I have chosen to evaluate Shell Petroleum Development Company (SPDC) using their own Code of Ethics as reflected in their General Business Principles (SGBP). By choosing Shell’s own code my intention was to show that the ethical standards that SPDC believes in, at least on paper, is a well designed code that clearly defines the principles by which Shell operates. The second point I wanted to make is that however good an ethical code is on paper the true test of a corporation’s moral mettle can be seen on how these principles are actually put into practice.
Shell has operated in the oil rich area of the Niger Delta in Nigeria since 1958. However, by the 1990’s the uninterrupted business operations of the company which has resulted in billions of profits for the multinational oil company came into conflict with the people of Ogoni and the newly formed Movement for Survival of the Ogoni People (MOSOP). The conflict stems from the view of the Ogoni people (these people occupy the region where Shell or SPDc operates in) that Shell has undermined development in the area by having monopoly of resources, and by causing widespread environmental destruction which has wreaked havoc on the livelihood of the local population, and has destroyed the biodiversity in the area. The protest actions of MOSOP grew and became loaded with violence which culminated in the death of four Ogoni leaders.
In response to this crisis, the government arrested activist Ken Sarowiwa who was found guilty by the court and sentenced to death by hanging. Human rights groups and international non-government organizations have always maintained that Sarowiwa was innocent and that the reason why he was arrested was to silence the protest against the damage that Shell is inflicting on the environment and on the communities of the Ogoni people.
Now based on the code of conduct the first thing Shell should have done was to ensure that the conduct of its operations in Nigeria reflects the principles held by Shell which is honesty, integrity and respect for people. However in reality, Shell has denied any responsibility for the environmental destruction in spite of the fact that several credible sources and studies have provided factual evidence pointing out Shell’s culpability. The findings of Raymond Anyadike, a professor of climatology in Nigeria, provided such eveidence. His study discussed that acid rain in the region is caused by the emissions containing toxins that came from Shell’s refineries and oil plants in Nigeria. The fact that Shell has denied responsibility in relation to the issue shows disregard for their own ethical value – honesty and integrity. Furthermore, Shell’s official position of “quiet diplomacy” as a response to both the growing repression of the military in the Ogoni area and to the trial of Sarowiwa belies Shell’s claim that its core value is respecting people. Shell has also contradicted its own corporate ethics of conducting business that follows applicable laws and supports fundamental human rights. Shell also has pledge itself to establishing a business that has proper regard for health, safety, and the environment; characteristics that were not evident throughout Shell’s operation in Nigeria.
Reference:
Greenpeace USA. Ken Saro Wiwa and 8 Ogoni People Executed: Blood on Shell’s Hands. Greenpeace website. Retrieved 25 April 2010 at http://archive.greenpeace.org/ comms/ken/murder.html
Amunwa, B. (2010). Gas Flaring linked to Acid Rain: Climatologist Warns. Accessed April 25, 2010 from http://remembersarowiwa.com/
Shell Business Principles. Retrieved 25 April 2010 at http://www static.shell.com/static/public/ downloads/corporate_pkg/sgbp_english.pdf