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Royal Dutch Case Study (Faced lot of resistance from Saro-Wiwa (popular…
Royal Dutch Case Study
Royal Dutch Company
founded in 1890
founded by Aeilko Jans Ziljker
merged with UK-based Shell T&T
merger meant to prevent a take over
Developed a merger agreement
agreement stated Royal Dutch would manage oil refining & production operations
merger also mandated Shell to transport, store & market resulting oil products
had various controversies
Brent Spar
Environmental degradation
Frequent oil spills
drainage of contaminated water into waterways
emissions from flaring of natural gas at pumping sites
its activities criticized by
Greenpeace
The Ogoni & other locals
other activists
MOSOP
International body
MOSOP & Ken Saro-Wiwa
Demands of Ogoni Bill of Rights
political control of Ogoni affairs by Ogoni people
right to control and use a fair proportion of Ogoni economic resources for economic development
adequate and direct representation in all Nigerian institutions
use & development of Ogoni languages in all Nigerian territory
full development of Ogoni culture
right to religious freedom
right to protect Ogoni environment & ecology from further degradation
operated in Nigeria
problems affecting Nigeria
Crime
unemployment
poor healthcare
youth bulge
poverty
poor social amenities
high rates of infant mortality
environmental degradation
major populations of Nigeria 1995
Ibo in the East
Hausa-Fulani in the North
Yoruba in the West
Ogoniland & Niger Delta
Ogoni people
about 500000 in number
among the 20 minority tribes in Niger Delta
Inhabited 404 square miles
represented about 7% of Delta's population
Depended on natural resources for their welfare
economic activities were fishing & farming
largely languished in poverty
had few social amenities
characterized by high infant mortality rates
Joint Venture (Royal Dutch/Shell)
Community Investments
Agriculture
establishment of agricultural self-help programs
provision of free seeds and cuttings
Health
building hospitals
donation of salary supplements for nurses and doctors
Education
building schools
provision of scholarships
donation of salary for teachers
guided by a cash call system whereby
SPDC was main operator
SPDC would propose an investment program
representative of venture partners would debate & negotiate terms of proposed plan
Each partner responsible for contributing funds in proportion to responsible equity stake
Faced lot of resistance from Saro-Wiwa
popular novel & screenplay writer
TV producer
talented organizer
environmentalist
son of an Ogoni Chief
produced a hit TV sitcom called Basi & Company
educated in local missionary school
political enthusiast
participated in drafting an Ogoni Bill of Rights