Multinational enterprises and their CSR initiatives in Nigerian oil sector

Abstract

Nigeria is a country which is endowed with considerable energy reserves. The oil and gas reserves found are some of the largest in the entire world. Multinational companies have been involved in the exploration and transportation of crude oil and gas in the country. The Niger delta region is the main area where the country’s rich energy reserves are found. The conduct of multinational enterprises in the region has been criticized because of allegations that corruption, bribery, environmental mismanagement, environmental contamination, and human rights abuses are being perpetrated towards indigenous communities. As a consequence, multinational enterprises have engaged in corporate social responsibility (CSR) initiatives in order to create a better image while serving the needs of local communities.

Introduction

Nigeria is one of the leading producers of oil and gas in the world. It has oil reserves that are estimated to be around 35 billion barrels while it has 5 trillion cubic meters of gas reserves (Amaeshi et al, 2006: p. 67). Nigeria is a country that has more than 250 ethnic groups with over 500 languages being spoken in the country. Despite its huge energy reserves, the country remains poor with over two thirds of the people living in abject poverty. A total of six multinational organizations are operating in the Nigerian oil and gas sector. These companies are the Royal Dutch Shell, Chevron, Exxon-Mobil, Agip, Total, and Texaco. The Niger Delta region is the main area where the oil exploration and production is being carried out by foreign enterprises (Beauchamp, 2003: p. 92). These foreign enterprises have been criticized for failing to take adequate measures that can alleviate the poverty and suffering of indigenous communities. There have been accusations of corruption, mismanagement, environmental degradation, oil spills, contaminated water, and other problems in the region. As a consequence, there have been attempts by multinational enterprises to implement corporate social responsibility (CSR) initiatives in the region. However, the existing literature does not comment upon the different CSR practices of MNCs in Nigeria with respect to the local stakeholders and communities. This study will seek to investigate and assess the efficacy of the ethical practices by the multinational enterprises as they related to the empowerment and betterment of indigenous communities.

Research Question

The following research questions will be answered in this dissertation:

What are the CSR strategies of multinational enterprises in Nigeria
What are the practical implications of CSR as it relates to improving the standards of living for local communities
Is CSR a genuine attempt to empower communities or is it a marketing strategy by multinationals
Research Objectives
To study the similarities and differences of the CSR initiatives implemented by multinational enterprises in Nigeria
To determine the efficacy of CSR initiatives with respect to community empowerment and development
To study whether multinational enterprises in the Nigerian oil sector are genuinely concerned about empowering communities or such initiatives are simply marketing tools to improver the image of multinational enterprises
Literature Review

Corporate social responsibility is a term used to denote the actions and policies implemented by business organizations that are in accordance with ethical and legal principles. The goal of organizations is to implement self-regulation and align it with the overall business model.

The goal is to ensure that organizations can integrate ethics into their business model (Carroll, 2006: p. 76). A series of high profile business scandals in the past decades has meant that governments are now seeking to regulate the business environment through legislation that promotes transparency and accountability. Additionally, the customer segments are highly conscious about the business activities of enterprises because the latter must be able to demonstrate ethical behaviors in accordance with their actions. Alternatively, organizations are seeking to reduce the costs of complying with legislation by implementing CSR initiatives so that they can achieve efficiency and effectiveness. A number of theoretical approaches towards CSR have been developed in order to help organizations take responsibility for their actions while encouraging positive impact upon the environment, consumers, employees, and other key stakeholders. Corporate philanthropy is a CSR theoretical model which calls for providing monetary donations and aid to different communities. Such donations can come in specific areas like social welfare, environment, housing, health, and others (Carroll, 2006: p. 71). The limitations of such a model are that it does not address the root causes of poverty and other problems in local communities. Another theory is that CSR should be combined with the overall business strategy. This theory seeks to help local communities by recruiting locals and training them so that they can upgrade their skills.

Enterprises create support for local industries through mutually beneficial relationships. Another theory focuses on creating shared value because it believes that social welfare is directly linked with business success. It recommends organizations to focus on sustainable development as well as a skilled workforce so that efficiency can be attained (Carroll, 2006: p. 79). There is still a gap in the existing literature as to whether CSR can really bring positive benefits to local communities and other key stakeholders. The Nigerian oil sector has been dominated by multinationals which have been accused of environmental degradation, corruption, human rights violations, and other abuses. As a consequence, they have sought to improve this by focusing on corporate social responsibility initiatives. Some studies argue that CSR is a process which involves organizations taking responsibility for their actions and ensuring that they can create a positive impact through their activities on the environment (Blunt & Richard, 2006: p. 169). Other studies have disputed this as they argue that organizations operate on the principle of profit maximization.

Research Methodology

Qualitative research has been selected for this dissertation because it helps to investigate the reasons behind any particular phenomenon. This is suitable for this dissertation because the aim is to study corporate social responsibility and its efficacy in Nigeria. Quantitative research has not been selected because there is no need for statistics and figures in this dissertation. The data will be collected from primary and secondary sources. Primary data will be collected through a survey that will be sent to top managers of multinational companies working in the Nigerian energy sector. The secondary data will be collected through studies that focus on CSR and its efficacy.

References

Amaeshi, K, Adi, B, Ogbechie, C & Amao, O. (2006) ”Corporate Social Responsibility in Nigeria: Western Mimicry or Indigenous Influences?”. No. 39-2006, ICCSR Research Paper Series – ISSN 1479 – 5124, The University of Nottingham.

Beauchamp, T. (2003) “Case studies in Business, Society and Ethics”. 5th ed”. Pearson, Prentice Hall.

Blunt, P, Jones, M & Richard , D. (2006) “Managing organizations in Africa”. Walter de Gruyter, pp.169-171.

Carroll, A. (2006) “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders”. Business Horizons, July-August 1991.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
business
Thank you for your hard work and help.
Customer 452773, February 13th, 2023
business
Great job
Customer 452773, February 13th, 2023
English 101
great summery in terms of the time given. it lacks a bit of clarity but otherwise perfect.
Customer 452747, June 9th, 2021
BUSINESSADMINECO535
excellent work
Customer 452773, October 6th, 2023
Business Studies
Thank you very much for a good job done and a quick turn around time.
Customer 452615, March 31st, 2021
Philosophy
Thank you
Customer 452811, February 17th, 2024
Criminal Justice
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452671, May 2nd, 2021
ACC/543: Managerial Accounting & Legal Aspects Of Business
EXCELLENT JOB
Customer 452773, January 10th, 2024
Business and administrative studies
perfect
Customer 452773, February 23rd, 2023
Leadership Studies
excellent job as always
Customer 452773, September 2nd, 2023
FIN571
excellent
Customer 452773, March 15th, 2024
Human Resources Management (HRM)
excellent, great job
Customer 452773, June 19th, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp