Communities’ Perception and Expectations of CSR: Implication for Corporate-Community Relations

Rebecca Oliver Enuoh ,Grace Jamie Pepple ,Iheanacho Maryjoan Ugboaku ,Ekpe Ekpe Oyono

doi:10.7176/ejbm/12-18-03

Rebecca Oliver Enuoh , Grace Jamie Pepple + Show 2 more

Open Access

https://doi.org/10.7176/ejbm/12-18-03

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Abstract

Corporate social responsibility (CSR) has over time been a subject of cumulative interest among academics and business practitioners. This paper contributes to the discourse on CSR in the context of the Nigerian oil industry with regard to corporate-community relations. It specifically constitutes an assessment of CSR initiatives by multinational corporations (MNC) operating in the Niger Delta region and their impact on the traditional livelihoods of local communities. This study examines community perceptions, expectations and seeks to interpret the relationship between the host communities and the MNCs. This paper adopts a qualitative methodological approach, it provides empirical data through the use of twenty-eight semi-structured interviews and three focus groups. This is significant given that most of the research conducted into CSR in this region have been limited to descriptive and extensive theoretical explanations. Findings from the research suggest that the relationship between the host communities and the MNCs is a very complex one. The host communities perceive the MNCs as being unfair, insensitive to the plights, neglecting their responsibilities towards them and not meeting their expectations. It therefore concludes that the negative impacts of oil extractive activities on the local communities have triggered conflict and constant dissatisfaction with the MNC. Their expectation is that of mutual positive benefit. Keywords: Corporate Social Responsibility, Niger Delta, Multinational corporation, host communities DOI: 10.7176/EJBM/12-18-03 Publication date: June 30th 2020

Highlights

1.0 Introduction This paper explores Corporate social responsibility (CSR) in the context of the Nigerian oil industry with regard to corporate-community relations
Nigeria produces approximately 2.3 million barrels of crude oil a day and has estimated oil reserves of 22.5 billion barrels mostly found in small fields in the coastal area of the Niger Delta region (Ajibade and Awomuti 2009)
6.0 Conclusion This paper presents an analysis of primary data from the perspective of both the host communities and the multinational corporations

Summary

Introduction

Introduction This paper exploresCSR in the context of the Nigerian oil industry with regard to corporate-community relations. The oil sector has experienced increasing pressure from the Nigerian government as well as the local people of this region in recent decades due to the dependence of the Nigerian economy on crude oil which was discovered in 1956 Most of the oil exploration and production activities take place in the Niger Delta region (NDR) consisting of nine of Nigeria’s 36 states. The NDR plays a significant role in the Nigerian economy because crude oil is the main source of the country’s foreign exchange earnings and federal revenue (Evuleocha 2005). Oil provides about 90% of Nigeria’s foreign exchange earnings and 80% of annual federal revenue. Widespread poverty, feeling of marginalisation and discontent among the people of the Niger Delta have resulted in constant conflicts and crisis (Afinotan and Ojakorotu 2009)

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Conclusion