Ethical Dilemma: Royal Dutch Shell has been doing business in Nigeria since the 1920s and has announced new plans to develop oil and gas projects there. However, over the years, Shell has experienced a series of complex issues. Its operations are centered in Nigeria’s Ogoni region, where the local citizens have protested Shell’s drilling and refining activities, which harm the natural environment and reduce the amount of available farmland. Protestors also accuse Shell of extracting wealth from the region without adequately compensating local residents. Following sabotage of its facilities, the firm suspended some of its Nigerian operations and then came under pressure to divest its operations and pay reparations to the local people. Despite these problems, Shell has persisted in Nigeria. Management instituted various community development programs in the region, budgeted at $50 million per year.

Using the ethical framework in this chapter, identify steps Shell can take to be a better corporate citizen in Nigeria. L01