The Transformation Of Shell

4 Pages 980 Words

The Transformation of Shell
In the 1990’s, international environmentalists, human rights activists, and shareholder campaigns all asking for change bombarded Shell Oil Company. Shell was in the midst of dramatically changing in hopes to “become an organization in which financial, social, and environmental performance are equally valued and fully integrated”.1 A product organizational structure was introduced in 1995 to replace the matrix structure that had been used since the 1950’s. The restructuring and external pressures on the company led to the implementation of some initiatives that tried to improve Shell’s social and environmental performance. These initiatives included: a report titled Society’s Changing Expectations, and changes to business practices, reporting practices, and stakeholder relations. Even with all these changes, Shell’s reputation is worse than it has ever been. The SEC is investigating the over reporting of 3.9 billion barrels of oil in the reserves, and the CFO, Judith Boynton has resigned.2 I believe Shell’s changes were just intended to influence the public’s perception of the company.
There were three incidences in the mid 1990’s that led to negative publicity for Shell. Greenpeace was the largest environmental organization and opposed Shell’s disposal plans of a large oil storage and loading buoy called Brent Spar. The large platform was going to be sunk in the ocean, after local officers removed Greenpeace activists that had stationed themselves aboard to protest.1 With all the press coverage, Shell revised their plan and decided to recycle the buoy into a Ro/Ro ferry in Norway. The Body Shop International, the Sierra Club and Friends of the Earth were also teaming up to spread negative advertising protesting Shell. These organizations were outraged that Shell would not take responsibility for their oil spills on the Ogoni land in Nigeria, which Shell has been drilling ...