5.2 Political Environment:
The political environment includes the government attitude and policies towards the business firm and unionism. Government stability is an important factor that has major affect on the business and its regulations. It acts as a signal of strength and confidence to investors and other interest parties. In the same way, labor unions have a huge impact on the organization. Strikes, lockouts, and labor clashes all can have a huge affect on routine business operations.
When operating in countries that are politically sensitive, challenges often occur related to human rights, environmental issues and security concerns. Other issues like bribery and corruption can also occur.
Shell has also suffered security concerns in strife stricken countries likeNigeria. Shell uses security manuals to keep employees and its facilities safe and armed security only in areas of particular concern.
Sanctions imposed by the international community on a particular region, usually due to wars or abuses of human rights are also abided by Shell. As in the case of Shell not having any business operations inIraqbecause of sanctions imposed by the UN.
Shell also reviews its actions and activities when specific export restrictions are imposed in a country and conducts business with the close follow up and consultation of governments and others.