Business Administration Essay on Shell Company

Published: 2021-07-26
456 words
2 pages
4 min to read
George Washington University
Type of paper: 
Case study
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Some of Shell's dependent shareholders include the ten million customers that it transports fuel for every day, the aviation industries which get their oil from Shell Company, mobile phones, and waterproof clothing companies, the government and the people employed by Shell Company (Dinh, 2008).

Non-independent shareholders include the local population of Bodo region where the leak occurred. The livelihoods of these residents depend on fishing in Bodos creeks and inlets, and after the 2008 leaks, fish stocks have been devastated. The local community is the non-independent shareholder, and they are the ones that have been affected most by Shells activities (Cahn, 2015).

Some of the benefits that accrue to dependent stakeholders include the high dividends paid to them by the company and the services that they get (David, 2011). However, more harm is done to the non-independent shareholders. The primary source of income and livelihood of the people of Bodo has been adversely affected. Agriculture, which is one of their main economic activities, has been affected as well. Pollution has seeped into the water tables and spread in their farms. The air has been polluted, and it stinks. Their drinking water is contaminated as well, and it stinks also.

If Shells executives were to follow the principle of corporate maximization, they would first take responsibility for their mistakes. The Company would try to ensure that there is no repeat of a similar incident. Secondly, it would compensate all those who have been affected directly (Maignan and Ferrel, 2014). The Company would also involve the community in trying to come up with a permanent solution. It would also ensure that it adopts measures which conserve the environment rather than polluting it (Li, 2007). They would also undertake the process of cleaning the mess since they are responsible for it.

The measures listed above would be an adequate utilitarian response to Shells corporate responsibilities. The measures would ensure that there is no exploitation of non-independent shareholders in any way (Slaughter, 2014).


Cahn, D. (2015). Comparative Company law. Published By Cambridge University Press

Textbooks. P 316. Pub e-EAN/ISBN: 9780511775826.

David Millman. (2011). Avenues for Shareholders Redress in 21 century. Company Law

Newsletter. Sweet and Maxwell's Company Law Newsletter, No. 295, 05.2011, p. 1-5.

Dinh,V, D. (2008)Codetermination and Corporate Governance in an Multinational Business

Enterprise. Pp 975-985. www.hooghoogh.comGuide to the Consumer Protection Act 2017. Department of trade and industries. Product

liability and safety provisions., X. (2007), A comparative study of shareholders' derivative actions. Published by Kluwer. Books Business, Finance & Law Law

Maignan, I & Ferrel, O.C. (2014), Corporate social responsibility and Marketing: An

Integrative Framework. Journal of the Academy of Marketing Science. Volume: 32,

Issue: 1, Publisher: Springer, Pages: 3-19

Slaughter, C, M. (20014). Corporate Social Responsibility.' A New Perspective. Journal Article

Comp. Law. 2007, 18(10), 313-329. Sweet & Maxwell.


Request Removal

If you are the original author of this essay and no longer wish to have it published on the website, please click below to request its removal: