(In)Effective Business Responsibility Engagements in Areas of Limited Statehood: Nigeria’s Oil Sector as a Case Study

Abstract

In reality, most state actors—especially those in the developing world—are usually incapable of effectively governing all facets of their territory. This has necessitated the intervention of non-state actors (in this instance, corporations), who through their social responsibility engagements act as functional equivalents to state-driven government. Using empirical data, this article evaluates the “governance” interventions of corporations in the oil industry in Nigeria’s Delta region. While arguing that the area qualifies as an area of limited statehood, the article asserts that corporate social responsibility practices that are based on Western (neoliberal) approaches cannot contribute effectively to the sustainable development of host-communities. In this context, the article contends that since the social responsibility engagements of corporations in the Niger Delta (as in most developing countries) are influenced by a pro-West philosophy, the end result is a business responsibility engagement which is ineffective as a development strategy.