The Extractive Sector and Corporate Social Responsibility: A Case of Chevron Nigeria

Abstract

Businesses become more pervasive and more powerful as the size and scale of their operations grow. This is especially true of businesses in the extractive sector which traverse national or state boundaries and operate wherever opportunities for profit are available. In their quest for profit, some of these companies leave negative footprints that push socioeconomic and environmental issues to the forefront, raising questions about their need to take responsibility for the sustenance of the society. This paper explores Corporate Social Responsibility (CSR)—its desirability or undesirability—and the theoretical bases for and against CSR, and why being socially responsible is the new reality for businesses. CSR models in Africa and around the world are identified with an emphasis on the Global Memorandum of Understanding (GMoU), adopted by Chevron Nigeria as an instrument for community engagement in Nigeria’s Niger Delta. The paper offers recommendations on essential features of good CSR models for businesses in the extractive sector. It concludes that the CSR business models of companies in the extractive sector must be structured, transparent and contextually sensitive to address the critical question of how the society can benefit from their operations and exploitation of the natural resources.