Key Problems/Issues:

Degradation of environment by process of natural gas flaring and oil spills: o Operations have contaminated land with oil and disrupted the daily lives of people. o Water for daily activities such as drinking, washing clothes is also being spoiled by oil spills. o Deforestation, Loss of sea life etc is other side effects which are equally devastating. Human rights violation and civil unrest due to military involvement.

Shell forced Ogoni people to live in poverty while shell made millions of profit.

Class Notes: 1. Business Environment: Political Instability present in Nigeria in 1958. Socio-EconomicPolitical-Legal Environment Analysis of the host country. 2. Interaction with host community: According to the videos shown following problems have been discovered/shelled out: a. Degradation of environment: i. Land Degradation 1. Deforestation 2. Crop dry-outs: Decrease in Productivity of farms. ii. Water degradation 1. Loss of sea life. 2. Loss of bio-diversity iii. Air pollution 1. Acid Rains 2. Green House Effect b. Problems faced by community i. Health of the community. ii. Safety & Hazards. iii. Threatening of livelihood (Fishing was an important occupation but due to loss of sea life this was a big loss for livelihood). iv. Drinking water being polluted. v. Encroachment on peoples land.

vi. Economic prosperity was not being shared to the community. c. Problems faced by community leaders: i. Suppression faced by government using military force. ii. Inadequate compensation being paid for taking over the land ($4 leasing for 100 years). iii. Lack of transparency on important issues. iv. No support from International community such as UNO. d. External observers point of view: i. Human rights violation ii. Environmental degradation w.r.t. whole community Sustainability issues. iii. Rise of oil theft giving rise to Oil mafia. iv. Racial Discrimination v. Disruption has spoilt the business environment.