Memorandum of Understanding and Its Effects on Multinational Companies’ Operations in Less Developed Countries: The Case of Nigeria

Abstract

This study was carried out with the aim of determining why there is so much tension in Nigeria as a result of the activities of multinational companies operating in her sub-regions and how this seeming tension could be minimized or abated by tying corporate social responsibility based on the needs of her citizens. It employed a theoretical approach in its investigation and revealed that the seeming high level of societal, economic and political discontents, anomie, dissonance and ambivalence in Nigeria are associated to poverty, poor infrastructural development, unemployment and utter neglect. Multinational corporations operating in Nigeria are very contented with their levels of profitability without contributing adequately to the social, economic, political and infrastructural developments of Nigeria. It concludes that if the corporate social responsibility factors/dimensions of these multinational corporations are tied implicitly and explicitly to a well guided memorandum of understanding the basic necessities of Nigerians will be adequately provided for and Nigeria will be a far better country to live in based on developmental contexts, peace and stability.

Key words: Memorandum of Understanding, corporate social responsibility, National stability and development