion may have resulted
the same as the Shell study that supported deep-water disposal.
This could have narrowed the space for Greenpeace to maneuver.

11. Media Involvement
Theory of Media Coverage and Treatment
Environmental issues are high in both Societal Significance and
Intrinsic Audience Interest
The media outside the UK granted extensive coverage and their
treatment involved both factual reporting from Greenpeace and an
advocacy position against the approved plan.
Advocacy position in the UK was support and the media gave little
coverage. Germany largely backed Greenpeace’s position.

12. The campaign enacted by Greenpeace was a corporate campaign, rather than
a market campaign that would target components of Shell’s value chain.
CORPORATE
CAMPAIGN
Confrontational tactic directed at target
organizations to force change in practices.
Often successful when target has brand equity
at risk (Baron, 2000, p. 76).
Private Politics
A strong activist force that has the potential to shape the nonmarket
environment through social pressure outside of the government.

13. CONFRONTATIONAL
PRIVATE POLITICS
Private Politics
COOPERATIVE
PRIVATE POLITICS
Involves a social issue and an activist group
drawing attention to that issue by confronting
the involved parties and creating media
attention
The activist group would help the targeted firm
to identify the benefits of changing their
practice

14. Greenpeace Organization
Greenpeace is an independent campaigning organization, which uses
peaceful, creative confrontation to expose global environmental problems,
and develop solutions for a green and peaceful future. (Greenpeace, 2020)

15. Activists
Strategies
ADVOCACY
SCIENCE
TARGET
SELECTION
Greenpeace commissioned a policy study to consider
deep-water disposal arguments that concluded on-shore
dismantling should be adopted. Nearly a year later
Greenpeace admitted estimates of sludge were
inaccurate and apologized to Shell UK
The agenda was to change the petroleum industry
practices. Greenpeace targeted Shell UK to stop the
deep-sea disposal of large offshore petroleum facilities. To
change the petroleum industry practices, Greenpeace
targeted an individual firm, rather than the industry
because the threat of harm is concentrated with a brand.

16. Greenpeace
Confrontational Strategy
● Attract public attention using Greenpeace photographers and film
crews while occupying the Brent Spar. This permits Greenpeace to be a
low-cost information source for media
● Call for Shell products boycott
● Claimed to Shell UK, “Joe Six-Pack won’t understand your technical
details” (Diermeier, 1995, p. 93).
● Connect the public's everyday experiences and values to Greenpeace's’
message opposing the deep-water disposal. For example recycling was
used to relate the public to environmental care

17. Shell Position
PRODUCTS
OPERATING
ENVIRONMENT
ORGANIZATION
● Products with low switching costs
● A brand name can be damaged
● Activities that produce harmful externalities
● Operating in an interest group-rich environment
● Multinational/global operations – issues can spill over
to other units and countries
● Operating in developing countries
● A decentralized organization, so that
external effects, including intracompany, are
not naturally considered
Characteristics of Susceptibility to Private Politics
Gasoline is a low cost to
switch brands
Shell is a global brand name
Petroleum industry is
interest-group rich
Issue spread from UK to
Germany and Netherlands
Shell is decentralized, with
layers of parent and holding
companies. Operating
companies are largely
independent from parent.

18. Shell Strategy
● Shell has susceptible characteristics and therefore is in a
lesser position to bear social pressure.
● “Greenpeace is effective in using media coverage to advance
the issues on its agenda” (Baron, 2000, p. 53)
○ “Greenpeace strongholds were in Germany, the
Netherlands, and the United States” (Diermeier, 1995, p.
93)
● Shell failed to recognize the capability that Greenpeace had in
their nonmarket environment.
● Standing by their original study, Shell conceded to dismantle
the Brent Spar on-shore after being unable to defend their
position against activists and opposing governments

19. Shell Strategy of Addressing Social Pressure
Identify relevant interest groups
and activist organizations in the
market and nonmarket
environment
Understand their agenda,
preferences, and capabilities
● Interest groups - Motorists, labour unions, North Sea surrounding
country government officials
● Activist organizations - Greenpeace
● Capable of “naming & shaming” Shell
● Advocate for Shell product boycott
● Spread misinformation to damage Shell brand equity
● NGO’s are perceived as credible because of the trust gap
● Their agenda could lower opportunities with increased government
control

20. Shell Strategy of Addressing Social Pressure
Consult with them and establish
regular forums for exchanging
information and views
Cooperate when beneficial
● Shell did not consult Greenpeace and other environmental groups
because they, “do not have formal consultative status under the
guidelines set out for an offshore installation proposal” (Diermeier,
1995, p. 94)
● Strategy was to fight back using their study to convince governments
around the North Sea that deep-sea disposal was the favorable option
● Defensive by using high-powered water cannons to keep Greenpeace
helicopters from approaching
● Shell was reluctant to cooperate with Greenpeace
● Ignored nonmarket environment turmoil and proceeded with deep-
water disposal plans
● After an apology from Greenpeace for inaccurate estimates in its study,
Shell announced the intent to include Greenpeace in the new Best
Practical Environmental Option

21. ● Shell operated on an international nonmarket strategy, applying the
same environmental standards and universal ethics principles to
surrounding countries of the North Sea.
○ The international nonmarket strategy was not successful
because it failed to take into account the country-specific
interests and institutions.
○ The resulting strategy focused on compliance and damage
control because the nonmarket issue was at the enforcement
life cycle stage and the impact on the firm was high.
● A multidomestic strategy using different issue-specific action plans
tailored to the regions of Germany, the Netherlands, UK, and
surrounding governments could have benefited Shell UK.
Shell Strategy

22. Conclusion
● The “trust gap” between large companies and Greenpeace
could have contributed to Shell UK’s inability to gain support
from surrounding nations using its own commissioned study.
● An inspection was performed while the Brent Spar was
anchored in Erfjord, Norway which cast doubt about
Greenpeace’s estimate of oil sledge that was left on the Brent
Spar. Shell had given their own estimate of 100 tons, while
Greenpeace’s estimate was 5,000 tons. Greenpeace’s estimate
was proven to be inaccurate and an apology was issued.
○ The substantial variance between the two studies could
have contributed to the difference of opinions to dispose of
the Brent Spar.

23. Conclusion
● Shell UK accepted Greenpeace’s apology and decided to include
Greenpeace as part of the parties to be consulted about review of
options and developing a new BPEO.
● Even though it was later discovered that Greenpeace had been
wrong in its assumptions about the environmental impact and
repercussions of the decision to dispose of the Brent Spar at sea, this
case illustrates that sometimes the influence of private political
activism and consumer opinion (boycotting) can sway a global
companies’ course of actions and influence its decisions.

24. References
Baron, D.P.(2000).Business and its Environment(2nd Ed.).New York, New York: Pearson Education Inc.
Diermeier, D. (1995). Shell, Greenpeace, and Brent Spar. In D. P. Baron, Business and It's Environment
(pp. 92-95). New York.
Greenpeace. (n.d.). Retrieved May 24, 2020, from Our Values:
https://www.greenpeace.org/international/explore/about/values/
Greenpeace Logo. (n.d.). Retrieved May 25, 2020, from PNGWing:
https://www.pngwing.com/en/free-png-ypeof
Royal Dutch Shell Logo. (n.d.). Retrieved May 25, 2020, from DWGLogo: https://dwglogo.com/shell/
https://www.offshore-energy.biz/court-bans-greenpeace-from-boarding-shells-north-sea-installations/