Analysis On The Impact Of Social Responsibilities Of Oil Companies In The Host Communities In The Niger Delta Region
(A Case Study Of Shell Petroluem Development Company)
Oil companies have a significant role in the communities where they operate, extending beyond mere profit-making to encompass social responsibilities that address the needs and concerns of their host communities. These companies undertake various initiatives aimed at fostering sustainable development, environmental stewardship, and community empowerment. By investing in infrastructure projects, such as schools, hospitals, and roads, they enhance the quality of life for residents. Moreover, they often engage in corporate social responsibility (CSR) programs focusing on education, healthcare, environmental conservation, and economic empowerment. These efforts not only contribute to the well-being of the local populace but also help build positive relationships and mitigate potential conflicts between the company and the community. Additionally, through employment opportunities, capacity building, and skills development programs, oil companies empower individuals and communities to participate more actively in their own development, thus fostering social cohesion and economic resilience.
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.
TABLE OF CONTENTS
Title Page
Certification
Dedication
Acknowledgments
Abstract
Table of Contents
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
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
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
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
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.
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:
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.
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.
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
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.
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.
Impact Of Social Responsibilities Of Oil Companies In The Host Communities In The Niger Delta Region:
The impact of social responsibilities of oil companies in the Niger Delta region is a complex and multifaceted issue that has garnered significant attention over the years. The Niger Delta, located in Nigeria, is one of the world’s most oil-rich regions and has been a focal point for oil exploration and production for several decades. However, the benefits of this resource extraction have not always been fairly distributed to the local communities, leading to a range of social, economic, and environmental challenges. Here’s an analysis of the impact of oil companies’ social responsibilities in the Niger Delta region:
- Economic Impact:
- Employment: Oil companies in the Niger Delta are major employers in the region. They provide jobs for many locals, both directly and indirectly. However, there have been criticisms about the quality and stability of these jobs, with many being temporary or low-paying.
- Local Business Development: Some oil companies have initiatives to support local businesses and entrepreneurs. These efforts can stimulate economic growth in host communities, but they are often criticized for not being comprehensive or transparent enough.
- Infrastructure Development: Oil companies may invest in local infrastructure like roads, schools, and healthcare facilities. While these developments can have a positive impact, they are often insufficient to meet the vast needs of the region.
- Environmental Impact:
- Oil Spills: Frequent oil spills have severely damaged the environment in the Niger Delta. These spills, often attributed to oil company negligence, have polluted water sources, farmlands, and fishing areas, harming the livelihoods of local communities.
- Gas Flaring: Gas flaring, the burning off of associated natural gas during oil production, contributes to air pollution and climate change. Many communities in the Niger Delta suffer health problems due to constant exposure to gas flares.
- Social Impact:
- Health: Oil extraction and pollution have led to various health issues in local communities, including respiratory problems, skin diseases, and waterborne illnesses. Limited access to healthcare facilities exacerbates these issues.
- Social Tensions: Disputes over resource control, environmental damage, and the perceived neglect by oil companies have led to social unrest and conflicts in the Niger Delta, affecting both the communities and the oil industry itself.
- Corporate Social Responsibility (CSR):
- CSR Initiatives: Many oil companies have CSR programs aimed at addressing some of these issues. These programs include initiatives for education, health, and infrastructure development. However, their effectiveness is often questioned due to inadequate implementation, lack of transparency, and potential corruption.
- Community Engagement: Effective CSR requires meaningful engagement with local communities. When done well, it can lead to better cooperation and a more equitable distribution of benefits. However, poor engagement can lead to mistrust and resistance.
- Government Role:
- Regulation: The Nigerian government plays a crucial role in regulating the oil industry and ensuring that companies meet their social responsibilities. Weak enforcement of regulations and corruption in the government have often hindered effective oversight.
In conclusion, the impact of the social responsibilities of oil companies in the Niger Delta region is mixed. While there have been efforts to address the economic and social needs of host communities, these efforts are often criticized for falling short of expectations. Environmental damage remains a significant issue, and social tensions persist. Effective and transparent CSR initiatives, coupled with strong government regulation and oversight, are essential to mitigate the negative impacts and promote sustainable development in the Niger Delta region.