Corporate Social Responsibility
Transcript: History of Petroleum Extraction in Nigeria Current State of Affairs • Oil and gas constitute 98% of the nation’s exports • Oil exports account for 80% of government revenue and 95% of foreign exchange earnings • Nigeria is the 10th largest oil producer in the world, the 3rd largest in Africa, and the 12th largest producer of OPEC • There is an estimated 35 billion barrels of oil in the reserves— equivalent to 42 years of current production • Daily production stands around 2.4 million barrels a day Environmental Degradation The Nigerian government reports an estimated 7,000 oil spills from 1970 to 2000 The causes reflect the neglect and irresponsible operations of multinational corporations—corrosion of pipelines and tankers, sabotage, oil production operations, and failure to maintain facilities and pipes properly Drinking water is contaminated Agriculture and aquaculture has been compromised Offshore, pollution has led to a steep decline in the fishing production It would take an estimated 30 years and $1 billion to clean up the damage In 1970, Shell caused a massive oil spill in Ogoniland, for which it was fined £26 million In 2008, Shell was responsible for another massive spill that lasted 72 days, in which 103,000 barrels were spilled—60 times more than Shell reported Shell, Nigeria and The Ogoni Markets open up to global competition, information technology, and new transportation systems Reduction of cost The minimization of cost has become a need, as opening markets have also led to a rise in competition Changes have led to companies being confronted by the growing power of stakeholder groups Economic Development Environmental Quality Social Justice risk management opportunity driven motives Social Movements and the Assertion of Rights Social movements have both socio-economic and cultural goals. They are in response to modernity, and seek to create a new order based on that modernity. Social movements are a response to domination. Today, domination can be imposed by multinational corporations because of their power Sustainable Development and the Accommodation of Rights Humans should be “active participants and beneficiaries of the right to development” and states should ensure their “active, free and meaningful participation in development and the fair distribution of the benefits resulting thereof (UNDRD Article 2) Rights Based approach and the Ogoni Ogoni Bill of Rights: self-determination development political participation language and religion environmental rights. Shell's Response Infrastructure Development Military “You cannot privatise the state and at the same time say your operations are immune from politics and oppression” -Ken Saro-Wiwa Discussion Questions “Accountability to many is accountability to none” Why? Weaknesses of CSR: Systematic Denial of Wrongdoing • Lack of conception of what human rights is • Lack of acknowledgement of their responsibility for human rights impact of their operations • Lack of analysis as to how their operations might impinge on human rights, and how they could us their legitimate influence actively to further human rights It's a problem because: If companies are not willing to accept mistakes, their cannot be mechanisms in place to learn and improve. So Who Responsible? OR Objectives: critically examine the past and current contributions of the Nigerian government and the SPDC towards socio-economic in the Niger Delta consider the wider implications of the emerging issues for CSR, especially in relation to an enabling environment and good governance. Key Actors: Nigerian Government Efforts Why Did These Institutions Fail? Shell and Corporate Social Responsibility "There is no doubt that MNCs (such as Shell) are capable of making signicant direct and indirect contributions to poverty elimination through CSR strategies and initiatives. However, lack of national macro-economic planning and management, backed by equitable resource allocation and an enabling environment, has signicant implications for overall performance and sustainability of CSR efforts by MNCs" The Great Debate Resolved: Multinational Corporations are Morally Obligated to Participate in Corporate Social Responsibility. argue that MNCs are obligated to participate in CSR argue that MNCs are not obligated to participate in CSR 1970 The United Nations Declaration on the Right to Development: Legal Discussion Questions 1960 - 1971 Nigeria becomes a member of OPEC and begins nationalizing the country's oil industry. Richard Boele, Heike Fabig and David Wheeler Nigeria, Petroleum and Multinational Corporations by Uwem E. Ite Shell drills first successful oil well in the community of Oloibiri Is Corporate Responsibility Possible? “No Corporation will admit that their company is not socially responsible." Different perspectives Yes! But... What is the relationship between struggle against power structures and human rights? Attempts at Social Responsibility Cooperation with government Socio-economic
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