CORPORATE SOCIAL RESPONSIBILITY: A STUDY OF HOST COMMUNITY EXPECTATIONS OF OIL COMPANIES IN THE NIGER DELTA

Abstract

Business organizations are expected to meet certain social obligations in terms of corporate social responsibility (CSR) to their stakeholders. In the Niger Delta, oil companies are not exempted in this regards. Regardless of oil companies’ claim of bringing about community development in the region, the host community views oil companies as insensitive and abandoning their responsibilities towards them and meeting their expectations. Host community expectations of responsible CSR practices often form the foundation for community behavior towards oil companies. This paper examines host communities expectation of indigenous oil companies’ CSR practices in selected host communities.
Data for this study were collected in the host communities of two indigenous oil companies - Nestoil Plc and Moni Pulo Nigeria Limited, in Bayelsa States and Akwa Ibom States, respectively within the Niger Delta Region, Nigeria. The study adopted a case-study approach and combined both primary and secondary data. The unit of analysis for this study is the household. The findings of this study suggest that, the lack of inclusion of host community expectations in the design of CSR policies and decision-making processes was a fundamental factor that has triggered conflict and constant dissatisfaction with the oil companies. The study reveals host community expectations to include concentration on poverty alleviation programmes in the community, assist in training host community members, provide employment for community members, provide basic infrastructure, and meeting regularly with host community members