Shell, Nigeria and the Ogoni. A study in unsustainable development: III. Analysis and implications of Royal Dutch/Shell group strategy

In the first two papers of this trilogy we explored the history of the Roya l Dutch/Shell group both internationally and locally in Nigeria. We describ ed a catastrophic failure in relations with the Ogoni and the consequent fa ll-out with NGOs and opinion formers more globally. In response to these ev ents Shell embarked on a revision of its business principles and initiated a multi-million dollar exercise in stakeholder outreach and communication. We also explored the limitations of a purely instrumental approach to 'stak eholder management' in Nigeria and suggested that a rights-based approach m ight provide a more useful framework for managing relationships and achievi ng reconciliation between Shell and the Ogoni. In this third paper of the t rilogy we explore Shell's current approach to strategy formulation and impl ementation in the context of what this means for Shell's ability to pursue the ideal of sustainable development. We apply two models for testing the l evel of integration of business strategy with sustainability and we observe that, whilst Shell's business principles and corporate strategy now embrac e notions of market sensitivity and internal and external accountability to an unprecedented degree, the company has yet to maximize opportunities ari sing from its approach to sustainability and stakeholder responsiveness at the business unit level in Nigeria. Copyright (C) 2001 John Wiley & Sons, L td. and ERP Environment.