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Apply Your Understanding: 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. It then came under pressure to divest its Nigerian 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. (1) Recognise an ethical problem: Managers must learn to recognise and manage ethical problems e O(2) Get the facts: Managers must systematically explore the ethical aspects of each decision the firm may make, regarding its current and potential activities (3) Evaluate alternative courses of action: Consistent with the pyramid of ethical behaviour, actions should be legal. Any proposed action should be commensurate with company policy, the firm's code of conduct and its code of ethics. Finally, each proposed action should be evaluated according to the following accepted ethical standards: Utilitarian - which action results in the most good and least harm? Rights - which action respects the rights of everyone involved? Fairness - which action treats people most fairly? Common good - which action contributes most to the overall quality of life of the people affected? Virtue - which action embodies the character strengths that you value? 11 INS F11 F12 SCROLL FB F9 F10 O - O Phet location and might be unsafe. Click for more details. Enable Editing the firm's code of conduct and its code of ethics. Finally, each proposed action should be evaluated according to the following accepted ethical standards: Utilitarian-which action results in the most good and least harm? Rights - which action respects the rights of everyone involved? Fairness - which action treats people most fairly? Common good - which action contributes most to the overall quality of life of the people affected? Virtue - which action embodies the character strengths that you value? (4) Implement and evaluate your decision: Implement your decision. Then evaluate it to see how effective it was. How did it turn out? If you had it to do again, would you do anything differently? e W 14 O INS F10 F11 F12 SCROLL LOCK 8 O- T Y U O P