Multinational Corporations and Corporate Social Responsibility: An Investigation of Shell and its Relationship with Host Communities in Nigeria (original) (raw)
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Africa has become increasingly attractive to foreign investors, but the establishment of operations in emerging markets poses challenges for multinationals. One such challenge is implementing of corporate social responsibility (CSR) effectively across all subsidiaries. This study aims to determine whether there are differences in CSR expectations and praxis between a multinational bank and its subsidiary operating in South Africa. Through qualitative research methods, a case study research design approach was utilized to study CSR activities in the parent company and CSR activities in its South African subsidiary. Data collected from ten interviews are analyzed using open, axial and selective coding procedures. The study concludes that there are nuanced gaps in CSR expectations, and between the parent company and its South African subsidiary. Global CSR strategies may be applied consistently across subsidiaries, but they do not necessarily address core issues faced in emerging economies, placing doubts upon the practicality of these efforts.
This research evaluates the concept of corporate social responsibility as a strategy between host government and multinational oil and gas firms operating within the Niger Delta region. Due to the facts that most multinational oil and gas firms operating within the region has failed to attend to the social welfare of the indigenes within the region. This has led to underdevelopment despite producing a large volume of the natural resources within the country. The general exploitation and exploration from multinationals within the Niger Delta region has led to deforestation, poor climatic conditions due to gas flare and other activities from the oil and gas multinationals. The lack of imposing stiff penalties and also enforcing the multinationals to adhere to the global standard of operation has resulted in this unfortunate environmental conditions. The methods used in this research includes qualitative data analysis with both secondary and primary data collated though conducting surveys within the region and semi-structured interviews with two personnel’s currently working with the multinationals operating in the region. Respondents from the survey were collated within the nine Niger Delta geopolitical states to acquire different views and also extrapolate this views to the general public within the region. From the survey conducted, the strategies used in implementing CSR in the region are not effective and this strategies need to be modified. Most respondent are concerned with sustaining their environment and the issue of environmental sustainability should be paramount to the multinational firms within the region. With the right strategy in place, the host community can work harmoniously with the foreign multinationals operating in the region.
IOSR Journal of Environmental Science, Toxicology and Food Technology, 2017
This research is an attempt at finding the institutional trajectories of Royal Dutch Shell operations concerning the question of Corporate Social Responsibility/Social Investment (CSR/SI) strategies in two different environments i.e. The United States and Nigeria. In the quest to ascertain these facts and variables, the question of adequacy of this responsibility and the policy framework of Royal Dutch Shell has become a subject of concern being that issues of corporate strategies towards different states and communities around the globe has raised questions of disparate arrangements, approaches and attitudes.A perusal of various literature and reports, including the Social Investment Disclosure in the sustainability report of the Royal Dutch Shell (2012), as well as economic indices and demographic data suggest how the question of CSR is a field amass with facts and figures about how differently global conglomerates approach their corporate responsibility toward host communities. The subject of CSR/SI strategies as contained in the analysis of the sustainability report of the Royal Dutch Shell (2012) states that in Nigeria. Yet, the Key Performance Indicators (KPI) reveals some level of inadequacy of the company's Social Investment (SI) programmes in Nigeria as compared to the United State.), and the "Lack of Goodwill" Indicators designed by IPIECA (2008), bring to the fore the demographic and socioeconomic indices of the two environments, which give an insight into issues that include ethical considerations and limitations. Most of the thematic issues show that the Royal Dutch Shell has in place diverse social and voluntary investments programs.
2020
Thematic Exploration of Corporate Social Responsibility (CSR) Issues: Origins, Twists and Turns, and Evidence from Nigeria's Oil and Gas Industry 1. Introduction Corporate social responsibility (CSR) as a development policy and strategy intervention concept has historically and increasingly gained currency in global recognition and acceptability for a very long time in policies, academia and business world. The origins and emergence of CSRare shrouded in socioeconomic , cultural and environmental explanatory controversy among the proponents of the concept. However efforts have been made in this paper to capture and integrate some global historical perceptions and literature on CSR origins and evolution. Due to its dynamic nature and various conceptualizations in different business operating environments and society, varying definitions of the concept have evolved in literature. In the process of examining the development of CSR since the inception, related paradigm shifts phases modellings, different views, twists and turns are emerging and some lessons learned to that effect. In addition, different schools of thoughts on CSR have emerged, as well as the reconciliations of views and evaluations of corporate performances in the arena of private and public business operating environments and society at large. As a result of rapid global industrialization, many corporate organizations have witnessed unprecedented socioeconomic growth and development, as well as environmental degradations, which have necessitated the drive and urgent need for the business organizations to be proactive, responsible and positively impact on the lives of their host communities'/members and society. These CSR mainstream needs are suggested to be the panacea to sustainable environment development of the respective concerned communities and society. Corporate organizations have used CRS to attract various conceptual strategic approaches in order to ameliorate the resultant environmental degradations to suit the relevant needs of the work communities concerned and society, as well as achieving the social, economic and environmental imperatives balance. In practice and relation to the view of Chikwe (2012), CSR is a set of standards by which organizations can positively impact their operating environment with the innovation potential and creating sustainable economic growth and developments. The CSR conceptualization motives are products of the prevailing socio-cultural, economic and political priorities of the company-host communities' relationships, and realities. In some cases also, available relevant evidences suggest that until recently, the evolution, adoption and development of CSR policies and strategies within Nigeria's oil and gas industry in specific, were a calculated defensive strategy adopted by the multinational companies (MNCS) to help reduce costs of operation, mitigate and minimize reputation damaged resulting from frequent community strife (ldemudia and lte, 2006; Chikwe, 2012, Chikwe and Zeb-Obipi, 2017). To ameliorate this ugly situation in Nigeria, a strategy of Corporate-Community Relations (CSR) in Nigeria's oil and gas industry was crafted, and this became an integral part of CSR umbrella initiative in the oil and gas producing region of Nigeria.
Journal of Marketing and Consumer Research, 2018
The study examined effects of corporate social responsibility of multinational oil companies on riverine communities in Rivers State of Nigeria. In line with the objective of the study, three null hypotheses were formulated to guide the research. The theoretical framework was based on the sustainable development framework endorsed by the World Business Council. The study adopted descriptive survey research design. The population size was based on the National population commission, 2007 of Rivers State, which cut across the eighteen (18) Local Government Areas. A sample size of 400 people was obtained using Topman's formula for an infinite population. A purposive random sampling technique was further used to distribute the sample size across the five study centre selected. A self-constructed questionnaire instrument of five point likert scale was used in data collection. Frequency, percentages, bar and pie charts were used in analyzing both the demographic data of the respondents and to answer research questions, while Kendall tau_b was implored in testing the three hypotheses formulated. All the null hypotheses formulated were rejected. The research therefore revealed that: Shell host communities in riverine areas of Rivers State can only attest to less that 30 percent of their expectation from Shell in the area of electricity provision, they also acknowledged that shell has not done much in providing portable drinking water, constructing feeder roads for their communities and Shell has not provided adequate health facilities which had affected the health standard of the communities. It was concluded that, Shell does not involve the communities in the planning and implementation of CSRs, and that the communities have no sense of belonging as some of the CSRs shell may have embarked on are not touching their felt needs. It was therefore recommended amongst others that, multinational oil companies should recognize their responsibilities, their host communities' expectations and develop partnership as a preferred model for their communities' development activities for peaceful coexistence .
International Journal of Applied Research in Social Sciences
Over time, there has been a strained relationship between the residents of the Niger Delta region of Nigeria and the Shell Petroleum Development Company (SPDC) due to the perceived inadequate implementation of Corporate Social Responsibility (CSR) initiatives by SPDC. SPDC, however, maintains that they are merely a company and cannot take on the role of the government in the development of the region. The aim of this study was to gain an understanding of the current perception of CSR among residents of the Niger Delta in Nigeria. It was anchored on Stakeholder theory. A secondary research was conducted to explore previous views and evolution of CSR, but it only provided insight into the concept without any conclusion. As a result, a primary research was carried out using an ethnographic qualitative method in eight oil-producing communities in Delta state, where the inhabitants were reluctant to disclose information to strangers. The findings revealed that while the residents had a f...
2020
This study interrogates the effectiveness of social and economic (philanthropic) aspects of CSR activities in addressing the issues of the Niger Delta region of Nigeria. It also explores the attitude of the multinational oil companies (MNOCs) towards the environmental protection and preservation activities in the Niger Delta region. To succeed in its aim, the dissertation employs a quantitative research method and draws on a non-probability convenience sampling approach. Its analysis is based on 80 responses from the various stakeholders with a response rate of 80%. The study shows that MNOCs' CSR efforts were mainly philanthropic activities with no bearing to redressing the environmental degradation in the region. The findings also indicate that those CSR efforts were at divergent with the aspirations of the host communities and failed to satisfy their expectations. The dissertation reveals that MNOCs environmental activities are confined within the legal limits and failed to go beyond them.
ABSTRACT This thesis seeks to investigate the nature of corporate social responsibility programmes carried out by oil companies in the Niger Delta Region of Nigeria to demonstrate their social commitment to sustainable development. First, an analysis is conducted using the Content Analysis methodology to determine how oil companies, with particular emphasis on Shell and Chevron, have applied their CSR policies towards achieving sustainable development. The results of the findings suggest that oil companies operating in the Niger Delta Region continue to fail to match their words with action vis-à-vis sustainability. Many of the companies report taking active steps to protect the environment and promote human rights but problems still persists even when progress is being made. In addition, this study finds that other dimensions such as community participation and building trust are just as essential ingredients as the willingness of those oil firms to pursue sustainable development agendas. Also, other findings suggest a paradigm shift from the classical means of investment in local communities through direct funding from those companies to the local communities in which they operate. Rather than developing direct projects, firms like Chevron now partner with organizations and government agencies such as USAID to render specialized access to the needs of their hosts. Corruption, ethnicity and conflicts in the Niger Delta constitute serious barriers to sustainable development. The study concludes that, government; the oil companies and the indigenous people must collaborate and expedite commitments for a development to be sustained in the region.
A well-known fact about the Nigerian Niger Delta region is incessant conflicts between the oil transnational corporations (Oil TNCs) and the oil producing communities. This could be attributed to the fact that the activities of Oil TNCs have continued to unleash untold devastation on the environment of the oil producing communities and its consequences on the local economy and by extension the total obliteration of the livelihood of the inhabitants of the area. Therefore, the Oil TNCs are increasingly becoming conscious of their devastating impact on the ecology of the area and their blatant disregard for the socio-economic development of the host communities. Consequently, the Oil TNCs have come to embrace the idea of executing Corporate Social Responsibility (CSR) projects as a vehicle to intervene meaningfully in order to mitigate the adverse effect of their operations in host communities. This paper attempts a review and analysis of CSR practices of the two major Oil TNCs in Bayelsa State: Shell and Agip in six host communities: Olugboboro, Olugbobiri, Ikebiri 1, Oporoma, Angiama, and Peremabiri in Southern Ijaw local government area. The key question explored in this study is: Has the practice of CSR in the Nigerian Niger Delta region by Oil TNCs brought about socio-economic development and drastic reduction in conflict between the host communities and the Oil TNCs? The paper argues that CSR projects of transnational oil corporations in Nigeria are driven by short-term expediency rather than the long term development needs of host communities through the provision of poor quality social amenities to these communities in order to secure social license to operate. For transnational oil corporations to make positive impact in the Nigerian Niger Delta Region, their CSR projects should be long tern in nature, taking into consideration the sustainable development needs of the local communities. The CSR projects should be in the form of high quality social amenities and environmental rehabilitation and protection, which could serve the needs of the present and future generations.
2016
The purpose of this paper is to draw attention to the ever alarming constraints and challenges faced due to oil extraction in the Niger Delta region of Nigeria. The Niger Delta is one of the poorest regions in Nigeria due to underdevelopment and the nonchalant attitude on the part of the government to make provision for economic and infrastructural development in the region. The paper argues that while the Corporate Social Responsibility (CSR) of oil Multinational Corporations (MNCs) has not reached its full capacity, government on the other hand, not only lack the intellectual ?know-how? of tackling the operations and activities of the oil MNCs, but also refrains from rendering suitable solutions to restiveness in the region. Under-development in the region is tilted from the part of the oil MNCs? push for exploitative susceptibilities which has invariably led to environmental degradation, poverty, displacement, and a high level of restiveness. Also the issue of excruciating povert...