INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY PROGRAMMES OF MULTINATIONAL OIL CORPORATIONS ON HOST COMMUNITIES IN SOUTH-SOUTH, NIGERIA

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 (x̅=3.67), commitment (x̅ =3.69) and morality (x̅ = 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 (x̅ = 12.4000); RS (x̅ = 13.5389). Vocational skills, AI (x̅=16.7625); RS (x̅ =19.4329); Healthcare, AI (x̅= 6.9089); RS (x̅= 7.3905); Infrastructure, AI (x̅= 5.6482); RS (𝑋 = 6.4346); Educational development, AI (x̅= 12.4161); RS (x̅=14.1307); Peace building, AI (x̅=3.8589), RS (x̅=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.