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UNETHICAL PRACTICES
SHELL
By
SAHRUDAYAN. NK
COMPANY PROFILE
Royal Dutch Shell commonly known as Shell
 Created in 1907 February
 CEO : Ben van Beurden
 It is a Private Limited Company
 Head quarters Netherlands
 Products Petroleum, natural gas and other
petrochemicals
 No: of employees : 94000
 Website www.shell.com
Company logo
SHELL UNETHICAL ISSUES
I n 2 0 1 0 a t N I G E R I A
S h e l l w a s a c c u s e d o f b r i b e r y p r a c t i c e w i t h N i g e r i a n
o f f i c i a l s i n o r d e r t o g a i n p r o f i t . S h e l l b r i b e d
N i g e r i a n o f f i c i a l s t o m a k e i t e a s i e r f o r t h e m t o
i m p o r t g o o d s a n d e q u i p m e n t , g e t l o w e r t a x e s a n d
a v o i d t h e c u s t o m s . S h e l l s a i d t h a t i t p a i d 2 m i l l i o n
U . S D o l l a r s t o i t s N i g e r i a n W o r k e r s i n i t s d e e p
w a t e r B o n g a P r o j e c t . S h e l l a c t u a l l y k n e w t h a t p a r t
o f t h e m o n e y w i l l g o t o N i g e r i a n o f f i c i a l s w h o m w i l l
m a k e s h e l l a v o i d t h e c u s t o m s p r o c e s s . T h i s w i l l
g i v e s h e l l a n o b v i o u s c o m p e t i t i v e a d v a n t a g e i n t h e
m a r k e t . S h e l l a c t u a l l y g a i n e d $ 1 4 m i l l i o n p r o f i t f r o m
t h i s b r i b e r y o f t h e B o n g a p r o j e c t . S h e l l w i l l p a y
$ 4 8 . 1 m i l l i o n d o l l a r s i n o r d e r t o s e t t l e p r o b e s b y
t h e U . S J u s t i c e D e p a r t m e n t a n d S e c u r i t i e s a n d
E x c h a n g e C o m m i s s i o n .
2. HYDROCARBON RESERVES
I n J a n u a r y 2 0 0 4 , " f r a u d u l e n t o v e r s t a t e m e n t o f p r o v e n
h y d r o c a r b o n r e s e r v e s b y S h e l l i n F o r m F 2 0 r e t u r n s
f i l e d w i t h t h e U . S . S e c u r i t i e s & E x c h a n g e
C o m m i s s i o n " . S h e l l h a s g i v e n m i s l e a d i n g a n d w r o n g
s t a t e m e n t s a b o u t i t s r e s e r v e s . I t p a i d a $ 1 2 0
m i l l i o n f i n e f o r t h i s c l a i m s s e t t l e m e n t .
3. OIL LEAKAGE
O n e o f t h e f a m o u s u n e t h i c a l p r a c t i c e s b y S h e l l w a s
c a u s i n g t h e h i g h l e v e l s o f p o l l u t i o n i n N i g e r i a . 4 0 %
o f s h e l l s o i l s p i l l s w o r l d w i d e w a s i n N i g e r i a . T h e
o i l s p i l l a l s o c a u s e d w a t e r c o n t a m i n a t i o n . I t c a u s e d
o i l p o l l u t i o n i n t h e O g o n i l a n d r e g i o n f o r t h e p a s t 4 0
y e a r s o r s o .
T h e p i p e l i n e s w e r e b u i l t i n f r o n t o f t h e p e o p l e ' s
h o u s e s a n d i n t h e i r f a r m l a n d s . T h e y s u f f e r e d o i l
l e a k s t h r o u g h t h e p i p e l i n e s . T h i s h a s t o t a l l y
d e s t r o y e d t h e e n v i r o n m e n t o v e r t h e r e . I t k i l l e d t h e
a q u a t i c l i f e ; k i l l i n g m a n y f i s h e s . A l s o e n v e l o p e d
t h e l a n d w i t h o i l . T h i s h a s b e e n r e a l l y d e v a s t a t i n g
f o r t h e O g o n i p e o p l e , e c o n o m i c a l l y a n d h e a l t h y,
s i n c e t h e i r e c o n o m y d e p e n d s m a i n l y o n f i s h i n g a n d
f a r m i n g . P e o p l e s u f f e r e d r e s p i r a t o r y d i s e a s e s s u c h
a s b r o n c h i a l a s t h m a ; a n d c a n c e r . L o t s o f v e g e t a t i o n
i s d y i n g , e s p e c i a l l y M a n g r o v e s w a m p s , d u e t o
w a s t e s o f o i l i n t h e N i g e r R i v e r. T h e r e a s o n S h e l l
h a s b e e n s u c c e s s f u l i n d o i n g t h e s e u n e t h i c a l
p r a c t i c e s i n N i g e r i a i s b e c a u s e t h e y u s e d t o b r i b e
t h e N i g e r i a n o f f i c i a l s f r e q u e n t l y t o e a s e t h e
p r o c e s s .
L o t s o f v e g e t a t i o n i s d y i n g , e s p e c i a l l y M a n g r o v e
s w a m p s , d u e t o w a s t e s o f o i l i n t h e N i g e r R i v e r.
T h e r e a s o n S h e l l h a s b e e n s u c c e s s f u l i n d o i n g
t h e s e u n e t h i c a l p r a c t i c e s i n N i g e r i a i s b e c a u s e t h e y
u s e d t o b r i b e t h e N i g e r i a n o f f i c i a l s f r e q u e n t l y t o
e a s e t h e p r o c e s s .
A c c o r d i n g t o t h e C o v a l e n c e e t h i c a l r a n k i n g i n 2 0 0 8 ,
s a w S h e l l i n t h e 5 1 0 p o s i t i o n o u t o f 5 4 1
m u l t i n a t i o n a l c o m p a n i e s . " C o v a l e n c e ' s e t h i c a l
q u o t a t i o n s y s t e m i s a r e p u t a t i o n i n d e x b a s e d o n
q u a n t i f y i n g q u a l i t a t i v e d a t a " a n d " I t i s a b a r o m e t e r
o f h o w m u l t i n a t i o n a l s a r e p e r c e i v e d i n t h e e t h i c a l
f i e l d " ( J o h n D o n o v a n 2 0 0 9 ) . T h e c o v a l e n c e e t h i c a l
r a n k i n g i s b a s e d o n i m p o r t a n t i s s u e s s u c h a s
H u m a n r i g h t s p o l i c y, W a s t e M a n a g e m e n t , L a b o r
s t a n d a r d s a n d p r o d u c t s o c i a l u t i l i t y.
THANK YOU

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Shell Unethical Practices

  • 2. COMPANY PROFILE Royal Dutch Shell commonly known as Shell  Created in 1907 February  CEO : Ben van Beurden  It is a Private Limited Company  Head quarters Netherlands  Products Petroleum, natural gas and other petrochemicals  No: of employees : 94000  Website www.shell.com
  • 4. SHELL UNETHICAL ISSUES I n 2 0 1 0 a t N I G E R I A
  • 5. S h e l l w a s a c c u s e d o f b r i b e r y p r a c t i c e w i t h N i g e r i a n o f f i c i a l s i n o r d e r t o g a i n p r o f i t . S h e l l b r i b e d N i g e r i a n o f f i c i a l s t o m a k e i t e a s i e r f o r t h e m t o i m p o r t g o o d s a n d e q u i p m e n t , g e t l o w e r t a x e s a n d a v o i d t h e c u s t o m s . S h e l l s a i d t h a t i t p a i d 2 m i l l i o n U . S D o l l a r s t o i t s N i g e r i a n W o r k e r s i n i t s d e e p w a t e r B o n g a P r o j e c t . S h e l l a c t u a l l y k n e w t h a t p a r t o f t h e m o n e y w i l l g o t o N i g e r i a n o f f i c i a l s w h o m w i l l m a k e s h e l l a v o i d t h e c u s t o m s p r o c e s s . T h i s w i l l g i v e s h e l l a n o b v i o u s c o m p e t i t i v e a d v a n t a g e i n t h e m a r k e t . S h e l l a c t u a l l y g a i n e d $ 1 4 m i l l i o n p r o f i t f r o m t h i s b r i b e r y o f t h e B o n g a p r o j e c t . S h e l l w i l l p a y $ 4 8 . 1 m i l l i o n d o l l a r s i n o r d e r t o s e t t l e p r o b e s b y t h e U . S J u s t i c e D e p a r t m e n t a n d S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n .
  • 7. I n J a n u a r y 2 0 0 4 , " f r a u d u l e n t o v e r s t a t e m e n t o f p r o v e n h y d r o c a r b o n r e s e r v e s b y S h e l l i n F o r m F 2 0 r e t u r n s f i l e d w i t h t h e U . S . S e c u r i t i e s & E x c h a n g e C o m m i s s i o n " . S h e l l h a s g i v e n m i s l e a d i n g a n d w r o n g s t a t e m e n t s a b o u t i t s r e s e r v e s . I t p a i d a $ 1 2 0 m i l l i o n f i n e f o r t h i s c l a i m s s e t t l e m e n t .
  • 9. O n e o f t h e f a m o u s u n e t h i c a l p r a c t i c e s b y S h e l l w a s c a u s i n g t h e h i g h l e v e l s o f p o l l u t i o n i n N i g e r i a . 4 0 % o f s h e l l s o i l s p i l l s w o r l d w i d e w a s i n N i g e r i a . T h e o i l s p i l l a l s o c a u s e d w a t e r c o n t a m i n a t i o n . I t c a u s e d o i l p o l l u t i o n i n t h e O g o n i l a n d r e g i o n f o r t h e p a s t 4 0 y e a r s o r s o .
  • 10. T h e p i p e l i n e s w e r e b u i l t i n f r o n t o f t h e p e o p l e ' s h o u s e s a n d i n t h e i r f a r m l a n d s . T h e y s u f f e r e d o i l l e a k s t h r o u g h t h e p i p e l i n e s . T h i s h a s t o t a l l y d e s t r o y e d t h e e n v i r o n m e n t o v e r t h e r e . I t k i l l e d t h e a q u a t i c l i f e ; k i l l i n g m a n y f i s h e s . A l s o e n v e l o p e d t h e l a n d w i t h o i l . T h i s h a s b e e n r e a l l y d e v a s t a t i n g f o r t h e O g o n i p e o p l e , e c o n o m i c a l l y a n d h e a l t h y, s i n c e t h e i r e c o n o m y d e p e n d s m a i n l y o n f i s h i n g a n d f a r m i n g . P e o p l e s u f f e r e d r e s p i r a t o r y d i s e a s e s s u c h a s b r o n c h i a l a s t h m a ; a n d c a n c e r . L o t s o f v e g e t a t i o n i s d y i n g , e s p e c i a l l y M a n g r o v e s w a m p s , d u e t o w a s t e s o f o i l i n t h e N i g e r R i v e r. T h e r e a s o n S h e l l h a s b e e n s u c c e s s f u l i n d o i n g t h e s e u n e t h i c a l p r a c t i c e s i n N i g e r i a i s b e c a u s e t h e y u s e d t o b r i b e t h e N i g e r i a n o f f i c i a l s f r e q u e n t l y t o e a s e t h e p r o c e s s .
  • 11. L o t s o f v e g e t a t i o n i s d y i n g , e s p e c i a l l y M a n g r o v e s w a m p s , d u e t o w a s t e s o f o i l i n t h e N i g e r R i v e r. T h e r e a s o n S h e l l h a s b e e n s u c c e s s f u l i n d o i n g t h e s e u n e t h i c a l p r a c t i c e s i n N i g e r i a i s b e c a u s e t h e y u s e d t o b r i b e t h e N i g e r i a n o f f i c i a l s f r e q u e n t l y t o e a s e t h e p r o c e s s .
  • 12. A c c o r d i n g t o t h e C o v a l e n c e e t h i c a l r a n k i n g i n 2 0 0 8 , s a w S h e l l i n t h e 5 1 0 p o s i t i o n o u t o f 5 4 1 m u l t i n a t i o n a l c o m p a n i e s . " C o v a l e n c e ' s e t h i c a l q u o t a t i o n s y s t e m i s a r e p u t a t i o n i n d e x b a s e d o n q u a n t i f y i n g q u a l i t a t i v e d a t a " a n d " I t i s a b a r o m e t e r o f h o w m u l t i n a t i o n a l s a r e p e r c e i v e d i n t h e e t h i c a l f i e l d " ( J o h n D o n o v a n 2 0 0 9 ) . T h e c o v a l e n c e e t h i c a l r a n k i n g i s b a s e d o n i m p o r t a n t i s s u e s s u c h a s H u m a n r i g h t s p o l i c y, W a s t e M a n a g e m e n t , L a b o r s t a n d a r d s a n d p r o d u c t s o c i a l u t i l i t y.