Power and Borders - TNCs as a threat to sovereignty - Shell Nigeria CS

Question 1

How do TNCs benefit countries?

Answer 1

Allow superpowers and emerging powers to spread their influence globally, both in terms of economics and culture and politics

Question 2

How can TNCs influence politics and elections?

Answer 2

Koch brothers support Republicans with $100 million campaign funds, from Koch industries

Question 3

How do TNCs cause the spread of western culture throughout the rest of the world?

Answer 3

• Language-free global brands such as McDonald’s and Nike have an influence and dominate the markets

Question 4

How do TNCs have influence?

Answer 4

• Influence in politics and election -> money to persuade others to take a specific stance -> lobbying
• Influencing employment levels and poverty levels -> exploit workers
• Introduce capital and technology

Question 5

Who are the main actors in the Shell CS?

Answer 5

• Nigerian Govt
• Shell TNC
• Ogoni Tribe

Question 6

Why is there territorial integrity/ sovereignty issue?

Answer 6

• Oil spills
• Human rights abuse
• Pollution of environment
• Child labour
• Execution of non-violent protesters
• Threaten LICs into passing less stringent regulations
• Bribe corrupt govt officials and political campaigns
• Shell has political leverage

Question 7

Why is the issue complex?

Answer 7

• Sabotage
• Theft
• Tax evasion
• Corruption
• TNCs provide economies and make jobs in local area

Question 8

What the economic causes of the issue?

Answer 8

• Govt won’t want to challenge relationship as Shell pays tax to Govt which help economically -> Govt doesn’t have control over investment decisions or revenue

Question 9

How much of Nigerias oil revenue come from Shell?

Answer 9

40%

Question 10

How much of Govt revenue comes from oil extraction?

Answer 10

> 75%

Question 11

What are the social causes of the issue?

Answer 11

• Human rights violation against the Ogoni Tribe in the Niger Delta
• Unreliable contracts, not permanent
• Low wages + poor health conditions
  -> Govt does not have control over its labour force, citizens, their human rights and welfare

Question 12

What are the political causes of the issue?

Answer 12

• Govt corrupt so won’t use money properly
• $ billions of oil profits go missing
• Shell violates international labour conventions

Question 13

How much corporation tax does Shell pay?

Answer 13

£20 billion in 2013

Question 14

How much oil revenue went missing in 2016?

Answer 14

$16 billion

Question 15

How many barrels of oil were stolen in 2019?

Answer 15

22 million

Question 16

What are the environmental causes of the issue?

Answer 16

• Shell responsible oil spills between 1988 and 2009 -> 580,000 barrels leaked in 1978
• Farmland poisoned -> fishermen limited catches, water toxic
• Toxic gases released from flaring / burning off gas
  -> Govt does not have control over its land or natural resources

Question 17

What are the long term impacts on people?

Answer 17

• Provides jobs
• $20 million on corporation tax
• Charity of Shell foundation -> helps sustainability, biodiversity and local people
• Pollution to waters -> fishermen limited catch
• Shell clean up very slow to cover oil spill - use sand
• Human rights violation

Question 18

What are the short term impacts on people?

Answer 18

• People are to scared to speak out about issue
• Unreliable contracts, jobs not permanent

Question 19

What is the relationship between the citizens and the countries involved?

Answer 19

• Shell violates international labour conventions
• The profits go straight to HQ in HICs -> not reinvested in the LIC
• Oil theft -> e.g., Delta Avengers -> illegal oil refineries
• Shell has the Shell foundation to help sustainability and biodiversity and help local communities
• Finally, oil refineries like those in Nigeria use lots of local companies to help them run -> multiplier effect
• Employees in LIC’s are working for long hours (e.g. 12+ hours) in poor conditions

Question 20

What are the interventions from other world powers? - Global governance strategies used

Answer 20

• 2010 report costing $10 million produced by the UNEP has exonerated Shell -> 90% of pollution from illegal activity - not 100% accurate
• Ogoni people took Shell to court -> won case

Question 21

What does UNEP stand for?

Answer 21

United Nations Environment Programme

Question 22

How much did Shell give for losing the case?

Answer 22

£77 million

Question 23

What are the consequences of global governance strategies for local people?

Answer 23

• Protest movement were attacked, mutilated and some people blamed the Govt
• NGOs are active -> Ken Saro-Wiwa organised locals into the MOSOP who accused non-violent protest methods against shell

Question 24

What does MOSOP mean?

Answer 24

The Movement for the Survival of the Ogoni People

Question 25

Whose responsibility could it be to ensure operation of a TNCs abroad respect the environment, HR and long term security + development of a country?

Answer 25

• TNC CEOs managers
• TNC Shareholders
• The Govt in the country - HQ
• The Govt where the TNC is operating
• A regional or political trade body e.g., EU
• NGOs
• An international political body e.g., UN

Question 26

How can TNCs redress their balance to ensure they also act for the advantage of their customers, employees and global business locations?

Answer 26

Corporate social responsibility (CSR) is when companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders on a funds looking to make equity investments in companies with strong CSR reputations

Question 27

How are Nigeria at risk from sovereignty being threatened?

Answer 27

• Weak state apparatus
• Does not have refining facilities - so has to buy it back

Question 28

How much are Shell contract workers paid?

Answer 28

$200 a month

Question 29

How long do Shell employees work for?

Answer 29

12 hours a day, 6 days a week