AN APPRASIAL OF CORPORATE SOCIAL RESPONSIBILITY OF OIL AND GAS INDUSTRY IN NIGER DELTA FOR SUSTAINABLE DEVELOPMENT

ABSTRACT

This study appraised the corporate social responsibility of multinational oil companies (MNOCs) to social economic problems in Niger Delta Nigeria with the following specific objectives sought to: (i) determine the extent to which MNOCs provide jobs opportunity for graduates from oil host communities, (ii) ascertain the extent to which oil MNOCs provide job opportunities for unskilled workers in oil host communities, (iii) ascertain the extent MNOCs empower household through the award of scholarship to their children and (iv) determine the extent the MNOCs contribute toward community development of oil host communities. The study had a population size 3,803129 out of which a sample size of 1901 was realised using William kelinger formula of 5% error tolerance and 95 level of confidence. The method used for the collection of data was questionnaire. Out of 1901 copies questionnaire that were distributed, 1,775 copies were returned while 126 copies were not returned. Cross-sectional quantitative research design was adopted for the study. The hypotheses were tested using correlation coefficient. The findings indicate that MNOCs to a large extent contributed to the provision of employment to university graduates from their host community (R = 0.816, f= 3526-223, t=59.382, p<0.05), MNOCs to a large extent contributed to the provision of employment to unskilled workers in their host communities as a give back strategies (r. = 0.893, f= 7017-812, t= 83 -772, p<0.05), MNOCs to a large extent contributed to household empowerment through the award of scholarships (r. = 0.852, f= 4707.438, t=68.611, p<0.05) and MNOCs to a large extent contributed to community development through the provision of some basic infrastructures (r. = 0.853, f= 4721.904, t= 68.716, p < 0.05). the study found that MNOCs to a large extent perform their corporate social responsibility which also confirm their integrity concept but such community assistance programmes has not really enhance sustainable development of oil host communities due to the danger from the persistent gas flare and oil spillage from exploratory activities of multinational oil companies in host communities hence the need to shift their corporate social responsibility from community assistance to community development and environmental sustainability by ensuring that the activity line is merged sustainable measures. Also, it is corporate social responsibility of Government to ensure that multinational oil companies adhere to sustainable measures in their activity line even as they perform their corporate responsibility in host communities hence it will be accounted to her as failure.

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF STUDY

Human development in almost all countries in Sub Saharan Africa has been so low since several years (Eyong 2006). Human development index as comparative measure of life expectancy, literacy, education, standards of living and quality of life child welfare of countries worldwide (mahbub ul Haq and Amartya Sen 1990) since 2010 adopted new methodology in categorizing human development of different countries into very high human development, high human development, medium human development and low human development. Most of sub Africa countries are categorised under low human development. As at 2013 report index on human development published in July 2014, the highest index for sub Africa countries was 0.540. Nigeria stood at 0.504(World Map 2014).

Pitiably, most of these countries are richly endowed with mineral resources and several other natural resources which are tradable across the continent and the world over but they largely depend on foreign companies for their exploitation and transformation of which Nigeria is not an exemption. Nigeria highly depend on transnational and multinational companies like Shell, Chevron Texaco, Mobil, Total, Elf, etc for the exploration of her richly endowed crude oil in the Niger Delta region.

Exploration of crude oil in Niger Delta region of Nigeria has indeed made huge contribution to government revenue (Ayuba 2012). The region oil accounts for 90% of the nation’s export earnings but still in spite of this generated wealth from the exploration of oil, the region has remained the least developed region of the country both in physical and socio-economic terms. Due to oil pollution the area is now characterized by contaminated streams and rivers, forest destruction and biodiversity loss, in general the area is an ecological wasteland. This affects the livelihood of the indigenous people who depend on the ecosystem services for survival leading to increased poverty and displacement of people.

The fact that oil industries have contributed to the growth and development of the country can not be denied (Ayuba 2012) but its unsustainable exploration activities has rendered the area inhabitable. Its state of under-development, poverty, marginalization and oppression forms the root of the problems and conflict in the Niger Delta (Kemedi, 2003) and so the people of Niger Delta see the government and multinational companies as the bone of contention in this context due to their perceived ethical inconsistencies towards alleviating the numerous problems of the host communities in disregard to the massive contribution of the region oil to government revenue.

The corporate response of the multinational oil corporations to the socio economic problems in Nigeria and Niger Delta, are properly explained through two major concepts, which are micro and macro corporate social responsibility (Onweazu 2012).. The macro strategy is the sudden and steep rises in revenue for extractive industries for the host country and society (Skjaerseth et al., 2004) the effect of this responsibility in developing country is increase in capital flight, human rights controversies and lack of democratic progress while the micro strategy encompasses the immediate effects of the intervention programmes of the multinational oil corporations on the local communities and these include employment of the host community members in their corporations and provision of basic infrastructural facilities in their areas of operations to improve their living condition. Corporate social responsibility does not only enhance community development but also the reputation of Oil Company.

1.2 Statement of the Problem

In the Niger Delta, the source of livelihood is fishing and farming which is highly dependent on the environment. Therefore, the people see environmental degradation as a threat to their livelihood and so the intense protest against oil activities (UNDP, 2002). The protest by Ijaw and Itshkiri women as against Chevron (INDY Media 2002), (Okpowe and Adebayo 2002) described the women as angry lions that vowed to strip themselves naked if Chevron refuse to vacate the premises due to lack of employment....

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Item Type: Project Material  |  Attribute: 83 pages  |  Chapters: 1-5

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