Corporate Social Responsibility (CSR) by International oil Companies (IOC) in Nigeria (Dissertation Sample)
I have decided to do my dissertation as a case study on the use of CSR in Nigeria by the IOC's that operate there mainly focusing on Shell, Mobil, Chevron and Texaco as they have been in the country for the longest.
My objectives of the dissertation are to establish:
1: Whether the use of CSR projects meet the needs of the local community
2:To what extent has the use of CSR been beneficial to both the companies and the community
3:What are the various methods IOCs have employed CSR and their success
1.0 IntroductionThe paper illuminates on the use of corporate social responsibility by international oil companies in Nigeria to the host communities. The research aims at asserting whether the use of corporate social responsibility meets the needs of the local community. Besides, exploring the extent the use of corporate social responsibility has been beneficial to both the oil companies and the community. Further, identifying the various methods international oil companies have employed corporate social responsibility and their success. To extensively explore the purpose of this study, several research questions need answers. 1) What are the major development projects in terms of corporate social responsibility undertaken by the oil companies that fulfil the needs of the host communities? 2) What is the level of benefit to both the oil companies and the host communities after implementation of the corporate social responsibility projects 3) What are the multifaceted methods used by the international oil companies to employ corporate social responsibility and the success of the plans. Over a decennium of years, there has been heightened agitation, crises and tension between the oil-rich companies and the host communities. The government of Nigeria has tried to channel efforts into creating a peaceful business atmosphere. However, the oil companies and the host communities remain at variance since the companies claim that they bring development to the communities, which forms part of the corporate social responsibility. Nigeria is an economy that relies greatly on crude oil that is derived from the Niger Delta. The population of the Niger Delta is approximately 28 million, which is about 16.7% of the total population in Nigeria. The host community in the Niger Delta has significantly suffered the consequences of oil exploration due to the environmental degradation. The widely known companies such as Shell, Mobil, Chevron and Texaco contribute immensely to the federal revenue in Nigeria, and the oil revenues contribute about 95% of the foreign exchange earnings in the country. However, these operations are not matched with the development of the country, considering the instability that has resulted in the oil companies and the host communities. The oil companies claim to have constructed hospitals, schools, roads, provided portable water, sponsorship, scholarship, electricity as well as the provision of support to health campaign programmes. The companies executed such projects to reflect corporate social responsibility in the host communities. Nevertheless, the host communities have not acknowledged the development projects and, as a result, there is a continued cruel behaviour towards the companies. In the primordial days, there was a good relationship between the host communities and the oil companies, which is no longer in existence. The tension between the two parties gave way to violence and hostility. This is evident through, pipeline malicious damage, seizure of oil installations, kidnapping, militancy, shutting down of oil companies and community conflicts. The rise in the rate of violence has been declared both a national and international issue. Internationally, the concern grows due to the fluctuation in the crude oil prices, which is caused by the upsurge in instability that is widespread in the oil-rich areas of Nigeria. Nationally, the issue is a concern due to the unspeakable threat to the economy due to the loss of vast numbers of oil barrels annually to pipeline malicious damage. Therefore, due to the debates and claims by the oil companies, the purpose of the study arises. The oil companies claim they are undertaking projects that reflect corporate social responsibility, yet the community does not acknowledge such efforts. As a result, this paper seeks to study the acclaimed development projects in terms of corporate social responsibility and find out if implementation of the corporate social responsibility meets the needs of the community, how beneficial it is to the companies and the community as well as methods that have been used to employ corporate social responsibility. A qualitative study has been conducted to undertake the research, particularly on secondary data. Data has been collected by reviewing peer-reviewed journals, government documents scholarly books and online sources. Besides, a descriptive survey was conducted, and the results are shown in the subsequent chapters.
2.0 Literature Review
2.1 Corporate social responsibility review Corporate social responsibility is whereby; the companies put into consideration the society’s interest. This is done by accepting responsibility for the influence caused by their activities on employees, customers, suppliers, shareholders, stakeholders, the environment as well as the community as a whole. The obligation cover a wider scope other than the statutory compliance with the legislation. It extends further to improving the quality of life for the individuals in the community (Lodge, 2010, p. 320). According to the World Business Council for Sustainable Development (WBCSD), corporate social responsibility is defined as a continuing commitment by a company to show ethical disposition by contributing to the development of the economy as well as enhancing quality of the life of workforce, the members of the community and the society at large. According to Agwu (2012), corporate social responsibility is classified into four namely: Enterprise: which involves support and development of the initiatives that nurtures potential entrepreneurs as well as upsurge the growth of the enterprises. Education: which means bringing new, improved and standard horizons for young people. Arts and culture: means pursuing cohesiveness in the community through providing assistance in a multifaceted group of activities in the art. Environment involves channelling of efforts into safeguarding the environment as well as enhancing the quality of life (Agwu, 2012, p. 32). According to Theodore (2010), there is a classification of what corporate social responsibility...
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