segunda-feira, 5 de dezembro de 2011

Shell & Corporate Social Responsibility in Nigeria

With the article "Shell in Nigeria: Oil, Gas, Development & Corporate Social Responsibility" i would like to arise attention that not always big companies are following the best practises in terms of CSR in developing countries. It is important to notice that Nigeria is the largest oil producer in Africa and the eighth largest in the world.
For me this topic is close to my heart not just from the aspect of CSR but also from the environmental point of view as it is my general educational background. To understand better the situation in Nigeria (Niger Delta), please also see the trailer of a movie Poison Fire where local people speak about and show the environmental problems they are facing because of Shell activities. 
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Shell & Corporate Social Responsibility in Nigeria
Putting aside the conventionally calculated economic costs and benefits of oil and gas production in Nigeria for a moment, anyone would, or should, be hard put to say that Shell hasn’t done much good in Nigeria.

In a region and country where publicly provided infrastructure and services are badly lacking, SPDC has often stepped in and acted in lieu of government. “We have a strong focus on community development,” SPDC MD Mutiu Sunmonu stated.

SPDC’s community development focus has shifted in recent years, he continued. “In the past we were heavily involved in the provision of infrastructure in the communities. We were building roads, schools, clinics and providing portable water. Though these are typical areas for government intervention, we stepped into the gap to help in improving the standard of living of local communities.

“We are now involving more and more development partners to help in addressing community needs. Specific community development programs include our micro credit scheme and health scheme. We have about 27 clinics in the delta. we are a major supporter of education of young children, with over 17,000 children on Shell scholarship at any point in time.”

- As of year-end 2010, Shell companies in Nigeria had trained some 1,900 service providers in general contracting, developed eight local dredging companies, awarded 10 UK scholarships and trained more than 3,000 people in entrepreneurship, scaffolding, project management, welding, catering, and other vocations.
- In 2010 SPDC and SNEPCo provided more than $22.85 million of a total $71 million to local community projects.

“We are encouraging the community to own and drive development themselves while we provide financial assistance to them and technical assistance through development NGOs. We have established operating procedures and guidelines to help make the process accountable and transparent. We still carry out major infrastructure in partnership with government, and other local and international partners,” social development specialist Gloria Udoh added.

Nevertheless, as one dialogue participant said, although Shell has ‘widely circulated publications and policies regarding your developmental activities in the host communities, the perception in such communities about your CSR approach remains unsavory.’

“A lot of work has been done in the last couple of years to enhance alignment and learning across the various countries that we operate,” Udoh responded. “In 2010, a new global social investment strategy was approved by Shell and the process of embedding this is ongoing. The perception in our host communities are monitored annually through an independent reputation tracker, and we glad to report that the 2010 results showed improvements.”

In 2006, SPDC introduced a new means of involving communities directly in their own development. The Global Memorandum of Understanding program (GMoU) entails communities proposing development projects and SPDC, on behalf of its JV partners, providing secure funding for five years. SPDC also provides community project leaders with access to development experts and NGOs that can assist them realize their aims.

Twenty-four GMoUs had been been established as year-end 2010, with over 400 projects completed by “clusters” with the SPDC joint venture investing $65 million in them. Six of the clusters have gone on to become registered community development foundations.


Poison Fire trailer:


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Read the whole article:
See the full movie Poison Fire about the environmental problems in Niger Delta:

And when you have comments feel free to post them here.


posted by Maie Peetri

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