Corporate Social Responsibilities of Shell Petroleum Development company (SPDC) and Nigeria Agip Oil Company Development in Rivers State
CHAPTER ONE
Purpose of the Study
The general purpose of this study is to examine the corporate social responsibilities of Shell petroleum development company (SPDC) and Nigeria Agip Oil Company (NAOC) for sustainable community development of the host communities in Rivers State. Specifically the study aims:
- to examine the corporate social responsibilities of SPDC and NAOC for sustainable development in its host communities in Rivers State.
- to examine the extent to which corporate social responsibilities assist in the resolution of conflicts between the oil companies and their host communities in Rivers State.
- to examine the extent to which corporate social responsibilities of SPDC and NAOC are promoting sustainable community development in their host communities in Rivers State.
- to examine the extent to which corporate social responsibilities of SPDC and NAOC help to mitigate environmental degradation of oil producing communities in Rivers state.
- to examine the extent to which the corporate social responsibilities of SPDC and NAOC have influenced the socio-economic life of the host communities in Rivers state.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
The concept of Corporate Social Responsibility
Over time, the concept of Corporate Social Responsibility has been associated with such concepts as Corporate Responsibility (CR), Corporate Accountability (CA), Business Ethics (BE), Stakeholders Management (SM), Corporate Citizen (CC), Corporate Stewardship, Sustainability (SUS) and Triple Bottom-Line (Hohnen 2007, p. 2 and Carroll 2015, p. 91). In recent times, the notions of Corporate Citizenship and Sustainability appear to be trendier when discussing CSR. As a business It is based on this perspective that the United Nations Department of Economic and Social Affair (UNESA) in 2007 broadly defines CSR simply as: “the overall contribution of business to sustainable development”, (UN, 2007, p.1). The private sector can contribute to sustainable development through job creation, industrialization, knowledge sharing, adopting environmentally friendly operations, among others. According to Hohnen (2007, p. 4) “as issues of sustainable development become more important, the question of how the business sector addresses them is also becoming an element of CSR”.
The phrase ‘Sustainable Development’ has gained increasing global recognition over the years, most especially, beginning from 1987, when the Brundtland’s Report of the World Commission on Environment and Development tagged: Our Common Future was released. The commission was headed by Gro Harlem Brundtland, a Norwegian politician and environmentalist. Today, one of the most widely quoted definitions of Sustainable Development is contained in the report of the commission. It defines Sustainable Development as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987, p. 41). The key to sustainability is the future (Carroll, 2015, p. 92); the need to preserve the society for the purpose of posterity. Since then, concept of sustainable development has been extended beyond environmental sustainability to other aspects like agricultural, economic and business sustainability, to mention but a few. According to Carroll (2015, p. 92), “today, sustainability is understood to embrace environmental, economic and social criteria depending on the user’s intent when articulating the concept.” Corporate Social Responsibility has the potential to contribute immensely to sustainable development in many respects. In fact, the focus of CSR practice in contemporary times has gradually shifted from the mere philanthropic or charitable gestures to the tackling of real development issues of the people. Oginni and Omojowo (2016, p. 3), assert that: “since corporate social responsibilityrepresents core values that define the commitment of a business enterprise to society, economy, and the environment that sustains its activities, its broad scope can be integrated into a sustainable development agenda.” According to Carroll (2015, p. 92), the concept of sustainability embracesenvironmental, economic and social criteria. Corporations can align their CSR interventions along any of these three core areas. In other words, CSR initiatives should be planned along the line ofsustainable development basically under the three core values of economic growth, ecological balance and social progress. Therefore, Shell can contribute, in concrete terms to sustainable development through their CSR policies and programmes.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
It is important to ascertain that the objective of this study was to ascertain corporate social responsibilities of shell petroleum developmentcompany(SPDC) and Nigeria Agip Oil company development in Rivers state. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of corporate social responsibilities of shell petroleum developmentcompany(SPDC) and Nigeria Agip Oil company development in Rivers state
Summary
This study was on corporate social responsibilities of shell petroleum developmentcompany(SPDC) and Nigeria Agip Oil company development in Rivers state. Six objectives were raised which included; to examine the corporate social responsibilities of SPDC and NAOC for sustainable development in its host communities in Rivers State, to examine the extent to which corporate social responsibilities assist in the resolution of conflicts between the oil companies and their host communities in Rivers State, to examine the extent to which corporate social responsibilities of SPDC and NAOC are promoting sustainable community development in their host communities in Rivers State, to examine the extent to which corporate social responsibilities of SPDC and NAOC help to mitigate environmental degradation of oil producing communities in Rivers state and to examine the extent to which the corporate social responsibilities of SPDC and NAOC have influenced the socio-economic life of the host communities in Rivers state. A total of 77 responses were received and validated from where the enrolled participants all respondents were drawn from selected women from Oredo local government of Edo state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The results of our study revealed that the CSR dimensions considered are found to both directly and positively impact on market value of the oil producing companies in Rivers State. These three dimensions; Global Reporting Initiative, National Development Goal and Community Investment relate to the interest of the host community that has often been mistreated by oil firms in Rivers State. We also conclude that though the use of market value as the single measure of firm performance is better than other typically used accounting measures, such as Return on Asset (ROA), it does not necessarily capture the full complexity of firm performance because market value computes the overall value of the firm which in some situations may be inflated or deflated by particular units in a business therefore the use of market value may not significantly offer an exact account of the Return on Investment (ROI) In a similar vein, we posit that firms in Rivers State that have good corporate governance structures and mechanisms and communicate their CSR practices through sustainability reporting system will be better placed to gain goodwill with government agencies and the community and will possibly have greater access to resources, thereby achieving superior financial performance and higher firm value. It is therefore bestowed on the government to enforce CSR best practices on the Oil Companies while they monitor the sustainability of the whole process
Recommendation
There must be proper information and orientation on the effects of oil exploration and exploitation that creates more hazardous threats to the lives of the people ranging from Air and water pollution, soil degradation, gas flaring, pipeline explosion, oil spill, black sooth etc., and there should be regular environmental impact assessment (EIA) and adequate remediation exercises in the affected area.
Efforts should be made to ensure that there is enabling environment for business to thrive and in turn reciprocate by sponsoring and promoting programmes that will develop and better the lives of the people. Furthermore, the community should be oriented to respect the right of the companies to exist without interference knowing that CSR is a privilege and does not constitute company‟s objectives
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