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A case study of shell at Sakhalin: having a whale of a time?

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  • Subhasis Ray

Abstract

This is a case study on the world's largest oil and gas project, at the Sakhalin Islands, Russia. Shell is the key promoter of this project. The case highlights the sustainability challenges that Shell faced when working on the mega‐project. By their very nature, all such projects involve disruptions in the environmental and social fabric of the project site. NGOs often take up these issues and create international headlines, bringing pressure on the management team. The Russian government also changed its stand over a period of time. While many of these issues are valid in their own way, they often create managerial dilemmas. Traditional management approaches to community development and environmental conservation fell short of stakeholder expectations at Sakhalin. The issue of saving around 100 endangered whales put a cloud of doubt over this $20 billion project. The case highlights strategic issues involved in crafting sustainability strategies at mega‐projects, possible pitfalls and the challenge of balancing project execution and stakeholder commitments against an unstable political backdrop. As Shell plans to start many exploration projects in bio‐diversity rich parts of the world, the Sakhalin project acts as a pilot to and reminder of social responsibility challenges to big multi‐nationals. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Subhasis Ray, 2008. "A case study of shell at Sakhalin: having a whale of a time?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(3), pages 173-185, May.
    • Handle: RePEc:wly:corsem:v:15:y:2008:i:3:p:173-185
    DOI: 10.1002/csr.170
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    Cited by:

    1. Jiwon Yang & Jay Hyuk Rhee, 2020. "CSR disclosure against boycotts: evidence from Korea," Asian Business & Management, Palgrave Macmillan, vol. 19(3), pages 311-343, July.
    2. John Dinwoodie & Sarah Tuck & Harriet Knowles & James Benhin & Mark Sansom, 2012. "Sustainable Development of Maritime Operations in Ports," Business Strategy and the Environment, Wiley Blackwell, vol. 21(2), pages 111-126, February.
    3. Scott Victor Valentine, 2010. "The Green Onion: a corporate environmental strategy framework," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(5), pages 284-298, September.
    4. Peter Rodgers & Peter Stokes & Shlomo Tarba & Zaheer Khan, 2019. "The Role of Non-market Strategies in Establishing Legitimacy: The Case of Service MNEs in Emerging Economies," Management International Review, Springer, vol. 59(4), pages 515-540, August.
    5. Jo Crotty & Peter Rodgers, 2012. "Sustainable Development in the Russia Federation: The Limits of Greening within Industrial Firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(3), pages 178-190, May.
    6. Peter Dobers & Minna Halme, 2009. "Corporate social responsibility and developing countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(5), pages 237-249, September.
    7. Sebastian Eisenbach & Dirk Schiereck & Julian Trillig & Paschen von Flotow, 2014. "Sustainable Project Finance, the Adoption of the Equator Principles and Shareholder Value Effects," Business Strategy and the Environment, Wiley Blackwell, vol. 23(6), pages 375-394, September.

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