This study deals with the research topic on “Evaluation of Shell CSR program in Nigeria”. In this particular research topic, the research explains the definition of Corporate Social Responsibility from the viewpoint of various researchers (Wheeler, Fabig and Boele 2012). The current research segment explains the CSR programs in Nigeria in association with the operational aspects of the company in the near future. The current segment defines Corporate Social Responsibility as it has materialized as business principles after addressing the communal as well as ecological collision of corporation behavior. Shell is a global group that deals in energy and petrochemical and the parent company is named as Royal Dutch Shell Plc. Trade process at Shell involves upstream, downstream as well as project and technology. Upstream means exploring and extracting crude oil as well as natural gas. Downstream means refining, supplying as well as trading crudes in and across the world where manufacturers majorly markets wide variety of products and produces petrochemicals particularly for the manufacturing clientele (Smith 2013). Project and technology majorly manages with the release of Shell main projects as well as drive the research and modernism for creation of expertise resolution. Shell foundation was recognized in the year 2000 with a preliminary endowment of $250 Million from Shell Group. They had received annual donations worth of $15 million per year and the foundation had many programs that tackles global development as well as environmental challenges. Shell Project aims at bringing better world by implementing sustainable development projects and partnership with Earthwatch (Skjærseth et al. 2014).
Research aim and objectives
The research aim of the study is to undertake a serious investigation of how Shell implements its Corporate Social Responsibility programme in Nigeria both in terms of tactical objectives in association with the trade operations of the company and CSR liabilities of the oil company (Schouten and Remmé 2016).
- To recognize the issues and challenges of Corporate Social Responsibility
- To recognize the drivers of Shell’s Corporate Social Responsibility plan established in their rule and approach
- To investigate the key areas of Corporate Social Responsibility policies where Shell is expected to make positive contribution
- To examine Shell’s Corporate Social Responsibility programme and its positive benefit
- What are the Corporate Social Responsibility context programme and the benefits for implementing CSR programs?
- What are the drivers of CSR strategies established in policies and strategies?
- What are the major supports of Shell’s CSR programs in Nigeria?
- How are Shell’s CSR programs justified?
Rationale of the study
The rationale of the study is to bring out the importance on how CSR is essential for any oil and gas companies that is being operated in Nigeria. Research conducted on this topic gives an overview of explanation that Corporate Social Responsibility must be attained by the business organization irrespective of any sector (Rwabizambuga 2016). This oil and gas sector has been selected as the companies under this sector faces various issues and challenges that make it difficult for abiding by the rules and norms of CSR programs. Shell, in this case are finding ways so that they help society in wider terms and join hands towards a greener community as a whole.
Scope and Limitations
This research study has future scope as the researcher can conduct in-depth analysis on the concept of CSR programs that are not yet covered in the present research work due to time constraint as well as lack of adequate financial resources. This research focused majorly on the evaluation of CSR programs for the oil company named as Shell that is operated in Nigeria (Matten and Moon 2013).
The first chapter is introduction that introduces the research topic named as evaluation of Shell’s CSR programs in Nigeria. This chapter brings out the aims, objectives and research questions in association with the research topic. The second chapter is the literature review section that brings out the theories of CSR by many researchers. The third chapter explains the methodologies that are used in the study by the researcher such as research positivism, approach and design. Then the next chapter analysis the issues that have been raised in the literature review.
Definitions of Corporate Social Responsibility and different views
As rightly put forward by Ite (2015), Corporate Social Responsibility is a idea that has become dominant in business reporting. Business Corporation has a policy that concerns with CSR as well as produces a report in annual basis that details activity. CSR refers to the business practices that involve strategic initiatives benefiting society as a whole. CSR of business encompasses a wide range of tactics through implementation of greener business operations. In the recent world, there are various categories of social responsibility in the business. Modern CSR programs majorly reflect on the recognition that includes power trade that does not happen in a communal space (Wheeler, Fabig and Boele 2012).
As opined by Idemudia (2015), Corporate Social Responsibility refers to the activities that companies perform for navigating the swirling current changing expectations in the oil and gas companies. CSR is a recent term that is used for understanding business ethics as well as social dimensions of business activity. It is noted by the researchers that function of trade culture is altering frequently and there is no conformity among observes on what CSR standards and boundaries lie. Different populace has various viewpoints of CSR activities. For instance, CSR means diverse things to the practitioners who seek to apply CSR inside companies for finding out CSR as a discipline.
Different researchers views on Corporate Social Responsibility
As rightly put forward by Idemudia (2014), Corporate Social Responsibility is one of the social concepts that explain the importance and need for bridging the anticipation gaps of other stakeholders in the relationships in an unit whether it is usual or simulated. Gap needs to be bridged as it acts as an obligation based upon performance activities. This majorly helps in creating as well as sustaining balance between the economy and the ecosystem (Griseri and Seppala 2013).
Likewise in the assertion of Idemudia and Ite (2016), CSR is definite as the ongoing obligation by trade that they will perform fairly as well as supply to the financial growth. Addition to that, the companies works together for humanizing the excellence of life of the personnel as well as their family at various levels.
Corporate Social Responsibility issues and challenges
Corporate Social Responsibility is competent of delivering on larger issues that is based on facts from the oil as well as gas sector. Developing countries such as Shell examine the possible of CSR by addressing the significant challenges in the business-society association such as surroundings, governance and development (Wheeler, Fabig and Boele 2012).
Issues regarding performance of CSR by the oil sector
There are several CSR issues that are listed below:
Government Investment Policies- It has been noted that companies in the oil sector have not fulfilled their social responsibility to the communities where they actually operate. Hence, there is too much emphasis given on the companies while Nigerian State has relinquished their responsibility to the people of the oil producing sector. It is noted that the government who are responsible for the welfare of their citizens. Investment policies of government substantiate the tax payment by the oil firms who binds together with the law, order, security as well as public infrastructure. The Government had failed in meeting the problems in the community’s burden posed to the oil firms.
Waste Management- There are various environmental impacts at all levels of operations in the oil industry. More than 90% of the spills have avoidable sources that are link with the environmental management practices like failure of equipment and corrosion from worn out pipelines. Environmental degradation has been at the core of community’s agitation as well as international condemnation. It has been noted that agencies have responsibility for monitoring as well as ensuring dictates of the waste management as it is performed low because of ill trained staffing and poor waste management system (Wheeler, Fabig and Boele 2012).
Funding of Long-term Development Projects- It is noted that most applicable form of CSR by oil and gas industry is undertaking various community development projects like building of health centers, water provision. This will help in keeping a check over the poverty and underdevelopment in the region. For example, Shell reportedly spent more than US$32 Million in the past ten years.
Challenges regarding performance of CSR by the oil sector firms
Over-taxation and Repetitive tax-There has been excessive tax paid to the Federal State, local authorities as well as host communities that levy increasing the burden of tax paid by the oil sector firms. The oil sector firms faces challenges in paying same tax on repetitive basis that affects the business atmosphere and provides oil firms leverage for jumping over their responsibilities to the host communities.
Agitation and Restiveness- There has consistent agitation as well as youth restiveness that had marred the operation of oil sector firms in the host communities that results from the degradation. This affects the ecosystem from the activities as it damages all forms of agricultural practices as it give basic opportunity in the local communities. Therefore, the result effect leads to other social vices in the region as it is reduced with the effective operations of the oil sector firms.
Underdevelopment of host communities- It is noted that the challenge of financial gestures provides information to the host communities as it reduces the possibility of engaging with the host communities in given sustainable projects. It is necessary to increase the manpower as well as reduce the level of poverty that will increase their dependence on financial gesture for survival. Therefore, the underdevelopment of the host communities gets associated with the factors that neglects attributes such as ineffective agencies and corruption at the same time (Wheeler, Fabig and Boele 2012).
Strategic sustainability development in oil and gas industry
There are several measures to the above identified challenges and these are mentioned under with proper justification:
Streamlining of Tax Regime or Reduction- In order to encourage investment, it is necessary for allowing conducive atmosphere of oil firms. It is recommended to the Government for addressing the tax scheme like issue of over-taxation and repetitively payment of taxes to the various governmental agencies (Skjærsethet al. 2014). These actions encourages oil firms for spending more on innovative as well as sustainable projects that can enhance their operations and bringing development to the host communities.
Empowering Agencies- There has been several corrective actions that require managing the degradation to the environment in the region as it is successful for adequately providing funds for the existing agencies. The other measures include consistent training on use of new equipment that dedicate as well as manage spillage and other environmental hazards from the business operations of oil firms. Therefore, it is necessary for engaging in early detection and control of pollutants as it directly reduces damage to the environment.
Long-term Development Project- Most of the sustainable projects majorly takes into consideration the host communities as they get encouraged by constant assessment of areas whereby CSR will be of use for meeting the current or pending issues in the community (Skjærsethet al. 2014). In other words, long-term development project focus on areas after engaging the dwellers that will provide employment opportunities like the poverty will continue to drop in the near future.
Overview of Oil and Gas Industry in Nigeria
Nigeria Oil Industry is more than four decades old. Nigeria had been 56 years old in the oil exploration business. It is observed that Shell ongoing their oil manufacture as well as exportation at Oloibiri field at the rate of 5100 barrels per day. The amount got doubled in the subsequent year as well as crude oil creation in Nigeria. Nigeria with a population of 140 million people is the largest oil producer. Economy of Nigeria is heavily reliant on the oil sector that accounts for more than 80% of administration revenues and 90% of total overseas exchange income (Aaron 2012).
Corporate Social Responsibility by the oil and gas company in the oil region
As rightly put forward by Frynas (2015), Corporate Social Responsibility narrates to principled as well as responsive performance that is used by organization for solving social, economic, cultural and environmental issues. Addition to that, efficiency of CSR takes place when firms assess the collision of process on the host society and eager to plan as well as execute actions. This will guarantee negligible unconstructive impacts as well as their undertakings on the surroundings (Akpan 2016).
As opined by Frynas (2013), the behavior of the oil company indicates that they have no particular statutory obligations on embarking on an expensive road construction as well as education and provision of employment opportunity. The restiveness of oil rich communities in Nigeria highlights the agitation, crisis and tension that persist despite of efforts by the government. The Government creates peaceful atmosphere between the host communities as well as oil companies (Basu and Palazzo 2014).
Shell in Nigeria: Oil, Gas, Development and Corporate Social Responsibility
Shell is one of the multinational corporations that are present from past 50years and involved in Nigerian economy, development and politics (Boele, Fabig and Wheeler 2015). This particular corporation brings dependable lighting as well as electric power to populace. In case of small business, they have created thousands of jobs as well as educating guidance sessions in the procedure. Shell has spent millions that works with NGOs as well as society growth association that strengthens teaching and wellbeing care. The corporation generates billions of dollars in export earnings of its income. Shell has also been concerned in administration military actions that results in the killing of peaceful the public, environmental activists and human rights. Corporate Social Responsibility has emerged as an industry approach that addresses the social as well as ecological collision of corporation activities. Addition to that, Companies from oil and gas sector have been at the centre of CSR development. The nature of an oil industry majorly determines CSR concerns as well as social concerns that are highly diverse between various industries (Skjærsethet al. 2014). Nigeria has some major key concerns that relate to oil and gas sector that directly environmental impact of the industry like oil spills. The social impact of the industry has been taken into consideration on restricted communities as well as macro-economic complexity that is shaped by the inflow of oil profits (E Ite 2014).
CSR in oil and gas
The oil and gas sector has been among the foremost industries that lead to Corporate Social Responsibility. In other words, oil companies have initiated, funded as well as implemented community development schemes. Given the significance of CSR activities, oil as well as gas sector is considered one of the instructive examples for analyzing to what level the CSR society that transforms practice in an industry. Shell has been significantly recognized as Leaders in Corporate Citizenship in and across the world. Shell had made intended development to its communal as well as ecological presentation (Eweje 2016).
CSR and Environment
The nature of oil as well gas operations takes into consideration possible harmful ecological effects at the time of exploration and production. Environmental risks of oil and gas operations due to oil and gas deposits as they situated in developing economies. This is due to high biological diversity as well as high ecological vulnerability like protected national parks, rainforests and mangroves (Eweje 2015).
Nigeria Case Analysis
It has been noted that Nigerian Government attempted for cleaning up and restoring the land from all the deprivation the Shell has caused it. There was oil pipelines escape in populace farmlands as well as possessions that caused to death to the vegetation as well as degraded the; and at the same time. Carbon dioxide burns in the air as it cause serious issues for the younger children as well as leads to asthma. In this case, Shell Oil companies spend millions of dollars in a day but still are not providing ways so that they come together to provide costs for the compensation they had individually created.
Research Philosophy is a faith about the way where data should be gathered, used as well as analyzed (Walter and Andersen 2013). There are three types of research philosophies and these are Positivism, Interpretivism and Realism. Positivism is one of the philosophical theories where positive information is based on the natural occurrence as well as their properties and relations. Information can be gathered from sensory knowledge that is interpreted through proper reasons and logic as it forms the exclusive source of authoritative knowledge. This method is structured as well as analysis of the resultant data will help in achieving data through use of statistical techniques for evaluation purpose (Taylor, Bogdan and DeVault 2015). Interpretivism is one of the research philosophies that connects with the social sciences and opposes the positivism of natural science. This research philosophy is a school of consideration in modern jurisprudence as well as attitude of law. This philosophy integrates human interest into a study. Realism is the combination of positivism and Interpretivism philosophy. Realism attitude relies upon the thought of sovereignty of realism from the human mind. This can be again divided into two other types such as direct and critical (Vaioleti 2016).
In this particular research, researcher uses Interpretivism Philosophy at the time of conducting the research aligning with the research topic on Evaluation of CSR program of Shell in Nigeria. This philosophy is selected as the researcher uses qualitative method for analysis purpose. These research methods are derived from social action theory. This approach to social research that is qualitative in nature. The researcher had used qualitative methods that allow close interaction with the respondents. Individuals have consciousness that react to external social forces and have individual reasons for their actions (Tarone, Gass and Cohen 2013).
There are two types of research approach and these are namely deductive approach and inductive approach. Deductive approach is one of the research approaches when a hypothesis is developed from an existing theory (Tarone, Gass and Cohen 2013). This theory starts with a social theory that they find compelling as well as testing the implications of the data. It starts from general level and then to the specific level. This approach is used that gets associated with the scientific investigation. In this research approach, researcher reads the existing the theories as well as then test the hypothesis that emerges from the theories. On the contrary, Inductive approach is one of the research approaches where researcher starts their research by collecting data that is pertinent aligning with the topic of interest. Researcher looks for model in the data by working together and developing a theory that can actually elucidate those patterns (Smith 2015).
In this particular research, researcher used deductive approach that aligns with the research topic on Evaluation of CSR program of Shell in Nigeria. This approach is used by the researcher as it will aim and test the theory used in the most appropriate way. Researcher uses theories that already exist and then analyze the data as far as possible (Reynoldset al. 2014).
Researcher used thematic analysis for conducting the research that aligns with the research topic of Evaluation of CSR programs of Shell in Nigeria (Matthews and Ross 2014). This research strategy is used where qualitative data are varied and nuanced. In this, researcher had divided the chapters according to the themes that are already discovered. This is a widely-used qualitative analytic method in the particular research. This approach offers an accessible as well as theoretically-flexible approach for analyzing the qualitative data. It is essential for the researcher in locating the relation by using qualitative methods after searching for themes or patterns. This is in relation with the various epistemological as well as ontological positions (Mackey and Gass2015). The researcher had to provide clear guidelines at the time of starting the thematic analysis and conducting the analysis on rigorous way after considering the potential pitfalls of thematic analysis. This analysis advocates thematic analysis because it is a useful as well as flexible method for qualitative research. Thematic analysis is used as it is flexible in nature. Qualitative research methods are used where it stem from a particular theoretical or epistemological position. It uses conversational analysis as well as interpretative phenomenological analysis as there is limited variability regarding the application of data. Thematic analysis is one of the methods that identifies, analyzes as well as reporting patterns or themes within data. It explains the data set as well as understands diverse aspects of the research topic on Evaluation of CSR programs of Shell in Nigeria (Leary 2016).
There are three types of research design and these are exploratory design, explanatory design and description design. Descriptive studies are observational studies that describe the patterns of situation that occur in relation to variables such as persona, time and place. Exploratory research is one of the important research design for undertaking any marketing or business strategy. This research design focus is mainly on the detection of thoughts as well as insight as opposite to collecting statistically precise data. This research design is best suited as the beginning of the total research plan. Explanatory design is defined as an attempt for connecting ideas for understanding the cause and effect where researchers want to explain what is going on (Karlsson2016).
In this particular research, researcher used explanatory researchas it is defined as an attempt for connecting ideas for understanding the cause and effect relationships. They conducts research hypothesis during later stages of decision-making process (Glesne2015).
Variable Definition and Measurement
In this particular research, there are both dependent and independent variables that is taken into consideration by the researcher (Gast and Ledford 2014). Dependent variable is a variable a researcher is interested in. It means the changes to the dependent variable where the researcher tries to calculate with all their fancy method. On the other hand, independent variable is a variable believed that affect the dependent variable. It is the situation depends upon variables where researcher manipulates to see if it makes dependent variables changes. Independent variable is the Corporate Social Responsibility programs in Shell. On the contrary, dependent variable is the Corporate Social Responsibility in Nigeria. These variables are evaluated by researcher by considering individual aspects that aligns with the research topic on Evaluation of CSR programs of Shell in Nigeria (Flick 2015).
In this particular research, researcher made use of both the variables that aligns with the research topic. Measurement of variables can be done by using combination of quantitative methods and qualitative research methods. Qualitative research methods are used by the researcher through thematic analysis. On the contrary, Quantitative research methods are used by the researcher through distributing questionnaire method. Measuring the dependent and independent variables are important for the researcher as they will gain insight of information as to how CSR programs are implemented by oil and gas industry such as Shell Company in Nigeria (Clark and Creswell 2014).
There are two types of sampling technique and these are probability sampling and non-probability methods (Choy 2014). In case of probability sampling, it is necessary for determining which sampling units belong to which sample as well as probability for each is selected. Types of sampling methods are simple random sampling, systematic sampling, stratified sampling, cluster sampling as well as multistage sampling. Stratified sampling is probable is when it makes sense to separation where populace is divided into groups based on issue and influences the measurement of changeable. Cluster sampling is different from stratified sampling as it divides the population into groups or clusters, obtaining a simple random sample from all the possible clusters. In this particular research, researcher used cluster sampling that is evident in a statistical population and used in marketing research (Brinkmann2014).
In this particular research, researcher used qualitative research methods for evaluating the data that aligns with the research topic. Interview method is used by researcher for gaining information on the CSR programs adopted by Shell in Nigeria. Interview had been conducted from 5 Managers who are working in Shell and asking them questions regarding CSR programs that are adopted by Shell in Nigeria. The five managers are selected by using cluster sampling from the department such as one from marketing, one from financial, one from human resource management, one from sales management and operations management (Billig and Waterman 2014). Telephonic interview is conducted from the managers as it will be difficult to visit the company and ask questions. The time difference between consecutive samples is known as sample period. In that case, managers were interviewed within the frequency of one week. This is because managers are busy and it is not possible to interview all the managers at the same frame of time
Data Collection Methods
There are four ways of collecting qualitative data such as individual interviews, focus groups, observations and action research. In this particular research, researcher used the interview method over telephone where they interviewed 5 managers who are working in Shell Company in Nigeria. Secondary sources of information are used by the researcher at the time of conducting thematic analysis as they evaluate the data from past news and articles. Researcher used secondary sources of information by collecting data from academic journal article, books, and authentic websites in the most appropriate way. Quantitative analysis cannot be used by the researcher as the questions cannot be asked from the customers or public on the topic related to CSR programs of Shell in Nigeria (Walter and Andersen 2013). It is for this reason why researcher used qualitative data analysis methods so that they can undertake interview method as managers can properly answer to the questions asked on CSR programs evaluated by Shell in Nigeria. Researcher used the reliable data for analyzing purpose so that there is no discrepancy present in any form. Reliable sources can be taken from authentic journal articles that are published in recent years and have the essential elements that align with the research topic on Evaluation of Corporate Social Responsibility in Nigeria. Data had been collected from potential respondents such as managers from a reputed oil and gas company named as Shell. Their manager gave authentic information as they are directly linked with the research topic as to how evaluation is done regarding gaining insights of CSR programs in Nigeria.
The term qualitative research means wide range of philosophical positions as well as strategies and analytical procedures (Blumberg, Cooper and Schindler 2014). It summarizes the cognitive process that gets involved in the qualitative research for better understanding on how the cognitive process of research interact with the qualitative data after bringing out the findings as well as generating new knowledge. It is believed that all qualitative analysis based upon the specific approach as it includes comprehension of the phenomenon under study on use of thematic analysis (Taylor, Bogdan and DeVault 2015). It majorly synthesizes a portrait of the phenomenon as it accounts for relations as well as linkage with the aspects in the most appropriate way. This study critically analyze by using thematic format after theorizing on how and why these relations appear as they properly conduct as and when required. After analyzing the themes on CSR programs of Shell, researcher uses their viewpoint and understanding about the phenomenon as well as relations into the context on how others have articulated the evolving knowledge (Blumberg, Cooper and Schindler 2014). . In this particular research, the researcher used thematic analysis based on the research topic by collecting news for the company Shell on how they use CSR programs for serving the society as a whole (Blumberg, Cooper and Schindler 2014).
Ethics are generally classified into set of rules; written as well as unwritten that is governed by the expectations of own and other behavior. Addition to that, research ethics are set of ethics that is governed on how technical research is conducted for a particular research topic. At the time of conducting research, researcher thinks about issues that arise when research includes human subjects. There are many ethical issues regarding the standards of ethical conduct that needs to be taken into deliberation by the researcher. This involves significance of publishing result in a apparent way and it is not plagiarized in any form. In case the research proposal raises some ethical issues, the Committee will again ask the investigator for look back the matter and entire proposal. Researcher cannot use false data or manipulated data at the time of conducting the research. They cannot even force any manager to interview and answer questions because it is not a legal way for performing the research. They should ensure that data are protected under the standard Data Protection Act if anyone manipulates the data in any form (Walter and Andersen 2013).
At the end of this chapter, it is noted that researcher had used Interpretivism research philosophy as it considers the emotional side of human beings and takes qualitative data for research purpose. In case of research approach, the researcher had used deductive approach as they have conducted thematic analysis and data are collected from the secondary sources. In case of research strategy, thematic analysis has been used based on the research topic. Explanatory design is used by the researcher as they conducted in-depth analysis that aligns with the research topic. Qualitative research methods are used by the researcher such as interview method and thematic analysis.
Findings and Analysis
The findings of the present research essentially cut across different academic disciplines whilst stressing on the sustainability strategy and CSR programs in Nigeria. However, the current research work necessarily builds on the main body of theory building. Prior research work helps in carrying out a holistic analysis of the overall performance of the corporation enumerated by the assimilation of the environmental, social as well as economic sustainability. Sustainability programs conducted at Shell essentially focuses on a key question that intends to stress on the way the company can deliver vital energy for essentially a growing population in a responsible manner.
Robertson and Barling (2014) advocates that Nigeria encounters certain challenges the developmental stride along with the efforts in order to enhance the quality of life of all the citizens. As rightly indicated by Robertson and Barling (2014), sustainability approach of Shell is assimilated across different business actions on three diverse levels that includes operating a safe, effective, accountable as well as profitable business, sharing wider advantage in the place of operation and provision of assistance for shaping a sustainable energy future. Analysis of sustainability operations reveals that the corporate sustainability operations of Shell involve conformation with global standards, procedures as well as tools for management of safety, environment along with involvement of the community (Rangan et al. 2015). The company intends to continuously enhance the manner in which the company operate in order to avert diverse incidents, recognize, avert and minimize adverse environmental in addition to social impacts across diverse projects and facilities. Analysis of the corporate social responsibility programs of Shell, contexts of the programs and their advantages also reflects the sharing of different advantages in which the company functions. Analytical appraisal of the sustainable programs reveals that the business of the firm is essentially planned for mainly long term period. This too replicates the fact that the corporation Shell can become a part of a community for decades and help in development of restricted economy by creation of jobs, sourcing from different local suppliers, and payment of taxes along with royalties (Wilburnand Wilburn2013). Management of the corporation follows staged procedures for embedding sustainability in different projects of Shell. This includes conduction of assimilated assessments on potential environmental, social as well as health impacts, undertaking particular risk assessment and engagement and assessment of specific concerns from particular communities.
Analysis of the operations also replicates the fact that the company Shell has a clear as well as effective structure of governance in place across the organization, together with different performance standards as well as other controls. However, management of the corporation Shell develops a governance structure that helps in influencing the decisions as well as the actions that can be taken at different levels of the corporation. In addition to this, the governance processes can also be applied to different areas of decision making in Shell. Nevertheless, maintenance of governance structures that encompasses Board of Royal Dutch Shell Plc., four Board Committees, Executive Committee along with different teams as well as individuals who function in the operations (Shell.com 2017). The CSR program of Shell includes institution of Corporate and Social Responsibility Committee responsible for appraisal of different sustainability strategies, policies along with practices. In addition to this, there is CSRC that is accountable for reviewing as well as advising Shell regarding the strategies and performance of the company. This essentially helps in comparing the Shell General Business Principle, Code of Conduct of Shell and the Mandatory Health, Safety, Security, Environment as well as Social performance Standards (Shell.com 2017).
Besides this, the CSR programs that includes regular meeting of the CSRC thus helps in reviewing as well as discussing a wide variety of sustainability associated topics, analyzing sustainability presentation. This also involves analysis of results of the audit, sustainable development metrics that are applicable to the Executive Committee (Shell.com 2017). This too helps in monitoring diverse major issues of public concern that might be pertinent to Shell. Management of the firm also presents sustainability reports voluntarily on environmental and social performance and this in turn helps the stakeholders and the success of the business. Opinions of the external review committee comprising of independent professionals also help in evaluation of quality as well as credibility of the report and further improvement. Analysis of the Corporate Social Responsibility approach of the company reveals the fact that the company vows to protect the environment, respect the neighbor, prevent people from different adverse incidents and assist in moving towards a lower carbon in the upcoming period (Robertson and Barling 2014). Shell also intends to deliver higher energy with lower amount of carbon for handling climatic change as well as energy transitions. In addition to this, the management also assumes steps for reduction of airborne pollutants from different operations and assist the customers to lessen the impact on quality of air by utilizing the products of the company. Besides this, Shell also manages their use of water sensibly and invest in novel approaches as well as technologies and for using it effectively. Furthermore, the company Shell also contributes towards the well-being of the entire community manages the social impacts of activities of the business, address the concerns regarding operations and augment the benefits. This involves working closely with the communities in a bid to understand the concerns and identification of ways for addressing the same, better access to energy (Berlinerand Prakash2014).
Management of Shell also contributes towards local economic growth by providing direct employment opportunities, management of supply chain, operations with government and training for building local skills as well as expertise (Shell.com 2017). This helps in understanding the primary theme of the study that outlines the main CSR programs undertaken by the company and the benefits derived from the same. Prior researches indicate the fact that the CSR programs can help in understanding the fact that the importance of the CSR programs and different drivers of CSR policies instituted in policies and procedures. Thematic analysis helps in comprehending the challenges encountered by the Nigerian economy and the ways to move towards an environmentally friendly and sustainable path. In particular, the tenets of the green economy of Nigeria, predominantly in Rio+ need to be consistent with the sustainable development notions, principles as well as framework with continued focus on reduction of poverty that supports worldwide global development. In this context, the company advocates necessary conditions that need to be instituted for moving towards green economy (Kesavanet al. 2013). Thus, thematic analysis of prior academic research work and empirical evidences helps in establishment of the approaches of sustainability, environment protection, development of community, safety, transparency and importance of declaration of sustainability reporting as well as performance data.
In this particular research, telephonic interview was conducted by the managers who work at Shell for gaining information on the CSR programs that are adopted by the oil and gas company.
- What are the CSR programs adopted by Shell in Nigeria?
Our first attempt towards adopting CSR programs at Shell is to clean up as well as restore the land from all the degradation the corporation has caused it. In the year 2011, the company had to shut down production of 25000 barrels per day from the Imo River after repeated attacks on pipelines. Over the last five years, we have been spending more than $2.3 Billion for developing substitute energies, carbon capture as well as storage and other carbon dioxide research and development. We invested more than $6 Billion in a agenda for improving the security of oil and gas manufacture facilities.
We aim at adopting corporate social as well as environment responsibility with a broad goal for causal to the comfort of the communities and culture as a whole. There has been increased pressure for dressing up CSR as trade regulation as well as demand that every proposal deliver trade results. The major goal of CSR program was to align a Shell social as well as environment activities with its trade principle and philosophy. In order to mitigate the risk, the company engages in new CSR programs for enhancing reputation that contributes towards business results. The CSR programs adopted by Shell render a systematic process for bringing coherence as well as discipline to CSR strategies.
Human Resource Manager
In my opinion, CSR programs have been adopted by our company to produce profits that directly improve business performance. This takes into consideration donations of money, appointment with society initiatives as well as hold up for member of staff volunteering. The programs has been conducted within the existing business model for delivering social or environmental benefits through value chain by offering improved efficiency as well as effectiveness.
Shell is pleased to announce the publication of the Shell Sustainability Report where they have adopted CSR programs for delivering energy in a responsible way as well as contribution to the energy transition. From the sustainability report, I would like to state the fact that Shell approach to sustainability majorly covers the environmental as well as social performance for the given year.
We have a complete set of codes as well as policies and pledge process that actually define how we aim to function in socially and environmentally in charge ways. This commerce principles and code of conduct actually explains the core values of sincerity, honesty as well as respect of populace for managing the business as a whole. The company found ways for production of cleaner burning natural gas.
- What are the sustainability strategies adopted by Shell for bringing development in Nigeria?
Shell holds interests in a number of offshore licenses that includes the Shell-operate Bonga field. Shell has a 25.6% interest in Nigeria Liquefied Natural Gas that exports LNG in and across the world. The company spends more than $42 Billion to the Nigerian Government for the year 2011 to 2015. They spend $1.1 Billion in the share of royalties as well as corporate tax [aid to the Nigerian Government for the year 2015. About 93% of contracts are awarded to the Nigerian companies. More than $0.9 Billion was spend by the company on local contracting as well as procurement.
We are supporting transparency in the payment by making the governments manage with the oil as well as gas revenues. We are committed towards respecting human rights with a strong focus on society, labor rights as well as security and supply chain conditions.
Human Resource Manager
We aim at rendering responsibility to the shareholders, employees, customers as well as business partners and society aligning with the Shell Business Principle. The company follows the core values such as honesty as well as respect for people and integrity. This core values will help the company for promoting trust, teamwork as well as professionalism and openness.
We use various principles for conducting our business that include economic principles that focus majorly on the long-term profitability as well as essentials that will help the company for attaining business goals and continuous growth. Our company will be unable to fulfill the responsibilities without gaining profits and criteria that are adopted for investment are sustainable development.
We commit towards contributing to the sustainable development, balancing the long-term interests as well as integrated economic and social consideration at the time of decision-making process. We use innovative ways for persuading with the partners after applying the same principles that aligns with the future objectives to sustainability.
- How Shell meet the CSR issues?
Our Company had spends millions of dollars a day to come together for providing costs for the damages they individually created. There was problem with the Oil pipelines leakages in people farmlands as well as property that actually caused death to the vegetation and degraded the land. Addition to that, Carbon-dioxide burning in the air actually causes serious problems for younger children as well as leads to asthma. The volume of prepared oil spills fell by around 30% in the year 2011. Out of 401 sites required for remediation, 75% cleaned.
The company general business principles explain the insistence on the criteria such as honesty, integrity as well as equality in all aspects of trade. There are direct as well as indirect offer present for compensation, acceptance of bribes that is unacceptable. We aim at sharing out technical expertise as well as stepped in advocacy efforts with the Governments. We guide business activities within the company by supporting number of external voluntary codes.
Human Resource Manager
The strategies adopted do not necessarily means to increase revenues and decrease in the cost in any form. Our sustainability initiative reduces use of resources, waste as it reduces the costs as well as investments in employee working conditions.
The main focus of Shell was to provide insights on lower carbon research as well as development investments. Innovation activities at Shell focus majorly on advanced bio fuels, lower-carbon forms of energy as well as hydrogen-based fuels.
We have addressed areas that need to be amended to achieve a low-carbon society as it will include insights of how Shell runs their operations to avoid harm to people as well as manages its impact on the environment. Addition to that, the sustainability report addresses the Shell work for sharing of benefits where it operates by creation of jobs, supporting community development projects as well as sourcing from local suppliers. We have launched carbon capture as well as storage capacity at oil sands that is operated in Canada.
Discussion of Results
In this particular section, results have been discussed from the findings that are presented in the previous chapter. This section compares the findings with the literature review and the research objectives that have been mentioned in the previous chapter. It is important to link the major findings with the literature review portion so that the company adopts the most feasible CSR programs that benefit the society as a whole. In the next segment, it identifies whether Shell had overcome the CSR issues and link it with the literature review (Wheeler, Fabig and Boele 2012). The company had used various strategies so that they can reduce the CSR issues as far as possible. There are various challenges that are faced by Shell that they had used for overcoming the CSR issues so that they reduce the carbon gas emissions and other pollutants that negatively affect smooth functioning of business enterprise.
Comparing the findings with the literature review the objective question
The findings of the research stress upon the sustainability strategy that is used by Shell at the time of conducting the CSR programs in Nigeria (Wheeler, Fabig and Boele 2012). By comparing it with the literature review, it can be stated that the research carries a holistic analysis that will portray the level of performance of the business Corporation that can assimilate the sustainability attributes, may it be related to environmental, social and economic. This section of the analysis will discuss the results that have been found in the previous chapter where telephonic interview had been conducted from the managers who currently work for Shell. It is thereby essential to compare the findings from the earlier chapter that aligns with the literature review in accordance with the research question and objectives. Furthermore, Shell efficiently conducts sustainability programs that majorly focus on key question where the company delivers vital energy for growing population in a responsible way.
From the research objectives, the research needs to find out the prevailing issues as well as challenges of Corporate Social Responsibility. This was found out in the findings section where proper emphasis has been given on sustainability programs that was conducted by Shell in Nigeria. The other objective is to identify the drivers of corporate social responsibility of Shell that aligns with the policies as well as strategies (Wheeler, Fabig and Boele 2012). It is really essential for investigating the key areas of corporate social responsibility where the company should be involved in making positive contribution that meets the need of society.
On critical analysis, it is argued that corporate social responsibility should be attaining by every organization so that they contribute to the betterment of the society. In the literature review section, there has been proper explanation on the various issues as well as challenges that are faced by oil Sector Company while conducting CSR programs in their business operations. CSR issues relates with the government investment policies, waste management as well as funding of long-term development projects at the same time (Wheeler, Fabig and Boele 2012). In the findings section, there is proper explanation on how to minimize the risks that are faced by Oil sector companies such as Shell. There are even various challenges that are faced by oil sector companies such as over-taxation and repetitive tax, agitation and restiveness as well as underdevelopment of host communities. It is thereby essential for the oil sector firms such as Shell for conducting strategic sustainability developmental programs so that they can minimize the issues as far as possible. It can be done by streamlining of tax regime or reduction, empowering agencies as well as long-term development project.
In the findings section, it was clearly identified that the researcher had conducted qualitative analysis, firstly by conducting thematic analysis and secondly through conducting interview from managers who work in Shell. After aligning with the literature review, it can be stated that Nigeria faced various challenges where efforts needs to be taken for enhancing the quality of life for all the responsible citizens (Wheeler, Fabig and Boele 2012).
Identifying whether Shell have actually overcome the CSR issues raised in literature review
From the findings, it can be stated that Shell has actually struggled hard to overcome with the CSR issues that they had faced in previous years (Wheeler, Fabig and Boele 2012). This was possible as the company had involved in conducting sustainability programs that takes into consideration conformation with global standards, tools used for management of safety as well as environmental management after community involvement. They have overcome the CSR issues through conducting assimilation assessments on potential impacts on matters relating to environmental, social and health where the company undertake risk assessment as well as assessing the specific concerns from given local communities. The company had successful followed the general business principle as well as code of conduct that takes into consideration safety, environment, health and the social performance standards. The company had overcome the CSR issues by contributing to the local economic growth so that they manages the supply chain, training of skilled workers who should posses the required skills and expertise, employment opportunities in the most appropriate way. This research work had brought out proper insights of information that the company took the CSR issues on serious note and had established approaches of sustainability, development of community, transparency, environmental protection as well as declaration that is present in sustainability development and the data performance in an effective way (Wheeler, Fabig and Boele 2012).
Shell had adopted various CSR programs so that they overcome the issues as far as possible. The company aims at cleaning and restoring of land from all the degradation the company has actually caused in past decades (Wheeler, Fabig and Boele 2012). The company is spending money for developing the alternative energies as well as storage and carbon capture to reduce the emissions and that results to greener environment. The company had even invested money on the CSR program so that they bring improvement in the safety of oil as well as gas production facilities. The company had successfully overcome the CSR issues through adoption of corporate social and environment responsibility with broader objectives in a way where the company contributes towards the well-being of the communities and the society. The company had developed business purpose and core values that they strictly followed so that they can minimize the CSR issues. The company had even thought of conducting new CSR programs where they can contribute to get the best business results (Wheeler, Fabig and Boele 2012). The program that was adopted by Shell gives a proper systematic process that brings coherence and discipline to CSR strategies.
Shell had adopted various CSR programs for overcoming the CSR issues as explained in the literature review. These programs are adopted by the company for generating profits that can improve in the level of business performance. These programs have been conducted in a way to deliver the social and environmental benefits that aligns with the value chain in an efficient way.
Identifying the strategy used in overcoming the challenges raised in literature review
Shell had used various strategies for overcoming the challenges that they had faced from corporate social responsibility. The strategies used are publication of Shell Sustainability Report where it is properly mentioned regarding the CSR programs that delivers energy and contributes towards transition of energy in an effective way. Strategies that are adopted by Shell align with the sustainability approach that takes into consideration environmental and social level of performance. The company had used the required codes and polices where they operates in a social and environmental situation. Strategies that are used by Shell are finding the ways for production of cleaner burning natural gas (Wheeler, Fabig and Boele 2012). The company used transparency payment system where the government initiates ways for managing the oil and gas revenues.
Among the various strategies that are adopted by Shell, following the business principle is the most feasible strategies that should be used within the stipulated time. They are committed towards respecting the human rights and meet the supply chain conditions. The company followed the economic principles where the main focus was to generate long-term profitability so that they can achieve future goals and objectives. The involved in sustainable development that balances the long-term interests and integrated social consideration while taking decision-making strategies. The strategies used by Shell is compiling with the general business principles that suffice honesty, integrity and fairness. The company had involved in streamlining of tax regime or reduction so that they involve in investment for allowing conducive atmosphere of oil firms (Wheeler, Fabig and Boele 2012). The government addresses the tax scheme such as issue of over-taxation as well as repetitive payment of taxes to the different government agencies. The company needs to empower agencies where they had taken corrective actions that aim at managing the degradation to the environment. The company had taken measures such as continuous training on usage of new equipment that requires managing spillage as well as other environmental hazards from the business operations of oil firms. The company had used strategies such as long-term development project as it will consider the host communities for constant assessment in areas for future analysis purpose. The company had adopted amended strategies that mainly focus on bringing low-carbon society that actually brings proper insights on how the company operates so that no one is harmed, be it people and managers that adversely impact the environment as a whole. In the sustainability report, it is properly mentioned that Shell works together in sharing of benefits as it operates by creation of jobs, sourcing from the local suppliers as well as developing community development projects for smooth functioning of business enterprise. The company had even launched carbon capturing initiation that store the maximum capacity at oil refineries that is based in the country such as Nigeria (Wheeler, Fabig and Boele 2012).
Shell had adopted strategies that will help in reducing the CSR issues that will provide clear and effective structure of Governance policies aligning with the various performance standards and controls at the same time. The company had developed the governance structure that mainly influences the decisions and actions at every level of Business Corporation. The company had conducted CSR programs that take into consideration institute of CSR committee where they use sustainability strategies and policies. The company had prepared proper audit report as well as sustainable development metrics. The company had adopted strategies that help them in increasing revenues as well as reduction of costs in the best possible ways. They had taken proper initiatives for matters relating to reduction use of resources, waste reduction in costs and investing in bringing better employee working conditions in the most appropriate way. The company had adopted sustainability strategies for providing better insights on lowering the carbon emissions and developing the investments in an effective way (Wheeler, Fabig and Boele 2012). The company had adopted an innovative strategy that takes into consideration advanced bio fuels, lowering of carbon emissions of energy and the hydrogen-based fuels at the same time.
At the end of the section, it is understood that Shell had successfully implemented various CSR strategies that helped them to reduce the CSR issues. The researcher had conducted thematic analysis as well as interview from the managers who work at Shell. The managers are being interviewed by the researcher through means of telephone. They are asked questions on matters relating to CSR programs that are being adopted by Shell in Nigeria, sustainability strategies that are adopted by Shell for bringing development in Nigeria and how Shell adopts strategies to meet the CSR issues. The managers had answered the question and from the answers, it is understood that Shell had properly adopted the best strategies for resolving the corporate social responsibility issues.
Review on the objective questions
The first objective question is to define the Corporate Social Responsibility as well as benefits of implementing CSR programs. In this particular research question, it is reviewed that Shell had adopted CSR programs for minimizing the CSR programs in Nigeria. In the next research question, it discusses on matters relating to drivers of CSR strategies that is established for analyzing the policies as well as strategies at the same time. The next question explains how CSR programs are implemented by Shell that gives positive contribution. The study discusses on how Shell evaluates the CSR programs in country like Nigeria. Corporate Social Responsibility defines as a continuous commitment as the company behaves ethically and contributes towards economic development. The company works together so that they improve the quality of life of proper workforce and family commitment. The company properly develops better world where they can implement various development projects as well as partnership with Earthwatch.
Conclusion on how successful Shell CSR program is, if they are successful or not
The CSR programs adopted by Shell are successful as they struggle hard for becoming socially responsible company that meets the needs of society. Addition to that, thematic examination of previous intellectual research work and observed evidence helps in establishment of the approaches of sustainability, atmosphere safety, expansion of society, safety, simplicity and significance of statement of sustainability coverage as well as presentation data. In other words, Shell also manages their use of water wisely and invests in novel advance as well as technologies and for using it efficiently. Nevertheless, the company Shell also contributes towards the comfort of the whole society manages the communal impacts of activities of the commerce, address the concerns regarding operations and supplement the benefits. This involves operational closely with the communities in a bid to appreciate the concerns and recognition of ways for addressing the same, better access to power. Asset policies of government authenticate the tax imbursement by the oil firms who binds together with the law, order, safety as well as community communications. The restlessness of oil rich society in Nigeria places of interest the campaigning, crisis and tension that persevere despite of efforts by the administration. The Government creates nonviolent ambiance between the host communities as well as Oil Corporation. The Government had been unsuccessful in meeting the troubles in the community’s burden posed to the oil firms. The corporation had even thought of conducting new CSR programs where they can supply to get the best trade consequences. The program that was adopted by Shell gives a proper methodical process that brings consistency and regulation to CSR plan. Therefore, Long-term growth scheme focus on areas after attractive the dwellers that will provide service opportunities like the scarcity will carry on to drop in the upcoming financial year.
Corporate Social Responsibility is one of the communal ideas that give details the significance and require for bridging the hope gaps of other stakeholders in the relationships in a unit whether it is normal or synthetic. Gap needs to be bridged as it acts as an obligation based upon presentation behavior. Furthermore, the company helps in creating as well as behind balance between the financial system and the environment. The company should involve in monitoring varied major issues of community concern that might be relevant to Shell. Management of the firm also presents sustainability information willingly on ecological and communal presentation and this in turn helps the stakeholders and the achievement of the commerce. Opinions of the outside review group comprising of self-governing expert also help in assessment of excellence and trustworthiness of the account and added development.
Recommending ways to best close the gap
Gaps can be identified when Shell adopts the CSR programs for reducing the CSR issues as far as possible. Shell faced challenges in paying same tax on recurring basis that affects the trade ambiance and provides oil firms influence for jumping over their errands to the host society. It is recommended for Shell to adopt the best CSR strategies that can properly manage with the CSR issues that prevailed from past few years. The company should adopt tax reduction strategies so that carbon emissions are reduced in the near future. It is essential for attractive in early discovery and manage of pollutants as it directly reduces damage to the surroundings. Environmental risks of oil and gas process due to oil and gas deposit as they situated in developing economy. The company should generate billions of dollars in export earnings of its revenue. Addition to that, Shell has also been concerned in administration armed events that results in the killing of non-violent society, environmental activist and human rights. Corporate Social Responsibility has emerged as a trade approach that addresses the social as well as ecological impact of business activities. Furthermore, Companies from oil and gas sector have been at the centre of CSR development. Therefore, the overview of an oil industry majorly determines CSR concerns as well as social concerns that are highly diverse between various industries. Proper initiatives should be undertaken by Shell so that they can minimize the CSR issues for being recognized as socially responsible company.
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