INDIGENOUS ASSIGNMENT

Sujay Kaippilly Shibu (2243282)

University Canada West

Business Environment, Ethics & Strategy – BUSI 601

Prof. Eslam Al Hogaraty

October 26, 2023

Report: Royal Dutch Shell and Indigenous Communities in Canada - Ethical, Sustainable,

and Socially Responsible Business Practices

Executive Summary

The research presented here delves into the complicated relationships between corporate social

responsibility (CSR), sustainability, and business ethics relating to Royal Dutch Shell and

Canada's indigenous communities. It examines how Shell has interacted with indigenous people,

moral problems that have come up, corporate social responsibility programs, the effects on the

environment, and sustainability projects. It offers suggestions for enhancing this connection and

advancing moral, ecological, and socially conscious business practices for companies,

legislators, and indigenous people.

Introduction

Shell has been involved in the extraction of tar sands in Canada. This has alarmed the

Athabasca Chipewyan Indigenous Peoples. These groups have voiced concern about how it

affects the environment of their ancestral homeland and way of life. How multinational

businesses engage with indigenous people is a global issue, and Royal Dutch Shell's operations

in Canada illustrate this well. The cultural legacy and relationship to the land of Canada's

indigenous tribes are extensive and have frequently collided with efforts to exploit resources.

The management of these relationships may have significant effects on the environment, society,

and ethics.
Historical Context

1. Colonial History: Native American settlements in Canada influenced colonial history. The

arrival of European settlers and the establishment of the Canadian state disrupted Indigenous

ways of life and sovereignty.

2. Land Rights and Historical Treaties: Indigenous communities require assistance from the

Canadian government in resolving historical land claims and treaties. There is resource

exploitation and land ownership as a result of a lack of attention to land rights and treaties.

3. Residential Schools: Throughout Canada's history, children have been forcibly taken from

their families and indigenous communities. The long-term consequences of this system continue

to affect Indigenous populations.

Social Context:

1. Diversity: Canada has its own culture, language, and customs.

2. Difficulties: there is limited access to education and healthcare, and high unemployment and

poverty rates experienced by Indigenous populations.

3. Cultural Importance: Indigenous peoples highly cherish the land and its natural resources.

Hunting, fishing, and gathering are all strongly associated with nature and are among their most

primordial habits.

Economic Context

1. Resource exploitation: Resource exploitation causes tensions and disputes. Canada is known

for its abundant natural resources, which include oil, gas, minerals, and forests. Indigenous
domains frequently intersect with resource-rich locations, resulting in tensions and disputes over

resource exploitation.

2. Economic Development: Resource development can provide economic prospects for some

indigenous populations, such as jobs and revenue-sharing agreements. However, the advantages

are not always evenly dispersed, and the long-term environmental impact might be negative.

Key Issues at Stake

1. Environmental Consequences: One of the significant issues is the development of oil sands,

which may destroy natural ecosystems, taint water supplies, and release greenhouse gases.

Additionally, these acts can jeopardize traditional lifestyle practices, including fishing, hunting,

and collecting.

2. Land Ownership and Autonomy: Many people complain that the Canadian government and

businesses like Shell do not acknowledge their land ownership and self-governance. Land

claims, treaties, and title disputes are continuous sources of contention.

3. Public health of groups: degradation of the environment, limited access to clean water, and

disturbances all threaten indigenous groups' health and well-being.

Engagement with Indigenous Communities

Shell has interacted with Canadian indigenous communities through a number of channels,

including revenue-sharing plans, impact benefit agreements, and consultation procedures. These

interactions may be advantageous, but there are drawbacks as well.

• Quality of Engagement: Native American organizations have said that conflicts over resource

development initiatives arise because their opinions are not always sufficiently valued or heard.

• Free, Prior, and Informed Consent (FPIC): Relating to indigenous people's claims to the

ability to grant or refuse permission for initiatives that impact their lands and way of life, FPIC

has been a major ethical problem.

Ethical Dilemmas

Considering Shell's operations in indigenous territory, a number of ethical problems have

emerged:

• Informed approval: Indigenous groups have asserted their right to full disclosure and

the ability to give or withdraw approval for resource initiatives, making informed consent

a major issue in these quandaries. It is still very difficult to combine environmental

preservation and economic growth while upholding these rights ethically.

• Environmental Impact: Shell's operations impact the environment, especially when it

comes to the development of oil sands, which has raised ethical questions. The ecosystem

may be harmed, and indigenous groups' customs may be disturbed by the destruction of

habitat, water contamination, and greenhouse gas emissions.

CSR Initiatives

Shell has launched a number of corporate social responsibility initiatives aimed at promoting

employment, education, and community development for Native Americans:

• Community Development: Economize on resource mobilization and utilization. By doing so,

the industry generates income in society and raises living conditions (ISMAIL, 2009). Through

job openings, scholarships, and capacity-building projects, Shell hopes to give some members of

the community short-term advantages.

• Effectiveness: Although these CSR programs have some advantages, it's possible that they

won't adequately address the environmental issues of indigenous populations or the larger

systemic problems. In order to better meet the particular requirements and standards of

indigenous people, it is necessary to broaden and modify CSR initiatives.

Impact on the Environment and Indigenous Culture

The environmental and cultural impact of Shell's activities in indigenous territories is a pressing

concern:

• Impact on the Environment: Shell's resource extraction operations, which include the

development of oil sands, have destroyed ecosystems, water contamination, and release of

greenhouse gases. These factors significantly affect the environment and the customs that

indigenous communities rely on, like hunting, fishing, and gathering (Earth Matters, n.d.).

• Cultural Impact: These operations can potentially destroy cultural heritage sites, upend long-

standing customs, and jeopardize the survival of indigenous cultures. For indigenous groups,

safeguarding holy sites and preserving cultural traditions are crucial.

Sustainability Initiatives
Shell has made an agreement to promote operational sustainability and lessen its carbon

footprint. These programs, meanwhile, don't always reflect the needs and ideals of the

indigenous people:

• Environmental Stewardship: More efficient use of materials could play a key role in

achieving multiple environmental and economic benefits (Worrell et al., 2016). Lowering carbon

emissions and boosting energy efficiency are only two of Shell's larger environmental objectives.

Although these programs support worldwide efforts to promote sustainability, they may fall short

in addressing the unique issues faced by indigenous people.

• Connection with Indigenous Values: A more inclusive strategy is needed to enhance the

connection between sustainability activities and indigenous needs and values. Indigenous groups

should be included in this strategy's development of environmentally and culturally sensitive

sustainable practices. Managers should choose to publish information regarding their intellectual,

social, and environmental performance voluntarily, in addition to the statutory standards

(Schneider, 2012).

Recommendations

For Businesses, including Royal Dutch Shell:

1. Improved Involvement: Give top priority to open, substantive communication with

indigenous people, honoring their right to free, prior, and informed consent (FPIC) and

incorporating them in the process of making decisions.

 2. Environmental Responsibility: To limit the ecological impact of corporate operations,

develop and execute comprehensive environmental protection measures, such as reducing

greenhouse gas emissions, and carrying out in-depth environmental impact assessments.

3. Respect for Culture: Acknowledge and honor indigenous communities' rich cultural

legacy and work with them to protect and maintain their customs and beliefs.

4. Fair Economic Benefits: Make sure that resource development initiatives give

indigenous populations long-term, fair financial advantages, such as work prospects,

revenue-sharing plans, and assistance for nearby companies.

5. CSR Programs: Examine and modify CSR activities, such as those pertaining to social

welfare, health, and education, to better meet the unique requirements and values of

indigenous populations.

For Policymakers:

1. Law and Regulation: Create and implement laws and rules that safeguard the rights and

welfare of native American tribes and make sure companies operate in a morally and

ecologically conscious manner. It is argued that CSR functions as informal law and that

essential principles of law are part of a general set of values that guide much action on

CSR (Buhmann, 2006).

2. Effective engagement: In all pertinent policies and permitting procedures, clearly define

the parameters for genuine engagement with indigenous populations while respecting the

principle of free, prior, and informed consent (FPIC).

 3. Environmental Safeguards: To safeguard the environment in indigenous areas, tighten

environmental laws and oversight. Make sure companies carry out comprehensive

environmental impact studies and follow stringent environmental guidelines.

4. Cultural Preservation: Advocate for laws that protect native customs, languages, and

traditions. Acknowledge and safeguard the indigenous communities' cultural legacy.

5. Economic Empowerment: Encourage programs that strengthen the economic clout of

indigenous communities, such as entrepreneurial support, employment training, and

capacity-building.

For Indigenous Communities:

1. Unity and Representation: To guarantee a unified voice and negotiation strength, seek unity

and strong representation when interacting with corporations and lawmakers.

2. Capacity-Building: Fund initiatives aimed at enhancing community knowledge and abilities

to promote greater involvement in talks and decision-making.

3. Legal Support: To safeguard and preserve your rights during talks with companies and

governmental bodies, get legal advice and assistance.

4. Cultural Preservation: Make a concerted effort to maintain and transmit customs,

knowledge, and languages to next generations, stressing the significance of these elements to

culture.
5. Community Empowerment: Look at options for economic diversification, such as

ecotourism or sustainable agriculture, that encourage self-sufficiency and lessen reliance on

resource extraction.

Conclusion

Royal Dutch Shell has a complex connection with Canadian indigenous communities that

involves various aspects of business ethics, corporate social responsibility, and sustainability. It

is important to consider these groups' particular requirements and beliefs. At the heart of these

relationships are moral difficulties, the effects on the environment, and cultural preservation. It is

feasible to create a future that supports moral, ecological, and socially conscious commercial

practices in indigenous lands by implementing the suggestions made in this research. This will

strengthen more fair and mutually beneficial connections between all parties concerned.
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