Paradoxes and dilemmas for stakeholder responsive firms in the extractive sector

lessons from the case of Shell and the Ogoni

David Wheeler*, Heike Fabig, Richard Boele

*Corresponding author for this work

Research output: Contribution to journalArticle

174 Citations (Scopus)

Abstract

This paper examines some of the paradoxes and dilemmas facing firms in the extractive sector when they attempt to take on a more stakeholder-responsive orientation towards issues of environmental and social responsibility. We describe the case of Shell and the Ogoni and attempt to draw out some of the lessons of that case for more sustainable operations in the developing world. We argue that firms such as Shell, Rio Tinto and others may well exhibit increasingly stakeholder-responsive behaviours at the corporate, strategic level. However for reasons of strategy, lack of competency or institutional will this increasing level of corporate responsiveness may not be mirrored effectively in dealings between subsidiary business units and their most important direct stakeholders: for example local communities and in the developing world. We contrast the struggles of Shell to replicate its corporate stake-holder-responsiveness at the local level in Nigeria with the experiences of other firms that seem to have developed managerial capabilities at a somewhat deeper level throughout the firm with consequent benefits both for stakeholders and the business.

Original languageEnglish
Pages (from-to)297-318
Number of pages22
JournalJournal of Business Ethics
Volume39
Issue number3
DOIs
Publication statusPublished - 2002

Keywords

  • Corporate social responsibility
  • Shell
  • Stakeholder theory
  • Sustainability

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