Implementation of Corporate Social Responsibility by Oil Companies in the Niger Delta Region of Nigeria: Myth or Reality

Abstract

Niger Delta region of Nigeria is a home to many multinational oil companies with different packages of corporate social responsibility (CSR) because of its huge natural resource reserve especially of oil and gas. The CSR packages are designed to address social, economic and environmental concerns of the indigenes of the Niger Delta region, arising from the oil and gas operations of the multinational oil companies. The operational activities of the oil companies over the years have led to the degradation of the Niger Delta environment with consequent loss of livelihood sources, thereby triggering protests and other violent activities in the region. The paper identified and analysed the indices of the components of the CSR (social, economic and environmental components) packages using results-based management framework to determine the impacts of the CSR projects and programmes on the people. The analysis revealed that multinational oil companies release funds from a philanthropic perspective for the execution of some social development projects/programmes, but these projects/programmes do not address the welfare and livelihood needs of the people. This means that the multinational oil companies operating in the region create an illusion of compliance with social development and responsibility rules. The paper linked these unfortunate situations (environmental degradation, insecurity, poverty, unemployment, etc) found in the region today to failure of CSR implementation due to corruption, insincerity and philanthropic approach of the oil companies and regard it as injustice to the people of Niger Delta. It therefore concluded that CSR implementation in the Niger Delta region of Nigeria is a myth and as a result recommended that Multinational oil companies should therefore incorporate the people of the Niger Delta into the oil economy by enlisting household heads into the payroll system of the multinational oil companies as well as engage sincerely in projects that will lead to the development of the region, if protests and other violent activities in the region must stop.

Key Words: Implementation, Corporate social responsibility, Environmental Resources, Niger Delta, Multinational Oil Companies