CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility



Table of Contents

Chapter One: Introduction2

Introduction2

Study Background5

Case Study: Ogoni in Nigeria7

Importance of CSR9

Chapter Two: Literature Review14

The Niger Delta14

Host Companies and Foreign Companies Relationship18

MOCs CSR Initiatives in the Niger Delta19

Unethical Behavior of MNE's26

Chapter Three: Methodology30

Chapter Four: Discussion and Findings32

The Unrest in the Niger Delta32

Trust and Discontent Issue33

Chapter Five: Conclusion37

Conclusion37

Conclusion of Findings38

Recommendation of Research Work40

References42

Appendix49

Chapter One: Introduction

Introduction

There have been increasing demands on multinational enterprises (MNEs) to provide community development programmes and assistance to their host communities, in particular, in developing countries (Amaewhule, 1997). In other words, meeting locally defined social and economic goals. This is mainly because developmental projects and other social infrastructures are lacking in most of these countries and most of the time they are not provided by the government. For example, oil companies, particularly, those operating in developing countries are now constantly under pressure to be more open and accountable for a wide range of actions, and to report publicly on their performance in the social and environmental arenas. And because of their impact on politics, economics and society in host nations, they must be more attentive than others in demonstrating social responsibility through initiatives to reduce their negative impact (Warhurst and Mitchell, 2000). It has been argued that MNEs need to take account of the “social, ethical and environmental perceptions” of their operations and how these are likely to shape the future attitudes and actions of stakeholders (Zadek, 1998). Following this argument, Frynas (2005) asserts that oil companies attach greater importance to their social and environmental impact and they engage more with local communities than they used to do in the past. Various community and environmental initiatives may be seen as a response to the threat of stakeholder sanctions. Yet the cries of unethical and immoral behaviour from host communities and nations have continued to grow louder in recent times (Eweje, 2001, 2006). The clamour has led many MNEs to engage in purposeful soul searching to find a deeper and more convincing approach to ethical systems (Payne et al., 1997).

Furthermore, MNEs alleged double standard, corporate scandals, decline in economic and social development in host communities due to neglect and lack of development initiatives from host governments, has fanned the world-wide debate about the social responsibility of corporations. According to Frooman (1997), stakeholders increasingly are looking to the private sector for help with a myriad of complex and pressing social and economic issues. Similarly, it has been argued that it is good business to actively engage all stakeholders in the development of sustainable strategies that reflect both economic and socially responsible outcomes (Maignan et al., 2005).

This discussion is based upon the development issues associated with multinational oil companies' (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the scepticism of host communities in the oil-producing Niger Delta of Nigeria. In other words, this paper will examine the rationale behind the criticism of MOCs' CSR projects, bearing in mind that, if well executed, these projects can improve the socio-economic-environment development of the ...