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International Business

How Shell protects the environment
Ekram Kabir

In March 1997, international oil giant, Shell, published a statement of General Business Principles, translated into 34 different languages. This statement recognized that the company is accountable to five types of stakeholder; shareholders, customers, employees, those with whom the company does business and society.
Two significant changes were made to the previous statement of principles. The first was a commitment to the concept of sustainable development and the second was recognizing a duty to support the upholding of basic human rights. Thus, the company defines its responsibilities to the society. In the following lines: ‘to conduct business as responsible corporate members of society, to observe the laws of the countries in which they operate, to express support for fundamental human rights in line with the legitimate role of business and to give proper regard to health, safety and the environment consistent with their commitment to contribute to sustainable development’.
Shell claims to be the first multinational to make such a commitment to human rights. Then, in March 1998, the group brought out a publication titled, ‘Climate Change ' What does Shell think and do about it’. In this, Shell authorities said that they believed in prudent precautionary measures, and that emissions limits for greenhouse gases set in Kyoto provided the necessary signals to encourage such measures.
In April 1998, Shell Oil in the United States withdrew from the Global Climate Coalition (GCC). Shell Oil’s membership in the GCC had been a controversial one as the GCC actively campaigns against legally binding targets for greenhouse gas emissions as well as ratification of the Kyoto Protocol, which has set such targets, by the US government.
With regard to company responsibility to support human rights, Brian Anderson, a former managing director of SPDC, spoke openly in support of the Ogoni 19, campaigners for the rights of...