Some of these theories can be used to measure Shell Petroleum Development Company of Nigeria (Shell Nigeria). The first ethical measure discussed Is utilitarian reasoning, also referred to as cost-benefit analysis, which compares the costs and benefits of a decision. Secondly for the human rights theory, were the rights of the stakeholders respected?
Shell Ethical Issues 2018
Third, the ethical theory of Justice is measured by whether the benefits and costs are fairly distributed equitably and according to some accepted rule. Finally, the legal theory Is explored to determine If a company Is acting within the legal Limits of the law. Using the utilitarian reasoning, it Is clear that Shell Nigeria Is unethical. Under revenue sharing agreements, only 1. 5 percent of the government’s revenue from oil was returned to the communities where the production plants were and much of that revenue was taken by officials in those communities. Lawrence, Weber, Post)
This is while the Nigerian government received 90 percent of the net revenue on each barrel of oil sold. In a nation where the business elites and the nation’s military grew wealthy from oil revenues, most Nigerian lived In poverty. Shell Nigeria had to have realized how poorly the Nigerian government treated Its citizens. The emphasis was on making a profit rather than making sure they were ethically responsible.
Based on the information presented in the Case Study, Shell Nigeria did not respect the human rights of the Going people by continually polluting land, streams and creeks. Shell Nigeria never took responsibility for any ecological damage that had occurred. Whenever an Issue was brought to their attention, Shell Nigeria could explain how or why it was not their fault and problem. For Instance. A hotly contested oil spill that had occurred in Beebe that spread over 25 acres penetrated deeply into the soil and contaminated nearby waterways.
Shell, however, maintained that the Beebe spill had been caused by retreating Barbarian Troops, during a period when the company had temporarily withdrawn from the area because of a civil war. (Lawrence, Weber, Post) under the distributive Justice method, the comparison Is between an equitable striation of the benefits and the burdens to determine If decisions are fair and equitable. The income made from the sale of crude oil was not distributed evenly among the stakeholders.
The Nigerian Government benefited greatly by receiving great wealth while no costs were imposed because of the lack of economic or social regulations on Shell Nigeria. The benefits of Shell Nigeria producing oil greatly favored the Nigerian Government officials and military while the costs of oil production fell heavily on the citizens, communities and environment of the people vying in and near the Nigerian oil fields. Under the legal theory, if you are within the boundaries of the law, you are acting ethical.
Based on the information in the case study, Shell Nigeria could be considered ethical. The business culture practiced by Shell Nigeria was not in contrast to the laws set forth by the Nigerian Government. Due to the lack of laws and regulations for OLL producing companies It was not difficult to be considered tentacle when comparing Dustless practices to teen legal tenure. Snell Enlarge obviously put greed ahead of doing the right thing.
They put their own welfare ahead of all others, regardless of the harm done to the people of Condoling. Assuming the facts of the case are true, almost every reasonable person would agree that the total disregard for the ecological and social welfare of a foreign country for a quick profit is improper under any ethical standard. The flagrant unethical acts in this case could easily result in a tarnished image. Lawrence, Anne, and Weber, James, and Post, James. Business and Society. “Case Study: Shell Oil in Nigeria”. Page 484, 486.