MISCONCEPTION OF CORPORATE SOCIAL RESPONSIBILITY OF OIL COMPANIES ON THEIR HOST COMMUNITIES: A STUDY OF SHELL PETROLEUM DEVELOPMENT COMPANY AND COMMUNITIES IN DELTA STATE, NIGERIA

Abstract

Over time, there has been a strained relationship between the residents of the Niger Delta region of Nigeria and the Shell Petroleum Development Company (SPDC) due to the perceived inadequate implementation of Corporate Social Responsibility (CSR) initiatives by SPDC. SPDC, however, maintains that they are merely a company and cannot take on the role of the government in the development of the region. The aim of this study was to gain an understanding of the current perception of CSR among residents of the Niger Delta in Nigeria. It was anchored on Stakeholder theory. A secondary research was conducted to explore previous views and evolution of CSR, but it only provided insight into the concept without any conclusion. As a result, a primary research was carried out using an ethnographic qualitative method in eight oil-producing communities in Delta state, where the inhabitants were reluctant to disclose information to strangers. The findings revealed that while the residents had a favourable perception of CSR, they were inflexible in their insistence that it should be mandatory for SPDC to undertake CSR initiatives due to the environmental hazards resulting from the company's operations. It was recommended that public enlightenment programmes, on behalf of the SPDC/Government/Communities, could help change people's perception about who is responsible for what, and how the communities should be managed. It was also recommended that SPDC should strengthen its community relations team to interact more with the community and improve its corporate image. Keywords: Corporate Social Responsibility, Host Communities, Misconception, Niger Delta, Oil Companies, SPDC.