ABSTRACT
Corporate
Social Responsibility (CSR) involves giving back to the community where a
business organisation operates. CSR is not supposed to be an occasional
activity but a strategy that should be integrated into the overall operational
plan of companies, especially those involved in oil exploration in the Niger
Delta region of Nigeria. Uncoordinated or misdirected CSR has often led to
conflicts between oil companies and their host communities, resulting in
hostility, kidnapping and vandalisation of oil installations, which has
impacted negatively on the country’s economy. There is a dearth of literature
on the relevance of CSR to conflict management in Beneku, Ekakpramre and Kokori
communities of Delta state, Nigeria. Therefore, this study assessed Corporate Social
Responsibility (CSR) as a Conflict Management Strategy in Selected Oil
Producing Communities in Delta State, Nigeria.
Triangulation
research design that combined survey and indepth interview was adopted in this
study. The population of the study according
to the 2006 census figures comprised 148,341 members of Beneku, Ekakpamre and
Kokori communities in Delta State, Nigeria. Multi-stage sampling technique was
adopted to select a sample of 345 respondents for the survey. The composite
Crobach’s Alpha score for the questionnaire indicated an internal consistency
score of 0.797 meaning it had a high internal consistency. Representatives of
the communities and the oil companies were purposively chosen for the indepth
interviews. Data were collected using validated questionnaire and interview
guide. Quantitative data were analysed using frequency count, simple
percentages, charts and linear regression analysis. Qualitative data were analysed using content
analysis to report responses to the interviews.
Findings
of the study indicated that CSR had not improved the relationship between the
oil companies and the oil producing communities (Average Weighted Mean=1.98;
SD=0.94) and that CSR projects provided to the host communities were partially
adequate (Mean=1.89, SD=1.21). Respondents also indicated that CSR was a
moderately significant strategy for managing conflict in the oil producing
communities of Delta State (Mean=2.15, SD=1.24), rating the management of
crisis by oil companies in Delta Sate as moderately effective (Mean=1.70,
SD=1.00). Results also showed that the effectiveness of CSR as a conflict
management strategy in oil producing communities was low (Mean=1.85, SD=0.72)
because respondents believed mostly that CSR projects were provided by oil companies
after conflicts had started in the area (n=215, 63.6%). CSR was observed to
have a significant effect on conflict management in oil producing communities,
indicating a strong positive correlation coefficient and positive slope, which
are statistically significant (β=0.744; B=0.358; p<0.05) as assessed by a
t-test (T=20432).
The study concluded that there was no cordial
relationship between the oil producing companies and their host communities,
and CSR was not effectively handled as a conflict management strategy. The study recommended that oil companies
should consult stakeholders widely and be proactive in implementing CSR
projects in their host communities. The Federal government should also monitor
the activities of the oil companies and directly intervene in the development
of the area.
CHAPTER ONE
INTRODUCTION
1.1 Background
to the Study
All
nations in the world survive by one means or the other. Some rely on tourism
for survival, while others depend solely on agriculture. There are however some
that are fortunate enough to be blessed with mineral resources such as oil and
gas, which bring in a lot of revenue. At a time, Nigeria depended mainly on
agricultural products like groundnut, cocoa, palm produce and others to
survive. This was before the discovery of oil in 1956 at Olobiri in Rivers
State. Today, the main sources of revenue to the country are oil and gas. The
blessing also came with its attendant problems and these include environmental
degradation, damage of economic crops and fish ponds, pollution of sources of
drinking water and general hazards to the health of the people in the oil and
gas producing areas.
According
to Okoko and Nna (1998), oil and gas are the main energy sources in most
industrialized countries in the world today, and by all standards Nigeria’s
most economic resource, as it contributes about 90 percent of the country’s
revenue. The Niger Delta with
distribution of oil fields in the geo-political areas of Abia, Akwa-Ibom,
Bayelsa, Cross River, Delta, Imo, Ondo, and Rivers is the hub of the petroleum
industry in Nigeria. Before the advent of oil and gas activities in the area,
Niger Delta could boast of different agricultural and natural resources that
sustained the economic life of the people.
Whiteman (1982), observed that traditional medicine practice and
subsistence occupations were common among the people.
Things
have changed significantly, as the area has been engulfed in crisis of
instability due to protests carried out by communities in these oil producing
areas because of the influence of oil activities on the environment resulting
into degradation of the environment, poverty and lack of social development and
employment opportunities. Sometime in February and March 2001, the youths of
four of the host communities barricaded the access roads leadings to Mobil
Production Terminal, in Eket, Akwa-Ibom state in Nigeria. The youths’ reason
for the action was that they were being marginalized in the company’s
employment policies, contracts and services. The government, apart from the
activities of the youths had also mobilized its machinery – legislature, executive,
judiciary and the media against the company as reaction against degradation of
the environment and other unfavourable activities of the companies.
There
have also been protest over the years which cut across Okoloba to Ogidigben,
Ogbotobo to Bonny; Ogoni to Iko; Gbaran to Obagi, Umuechem to Peremabiri,
Egbema to Odegberi and other areas. All these are as a result of problems
associated with poor attitude to spill clean up, and unnecessary delay in
environmental impact assessment and non payment of compensation to the areas
that their environment are affected.
November 1990 for instance, witnessed the people of Umuechem community
in Rivers state demonstrating against environmental degradation by SPDC, the
oil company operating in the area that their operations affected the
environment. This led to the Soldier’s
invasion of the community in which a lot of people were killed and about
300 houses destroyed (NDND, 1991). The
people of Ogoni in Rivers State, between January, 1993 and March 1997 also
staged a series of protests against oil
exploration by SPDC in the area that have resulted to ‘stealing’ of natural
resources (Crude Oil) and the degradation of environment without adequate
compensation for the people.
The
reaction of the Federal government was spontaneous and soldiers invaded the
area and many Ogoni people were killed, so were foreigners of which some were
kidnapped for ransom and other measures inimical to the corporate existence of
Nigeria. The Ogoni’s boycotted the 1999
presidential election, operations of oil companies in the area stopped leading
to an unprecedented drop of the country’s earning from oil and the economic
loss was conservatively put at 7.2 billion dollars (Barinuwa, 1999; Human
Rights Watch, 2001; ICE case study, No
64, 1997).
In
the last two decades, there have been drastic changes in the relationship
between the private sector and other stakeholders. Therefore, one of the most important and
significant corporate trends of the last decade is the growth of Corporate
Social Responsibility (CSR). The concept of CSR is highly complex and
contentious among writers, scholars and practitioners due to lack of consensus
on the true meaning and contents of CSR practices (Carroll & Shabana, 2010;
Dahlsrud, 2008; Dobers & Halme 2009; Taneja, Taneja, & Gupta, 2011).
Although, the definitions of CSR vary from author to author, however, it
generally refers to serving people, communities and the environment in a way
that goes above and beyond what is legally required of a firm. CSR is a commitment
to improving community well-being through best business practices and
contributions of corporate resources (Kotler & Lee, 2005).
The
definition of this concept actually depends on how those who believe in it and
those who do not, see it. People see it from different perspectives. To those
that believe in it, it is the responsibility to plan and manage an
organization’s relationship with everybody involved in or affected by all its
activities in all its ramifications of operations. It is a beneficial social
investment and they believe that a socially responsible company is that, that
do not take actions that might be perceived as unreasonable, callous or
insensitive by the public. On the other
hand, those who do not believe in it, strongly argue that business cannot be
“responsible”, only people can have responsibilities. To them, it is a loss of accountability to
shareholders who have invested their hard earned resources to make profit. (Ogbemi, 2015). The truth is that profit
making should not be at the expense of the public. Profit making should be fair
and human.
The
concept of CSR is concerned with critical issues that concerns environmental
policies and actions. Its main business is about organizations
giving back to societies where they make profit. According to Zadek (2000) organizations take
part in it not only to attract good image but also to bring in stakeholders
into the main stream of the business.
CSR usually encourages mutual understanding between organizations and
the communities where they operate. (Keinert, 2008; Matten & Moon, 2008;
Monowar & Humphrey, 2013). In this contemporary times, the practice of
Corporate Social Responsibility is now an important part of business
organizations which encourages a lot of gains in the future. (Brik, Rettah & Mellahi, 2010; Carroll
& Shabana, 2010; Halme & Laurila, 2009; Kemper, Schilke, Reimann, Wang
& Brettel, 2013; Monowar & Humphrey, 2013; Porter & Kramer, 2006;
Rodriguez; Melo & Mansouri, 2011). Its importance has also come to the fore
as most companies and organisations have now come to embrace the concept.
Kurucz,
Colbert, and Wheeler (2008) listed and categorized the organization being
involved in CSR as follows. These are cost and risk reduction, gaining
competitive advantage; developing
reputation and legitimacy; and seeking win-win outcomes through synergistic
value creation. In contrast to what Kurucz, Colbert, and Wheeler (2008) did,
Carroll (1991) developed a model that consists of four other kinds of social
responsibilities namely: economic, legal, ethical, and philanthropic.
Similarly, other dimensions of CSR activities include: Profit Concerns - Economic Responsibility,
Legal Concerns - Legal Responsibility, Ethical Concerns - Ethical
Responsibility and Voluntary action Concerns - Philanthropic Responsibility
(Olajide, 2014).
Corporate
Social Responsibility as a concept is closely associated with corporate
governance because they are both concerned with the corporate image of the
organization and its portrayal as a good corporate citizen. Corporate
governance can be described as the stewardship responsibility of directors and
corporate bodies to provide oversight for the overall goals and strategies of a
company and see to their implementation.
It may therefore be seen as the set of related rules by which
corporations, shareholders and management govern and guide their corporate
behavior. These rules refer to the attributes of individual firms and factors
that allow companies to practice sound governance even where public institutions
are somehow weak. According is Cornelius and Kogut (2003) such factors normally
include a corporation’s ownership structure, its relationships with
stakeholders, financial transparency and information disclosure practices as
well as the makeup of its managing boards. It is the company management
techniques, and processes in general or the way a particular company is
managed. It further refers to the mechanisms, processes and relations by which
corporations are controlled, directed and managed. (www.investpedia.com/terms/c/arpirategover).
Cornelius
and Kogut (2003), also defined corporate governance as a system that consists
of those formal and informal institutions, laws, values, and rules that
generate the menu of legal and organizational forms available in a country and
which in turn determine the distribution of power on how ownership is assigned,
managerial decisions are made and monitored, information is audited and
released, and profits and benefits allocated and distributed. Corporate governance
is also a philosophy and mechanism that entails processes and structure which
help and facilitate the creation of shareholders value through management of
the corporate affairs in such a way that ensures the protection of the
individual and collective interest of all the stakeholders. It is generally
associated with the existence of agency problem and its roots can be traced
back to separation of ownership and control of the firm. Corporate governance
therefore involves transparency to the public and shareholders and it is
closely related to Corporate Social Responsibility (CSR). They both emphasize
responsibility to the shareholders and stakeholders, which is a way of managing
conflict.
Conflict
management is very important in the peaceful resolution of conflicts in any
organization. Conflict theory helps in explaining how it affects societies and
organizations. Studies in management of conflict states that it is
important especially as regards to the changes and growth of
organizations. (Azar, 1990). Conflict
theory further states that conflict creeps into the society when there arise a situation when the
interest of the majority is ruled against by a few privileged and powerful
minority groups. Conflict is very rampant and prominent in the Niger delta
region of Nigeria, where most of the multinationals or oil and gas companies
operations are carried out and this has resulted to a lot of violence
(Ojokarotu, 2008). Conflict is unabated and variegated because of how long it
lasts. This is what has been characterized as “deep rooted” conflict. Azar
(1990) considers it as protracted and tractable i.e. as complex, severe
community enduring and often violent.
Conflict
can be explained as disagreements which arise because unidentical ideas,
interest and beliefs by those involved.
It can also be looked at as a tussle among people that feels their
interest are being threatened. The ways and plans used in handling it is what
is called conflict management. Conflict
management involve those strategies and processes which aid in controlling or
resolving conflict. These include proper method of solving conflicts,
communication challenges and complaints and to achieve organizational
objectives as well as cordial and sustainable relationship. Researches on communication
and related fields have given an insight on the ability of communication to
bring about sustainability in relationship, which can drive change in the right
direction (Kotter, 1990). This will also help to foster peaceful and smooth
business transactions between them and the host communities –wider
stakeholders.
Information
and communication are very vital ingredients for the survival of any
organization. There is basically a thin line between information and
communication. “While communication
always contain information, not all information has communication value”.
(Myers & Myers, 1982, p. 15). They are therefore not exactly the same thing
but very similar in meaning. As Myers and Myers (1982) further said:
Information
is like an enormous umbrella, a broad concept which covers communication as one
particular type of information. Information is a global concept referring to
any pattern of energy input you are exposed to. ‘Communication’ refers to a
special kind of patterning which is expressed in symbolic form. For
communication to take place between and among people, two requirements must be
met: (1) a symbolic system must be shared by the people involved. (2) The
association between the symbols and their referents must be shared (p. 15).
Communication
is based on perception, which requires a message to be sent by somebody to a
recipient who in turn decodes the message, thus communication involves at least
two entities. On the other hand, information is based on logic and is not
enshrined in mutuality (Drucker, 2007). Communication is the sending and
receiving of messages by means of symbols and in this context, organizational
communication is a key element of organizational climate (Kotter, 1990).
Communication is the process by which individuals promote meanings in the minds
of others by means of verbal or nonverbal messages (McCroskey & Richmond,
1996). The most uncomplicated conceptualization of communication can be found
within the Encoder/Decoder paradigm, in which communication is described as the
transfer of information by means of a code (Ivancevich, 2002), where
communicators understand each other based on shared social and communicative
cues. However, where this is absent, conflict comes up. In order for
communication to be effective and shared within and outside an organization for
managing conflict, people’s (stakeholders) views have to be factored in for
mutuality.
According
to Ivancevich (2002) the degree of meaning in relation to understanding is
quite often signified by the reaction of the recipient. When messages are
understood by the receivers, the chances of understanding between the sender
and receiver increases. When there is understanding, there is bound to be
mutual relationship. This also helps in resolving conflicts. Corporate Social
Responsibility (CSR) practice has therefore become an accepted means and method
of trying to resolve conflicts between organizations, corporate bodies and
stakeholders which include host communities. This is because Corporate Social
Responsibility (CSR) involves communication between the oil producing companies
and members of the host communities with a view to arriving at an understanding
of the areas of needs of the communities. The result of the ensuing effective
communication process could be responsiveness of the oil producing companies to
the needs of the host communities based on the understanding achieved. As the
oil producing companies meet the communities’ needs, friction between the
communities and the companies is bound to reduce as goodwill could be shared
between the two parties. It is in this light that this study examines the roles
of Corporate Social Responsibility (CSR) as a conflict management strategy in
selected oil producing communities in Delta State, Nigeria.
1.2 Statement
of the Problem
Since
the discovery of oil in Nigeria, specifically in the Niger-Delta region, there
have been lots of activities involving oil producing, oil marketing, seismic
companies and all other allied businesses. Oil exploration has resulted to a lot
of benefits and also inconveniences and hardship to the people in these areas.
According to Wosu (2013), the exploration activity of oil companies in the
Niger-Delta region of Nigeria has resulted in oil spillage and other forms of
pollution and degradation of the ecosystem, which invariable is the means of
livelihood of the inhabitants. The oil companies operating in the areas which
are supposed to help in developing the areas are accused of not caring about
the welfare of the people. They have also often been accused of deceit and
failed promises in respect of the welfare of people of their host communities.
The result is that the people seem to be experiencing increased hardship, poor
and lack of engagement, poverty, famine, unemployment and malnutrition. Some of
the consequences arising from the situation are inter and intra communal
conflicts, fervent agitations and even kidnapping of both indigenous and
foreign staff of oil companies.
Furthermore,
oil exploration by various companies in the area usually results into a lot of
social problems within host communities. There are many cases where explosives
used in prospecting activities damage aquatic life and leaving cracks in
buildings, oil leakage as a result of vandalized pipelines which spill into the
areas and destroy the environment. There are also terrible destruction to
crops, farmlands and soil become sterile and unproductive (Adekola &
Uzoagu, 2012). Other problems include the destruction of aquatic life which
make fishing which is the main occupation of the people become impossible.
These
problems experienced by the people make them resort to violence, protests and
reactions against the oil companies such that managing, solving or ending the
conflicts seem impossible. For instance, there were serious protests by the
peoples of Kokori community, in Ethiope East local government area of Delta
state, Nigeria in 2008 and 2010 respectively. This led to the blocade and
disruption of operations of Shell Petroleum Development Company (SPDC) and Nigeria
Petroleum Development Company (NPDC) that were operating in the area. These
were resolved by the intervention of the Federal and State Governments who
stepped into the matter and the companies were forced to review their CSR
strategies. Similarity, there have been such protests at various times in
Ekakpamre in Ughelli South Local Government Area, Beneku in Ndokwa East Local
Government area and Out-Jeremi in Ughelli South Local Government Area, all in
Delta State related to the activities of the oil producing company and the
neglect of the welfare of members of their Host Communities.
To
minimize and reduce the conflicts that result between oil producing companies
and host communities and enable organizations engage in the development of the
host communities, the principle of Corporate Social Responsibility (CSR)
emerged. The principle thus requires some responsibilities on the part of oil
producing firms to invest some of their revenue through physical and human
resources development to the host communities (Adekola & Uzoagu, 2012).
Some oil companies such as Mobil Producing Oil Company, and Elf Oil Producing
Company and others have for some time engaged in the concept of Corporate
Social Responsibility to handle problems of violence between them and their host communities.
What
are Corporate Social Responsibility (CSR) activities of these oil companies?
How successful have they been in managing the conflicts between the oil
producing companies and the host communities? Have these CSR measures been
working? These and other related questions need answers. There is therefore the
need to study the effectiveness of Corporate Social Responsibility (CSR) as a
conflict management strategy and to know the effectiveness of the CSR
approaches adopted by the oil companies in addressing the situation.
1.3 Objective
of the Study
The
main objective of this study was to assess Corporate Social Responsibility
(CSR) as a conflict management strategy in selected oil producing communities
in Delta State of Nigeria. This specific objective are to:
2.
investigate the CSR programmes done in
the oil producing communities by the oil producing companies in Delta State,
Nigeria;
3.
determine the adequacy of the CSR
programmes carried out in the oil producing communities as conflict management
strategy by the oil producing companies in Delta State, Nigeria;
4.
ascertain the significance of Corporate
Social Responsibility (CSR) as conflict management strategy by oil companies in
oil producing communities in Delta State, Nigeria;
5.
establish the effectiveness of CSR as
conflict management strategy in oil producing communities in Delta State,
Nigeria and
6.
examine how the CSR programme of the oil
producing companies have promoted better relationship with the host communities
in Delta State, Nigeria.
1.4 Research Questions
This
study provided answers to the following research questions:
2.
Which are the specific CSR programmes
done in the oil producing communities by the oil producing companies in Delta
State, Nigeria.
3.
How adequate are the CSR programmes
carried out in the oil producing communities as conflict management strategy by
the oil companies in Delta State, Nigeria.
4.
Of what significance is Corporate Social
Responsibility (CSR) as conflict management strategy by oil producing
communities in Delta State, Nigeria.
5.
Howeffective is CSR as conflict
management strategy in oil producing communities in Delta State, Nigeria.
6.
To what extent has CSR programmes of oil
producing companies promoted better relationship with the host communities in
Delta State, Nigeria.
1.5 Hypothesis
The
study also tested the following hypothesis at 0.05 level of significance.
Ho:
Corporate Social Responsibility (CSR) has no significant effect on conflict
management in oil producing communities in Delta State, in Nigeria.
1.6 Scope
of the Study
The
study is limited to studying three oil producing communities in Delta State
Nigeria. The communities that were studied are Ekakpamre in Ughelli South Local
Government Area, Beneku in Ndokwa East Local Government Area and Kokori in
Ethiope East Local Government Area, all in Delta State. Delta State is
particularly rich in crude oil and contributes considerable amount of gas to
the economy. It also supplies more than 35 percent of the country’s crude oil
and is rated as the third largest contributor to the national economy.
Delta
state has 25 local government council areas and the oil producing ones are
Ndokwa East and West, Warri North and South, Ethiope East and West, Sapele,
Burutu, Isoko North and South, Ugheli North and South and Okpe. Delta state is
the hot bed of crisis between oil producing companies and host communities,
especially the Ijaw speaking areas. Most of the activities of the militants,
notably Movement of the Emancipation of the Niger Delta (MEND) and recently the
AVENGERS have been very visible in Delta State. The state also has more ethnic
groups then any other in the Niger Delta. These include the Itsekiris, Urhobos,
Isokos, Okpes, Ijaws, Ikas, Unuanis and other Ibo speaking areas. The state has
also produced prominent crusaders of “Resource Control” which include Chief
Edwin K. Clark, Chief J.O.S Ayomike and Late Chief Francis Okpouzo.
1.7 Significance
of the Study
The
very essence of public relations is the creation, maintenance and sustenance of
cordial and favourable relationship and goodwill between the oil prospecting
and producing companies and their host communities. In order to project such
organsiations as good and responsible corporate citizens, their managements
have to engage in the provision of basic
infrastructures, social amenities, protection of the environment, provision of
job opportunities, scholarships and other basic amenities for their host
communities. This is the whole essence of Corporate Social Responsibility (CSR)
which is a means of the organization impacting favourably and positively in
terms of welfare packages on the lives of members of their host communities.
For the specialized and focused area of community relations and Corporate
Social Responsibility (CSR), the findings of this study might be of great
importance to oil prospecting and producing companies, federal, state and local
governments, other companies in the oil industry and all stakeholders. The oil
prospecting companies operating in the oil industry in Nigeria, might in
addition, find the findings of this
study useful for their Corporate Social Responsibility (CSR) programmmes. Other
multi-national corporations may equally tap from the value bank of this study
to enrich, as well as, enhance their Corporate Social Responsibility (CSR)
practices.
The
outcome of the study might significantly contribute to and enhance the
knowledge of staff of corporate institutions in Delta State of Nigeria and
serve as reference materials in teaching and research in the field of public
relations, mass communication, management and other related fields. It might also serve as input in financial and
management policy documents for sustainable national development. The outcome and findings of the study will
contribute to academic knowledge and practical policy making in public and
private institutions in Nigeria. Finally, students, scholars and researchers
would find the conclusions and recommendations of this study as a ready
resource material.
1.8 Operational
Definition of Terms
Corporate Social Responsibility
(CSR): Corporate Social Responsibility (CSR) refers to the
practice by which organizations and institutions plan and implement social
initiatives that benefits the society. It is therefore a responsibility placed
on organizations and institutions to be accountable for the impact of their
activities on stakeholders and to present themselves as good corporate
citizens. For the purpose of the study if is the efforts that oil producing
firms make to provide in infrastructures aid other projects for their host
communities in Delta State, Nigeria.
Corporate Governance: Corporate
governance is the broad term that has to do with the manner in which rights and
responsibilities are shared amongst owners, managers and shareholders of a
given institution. In the context of
this study, it is the ability of the oil companies to show that there are
rights and responsibilities shared among owners, managers and shareholders.
Conflict: Conflict
can be described as what comes up when the goals, objectives or values of
competing groups, which are host communities and oil companies in Delta State
in this case clash and result to confirmation of aggression and even disruption
of operations and destruction of properties.
Conflict Management Strategies: They
refer to, in the case of this study, the elaborate and systematic well
organized plans that are put in place to resolve conflicts between host
communities and oil companies. Such strategies include meetings with and
lobbying stakeholders with a view to identifying areas of needs, provision of
welfare programmes, packages and projects in the oil producing areas, provision
of employment to indigenes of the areas, to mention a few.
Oil Producing Communities: These
are communities in Niger Delta, Nigeria where oil have been discovered,
explored and exploited by multi-national corporations like Shell Petroleum
Development Company (SPDC), Agip Nigeria Oil Company (AGIP), and others. They
are therefore the areas that suffer environmental degradation, oil spillage,
destruction of farmland fishing ponds and others, specifically in Delta State,
Nigeria.
Oil Producing States: These
are states recognised by the Federal Government of Nigeria as oil producing
states and benefit from the derivation fund of the federal government. The
states are Delta, Rivers, Cross-Rivers, Akwa-Ibom, Bayelsa, Imo, Ondo, Lagos,
Abia and Edo. Delta State is of particular focus in this study.
Stakeholders:Stakeholders
are those people or persons with an interest or concern in the operations of
the oil companies. They can affect or be affected by the organisation’s
actions, objectives and policies. In the case of oil companies, they are the
creditors, the directors, employees, government (and its agencies), owners
(shareholders), suppliers, unions and the community from which the business
draws its resources.
Ekakpamre:Ekakpamre
is in Ughelli South Local Government Area of Delta State of Nigeria. It has a
population of approximately 41,536 and is an oil producing area where Shell
Petroleum Development Company (SPDC) and Nigerian Petroleum Development
Companies (NPDC) operates.The town is made up of five quarters which are
Ekrezeghe, Ekruoghe, Ekrusiero, Ekeneghe and Ekraka.
Beneku:Beneku
is in Ndokwa East Local Government Area of Delta State of Nigeria and has a
population of approximately 10, 342 people. It is an oil producing area and the
main oil producing company operating in the area is Nigerian Agip Oil Company
(NAOC). The town is made up of two quarters which are Umu-Edem and Umu-Igwe.
Kokori:Kokori
is a town in Ethiope East Local Government Area of Delta State of Nigeria and
it has a population of approximately 96,463. It is an oil producing area
hosting Shell Petroleum Development Company Limited (SPDC) and NPDC. The town
is made up of three quarters which are Umigighwa, Urhuokpokpo and Anaka
Community Relations:It
is the planned programs and policies of an oragnisation intended to create,
build up and sustain mutual trust, understanding, goodwill, support and create
a favourable image for an oragniasation. It is the community relations
programmes of the organization that constitute its Corporate Social
Responsibility (CSR). In the context of the study oil companies use CSR and
other community relations strategies to manage conflict.
Corporate Social Responsibility
(CSR) Strategies:It is the calculated and planned means
of attaining and achieving the organisation’s Corporate Social Responsibility
(CSR) goals and objectives such as provision of infrastructures, employment of
members of the host communities, award of scholarships, promotion of cultural
values and other assistances to the host communities.
Niger Delta:Niger
Delta in the study refers to the land mass of Nigeria that spreads from the
East-West direction and spreads from South West Cameroon to the Okitippa ridge,
from an apex at the South East of the River Niger and Benue confluence
(Asakitikpi & Oyelaran, 2000). They are mostly areas in the South-South
geopolitical zone of the country such as Akwa-Ibom, Rivers, Bayelsa, Cross
Rivers, Delta and Edo States.
Public Relations:Public
relations is the creation and sustenance of mutual relationship between an
organization and its publics. Webster international dictionary (2004) defines
it as: (1) The promotion of rapport and goodwill between a person, individuals,
firms, or institutions and other persons specifically publics or community at
large, through the distribution of interpretative materials and assessment of
the state of its relationship with public. (2) In this study it specifically
refers to the promotion of rapport and goodwill between the oil producing
companies and the host communities.
Information:Information
applies to facts told, read, or communicated that may be unorganized and even
unrelated (www.dictionary.com). Information can also be viewed as messages used
for decision making in organizations. In case of this study, it is the messages
used by the oil producing companies and the host communities for decision
making.
Communication:It
is the process and means of sharing meanings and bringing people or places in
business together. It involves the process of sending a message from a source
through a channel to a receiver. It is the presence of feedback that shows that
the communication is effective.
Community
Development Committees (CDC):This is a community
development committee that is formed in oil producing areas for the purpose of
negotiating and pressing for the demands of the people from the oil producing
companies. It is usually comprised of a chairman and executive members. It is
this committee that the oil companies consult on major issues. They are also
reached in case of conflicts.
Community Liaison Officer (CLO):This
is an officer appointed by the oil producing company from the community where
it is operating to liaise between it and the host community. It is now
statutory for all oil and Gas Companies to have liaison officers in their area
of operation. However, some oil companies employs persons who are not indigenes
of the community where they operate as CLOs.
AGIP: It
is an Italian oil prospecting and producing company and operates in Nigeria as
the Nigerian Agip Oil Company Limited (NAOC). The NAOC is a joint venture
operated with the Nigerian National Petroleum Company (NNPC) which has a larger
share capital of (55%). The original Italian name is Azienda Generale Italiana
Petroli and this means General Italian Oil Agency.
SPDC:The
full meaning is Shell Petroleum Development Company (SPDC) which is a
subsidiary of Royal Dutch Shell, a British/Dutch company and operates in
Nigeria as a joint venture with the Nigerian National Petroleum Corporation
(NNPC) and other oil companies.
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