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An Appraisal of Corporate Social Responsibility of Oil and Gas Industry in Niger Delta for Sustainable Development

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An Appraisal of Corporate Social Responsibility of Oil and Gas Industry in Niger Delta for Sustainable Development.

ABSTRACT

This study appraised the corporate social responsibility of multinational oil companies (MNOCs) to social-economic problems in Niger Delta Nigeria with the following specific objectives sought to: Determine the extent to which MOOCs provide jobs opportunity for graduates from oil host communities, (ii) ascertain the extent to which oil MNOCs provide job opportunities for unskilled workers in oil host communities.

Ascertain the extent MNOCs empower households through the award of scholarship to their children and (iv) determine the extent the MNOCs contribute toward community development of oil host communities. The study had a population size of 3,803129 out of which a sample size of 1901 was realized using William Klinger’s formula of 5% error tolerance and 95 levels of confidence. The method used for the collection of data was a questionnaire.

Out of the 1901 copies questionnaire that was distributed, 1,775 copies were returned while 126 copies were not returned. A cross-sectional quantitative research design was adopted for the study. The hypotheses were tested using a correlation coefficient.

The findings indicate that MNOCs to a large extent contributed to the provision of employment to university graduates from their host community (R = 0.816, f= 3526-223, t=59.382, p<0.05). MNOCs to a large extent contributed to the provision of employment to unskilled workers in their host communities as a giveback strategy (r. = 0.893, f= 7017-812, t= 83-772, p<0.05).

MNOCs to a large extent contributed to household empowerment through the award of scholarships (r. = 0.852, f= 4707.438, t=68.611, p<0.05) and MNOCs to a large extent contributed to community development through the provision of some basic infrastructures (r. = 0.853, f= 4721.904, t= 68.716, p < 0.05).

The study found that MNOCs to a large extent perform their corporate social responsibility which also confirms their integrity concept but such community assistance programs have not really enhanced the sustainable development of oil host communities.

Due to the danger from the persistent gas flare and oil spillage from exploratory activities of multinational oil companies in host communities hence the need to shift their corporate social responsibility from community assistance to community development and environmental sustainability by ensuring that the activity line is merged sustainable measures.

Also, it is the corporate social responsibility of the Government to ensure that multinational oil companies adhere to sustainable measures in their activity line even as they perform their corporate responsibility in host communities hence it will be accounted to her as failure.

TABLE OF CONTENTS

Title page i
Declaration ii
Approval page iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables vii
Abstract viii

CHAPTER ONE – INTRODUCTION

1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of Study 4
1.4 Research Questions 5
1.5 Research Hypotheses 5
1.6 Significance of Study 6
1.7 Scope of Study 6
1.8 Limitations of study 6
1.8 Operational Definition of Terms 6
References 9

CHAPTER TWO – LITERATURE REVIEW

2.0 Introduction 10
2.1 Conceptual Framework 10
2.1.2 Concept of Oil and Gas industry 10
2.1.3 Oil and Gas in Nigeria Economy 12
2.1.4Concept of Niger Delta 13
2.1.5 Oil and Gas and Niger Delta 15
2.1.6Oil Spillage 16
2.1.7Gas flaring in the Niger Delta 17
2.1.8Concept of Development 18
2.1.9Concept of Sustainable Development 19
2.1.10 Community Relations/Corporate Social Responsibility 20
2.1.11 Corporate Social Responsibility 20
2.1.12 Corporate Social Responsibility / Multinational Oil Companies 21
2.1.13 The Relationship between SD, Corporate Sustainability, and CSR. 23
2.2 Theoretical Review 24
2.2.1 Free Prior Consent 25
2.2.2 Sustainable livelihood Approach 25
2.2.3 Reducing Reliance Theory 25
2.2.4 Unbalanced Growth Theory 26
2.2.5 Big push theory 26
2.2.6 Institutional Theory 26
2.2.7 Social exchange theory 27
2.3 Emperical Review 27
2.4 Summary of Review of Related Literature 31
References 33

CHAPTER THREE – METHODOLOGY

3.0 Introduction 39
3.1 Research Design 39
3.2 Source of Data 39
3.3 Area of Study 39
3.4 Population of Study 40
3.5 Determination of Sampling Size 42
3.6 Method of Data Presentations 43
3.7 Validity of the Research Instrument 44
3.8 Reliability of the Instrument 44
References 45

CHAPTER FOUR – PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA 46

4.1 Introduction 46
4.2 Opinion Survey Responses based on Research Questions 48
4.3 Data Analysis 61
4.4 Discussion of Results 74

CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS 88

5.1 Summary of findings 78
5.2 Conclusion 78
5.3 Recommendation 79
5.4 Contributions to Knowledge 79
5.6 Suggested Areas for Future Research 80
Bibliography 81
Appendix 88
Interview Guide 88
Questionnaire 89
Reliability Test Statistics 91
Sample Size Determination 92

INTRODUCTION

1.1 Background of the Study

Human development in almost all countries in Sub-Saharan Africa has been so low for several years (Eyong 2006).

Human development index as a comparative measure of life expectancy, literacy, education, standards of living and quality of life child welfare of countries worldwide (mahbub ul Haq and Amartya Sen 1990) since 2010 adopted new methodology in categorizing human development of different countries into very high human development, high human development, medium human development, and low human development.

Most of the sub-Africa countries are categorized under low human development. As in the 2013 report index on human development published in July 2014, the highest index for sub-Africa countries was 0.540. Nigeria stood at 0.504(World Map 2014).

Pitiably, most of these countries are richly endowed with mineral resources and several other natural resources which are tradable across the continent and the world over but they largely depend on foreign companies for their exploitation and transformation of which Nigeria is not an exemption.

Nigeria highly depends on transnational and multinational companies like Shell, Chevron Texaco, Mobil, Total, Elf, etc for the exploration of her richly endowed crude oil in the Niger Delta region. Exploration of crude oil in the Niger Delta region of Nigeria has indeed made a huge contribution to government revenue (Ayuba 2012).

The region oil accounts for 90% of the nation’s export earnings but still in spite of this generated wealth from the exploration of oil, the region has remained the least developed region of the country both in physical and socio-economic terms. Due to oil pollution, the area is now characterized by contaminated streams and rivers, forest destruction, and biodiversity loss, in general, the area is an ecological wasteland.

BIBLIOGRAPHY

Adelaja, O. O., (2006).    Oil and sustainable development in Nigeria. Brundtland Report, Oxford University Press, Oxford (1987).
Adelaja O. O., (2006). Oil and sustainable development in Nigeria. J. Hum. Ecol., 20(4).
Aghalino, S. O., (2009). Gas flaring, environmental pollution and abatement measures In Nigeria, Journal of Sustainable Development in Africa Vol, 11(4)
Alabi,  O.  F.,  Ntukekpo, S.  S., (2012).     Oil companies social responsibility in Nigeria. journal ofArts and Social Science vol 4 (2)www.bjournal.co.uk/BJASS asps
Amnesty international (2013). Bad information oil spill investigations in the Niger Delta. www.amnesty.org
Anyanwu, C. U., (2012). The oil industry and the Nigerian environment.   32nd annual meeting of the international association for impact assessment Portugal.
Andabai, P. W. and Basuo, B..K., (2013). Multinational oil companies and corporate social responsibilities: The host communities experience AFRREV IJAH, Vol.2 (3)

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