Abstract

The purpose of this paper is to critically examine oil multinational corporations (MNCs) and their corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to examine the fate of oil producing communities in the Niger Delta region and the long-term negative effect of oil extraction as well as the benefits of the oil companies’ CSR/community development initiatives. This paper employs a qualitative methodology, drawing on semi-structured interviews conducted in three oil producing communities in this region and the oil MNC operating there. The study found that despite the high expectations of the MNCs by the host communities for development initiatives, the communities also want projects that provide hope of a stable and prosperous future. However, findings suggest that the MNCs have embraced development initiatives primarily to demonstrate that they are socially responsible and have not given adequate consideration to issues of sustainability. The implication of this study is that the agitations from the host communities indicate that they do not feel the CSR projects will lead to a social, economic and environmentally sustainable development. This research therefore adds to the literature on MNCs’ CSR initiatives in developing countries and the rationale for sustainable practice of CSR for critical environment. Key words: Corporate social responsibility, sustainability, Niger Delta region, Nigeria, multinational corporations.

Highlights

  • Incorporating sustainability in business developmental objectives is gradually becoming the trend in modern business practices (Tullberg, 2012)

  • They attribute such gestures to efforts to boost their social image rather than an attempt to meet the dying need of the communities as some of the corporate social responsibility (CSR) initiatives and areas of interest of the multinational corporations (MNCs) differ from the expectations of the host communities

  • This paper has considered the manner in which multinational corporations (MNCs) engage in corporate social responsibility (CSR) initiatives in the Nigerian oil industry

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Summary

Introduction

Incorporating sustainability in business developmental objectives is gradually becoming the trend in modern business practices (Tullberg, 2012). CSR can hardly be discussed without mention of sustainability Incorporating such practices is still found wanting in most developing countries. An insight into the continuous out cry of the oil producing communities in Nigeria, with regards to constant degradation of their environment reveals that the communities are under intense suffering and poverty, as most of the communities have lost their traditional sources of livelihood (Ejumudo et al 2012). This requires both the government and multinational corporate (MNCs) to give serious attention to injecting good initiatives for economic growth and environmental sustainability in these communities. As opined by Kakabadse and Kakabadse, (2007), cited in Smith and Sharicz (2011)

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