International management issues- Shell in nigeria

Essay by prithinkarUniversity, Master's September 2006

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Executive Summary

This report focuses on the issues surrounding Shell operation and ethical practices in Nigeria. After a detailed analysis it's found that the Shell has been involved with issues such as violence, spillover, land invasion which is hampering the company's performance and image. Report also provides evidence that the issue has been lasting for the past number of years and Shell has not been able to resolve issues. Based on all the data available, recommendation are provided which could help the benefit in short term and long term. Some of the short term recommendations are rapid clean up of spill over, compensation etc. Few long term recommendations are Improve pipelines, transparency etc.


In a competitive world, Multinational Corporations (MNC) have been involving in tough competition. These corporations are often very large. Such companies have offices and/or factories in different countries. They usually have a centralized head office where they coordinate global management (Hodgetts, Luthans and Doh, 2004).

Companies are not only known for their position in the stock exchange, profits, etc. But also for the companies involvement in community development, business ethics practices and culture. These factors also add to the overall outlook of the company. Oil industries have been in focus for a long time. Not just for the fact that the whole world relies on oil, but also for the environmental damages caused in the process of refining oil. This report will focus on Europe's second largest oil company-Shell Group facing ethical, environmental issues surrounding them in Nigeria.


Shell is a group of energy and petrochemicals companies which are operating in more than 140 countries and territories. Shell is widely known to the public for its service stations and for exploring and producing oil and gas on land and at sea. A part of these,