Ethics In Nigeria Oil And Gas Industry Politics Essay

Ethics In Nigeria fossil rock vegetable embrocate And Gas effort Politics EssayNigeria is Africas most populous nation and similarly its largest tender organismufacturing business organisation of vegetable rock rock anoint colour. The plain is stratified fifth in terms of cover export to the United States. The unpolished has the potential to reach the third spot successor Nor air in a few long sentence though it is plagued with loving fer custodyting as head as corruption in the Niger Delta posing earthshaking ch altogetherenges to the employment of embrocate. The intermittent economic crisis and the political turm crude oil the country faces dates backwards to independence in 1960. At the centre of this is the oil perseverance. This is gameylighted by its valet increase indicators which atomic number 18 among the funkyest in the terra firma even though the revenue from brag and oil has gone up to 40 one jillion one million million million mil lion per year. This means that the countrys major(ip)ity spankings in extreme p everywherety. This fact as rise the severe environmental degradation that conform tos with oil production trading operations in the function has issueed in a conflict amid the transnational oil sesss and the communities that reside in the delta date back to early1990s. This article provides an in-depth analysis that the oil exertion in Nigeria is faced with in trigger officular with honest and ordinary transaction practices that continues to exacerbate the conflict in the theatrical persona. It concludes with offering a passport that the companies can now adopt in an effort to main(prenominal)tain cordially obligated practices in the country and aid in the ripening of the topical anesthetic communities.IntroductionOne stock sector that has a strong assert to blood subscriber line ethics and/or reality relations is the oil and gas sector. The oil and gas international Corporation operating in Nigeria be active in addition to playing leadinghip roles in under positive good codes of conduct and corporal practices in the work place as well as in engaging with different facets of the federation. The involvement of epidermis, BP-Amoco, stripe Texaco, ExxonMobil, TotalFinaElf, Occidental, ENI among opposites in the Global Reporting Initiative (GRI), the United Nations Global Impact, the Sullivan Principle, the millenary Development Goals, the Voluntary Principles on Security and Human Rights, Dow Jones Sustainability Index atomic number 18 some spokespersons (Carrol Bulcholtz, 2003).The footprints of these companies argon follow throughn in the transfer of extraneous direct investiture (FDI), technology and skills accounting for the majority of the estate revenue and a major employer of labor. They throw also undeniably nurse contrisolelyed to the maturation of communities via programs in health, education, commerce, transport, agriculture, ment al synthesis among others.Tuodolo (2009) argues that despite the contributions to the community and achievements, the oil transnational Corporations take away been the targeted by blackball and anti- unified and controvert drifts in the last cardinal decades. Many courteous troupe actors nurse been prudent for damaging campaigns against these companies and the institutions that collaborate with them. The strategies they employ in this campaigns allow publicity, networking, walk-outs, sit-ins, litigation, lobbying, volumes development plans, fondly responsible investiture, public hearings, blockades, exposures, seizures and closures. These campaigns cover ethical issues much(prenominal)(prenominal) as kind-hearted justlys abuses, environmental, safety, health, corruption and climate reassign. In Nigeria, one of the main protests by the genteel parliamentary procedure against an oil familiarity was against Shell in the Gas alight(p) taking place in the region a nd on the Ogoni environmental issues, Niger Delta bea ( mercy supranational, 1995).The world has experiences massive campaigns carried out by the polished rules of order actors against oil giants such as Shell, ChevronTexaco, ExxonMobil, Occidental, ENI. These campaigns a good deal disrupt business activities, damages and embarrass the re ascribeation of the business the major elegant purchase order actors include Greenpeace, Friends of Earth, and the Sierra club, Amnesty, Global Witness, Christian Aid, Oil- capture, Human Rights Watch and Corp-Watch. Yazji (2006) noneworthy that many another(prenominal) civil participation actors view the Transnational Corporations more as strange bedfellows or enemies finding it difficult o associate with them. This is often based purely on grounds of ethics. However, recent years prepare seen a new trend in the family that exists between the Transnational Corporations and the civil guild actors. Most notably is the development of collaborative relationships that are aimed at directing funding of programs for the civil society. Many of the civil society actors now maintain very cordial relationships with the oil companies with partners collaborating and doing business with the enemies, the oil and gas sedulousness. fit to Warren (2005), this is seen to benefits the image and public relation of the business more than the communitys welfare. This has stimulated an image of rapprochement or collaboration between the civil society actors, the publics watch dog, and the oil transnational commodes. An example of this collaboration in Nigeria is witnesses in community development projects that are run by International Foundation for Education and Self-Help (IFESH) in collaboration with Chevron Texaco (Bendell Lake, 2000).These actions raise many questions that are still to be settled consecrate the ethical issues that the civil society had campaigned for in the past been resolved or changed? Have the oil ind ustry players changed or repented for the better on the contentious issues that the civil groups raised(a) in the past? Have the actors in civil societies lost tail or are they comprised? Have the civil society actors been won over of placated by the big businesses? Or had the public relations machinery and campaigns by the corporations make out more effective and can now shield their bad deeds. publications REVIEWOil and gas industry in NigeriaNigeria is Africas largest oil producer and is ranked eighth in the world. Commercial quantities of oil in the country were discovered in 1956. It can on average pump 2.5 million barrels of oil every day. This accounts to approximately 3 percent of the worlds centre consumption. The Wall Street Journal stated in an article that the country exports the majority of this output. Oil provides around 90 percent of the countries total contrasted exchange and around 80 percent if the federal revenues. This makes the country the fifth-largest s trange crude oil supplier to the United States behind Mexico, Canada, Venezuela and Saudi Arabia. despite this richness in natural oil and gas resources, the country is ranked a lowly 20th poorest country in the world. Much of this penury as well as underdevelopment can be attributed to the bad governance, mismanagement of the countys resources (oil and gas), political instability and the lack of infrastructure as well as policies to govern industries. Most of the many oil companies in the country are American. They utilize the countrys crude oil and gas resources to gain astronomical profits. These companies also utilize the environment to operate and produce indoors the oil industry. The Niger delta is the oil-rich region in Nigeria and is truely involved in conflicts that surround the oil companies. These companies are usually viewed as parasitic by the local communities as they earn the regions resources while giving nothing or very little in return (Bird, 2004).Karl (1997 ) argues that as in many of the other petro states, the windfall revenues from oil and gas have proved to be more of a horror than a blessing. The country is plagued with conflict that stems out of inequitable distribution of oil revenue and the exploitation of the resources by the oil companies operating in the country. According to the constitution of Nigeria, all natural minerals including the gas and also belong to the Nigerian federal organization. The government is then responsible for negotiating the terms for oil production with the international oil companies. Most of the production and the exploration of oil in the region is done by United States and European companies. These companies operate vocalize ventures in collaboration with Nigerian National Petroleum Corporation (NNPCC). The state oil company owns up to 60 to 55 percent of these ventures (Ukeje, 2004). domain relations and ethical issues cladding the oil and gas industry in NigeriaMost of the ethical issues i n the oil and gas industry in the country arise from the poor monitoring and enforcement of laws governing the oil producing companies. This is despite the fact that the laws in Nigeria are comparable to other international equivalents. This has seen the region experiencing significant damage to both the environment and to the maintenance of the people that live within the oil producing companies. The companies have failed in their ethical responsibility to look up well with the communities in which they operate. Compensation for the resultant damages is virtually vanished (Frey, 1997).The transnational corporations (TNC s) operating within the Nigerian oil and gas industry as well as institutions that collaborate with them have over the years come under ostracize/anti embodied campaigns by the community they operate in as well as by civil society actors. These actors include anti-capitalists, anti- incorporated campaigners, anti- globalist, academics and greens. Although this is despite the contribution they manifestly bring to the development of a community, this actors have managed to shed light on unethical practices of corporate ensuring they practice positive public relations. In recent decades however this relationship has developed into a more collaborative one the purpose of which appears to privilege the image of the business rather than the society (Newell, 2005).The other side of incorporate Social ResponsibilityThere is no dispute that the community development programs initiated by the major players in the oil and gas industry have benefits most of the local communities. It is however important to not that these efforts in public relations have positive as well as veto relates. Most of the local communities pay a great cost for enjoying the benefits of these unified Social Responsibility programs. Either by commission or omission, the activities or of typesetters case and the program delivery processes have a negative meet on the loc al community that often outweigh the positive benefits of this corporate Social Responsibility endeavors. The role that the oil companies play in affectionate and environment adjoins illustrates this point.According to Human Rights Watch (1999), the Niger Delta in general and Nembe in grouchy, the oil activities have resulted in serious environment damages. This has been as a result of oil spills from flow stations, pipelines, well-heads discharge of production and drilling louse up and gas flared from several oil fields. entirely this has occurred in/on creeks, air, ocean and land of Nembe. In the process, fish ponds and farm lands are destroyed, sea and plant animals and plants are forced to migrate or are destroyed as well as the air organism grime. This environmental degradation has negative impacts ranging from loss of livelihood (farming and fishing), low farm produce, limitation of economic activities, diseases, polluted water, food shortage among others. In certain ca ses, devastation of unsuspecting fishermen has occurred aft(prenominal) oil spills occurred in the Nembe creek. The negative impact this has on the local communities livelihood and health is enormous. The community at one time indicated that they are all fishermen who rely on fish for their survival. They also claimed that the oil spillage by Shell wells were destroying the marine life and in extension the peoples occupation. The farmlands as well were not fertile anymore from the befoulment and the fish in the river had died. The people are wholly left with the option of fishing in the high seas which is very dangerous undertaking (Tuodolo, 2009, p.532)Shell on its part has not denied that its operations have been responsible for the degradation of the environment but has adamantly disagreed on the extent the damage to the environment resulting from its activities. Shell only if booker 3,214 incidents of oil spillage from 1995 to 2004, an average of 300 incidents annually. Th is has resulted in a spillage of more than 450,000 barrels of oil onto the environment in the Niger Delta and the flaring of large volumes of gas, approximately 604 millions scf daily (SPDC, 2006). Considering that this are figures from only one company, the consequences go through by the local community in terms of environment, livelihood, climate change or global warming are unimaginable.According to Agagu (2008), negative impacts of the corporate social responsibilities are further illustrated by the social effects they have on the local community. The Nembe case becomes significant once again. The relationship that shell has with the local community via the development programs and its operations have resulted in conflicts being commercialized where groups and individuals constantly fight over the indorse or benefits from shell funds for community development are misappropriated, mismanaged and embezzled by the leaders or shares amongst cliques and community leaders to the ex clusion of the other parts of the community. Further negative effects include destroying of community governance by emerging juvenility groups that usurp the authority and powers of the chieftaincy institutions as well as the exacerbation of several forms of social disorder such as an increase in illiteracy, proliferation of arms, lawlessness, criminality and the disintegration of culture and tradition. These youth groups were apparently armed by the Corporation.Shell sponsor some youth in the community, purchased arms and ammunition for them to fight whoever that is fighting them or protesting for their right from Shell (Tuodolo, 2009, p.538). From 2000 to 2006, the number of intra-communal conflicts numbered 21 with six of these inter-community conflicts being linked to the activities that shell was involved inThe oil companies, concomitantly Shell, Agip and their servicing companies, are central to the crises in the community (Tuodolo, 2009, p.538).The Nembe Indigenes summari zes the social impacts resulting from Shells activities as,These oil or multinationals have thrust a knife in our midst and we have fallen apart. The love for bullion and our political selfishness have set us against each other and we no longer see ourselves as brothers, fathers, chiefs, sisters, we disregard ourselves for temporary and temporal things, which have led to the makeup of nocturnal and clandestine groups which have transformed Nembe to Sicily (Italy). Groups that are sponsored by chiefs, elders, politicians, government agents and the multinationals have succeeded in causing our aged parents and children, while our young men die prematurely in arms struggle, our parents die of heart bombardment and the children are denied knowledge by preventing them from going to school (Tuodolo, 2009, p.538).And,What wrong has the Nembe man done to Shell and the Federal Government that all these wrongs are visited on him within a decade? (Tuodolo,2009, 538)This continues to raise et hical questions related to the unbowed intentions and the practices of these transnational corporations, the efficacy of their machinery of public relations or the position and campaigns of the civil society actors. This paper moves to answer the question of dilemmas that the oil and gas industry face in public relations management and ethic by examining the activities of the oil companies in Nigeria. special(a) circumspection is given to the impact of these companies on the communities residing in the oil rich Niger delta region. The paper is based on study of articles that have been written on the matter ranging from academic articles to newspaper articles.methodological analysisThis study utilizes qualitative content analysis so as to seek the conditions that the oil and gas industry in Nigeria operate in that create the dilemmas in public relations and ethics of practice. This is according to recommendation by Jensen (2002) on qualitative research. The study is iterative/re peat process as this topic has been covered numerous times forward. As such, this method allows for an application of analytical procedures and theoretical concepts employed to a variety of empirical domains that is flexible. This dialogue will contain information source from academic articles from online journals, press releases and webpage pieces from the oil corporations operating in Nigeria and news paper articles that span the last two decades that have seen the ethical issues and public relations deteriorate as well as receive world wide care. In addition to these article, particular case study on dilemmas faced by in Particular Shell are employed to give a clearer picture of the seat in Nigeria as well a to provide for a laden analysis.SampleThe method of data collection used in this chat studies information content in article spanning two decades, from the 1990s to current date. The documentation is comprised of academic articles, magazine and newspaper articles, gover nment reports and civil society articles and reports produced in the contest of normal publicity business to goal the crisis facing the oil industry in Nigeria. According to Lindolf Taylor (2002), this fixs that the sources are free of yield from the researcher. A limitation of this method is that it may prove to have a limited or indirect exploratory value for the research questions to be addressed. However, it will be able to fully address the question of ethical and public relations dilemmas faced by the industry. This is because of the intense media civil society and international attention this case has received over the years with particular emphasis being placed on the misdeeds of the oil multinationals operating in the Niger Delta.ANALYSISThe analysis section will focus on a debate that addresses the various issue faced by the oil corporation and in particular Shell in their operations. This will lead up to the various public relations steps and strategies employed by th e companies to address their alleged ethical misconduct in the wake of political and economical turmoil allegedly exacerbated by their operations in the country. In their attempt to maintain a public faces, the companies spawned public relations strategies that aimed to portray them as saviors to a people long subjected to poverty as a result of bad governance. This is through the numerous development projects that are operated under the patronage of these companies in the country. On the background of this is the numerous environmental and human right violations that have continued unhindered as a direct or indirect result of these companies continued exploitation of Nigeria natural resources, oil and gas, to worthy their bottom line, astronomical profits. The case of Ken Saro-Wiwa and the Ogoni People initiated the international associate in the region and offers a backdrop to the origin of the conflict between the oil corporation and government of Nigeria on one hand and the p eople of the Niger Delta in general on the other.DISCUSSIONThe debate on dilemmas in public relation and ethics in the oil and gas industry in NigeriaMilton Friedman (1970), a free-market economist, ascertained that a businesss one and only social responsibilities involves the making of profit. This view is less popular in present day business. However, many economists and business leaders still believe that the best way for a company to promote the local communitys social development is comprised only when of increasing the overall level of activities in economy through investment and trade. In taking this view, the administration of revenue generated, environmental standards tolerated of the observe for the human rights in the community residing in the area of operation are just now not relevant. These factors are in fact viewed as hindrances to the corporations main business and in the long run to the countrys social development itself. If standards employed for developed coun tries are duplicated in the developing countries, then they will simply neer catch up, this is because dangerous working conditions, below-market wages that workers in third worlds are subjected to are justified as being better than there being no jobs at all. The corporations shareholders make the situation worse by justifiably complaining if the directors pay attention to issues that may negatively impact the companys monetary bottom line (Soremekun, 1995).However, this attitude is increasingly changing as the companies come under more pressure from activists and consumers who are worried round the impact globalizations of the economy is having on the worlds poor. In addition, directors of these corporations have come to see that wider issues of social development have a direct or indirect impact on their operations. This trend has brought with it the buzz phrase triple bottom line encompassing social, economic and environmental outcomes. A good reputation for the corporation i s seen as a valuable asset as it attracts customers and helps in recruiting fit employees. Good public relations with the local communities promoted by development programs that are properly administered as well as good labor relations minimize the shut-downs that cause protests directed towards the operations of the company. Even though low environmental standards and low wages can in the short-term be useful to the company, in the long run the company makes more money if it is accountable for its operations. Studies carried out, have not revealed any correlation between the foreign direct investment that oil transnational corporations inject into the developing countries itself and the respect for human rights in these countries. In Nigeria, the presence of the oil multinationals is viewed to have seemingly contributed to promoting the successive military regimes that ruled the country for a long haul. These regimes were responsible fro multi human rights violations in addition t o misappropriation of funds meant to promote development. The companies use up should therefore focus on the promotion f steps adapt at the positive development of the communities social welfare. They should also minimize their environmental effects while also aiming for their core business, maximizing profits (Uduaghan, 2008).Oil multinational corporations have increasingly become more powerful within the global economies. The companies operating in Nigeria have substantially large global resources than the country itself. This has resulted in the country being almost paralyzed in enforcing international and/or domestic law against these companies. This is especially true when these companies have diplomatic support from the first-world country where the corporate headquarters are located. whitethorn of the laws that have been developed to govern the conduct of multinational across the world have been largely opposed to by the developed countries. This is especially because of th eir nourishment/recommendations of treatment of the multinationals by the host countries. An example is the U.N Code of Conduct on Transnational Corporations. As such, no laws are currently legally spinal column in terms of the public relations responsibilities of the multinationals. any(prenominal) companies have recognized that it is in their best interest and have started initiatives to address questions raised regarding their operations. However, human rights and environmental activists have notes that the companies statements of intent are not worth it without the strategies meant to ensure they are implemented. They also call for independent audited accounting of the human rights and environmental performance. Up to date, no oil corporation, Shell include, has agreed to be subjected to such an audit (Nigerian Tribune, 2008).The experience of Shell in Nigeria offers a glimpse on how an oil transitional corporation ought to learn from a significant sustainability dilemma. In resolution to these significant challenges, shell setout to develop practices and policies that were designed to address the problems. They included the company engaging the local community the international forum and the civil society in dialog. In addition it began to actively participate in the developments of norms for corporate citizenship (Eyinla Ukpo, 2006).Having operated in the Niger Delta since the 1950s, Shells operations and the influence it had politically in the region only came under scrutiny afterwards the execution of Ken Saro-Wiwa author-activist and a member of MSOP, Movement for the Survival of the Ogoni People, in 1995. The author and activist castigated the companys operations in Nigeria, gaining international attention. He highlighted the role that the oil industry had compete in the stagnation of the economy of the Delta. The Nigerian economic growth pace has not kept abreast with the growth that the countys oil industry has been able to achieve. The ind ustry is currently able to produce in excess of 2 million barrels of oil daily (Eyinla Ukpo, 2006).Shell has reportedly admitted that the approach it has interpreted in public relations causes the disorder in the community. The cash payments made, for instance standby labor, access fees to community youths, have seemingly been at the concentre of inter-community disputed as well as for the distortion of genuine ask of the community. contempt all this, Shell has yet to change its practices although it still claims it is practicing corporate social responsibility (Tuodolo, 2009).According to Birnbaum (1995), the inequitable distribution of the oil revenue, the high rates of poverty coupled with the episodically harsh rule is responsible mainly for spurring the conflict in the Niger Delta. The Human Right Watch (1999) cited that while the people of the Niger Delta have faced the adverse effects of the oil extraction, they have in general also failed to gain from the oil revenue. By galvanizing the up to 500,000 people of the Ogoni-land in MSOP, Saro-Wiwa was able to draw the worlds attention to the grievances of his people. He constantly cites Shells complicity as the symbol of the status quo. Eventually, the federal practice of law forces acted to shutdown MSOP. This saw numerous people being detained, injured or even killed. Nine activists, among them Saro-Wiwa were arrested in 1994. This was allegedly because of murdering four local leaders. All the accused would go on to be executed in November 1995 after court proceedings that the then United Kingdom Prime curate John Major termed as judicial murder. (BBC News, 1995).The role that Shell played in the Ogoni incident is a complex one. The company is reported to have sought clemency for the nine accused. In several statements, it lamented about the unsounded handedness and the violence that both sides of the conflict in Ogoni-Land had over time displayed (Human Rights Watch, 1995). Contrary to these stat ements, the company later disclosed it had on several cause in 1993 made direct payments to the states security forces under duress. Appearing before the U.S House of Representatives International Subcommittee on Africa in 1996, Stephen Mills, the environment and human rights campaign director for the Sierra Club stated thatThe Sierra Club is of the survey that Shell should feel considerable responsibility for the death of Ken Saro-Wiwa and the other Ogoni activists. Shells massive pollution, repeated denial of responsibility for it, its refusal to clean up the Ogoni territory, and its pull in to the Nigerian military to silence the protestors is what incited the civil unrest (Sierra Club, 1995).In a recent statement, Mills released a follow-up piece that stated,A self-possessed solution to the crisis in the delta seems remote as anger grows over record oil profits amid the striking poverty. The Riyal Dutch Shell acquire a whooping 18.5 billion dollars in 2004 yet some villages within bundle of the gleaming shell facilities have no electricity or rail water. However, the campaign Ken Saro-Wiwa led to hold Shell accountable for their pollution and complicity in human rights violation has not been in vain. After the death of Saro-Wiwa, the company did adopt stronger social and environmental responsibility guidelines. It is up to communities in the delta and groups like mine to make sure that Shell and other oil companies live up to their promises (Sierra Club, 2008).Shell as under severe critique for the perceived role it played in the events that lead up to Saro-Wiwas death. Amnesty international however recognized the companys willingness to discuss the groups concerns regarding its human rights record. In a report released in 1996, Amnesty International noted that only Shell has responded to its appeal to Shell and other oil transnational companies operating in Nigeria to acknowledge that they have a responsibility to at all cost uphold the human righ ts under the Universal Declaration of Human Rights. Despite this, many questions still lingered on the companys operations in the region. The UN Special Rapporteur of the tutelage on Human Rights issued a report in 1997 calling for attention to be renewed on the persistency of oil spills in the delta region. Some of these spills were as a result of sabotage. The report raised deep concerns about the severe and widespread environmental damage to the River Delete region as a result of the oil operations and exploration by Shell. The company took account of the issues that were raised and undertook a major review of its internal operations (Newell, 2005).Meanwhile, by the turn of the century, the relationship between Shell and the communities in the oil producing region had worsened since Ken Saro-Wiwa had been executed. This was despite the efforts of the company to improve on Public relations, in particular by increasing its spending on developments and the professionalization of th e developmental projects management. It is fair to note that most of the deterioration experienced was as a result of the government failing to respond to the demands that had been presented by the Delta communities rather than by the activities of the company. The continuing dilemmas and problems illustrate just how difficult it is to put the fine words contained in the Statement of General Business Principles into true(a) practice (Tuodolo, 1999).Shell and public relations in NigeriaShell has doubtless contributed immensely to Nigerias economic growth as well as to the development of the local communities residing in the companys area of operation. Shells activities employ around 12,000 persons as sure-handed and unskilled labor making it a major employer of labor. The greatest demonstrate of shells effort to maintain positive public relations are in its development programs in the communities it operates in. Through community development programs, the company contributes to d evelopment of education in the local communities. The company achieves this through the provision of scholarships from native up to university level, to local level, twirl of classrooms, provides appliances and equipments and at times pays allowances for teachers in impale primary. For some of the communities, shell provides or sponsors training in basic skills such as joinery, mechanics, craftsmanship, tailoring among others, for the indigenous (SPDC, 1999).Shell also plays an active role in several other sectors aimed at community development, for instance, transportation build jetties, construction of roads, donation of cars and speed-boats agriculture donation of equipment for farming, microcredit schemes for the farmers, training of farmers water construction of water pipelines, sinking boreholes electricity supply of diesel, donations of power plants and the provision of infrastructures such as land reclamation, shore protection comm