The Ethical Challenge of Multinational Corporations in Inadequate Institutions: The Case of Shell in Nigeria

Abstract

How can we know if a multinational oil companies is just and fair, and does not violate basic human rights, does not create unhappiness and pain, is response-able to injustices, inhumane, and unhappiness, and its operations promote flourishing lives to everyone in the jurisdiction where institutions are inadequate? In this paper we have presented theories from justice, human rights, utilitarianism, responsibilities, and ethics and flourishing frameworks to analyse the inadequacies of institutions at macro, mezzo and micro levels. These frameworks have been used to analyse the case of a multinational oil corporation Shell Nigeria in Nigeria. Shell Nigeria is a subsidiary of Royal Dutch shell group of companies which operates in a region called Niger Delta in Nigeria. The case of Shell Nigeria in Niger Delta is one of many examples of multinational oil corporations which are accused of irresponsibility due to their operations which have led to injustices, violation of basic human rights, creation of unhappiness and pain, and hindrance to flourishing lives to the people in the jurisdiction where institutions are inadequate. This is evidenced for example by environmental pollution due to oil exploration in jurisdictions where institutions are deemed to be inadequate. The case focuses on Shell Nigeria operations in Niger Delta in Nigeria where institutions are inadequate in promoting justice, happiness, and flourishing lives to everyone, and protection of human rights. We have highlighted the ethical dilemma and ethical implications of these inadequate institutions and we concluded by analysing the responses of Shell Nigeria towards ethical dilemma in Niger Delta.

Keywords: Ethics, Institutions