5.3 Legal Environment:
Sets of laws, rules, regulations, policies that control and affect the organization and its operations make the legal environment of a business. The legal environment influences all organizations either adversely or favorably.
There have been a number of lawsuits filed at Shell by members of group inNigeria. The most notable was the one filed in 1996 by members of a group inNigeriadue to environmental damage and negligence on the part of Shell. Although it was settled, Shell has had to face a number of criticisms by environmentalists and by the local community activists who wantNigeriaoil wealth to flow in the poverty stricken country. Shell has been trying to improve its image in the country. Their environmental reports started in 1997 are part of the effort to have a better image in the global world as well. The Guardian, (2010)
The global community is coming under increasing weight to pay for the re-establishment of damaged environments at the same time it is being asked to solve other major concerns as well. Every business is now held responsible for its environment and has to account to the community about the justifications of its actions.