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Business Organizations And Duties Beyond Legal Obligations: A Critique Of Shell In The Niger Delta

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Abstract

This paper argues in favour of the view that besides compliance to the law, business organizations also have other responsibilities in the society. It therefore rejects the view that firms should exclusively pursue profits as much as the law permits. Furthermore, it defends the view that corporate social responsibility (CSR) and the United Nations Global Compact (GC) initiative ought to be integrated into business. The paper also argues that although profit-making is the ultimate goal of business, however, it is neither the ultimate goal nor the ultimate value of man; that the social challenges in the society are so complex that every group in the society ought to help in finding sustainable solutions; that some business activities do affect the society at large; that material resources invested in CSR programmes are not a waste; and, that firms too may require extra-legal assistance from the public. Some aspects of Kantian ethics were used to justify the necessity of both CSR and the GC.
The activities of Shell in Niger Delta are then examined based on the demands of CSR and the GC initiative both of which Shell supports. Shell, despite its claims to the contrary, was found to have been a socially irresponsible company in the Niger Delta.