Shell Crisis Case Study
5.3.2. Shell’s Crisis
Shell SPDC as it’s called in Nigeria is the most controversial in the Niger Delta region and internationally too. There have been debates and its often questioning the existence of the corporation is conflict-affected regions. One of the most documented criticisms towards the company concerns their existence in the Delta region of Nigeria. Since the late 1950, Shell have been accused of making huge profits from oil exploration and doing little for their host communities in the Niger Delta in return , thus this situation precipitated crisis that threatened peace and stability in the Niger Delta region and Nigeria as whole. Particularly prominent of these incidents was the extra-judicial killing of the renowned Ogoni environmental
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Shell’s CSR Development in the Niger Delta
Shell's CSR approach in Nigeria preceding 1995 concentrated on community assistance (CA), a kind of from head to bottom approach to development that on its own caused dependency culture on host communities, due to Shells ill knowledge of its operations impacts and perception of poverty amongst the host communities (Ite, 2004).
After the disappointment of the head to bottom approach, Shell presented another method that involved host communities, this approach laid emphasis directly in the host communities own development, rather than the earlier CA method that portrayed Shells CSR endeavors preceding 1995. These projects involved communities proposing development schemes known as Community Development (CD) where shell gives secured financial support in the span of five years. Shell now understood the requirement for a more advanced approach to CSR and environmental responsibility with the incorporation of sustainable development to its business standards. The new approach (CD) is designed in such a way that it tackle the most vital socio-economic and environmental issues, and epitomizes the social capital of the different communities, for example, their abilities, adaptative tactics, and habitual knowledge (Ite,
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