ANALYSIS ON THE IMPACT OF SOCIAL RESPONSIBILITIES OF OIL COMPANIES IN THE HOST COMMUNITIES IN THE NIGER DELTA REGION OF NIGERIA (A CASE STUDY OF SHELL PETROLEUM DEVELOPMENT COMPANY)
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ANALYSIS ON THE IMPACT OF SOCIAL
RESPONSIBILITIES OF OIL COMPANIES IN THE HOST COMMUNITIES IN THE NIGER DELTA REGION
OF NIGERIA (A CASE STUDY OF SHELL PETROLEUM DEVELOPMENT COMPANY)
ABSTRACT
This
contains the impact of social responsibilities of Oil Companies in the host
communities of the Niger Delta region of Nigeria: A case study of shell
petroleum Development Company. It is true that most corporate organizations
especially multinational companies are not living up to expectation in solving
the problems contributed in the region by their activities. Their oil
exploration had causes pollution in the area, which has caused untold hardship
to the people. Thus, the objective of the study was to explore how best to use
the practice of public relations in solving these challenges. Both primary and
secondary data were collected. Instrument used to collect primary data were
personal interviews, questionnaires and observation. Secondary data were collected
from textbooks, journals, magazines, newspaper and libraries. Questionnaires
administration and interview methods were the principal methods used for
collecting data. Descriptive research methods and survey technique were adopted
by the researcher. The research findings of the project work reviewed that
social responsibilities programmes are necessary. The findings also unyield
that shell company earnies out its social responsibility programmes in its host
community. The researcher recommended that the company should increase and
expand its social responsibility programmes and government should help in the
development of the communities in which most multinational companies exist.
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TABLE OF
CONTENTS Title Page – – – – i Certification – – – – ii Dedication – – – – iii
Acknowledgments – – – – iv Abstract – – – – vi Table of Contents – – – – vii
CHAPTER ONE: INTRODUCTION 1.1. Background of the Study – – – – 1 1.2. Statement
of the Problem – – – – 3 1.3. Objectives of the Study – – – – 3 1.4. Research
Questions – – – – 4 1.5. Formulation of Hypothesis – – – – 5 1.6. Significance
of the Study – – – – 6 1.7. Scope of the Study – – – – 6 1.8. Limitation of the
Study – – – – 7 References – – – – 9
9
CHAPTER TWO:
LITERATURE REVIEW 2.1. Theoretical Framework – – – 10 2.2. Historical
Background – – – 14 2.3. Current Literature on Theory Postulated – – 25
References – – – 40 CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY 3.1.
Research Design – – – 41 3.2. Sources of Data – – – 42 3.2.1. Primary Sources
of Data – – – 42 3.2.2. Secondary Sources of Data – – – 43 3.3. Population of
the Study – – – 44 3.4. Sample Size Determination and Sampling Technique 46
3.4.1. Sample Size Determination – – – 46 3.4.2. Sampling Technique – – – 48
3.5. Methods of Data Collection – – – 49 3.6. Method of Data Presentation and
Analysis – – 49 CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1.
Presentation of Data – – – 50
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CHAPTER
FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1. Summary of
Findings – – – 70 5.2. Conclusion – – – 72 5.3. Recommendations – – – 73
BIBLIOGRAPHY APPENDIX QUESTIONNAIRE
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CHAPTER ONE
INTRODUCTION 1.1. BACKGROUND OF THE STUDY The impact of oil companies towards
improved welfare (social responsibility) for Nigerians as a whole and Niger
Delta in particular goes to the very beginning. In 1962, most of the oil
companies began oil exploration activities in the country. They presented the
federal government an Aid-to-education plan under which they pledged to provide
$900,000, over a period of five years for the education of Nigerians in various
field. Since then, the oil companies have evolved a comprehensive programme for
supporting the development of Nigeria’s different sectors namely education,
health, infrastructural development, employment generation among others.
The concept
of corporate social responsibilities as a new concept in the business world is
the ability of a corporation to relate its operations and polices to the needs
of the
12
environment
and the work force to the benefit of the organization and the host communities.
Corporate social responsibility involves management of an organization, working
and relating with host communities and own labour force to ensure that the
company is responsible and responsive to corporate government. It includes the
participation of the company in such vital areas as environmental protection,
training of its work force and welfare package and employment, provision of
social amenities within plant location, such as water, electricity, bridges, roads,
schools, scholarship programmes and youth development programmes for the
community and natural development. Business and society are inter-dependent
because business cannot operate in a vacuum, it operates in the society and
contribute immensely to the hazards of the environment from citizens and at
same time provides employment, security and other many values to the community.
Thus, the
concept of social responsibility of oil companies is vital in the life of
organized business operations.
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1.2. STATEMENT
OF THE PROBLEM Presently, it is obvious that oil companies are not living up to
expectations of their duties in the host communities. This contributed
immensely to environmental degradation of the region, the air, water and land
pollution, destruction of natural habitations and waste disposal system that
are harmful and destructive to the host community. Lack of corporation to
tackle the problem and reduce the effects of drilling activities on the
environment and raise the standard of living of the people in the host
communities became a source of concern to the youth of the region. Secondly,
lack of infrastructures and social amenities in the host communities of Niger
Delta region by the federal government and oil companies operating in the region.
Thus, the researcher is intended in finding out the cause of these problems in
the region. 1.3. OBJECTIVES OF THE STUDY The research objectives include the
following:
14
1. To assess
if oil companies as part of their social responsibilities can tackle varying
ecological issues in the host community. 2. To determine the extent to which
oil companies have contributed to the infrastructural development of the host
community. However, this should delve into health care, portable water supply
and education. 3. To evaluate the impact of the social responsiveness of the
company on the life of the people in the host community. 4. To ascertain the
impacts of the activities of the oil companies on their host environment. 1.4.
RESEARCH QUESTIONS The following research questions were formulated to enable
the researcher carry out the study: 1. How has the social responsibility of
Shell Company tackled varying ecological issues in the host environment? (That
is help in preserving the environment.
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2. How has
shell Oil Company as part of its social responsibilities to the host
communities contributed in the infrastructural development in the host
community? 3. In their assertion that all the issues raise above are met, how
has it impacted on the life’s of the people? 4. How has Shell Oil Company
through its activities made an impact on individual in the host community? 1.5.
FORMULATION OF HYPOTHESIS The following hypothesis was formulated base on the
objectives and problems of this research. Ho: Shell Company has been useful in
providing some of the amenities to the host communities. Hi: Shell companies
has not been useful in providing some of the amenities to the host communities.
Ho: The multinational companies provide adequate infrastructures and amenities
in the region. Hi: The multinational companies do not provide adequate
infrastructures and amenities in the region.
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1.6.
SIGNIFICANCE OF THE STUDY The significance of the study lies in the fact that
it would add to the alliteration guiding the federal government of Nigeria on
how best social responsibilities of oil companies could be used and
investigated in the region in order to restore progress, peace and security of
life’s and property of the communities they operate. It will equally help the
government make motivating polices to encourage organizations in the region
participate and implement fully, the corporate social responsibilities policies
and goals in communities of operation. 1.7. SCOPE OF THE STUDY
The scope of
the study focused on the role of corporate social responsibilities of
multinational companies in the host communities. Specifically, the host
communities expect the companies to improve and raise the standard of living of
the people and also what the companies expect from the host communities, especially
what shell company is able to do in
17
this
direction, to alleviate the impacts of oil exploration on the people of the
region. 1.8. LIMITATION OF THE STUDY This research is limited to the impact of
social responsibilities of oil companies on the host communities in the Niger
Delta region of Nigeria. Though, there are many oil companies in Nigeria, but
this research only concentrates on the social responsibilities of shell
Petroleum Development Company of Nigeria. However, due to the constrain in getting
funds, the research work was fully financed by my sponsor and was restricted
from odds. Furthermore, the problem of meeting the needed population size and
other offices as regards data collection makes the research work base on
questionnaires. The method of data collection was centered on the distribution
of questionnaires and partly personal contracts or interview when and where
necessary.
18
Therefore,
the researcher will continue to put together the necessary and available
materials and data in spite of the difficulties involved in the actualization
of this research.
19
REFERENCES
Kolter, P. (2005): Marketing Management (12th edition), New Jersey: Pearson
Prentice Hall Inc. Kotler, P and Armstrong, G. (2008): Principles of Marketing
(12th Edition). London: Prentice Hall Inc. Obeta, C. (2007): Corporate
Environmental Responsibility: The Place of Multinational oil Companies in the
Niger Delta in Nwosu and Soola edited communication. In Global, ICTs and
Ecosystem Perspectives Insights from Nigeria, Enugu: Precision Publishers
Limited.
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