Proposal for Shell (Corporate Social Responsibility)

Proposal for Shell (CSR)

Executive Summary

Shell is one of the largest oil producers in the world, and Shell Nigeria is one of the main production force of the company. Of oil extraction in Nigeria, 80% of it is from the Niger Delta region in the country. Being rich in oil revenue, it is one of the main reasons for turning the area into a place of poverty, exploitation and unrest.

Over the years, many environmental problems surfaced in the region, what used to be a rich biodiverse ecosystem has been destroyed due to the marine pollutions caused by oil spills from oil production operations and oil leaks from old and corroded pipelines.

These environmental problems have caused animals and fishes to die due to poisoning. Crops cannot be cultivated due to poisoning and cancerous chemicals being released into the air.

A present opportunity to correct the social and environmental problems through a fund raiser concert to create awareness exists for Shell, working with the various communities on this. The challenges would be aplenty, including the resistance from the public and problems educating the wider community.

As a benefit for the community, a boosting of the country’s image, economical change and standard of living would be seen. A healthier ecological environment and better sustainability for the fishing industry will also be at hand.

Benefits for Shell would be having an augmented public image through their commitment for the conservation of marine environmental eco systems. It would also be credited as an action orientated company in its responsibility to environmental concerns.

1.     Introduction

JDD Team Consultancy appreciates the opportunity to respond to Royal Dutch Shell request for proposal.

The Niger Delta region has been an area that is rich in oil and closely linked to the oil and gas industry. In this proposal, we will state the key host community, identify the problems and unveil a set of strategic actions plans for Shell to undertake the opportunity to create higher sustainability and improve its corporate social standing.

Shell displays cause branding through the implementation of this project. It responds to the global trend by being socially responsible, understanding customers needs and concerns to be environmentally responsible and joining other parties in a positive endeavour.

We present you a proposal with a 2 year social initiatives that will aim to aid in marine conservation.

Marine environmental problems of Niger Delta

There are four ecological zones in the Niger Delta environment: the coastal barrier islands, mangrove swamps forest, fresh water swamps and lowland rainforest. In these lush rainforest environments, exist a very high concentration of biodiversity but 40% of this rich diversity have been lost mainly due to the inception of oil industry. (Welcomme, R. L.  ,1986)

2.     Host Communities

Nigeria’s Government

The local government earns most of their revenue through oil companies who taps on the country’s resources.

Niger Delta Community

Fisheries are a way of life in Nigeria and have been passed down from generations to generation but the inception of the oil industry has destroyed them by oil spills and leaks. Poverty and poor living conditions has lead to strife and high crime rates. Locals outraged by the ill effects of oil operation to their environment, have damaged and destroy the pipelines and disrupted the operation of Shell. (Rural and Remote Health Online, 2004)

Oil and Gas Industry

Being an area that is rich in oil, the Niger delta has been a key area of the oil industry’s operation. The industry plays an important part in the country’s economy and has both been a source of provision and problems in Nigeria.

3.     Action Plan

To create awareness of the problems and issues in Niger Delta, an annual concert will be done to spread the word to the masses, thus, an action plan to develop the Eco-fund will be proposed.

3.1 Phase 1 – Niger Delta Eco-Fund

The Niger Delta Eco-Fund is set up to spread the word about the environmental problems in the region. Aiming to educate locals and create awareness about environmental conservation in the Niger Delta region, a highly publicized concert that has celebrities and musicians making appearances and performing will be proposed to raise funds in saving the environment.

The Niger Delta Eco-Fund Concert will be held on the 11^th of November 2011 and will be continued on an annual basis. Some of the artists to be included in the performance are:

·         Wyclef Jean

·         Akon

·         Madonna

·         Lionel Richie

Etc.

The concert will be held at the Abuja Stadium in Nigeria that has a spacious seating capacity of 60,000.

3.2 Phase 2 – Awareness

The Niger Delta Eco-fund concert will help spread awareness about the environmental problems in the region. Advertisements featuring celebrities will be broadcasted worldwide and the Concert itself would be broadcasted live on TV and also on the internet via streaming sites such as Youtube.

The awareness that we would want to achieve is to educate the communities around the world about saving the environment and hope to create a chain reaction and set off a trend in the process.

3.3 Phase 3 – Environmental Plans

As oil spills from production operations and oil leaks has caused environmental and marine life problems to the Niger Delta region, environmental plans to clean up the pollution and restore the destroyed habitats will be set in place.

A research and development team will be set up to find ways to better overcome the problem and make it better and have safety implementations in place should they happen again.

3.4 Phase 4 – Funds raised

The funds raised from the concert will be distributed to different channels.

Part of the funds would be used to obtain equipment for cleaning up and minimizing current pollution levels in the waters in the Niger Delta, cleaning up the oil spill and also helping in preserving the marine life in that area.

They would also develop sustainable fisheries to raise and harvest the fish population that was affected during oil spills. By doing so, they can rebuild the eco-system in the region.

Lastly, funds would be put into Research and Development for oil spill pollution problems. As currently there is no solution for oil spill or oil leak problems, another project could be funded by the eco-fund to build an underwater remote submarine that is able to solve the problems by closing holes in ships or oil rigs to prevent leaks. The project could also look into preventing the spread of oil spills by designing a new aquamarine transport that envelops the oil spill area to prevent the oil from spreading and polluting surrounding waters.

3.5 Phase 5 – Sustainability

The target for sustainability in doing this is to achieve a healthy and continuous inertia for the event to run for years to come and continue creating awareness in saving the environment.

Time Frames

Action	Month
	3	6	9	12	15	18	21	24	Ongoing
Identify Key issues and problems
Determine fund distribution method for fund raiser
Develop an agreed proposal & strategy to start the Niger Delta Eco-fund
Develop Action Plan
Fund Raiser Concert
Education for the local community
Marine pollution clean up
Achieve healthy and continuous inertia for the event to create awareness(sustainability)

4.     Challenges

There are a number of challenges that would be faced when setting up the eco-fund and running the concert. By acknowledging the challenges, measures can be taken to soften the impact of these problems. Here are a few of the challenges:

1)      The main problem that will surface is that there might be resistance from the public due to the adverse environmental image of the oil and gas industry such as the water pollution and oil spills.

2)      The foundation might come across a problem in educating and raising an effective solution to the local communities in converting to environmentally friendly practices, and they might continue their practices to contribute to pollution. Being partially ridden with poverty, there might not be enough awareness raised adequately for the wider community in the Country.

To curb these challenges, the company will take a slow and steady approach in implementing the fund, the media would also be utilised to help in showing that shell would like to help the region. As broadcast over the media would create awareness, volunteers would be engaged to go down to poverty ridden states to help out and also spread the word.

5.     Benefits to Host Communities

             5.1 The Local Government

• Country’s image

By having the concert held in Nigeria and the fund benefitting the Nigerian Delta ecology, it directly boosts the country’s image.

• Government’s image

By having the fund benefiting the Niger delta region and the concert held in Nigeria, the local government will be recognised as actively supporting positive change.

• Economical change and better standard of living

 Publicity of positive change in Nigeria will encourage more foreign investments and spur economic growth. The resulting benefit is a higher standard of living.

5.2 The Local Communities

• Better sustainability in the fishing industry

Changes made to the ecological environment will benefit the local communities who are heavily dependent on fishing as a means of livelihood.

• Better living environment

A healthier ecological environment contributes to a better living environment for local communities.

• Increased environmental awareness

Local communities will be educated in better environmental awareness. The better environmental practices will create a better environment for living and commerce.

5.3 Oil and gas industry

·         Shell’s Leadership

Shells pioneering initiative in implementing this programme displays leadership in the industry by being at the forefront of sustainability.

·         Better image of the industry

A better image of the oil and gas industry’s responsibility towards society and the environment.

·         Lessens Industry’s attachment to environmental problems

Lessens the negative image of the industry’s attachment to environmental problems

6.     Benefits to Shell

Association of Shell with the results of adverse environmental effect from the oil and gas industry’s day to day operations has stigmatised the company. This can be reversed by adopting an impactful programme in environmental conservation. The association of Shell with being ecologically responsible provides an exemplary boost to Shell’s sustainability profile. High profile publicity of the concert will largely credit Shell as an action orientated company in its responsibility to environmental concerns. The results of a good company image will entitle better business growth in the economy. A better company image can be achieved through association of shell with this programme.

7.     Conclusion

We hope that you will be pleased with the proposal to set up the Niger delta Eco fund. There is much to be benefitted from the implementation of the project. A winning situation can be gained in a country that is so closely tied to Shell.  The breakthrough initiatives in conservation efforts and technology will be a milestone that will ensure Shell’s credit in sustainability.

Reference List

Okonta, I,. and O. Douglas. 2003. Where vultures feast: shell, human rights, and oil in the Niger Delta. New York. Sierra Club Books

Omoweh, D. 2010. Shell Petroleum Development Company, the State and Underdevelopment of Nigeria’s Niger Delta: A Study in Environmental Degradation (Hardcover).  Africa World Press.

Okonta, I,. and O. Douglas. 1999. Where vultures feast: Forty Years of Shell in the Niger Delta (Paperback). Stylus Publishing

Amadi, A. 1991. The coastal and marine environment of Nigeria: Aspects of ecology and management (Paperback). Nigerian Institute for Oceanography and Marine Research

Akpofure E.A. 2000. Integrated grass root post-impact assessment of acute damaging effects of continuous oil spills in the Niger Delta region: Psycho-morphological & empirical overview http://www.waado.org/Environment/PetrolPolution/OilSpills/OilSpillsImpact_Contents.html              (Accessed May 8)

Keshmaney. 2009. Effects of pollution on the Nigerian Ecosystem. http://www.allfreeessays.com/essays/Effects-Of-Pollution-On-The-Nigerian/25741.html (Accessed May 8)

Host Community network http://webcache.googleusercontent.com/search?q=cache:1eHWMJxrdigJ:www.eraction.org/publications/impact4.pdf+host+community+network&hl=en&gl=sg (Accessed May 9)

Vanguard Media, 2002. Environmental issues in Niger Delta http://www.gasandoil.com/goc/news/nta24898.htm (Accessed May 9)

Welcomme, R. L. (1986)"The Niger River system" In Davies, B.R.;Walker, K.F. (Ed.). The ecology of river systems. (pp. 9-23) Dordrecht, The Netherlands: Dr W. Junk Publishers.