OPERATING IN A CORRUPTED STATE

OPERATING IN A CORRUPTED STATE

1. SHELL one of the six oil and gas "supermajors" and the fifth-largest company in the world

   • Shell sees itself as a vanguard multinational company by implementing safety principles and social responsibility measures, specifically with respect to Human Rights
     • SHELL has its most important operations in Nigeria, Africa. Especially in the Niger Delta.
       • It has been a pioneer in the oil and gas industry in Nigeria, having a presence for more than 60 years, even before the independence of the country and has hired more than 10,000 people.
     • In 2005, during the World Economic Forum's presentation conference, "Public Eye on Davos," Friends of the Earth declared that Shell was distorting its values and impoverishing people.

2. Nigeria is the largest oil producer in Africa and the 11th largest in the world.

   • The country's economy is highly dependent on the income from the oil sector, which accounted for about 80% of government revenues and 95% of its export earnings.
     • The oil countries are the most affected by corruption, Nigeria is in the place 147ª in the Index of Perception of Corruption
       • To this day, Nigeria has a lot of communal violence, ethnic conflicts and corruption in private and public sectors.
         • Shell has helped reproduce poverty and corruption in Nigeria, as well as been involved in the armed conflict. He gave weapons to the military and police in exchange for taking good care of Shell in Nigeria.
           • Shell has a history of having participated in the military dictatorship in Nigeria. In 1993, he participated in the arbitrary detention of Saro-Wiwa, a writer who organized peaceful protests against Shell, who was sentenced to death.
           • December 2004: peaceful protest of the Kula community, take 3 oil platforms, cutting all oil resources. They protest their concern, they have no work and there is no development. The peaceful protests become violent when armed pirates are added.

3. Shell is one of the six oil and gas "supermajors" and the fifth-largest company in the world

   • It has its most important operations in Nigeria, Africa. Especially in the Niger Delta.
     • Shell has been a pioneer in the oil and gas industry in Nigeria, having a presence for more than 60 years, even before the independence of the country and has hired more than 10,000 people.
       • Shell sees itself as a vanguard multinational company by implementing safety principles and social responsibility measures, specifically with respect to Human Rights
         • In 2005, during the World Economic Forum's presentation conference, "Public Eye on Davos," Friends of the Earth declared that Shell was distorting its values and impoverishing people.
           • Shell has helped reproduce poverty and corruption in Nigeria, as well as been involved in the armed conflict. He gave weapons to the military and police in exchange for taking good care of Shell in Nigeria.
             • Shell has a history of having participated in the military dictatorship in Nigeria. In 1993, he participated in the arbitrary detention of Saro-Wiwa, a writer who organized peaceful protests against Shell, who was sentenced to death.
               • Disputes between MNCs, government and ethnic communities are common in the Niger Delta.
                 • December 2004: peaceful protest of the Kula community, take 3 oil platforms, cutting all oil resources. They protest their concern, they have no work and there is no development. The peaceful protests become violent when armed pirates are added.
                   • Shell has faced a number of risks, however, these same risks are opportunities against their competitors because it would be very difficult for any other company to establish businesses of such magnitude in such a fragile State.
                 • Emerging EMNs ignore how to operate in conflict zone environments. "Operating with integrity in a conflict zone is challenging."
                   • There is a general context of weak policies and institutions and poor governance. Besides that for the local people, the multinational companies were seen as symbols of economic bonanza and political power; as well as insensitive to local needs and exploiting resources for their own benefit.
                     • Shell does not want to leave Nigeria because of the fructiferous bussiness and because of the reputation it has obtained there, it makes extremely difficult for the company to position itself somewhere else. Shell has even been named "enemy of the Nigerian people"
                       • to date and despite the bad reputation, and armed conflicts, Shell continues to operate without problems in the Niger Delta and even has future projects in the area.

4. Nigeria is the largest oil producer in Africa and the 11th largest in the world. There is great economic dependence on this sector.

   • The export of Crude Oil represents 73.3% of Nigeria's total exports, followed by Petroleum Gas, which represent 14.5%.
     • The oil countries are the most affected by corruption, in 2018 Nigeria was situatted in place 147 of the index of perception of corruption
       • To date, in Nigeria there is a lot of communal violence, ethnic conflicts and corruption in private and public sectors.