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Shell in Nigeria: Criticism, Options, Future Leadership

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1. Why has Shell become the subject of criticism and controversy?
2. During its time in Nigeria, what, if anything, should Shell have done differently?
3. What advice would you give Shell's leadership going forward?

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Solution Preview

Shell has become the subject of criticism and controversy as a result of their oil production in the Niger Delta region. There are several reasons for this, including the use of Nigerian soldiers, at the request and with the financial support of Shell, utilizing "deadly force and massive, brutal raids against the Ogoni people throughout the early 1990s to repress a growing movement against the company" (Center of Constitutional Rights and EarthRights International, 2009). In addition, Shell was accused of colluding with the military government to arrest, torture, and execute Ken Saro-Wiwa, the head of the Movement for the Survival of the Ogoni People (MSOP) and eight other leaders of the organization. Saro-Wiwa and MSOP spoke publically against the oil company in regards to human rights as well as environmental concerns. Shell has also been accused of damaging the Nigerian environment through oil spills and natural gas flaring, deforestation and loss of ...

Solution Summary

This solution is based on a case study of Shell Oil Company in Nigeria, and discusses why the company has been a subject of criticism and controversy, what the company could have done differently, and advice for Shell's leadership.