Corporate Social Responsibility (csr)

ntroduction:

The purpose of this report is to address the Corporate Social Responsibility (CSR) issues of a Multinational Company and their impact over the inhabitants in the locations they operate. Corporations have claimed to promote corporate social responsibility but unethical practices and illegal actions eventually have caused huge damage to the communities in which the corporations operate their business. The company chosen for this report is Royal Dutch Shell. The corporate social responsibility issues caused by Royal Dutch Shell in Nigeria over Environmental and Legal Factors of the country are well analyzed. The impacts caused by Royal Dutch Shell are evaluated through various statistical data and the resolution measures taken by the corporation are demonstrated by the Business conduct and Sustainability reports of the corporation.

Shell and Nigeria:

In 1907, Royal Dutch Shell was created by the union of two rival companies, Dutch Royal and Shell Transport and Trading. It is an Anglo-Dutch Multinational Oil and Gas company with headquarters at Netherlands. At present, Royal Dutch Shell, commonly called Shell is one among the top three oil and gas companies of the world in terms of profit and one of the largest world corporations in terms of revenue (Sharma, 2015).

Nigeria has a huge wealth of natural resources and Nigeria Delta region serves as the home for oil industry. The people living the Nigeria Delta Region are called as Ogoni people. Nigeria ranks 12th in the production of petroleum and 8th in the export of petroleum products (Bobelian, 2015). On the other side, Nigeria is one of the highly corrupted and politically instable countries in the world. It ranks in top 20 most unlivable countries of the world. In 1973, Shell and Nigerian Government formed a joint project known as Shell Petroleum Development Company of Nigeria Limited (SPDC). By 2006, SPDC became the largest oil and gas joint venture. Presently it produces nearly 629,000 barrels per day (Future of energy - Nigeria, 2015). The contribution of Shell for the economic and sustainable development of Nigeria is massive. It has been the source of employment for the local communities.

However, the Shell Corporation also adopted various unethical standards affecting the various aspects of the livelihood of the communities in Nigeria.

Corporate governance and Social Responsibility Page 2

Environmental issues:

African countries face a dilemma between the CSR of Multinational companies and the sustainable development of the country. Since the economic growth and the development depend mainly upon the foreign direct investment, the government unwillingly paves the way for Multinational companies to have control over the country’s natural resources (Frynas J. G., 2005). Nigeria fell