Global Mou Perspective on Sustainability Expenditure and Host Community Satisfaction in the Niger Delta Region of Nigeria

Abstract

This study examines the effect of corporate sustainability expenditure on host community satisfaction from the perspective of the SPDC’s Global Memorandum of Understanding (GoMU), focusing on the host communities of oil companies in Rivers and Bayelsa. The environmental, social, and fiscal dimensions of corporate sustainability expenditures were analysed, whereas community satisfaction is measured in terms of community trust, attachment, and quality of life. The research utilised a mixed-method design. The primary data were analysed using Pearson Correlation and Cross-Sectional Multiple OLS regression. The findings indicated that none of the three dimensions of corporate sustainability expenditure (environmental, social, and economic) significantly impact community trust. Based on these findings, the study concludes that GMoU has not yet addressed the numerous socioeconomic and environmental challenges facing oil-producing communities. Among the recommendations is that SPDC should be more transparent in its relationships with its host communities and eliminate all barriers surrounding the implementation of the GMoU.