Shell Company Review - Assignment Example

Introduction

Shell Company is an oil-producing company whose main headquarters is in the Netherlands. The company is one of the largest oil companies and operates in close to a hundred countries. The company is found in both undeveloped and developed countries. The company makes a lot of profit and revenue which makes it to have a strong social, political, and economic impact in most of the countries it is based. The company plays a positive role in society. Corporate social responsibility abbreviated as CSR is the process by which companies or business organizations integrate environmental and social concerns in their operations and relations with the different stakeholders (Maximiano, 2003). CSR ensures that a company is accountable for any of its operations that affect the environment, community, and people. Shell Oil Company has involved itself in various CSR operations in the Niger Delta that have played a positive role in the region.

Shell’s CSR Operations in the Niger Delta, Nigeria

Nigeria is one of the richest countries in Africa. However, its economy is a paradox. This is because the country has high poverty levels despite its wealth. The country is greatly endowed with gas, oil, and many minerals. Despite its huge wealth, the country is regarded as a third world country. Niger Delta is one of the regions within Nigeria that is highly affected by poverty. The delta is known for its oil. The region is characterized by poverty despite its vast reserves of oil. Seventy percent of the people living in the region earn less than a dollar in a day. The region has also been marked by political upheavals and neglect by successive regimes in the country of Nigeria (Bisong, 2009). Global companies have also been hesitant to play a social role in the region. The profits gained from the oil deposits in the region have only benefited the government, the state, and oil-producing companies suited in the region. The high poverty levels have led to violence in the area as youths vandalize companies and attack police officers.

Shell Company has relied on CSR operations to ensure that the region is developed. It has ensured community development by empowering communities in the region. Assisting a community forms a crucial level of CSR. Idowu (2008) in his book “Global Practices of Corporate Social Responsibility” discusses how Shell involved itself in assisting the community. Idowu (2008) argues that political upheavals, a falling economy, and brutal culture in the region inspired the company to engage in building the community around it. The company has over the years continued to ensure the quality of citizen’s life in the region improves. The company empowers people by enlarging their capabilities to map their future destiny. One of the ways that the company has improved lives in the region is by empowering the youth. The youth from a majority in the region. They cannot be ignored because idleness and poverty often lead them to conflict with companies in the region. Shell Company provides occupational training to the youth in the region. Idowu (2008) points this as a major CSR operation because the youths are taught to be self-dependent and provide for themselves. The company’s main aim is to reduce the high rate of unemployment. The company has also initiated several development projects in the region. The projects are aimed at empowering the youth with the aim of improving their lives. This is a positive approach towards assisting the region which is affected by poverty (Idowu, 2008). Some of the projects initiated by the company include welding, auto-mechanics, and electrical and wiring work. Idowu (2008) terms this as one of the greatest benefits the people within the delta are reaping from Shell’s use of CSR operations in the region. The book analyses development of the community by grouping variables into two: independent and intervening.