essay
Case Analysis 2 Distributive Justice and Shell Oil In Nigeria
Among some of the world’s largest multinational firms, there are corrupt business
practices, government regulations and high paid executives that taint the world renowned success
of companies. Many companies are primarily consumed with the goal of profit maximization to
the point where they forsake the fundamental means of survival within a community ranging
from the safety of the environment to the detriment or death of civilians. Distributive justice is
the impartial appointment of resources (opportunity, wealth, jobs, etc.) by an official throughout
a community.1 As seen in many cases, especially Shell Oil in Nigeria, the allocation of resources
is not, by any means, equally distributed. The allotment of resources is not objectively given to
the Ogoniland citizens, instead, the government and its officials along with the Shell Corporation
are receiving the most benefits from the economic activity of producing oil.
According to the strict egalitarianism distributive principle, all individuals should receive
an equal share of what is being distributed. As Nigeria produces around ten billion dollars of oil
per year, the wealth should be equally divided and allocated to the community. Instead, the
Nigerian government receives 55%, Shell receives 30% and a French and Italian company
receives 15% of the total profits.2 Because the oil is produced in Nigeria, the community should
receive some type of incentives from the economic activity of oil production. It is noticeably
apparent that all individuals were not given the opportunity to receive equal share of the wealth
that was distributed. While most Nigerian citizens managed to survive on a couple hundreds of
dollars per year, government officials were living the most sumptuous lifestyles while obtaining
luxury cars and foreign bank accounts.3 When the military government eradicated most
1 Lamount, Juilian. "Distributive Justice." Stanford Encyclopedia Online. Stanford: The Metaphysics Research Lab, 2007. 2 Boatright, John. Ethics and the Conduct of Business, “Shell Oil In Nigeria.” Prentice Hall, March 2006. 3 Boatright, John. Ethics and the Conduct of Business, “Shell Oil In Nigeria.” Prentice Hall, March 2006.
Case Analysis 2 Distributive Justice and Shell Oil In Nigeria
democratic institutions in which citizens could express their interests and concerns, people were
forced to coincide with the allocation of wealth of the oil production.
Had the Nigerian officials followed the strict egalitarianism principle, they would have
created an equal distribution of revenue throughout the community. Instead of the Nigerian
government receiving the majority of profits, the revenues should have been divided equally
among the community of Ogoniland including its residents, the Nigerian government, Shell
Company, the French and Italian company.
Examining this case from the perspective of a utilitarian egalitarianism principle would
indicate that the allocation of resources should be distributed in such a way that the greatest
numbers of people are benefited.4 In the case of Shell Oil in Nigeria, the government fails to
distribute resources based on the greatest good for the greatest number of people. While Shell’s
oil production is located in Ogoniland, the citizens are ultimately affected the most without any
regards. Seeing that 500,000 Ogoniland citizens are living in impoverished and over populated
conditions, the oil spills and burning of natural gas from Shell only exacerbates the current
problems of the community. The health of Ogoniland and surrounding city citizens are put at risk
while the pollution is ultimately affecting the environment. As aforementioned, most revenues
from the Shell operations in Ogoniland are squandered away by the government and Shell Oil
while the city of Ogoniland rarely receives any benefits from its operations. Shell Oil supposedly
invested roughly around 6% (20 mil/312 mil) of its profits back into the community by “building
schools, hospitals and other services”.5 However, some of those contributions were used to
enhance the working conditions of Shell Nigeria rather than focusing on giving back to the
4 Lamount, Juilian. "Distributive Justice." Stanford Encyclopedia Online. Stanford: The Metaphysics Research Lab, 2007. 5 Boatright, John. Ethics and the Conduct of Business., “Shell Oil In Nigeria.” Prentice Hall, March 2006.
Case Analysis 2 Distributive Justice and Shell Oil In Nigeria
community.6 The allocation of resources were geared towards and primarily concerned with the
well being of Shell Oil and Nigerian government and its officials.
If the Nigerian government and Shell Oil had followed the utilitarian egalitarianism
principle, everyone in the entire community- without a biased focus on one particular party-
should benefit from the production of oil in Ogoniland. Citizens of Ogoniland and surrounding
communities should receive more incentives while lessening the detrimental health affects that
the oil production induces. Shell Oil should receive a reasonable but equal amount of profit while
they develop ways in which the oil production can be less harmful to the environment. The
Nigerian government should also receive a reasonable but equal amount of profit as they focus
on improving the Nigerian economy and means of life for Ogoniland citizens. The French and
Italian company should also receive a reasonable proportion of the profits.
Furthermore, John Rawl’s Difference Principle suggests that positions must be open and
fair to all and that distribution disparities are only allowed when the least advantaged individuals
are given the greatest benefits.7 In the case of Shell Oil in Nigeria, the citizens of Ogoniland are
excluded from the benefits of the production of oil in Nigeria. The greatest benefit of Shell
operations in Nigeria is the massive amount of revenue it generates, however, that wealth is not
being spread evenly throughout the society as mentioned previously. The citizens of Ogoniland
are, unquestionably, the least advantaged party in this case. The city is over populated as is and
the emission of the gases makes the living conditions of the citizens even harder than it was
initially. Alongside, the citizens are forced to abode in these conditions without their consent
because their government limited their democratic freedoms. The production of oil in Ogoniland
6 Boatright, John. Ethics and the Conduct of Business., “Shell Oil In Nigeria.” Prentice Hall, March 2006 7 Garrett, J. "Rawls on Justice." Rawls on Justice. 3 Sept. 2002. Western Kentucky University. 11 Feb. 2009 <http://www.wku.edu/~jan.garrett/ethics/johnrawl.htm>
Case Analysis 2 Distributive Justice and Shell Oil In Nigeria
did not benefit the citizens the least bit in comparison to the benefits that government officials
and Shell Company received. The 20 million dollars that was allegedly donated to the
community did not increase the quality of the Ogoniland citizens’ lives as much increased the
productivity of the Shell Oil Plant in Ogoniland. Furthermore, the surrounding communities of
Ogoniland had been invaded and raided by the task force who killed civilians and destroyed the
personal property of the civilians. As a result, the Nigerian officials and the Shell Company
violates the second principal of John Rawl’s Difference Principle as the least advantaged party
was not given the greatest benefit.
If John Rawl’s Difference Principle was taken into account by the Nigerian government
and Shell Company, the community of Ogoniland should be receiving the most benefits. They
should not be living in impoverished and over populated conditions seeing how lucrative the oil
production is in Ogoni. There should be more public and community enhancing resources (i.e.
schools, libraries, hospitals, parks) available to the citizens of Ogoni. Also, the citizen’s of Ogoni
should not be threatened by such horrible health conditions that Shell is producing. Shell should
implement a plan that reduces the amounts of pollution being emitted or somehow provides a
more “green” environment for the community.
In conclusion, Shell Company and the Nigerian government did not effectively apply the
principles of distributive justice in this case. Both parties were consumed by the profits that they
were receiving while discounting the environment and lives of Ogoniland citizens.
Case Analysis 2 Distributive Justice and Shell Oil In Nigeria