INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY PROGRAMMES OF MULTINATIONAL OIL CORPORATIONS ON HOST COMMUNITIES IN SOUTH-SOUTH, NIGERIA
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Date
2013
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Abstract
The concept of Corporate Social Responsibility (CSR) embraces the notion that Multinational
Oil Corporations (MNCs) have moral and ethical responsibilities to their host communities.
Though past studies on Niger Delta are vast and have generally focused on the activities of
MNCs, such as community development programmes, peace building, provision of
infrastructural facilities, little attention has been paid to their CSR. The study, therefore,
investigated the influence of CSR programmes (Poverty alleviation, vocational scheme,
healthcare scheme, infrastructural provision, and peace building) of MNCs on the
development of selected host communities in South-south, Nigeria.
The study adopted descriptive survey research design of ex post facto study type. Stratified
random sampling technique was used to select 1126 residents from 12 host communities in
Akwa Ibom (AI) and Rivers states (RS), the states were selected because the MNCs operate
mainly in the states. Purposive sampling technique was used to select 50 officials each from
Exxon Mobil and Total Exploration. The CSR Inventory (r = 0.74) and Host Communities’
Development Assessment Scale (r = 0.71) were used. These were complemented with 24
sessions of Focus Group Discussions (FGDs) held with residents of the host communities.
Four research questions and three hypotheses were answered and tested at 0.05 level of
significance. Data were analysed using mean, t – test and Pearson’s Product Moment
Correlation. Qualitative data were content analysed
Poverty alleviation, vocational scheme, healthcare scheme, infrastructural provision,
educational development and peace building programmes of the MNCs had a significant low
relationship with development in the host communities (r = 0.019; p< 0.05). The relationship
between each of the CSR programmes and development in the host communities were as
follows: Poverty alleviation (r = -0.011; p >0.05), vocational scheme (r = 0.005; p> 0.05),
health care (r = -0.014; p>0.05) infrastructure provision(r = 0.001; p>0.05) educational
development (r = 0.025; p>0.05) and peace building (r = 0.029; p>0.05). The Corporate
Social Responsibility of MNCs conformed to the standards of CSR as follows: corporate
integrity (𝑋 =3.67), commitment (𝑋 = 3.69) and morality (𝑋 = 3.23). Significant difference
was found between the impacts of the programmes in Rivers and Akwa Ibom States (Crit- t =
1.96; Cal.t = 3.134, df = 1126; p< 0.05). The CSR programmes impacted more on Rivers
State in all the programmes than in Akwa Ibom State. The results of the CSR programmes of
the MNC in the two states were as follows; Poverty alleviation, AI (𝑋 = 12.4000); RS (𝑋 =
13.5389). Vocational skills, AI (𝑋 =16.7625); RS (𝑋 =19.4329); Healthcare, AI (𝑋 = 6.9089);
RS (𝑋 = 7.3905); Infrastructure, AI (𝑋 = 5.6482); RS (𝑋 = 6.4346); Educational
development, AI (𝑋 = 12.4161); RS (𝑋 =14.1307); Peace building, AI (𝑋 =3.8589), RS
(𝑋 =3.8993).
The level of participation of host communities in the programmes of MNCs in South-south
was low despite efforts of the corporations to improve their living conditions. Thus, for the
programmes to be successful, the host communities should be involved in the planning and
identification of priorities of needs before programmes execution