Influence of Corporate Social Responsibility on Community Development: An Appraisal of Oil Producing Communities in Igburu Clan

Abstract

The study examined the effect of Corporate Social Responsibility (CSR) on community development, an appraisal of oil producing communities in Igburu clan, Ogba, Egbema, Ndoni local government area of Rivers State. Igburu clan is an oil producing area hosting major multinational oil companies. The objectives of the study include: to find out CSR activities in Igburu clan by the oil producing companies, to ascertain the influence of CSR activities of the oil producing companies on the development of Igburu communities and also to find out ways CSR activities of the oil producing companies can be used to create sustainable development in Igburu communities. The study adopted the survey design and multistage sampling technique to choose the units from where 400 respondents were purposively selected from a population of 27,784. The questionnaire and interview served as the instrument for data collection. The study anchored on Stakeholder theory and Carroll’s theory of CSR. A total of four hundred (400 copies of questionnaire were administered out of which three hundred and twenty (320) copies were correctly and completely filled and returned. Findings of the study revealed that the traditional view of business which was essentially used to maximize profit has changed in recent years as organisations/companies have now adopted the concept of CSR. The CSR in some ways has affected the development of communities in Igburu clan but a lot needs to be done in the area of sustainable development. The study recommends that the concept of CSR should be sustained and priority should be giving to host community’s present needs. CSR should be projects that will create sustainable development to better the life of the people and that government and local authorities should provide enabling political and social environment to motivate companies operating in this area to carry out sustainable social responsibility to improve the lives of the local communities. Thus, the study concludes that the oil companies should consider the interest of the communities by providing social infrastructure such as schools, hospitals, roads, water supply etc, in their area of operations.