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AN INVESTIGATION INTO THE IMPACT OF CORPORATE

SOCIAL RESPONSIBILITY ON OIL PRODUCING

COMMUNITIES: A CASE STUDY OF CHEVRON OIL

(NIGERIA)

DISSERTATION

By

CYRIL CHIAHA IFEAMAECHI

Presented in partial fulfilment of the requirements for the degree of

Masters of Business Administration of University of

Wales

University of Wales

JULY 2009

ABSTRACT

The notion and discourse of corporate social responsibility of business organization is not new in extant literature. Over the years there had been a fairly remarkable conception that business organizations need to embrace as well as fulfil some obligation to the society, government, employees and host communities in which it not only belong but more importantly operate within. But where there have been diverse conceptions as regards this phenomenon appear to rest on the exact nature of these obligations. While some researchers and business organizations tend to accommodate the social responsibility of business towards the society in which it sustain its existence, some others de-emphasize it, arguing that the sole responsibility of businesses is to make profit and that it is not the province of corporation to address social responsibility issues. Why this argument has burgeoned the mind of academia and business managers, less attention has been paid towards investigating the impact of organizations being either socially responsible or not especially as it relates to the developing world.

While drawing upon the activities of Chevron Oil (Nigeria) this work sets out among other things to salvage this lacuna by leaving the contested theoretical terrain of contentions on corporate social responsibility to rather investigate on its impact on the oil producing communities. Four research objectives served to guide the investigation. The first objective was to review extant literatures of corporate social responsibility in developing countries. The second was to assess the motivations behind CSR functions and investment projects undertaken by oil companies. Next on the line was that of identifying and appraising these investments in terms of its impact upon intended beneficiaries and business performance. Lastly, the study analyzes the findings, suggesting feasible ways through which corporate social responsibility could be improved so as to increase business performance. However, considering the nature of the research topic and researcher’s attitude towards business and management research, the researcher deemed it imperative to approach the investigation from a qualitative research paradigm. Thus, the study was carried out in an inductive approach using case study strategy where data was collected using multiple sources of evidence. An in-depth semi-structured interview and questionnaires was used for employees of the company understudy as well as on the host communities after undergoing pilot study test. The inductive thematic data analysis of which is more appropriate when it comes to qualitative analyses that seek to discover themes and emergent issues related to the data collected were employed.

Nevertheless, evidence from the research findings makes it possible to suggest that the impact of corporate social responsibilities on oil producing communities is not at its better best. It reveals that Chevron oil Nigeria has not effectively and efficiently carried out in practice their social responsibility functions encapsulated on their policy agenda. Corporate social responsibilities functions were often seen as a gift

aid affair and not as an obligation towards the people and environment in which they operate within. Although the organization’s perception of corporate social responsibility was quite encouraging the theory could not be linked with what they practice. However results from the findings suggest that if bottom up partnership and tri-sector corporate reporting are adopted among other strategies enumerated in the recommendations, it will inevitably impact positively on the business performance than it was before.

ACKNOWLEDGMENTS

It was Rousseau who stated that gratitude is a duty, which ought to be paid. It is in line with this fundamental truth that I construct some words of thanks to those whom they are due. First and foremost, I acknowledge with deep reverence the Almighty God whose unfathomable kindness has led me this far in my keen pursuit of knowledge. His nature is knowledge and I am indebted to Him for giving me a share of it. I must on a special note thank my supervisor Dr Wilson Ozuem (FCIM) who spent pensive days and risked his convenience in granting my work a thorough moderation. His deep and sincere insight in the topic will always be appreciated. I also extend many thanks to University of Wales for all the educational possibilities offered to me. I thank immensely Michael Branch (Rev. Fr.) for granting me an open door corporation during the course of this study. His impact on my life through instructive guidance and exemplary life as my spiritual director helped and sharpened my disposition for this work. I pray that God’s favours ever remain with him.

Next on the rung of facilitators are my amiable and affable parents; Mr. Cyril Chiaha and Mrs. Irene Chiaha whose avid interest in my welfare made them sacrifice their life earnings in order that I attain the full measure of human development. However, I pray God to keep in the safety of His bosom the soul of my father whose demise could not allow to reaping in full the fruit of his labour. My gratitude goes next to Okoye Emmanuel who arranged all the interviews and guided me during the fieldwork in Nigeria. I am also obliged to each of the interviewees and all the people I met in the course of this study for their co-operation and time. The overwhelming tolerance and exciting dispositions of Mr. Alo Reilly and my siblings scored a point in achieving this goal. I remain grateful to them for the niche of comfort they created for me. I pray that God who can never be overtaken by the exigency of generosity provide them those to assist them in whatever they are undertaking

TABLE OF CONTENTS

ABSTRACT------------------------------------------------------------------------------------------ii

ACKNOWLEGMENTS----------------------------------------------------------------------------iii

CHAPTER ONE---INTRODUCTION-----------------------------------------------------------1 .1

ENQUIRY OVERVIEW------------------------------------------------------------------1 .2 AIMS AND

OBJECTIVES---------------------------------------------------------------2 .3 RESEARCH

QUESTIONS---------------------------------------------------------------3 .4 BACKGROUND

INFORMATION-----------------------------------------------------3 .5 STATEMENT OF THE

PROBLEM----------------------------------------------------4 .6 IMPORTANCE OF THE

RESEARCH-------------------------------------------------7 .7 SCOPE AND LIMITATIONS OF THE

RESEARCH--------------------------------9 .8

SUMMARY---------------------------------------------------------------------------------9

CHAPTER TWO--LITERATURE REVIEW---------------------------------------------------10

2.1 INTRODUCTION-----------------------------------------------------------------------------10

2.2 CONCEPTUAL CLARIFICATION-------------------------------------------------------11

2.3 HISTORICAL ANTECEDENTS OF CSR------------------------------------------------17

2.3.1 ORGANIZATIONAL LEGITIMACY------------------------------------------------17

2.3.2 ETHICS------------------------------------------------------------------------------------18

2.3.3 AGENCY THEORY---------------------------------------------------------------------20

2.3.4 STAKEHOLDER THEORY------------------------------------------------------------21

2.3.5 CORPORATE GOVERNANCE-------------------------------------------------------22

2.3.6 SUSTAINABLE DEVELOPMENT---------------------------------------------------24

2.4 DRIVERS OF CSR---------------------------------------------------------------------------26

2.4.1 INTERNAL DRIVERS OF CSR-------------------------------------------------------26

2.4.1.1 IMPROVED FINANCIAL PERFORMANCE------------------------------------26

2.4.1.2 ENHANCED BRAND IMAGE AND REPUTATION--------------------------27

2.4.2 EXTERNAL DRIVERS OF CSR--------------------------------------------------------28

2.4.2.1 PROLIFERATIONS OF CODES, STANDARDS, INDICATORS AND

GUIDELINES---------------------------------------------------------------------------------------28

2.4.2.2 CHANGING SOCIAL EXPECTATIONS AND GLOBALIZATION------29

2.5 CSR IN NIGERIA------------------------------------------------------------------------------29

2.6 OIL DEVELOPMENT AND ITS IMPLICATIONS ON THE NIGERIAN

ECONOMY--------------------------------------------------------------------------------------------------

----------31

2.6.1 EFFECTS OF OIL EXPLORATION AND ITS SOCIO-ECONOMIC IMPACT ON THE

ENVIRONMENT-----------------------------------------------------------------------------32

2.7 SUMMARY--------------------------------------------------------------------------------------35

CHAPTER THREE--RESEARCH METHODOLOGY----------------------------------------37

3.1 INTRODUCTION-----------------------------------------------------------------------------37

3.2 RESEARCH AIMS AND OBJECTIVES---------------------------------------------------37 3.3

RESEARCH PHILOSOPHY-----------------------------------------------------------------38

3.4 RESEARCH APPROACH--------------------------------------------------------------------40

3.5 RESEARCH STRATEGY: CASE STUDY------------------------------------------------42

3.6 ALTERNATIVE RESEARCH STRATEGIES--------------------------------------------43

3.6.1 EXPERIMENTAL RESEARCH STRATEGY----------------------------------------44

3.6.2 SURVEY RESEARCH STRATEGY---------------------------------------------------44

3.6.3 GROUNDED THEORY------------------------------------------------------------------45

3.6.4 ETHNOGRAPHY RESEARCH STRATEGY----------------------------------------45

3.7 RESEARCH INSTRUMENTS--------------------------------------------------------------46

3.7.1 INTERVIEWS-----------------------------------------------------------------------------47

3.7.2 QUESTIONNAIRES----------------------------------------------------------------------48

3.8 ETHICAL CONSIDERATIONS------------------------------------------------------------49

3.9 PILOT STUDY--------------------------------------------------------------------------------50

3.10 ALTERNATIVE DATA COLLECTION METHODS---------------------------------51

3.10.1 PARTICIPANT AND STRUCTURED OBSERVATION------------------------51

3.11 SAMPLING METHOD---------------------------------------------------------------------51

3.12 STRENGHTS OF THE METHODOLOGY---------------------------------------------53

3.13 LIMITATIONS OF THE METHODOLOGY-------------------------------------------54

3.14 SUMMARY----------------------------------------------------------------------------------55

CHAPTER FOUR--ANALYSIS AND FINDINGS -------------------------------------------56

4.1 INTRODUCTION----------------------------------------------------------------------------56 4.2 THE DATA ANALYTICAL METHOD: INDUCTIVE THEMATIC ANALYSIS AND

ITS JUSTIFICATION------------------------------------------------------------------------------56

4.3 DRAWBACKS OF INDUCTIVE THEMATIC ANALYSIS-------------------------57

4.4 WHY OTHER METHODS WERE NOT FOUND APPROPRIATE----------------58

4.5 CATEGORIZING THE THEMES---------------------------------------------------------59

4.6 PERMEATED THEMES--------------------------------------------------------------------69

4.6.1 REDUNDANCY CRISIS----------------------------------------------------------------69

4.6.2 HOSTILITY-------------------------------------------------------------------------------71

4.6.3 REDUCED STANDARDS OF LIVING----------------------------------------------72

4.6.4 HEALTH PROBLEMS------------------------------------------------------------------73

4.7 SUMMARY-----------------------------------------------------------------------------------74

CHAPTER FIVE--CONCLUSION AND RECOMMENDATIONS-----------------------75

5.1 INTRODUCTION------------------------------------------------------------------------------75

5.2 EVALUATION OF FINDINGS------------------------------------------------------------75

5.3 LINKING EMPIRICAL DATA TO THE RESEARCH AIMS AND

OBJECTIVES-----------------------------------------------------------------------------------------------

----------------81

5.4 IMPLICATIONS TO MANAGEMENT---------------------------------------------------85

5.4.1 UNSAFE WORKING ENVIRONMENT---------------------------------------------85

5.4.2 KNOCKS DOWN THE CORPORATE BRAND IMAGE -----------------------85

5.4.3 IMPACTS NEGATIVELY ON THE FINANCIAL PERFORMANCE-------86

5.4.4 THREATENS THE ORGANIZATIONAL LEGITIMACY----------------------86 5.5

RECOMMENDATIONS--------------------------------------------------------------------87

5.5.1 CREATION OF VOCATIONAL CENTRES----------------------------------------87

5.5.2 STRIGENT LAWS-----------------------------------------------------------------------88

5.5.3 TRI-SECTOR CORPORATE REPORTING-----------------------------------------88

5.5.4 BOTTOM UP PARTNERSHIP--------------------------------------------------------88

5.5.5 PERIODICAL WORKSHOP AND EDUCATION---------------------------------89

5.6 CONCLUSION---------------------------------------------------------------------------------89

5.7 FURTHER RESEARCH DIRECTIONS----------------------------------------------------90

5.8 SUMMARY-------------------------------------------------------------------------------------91

REFERENCES----------------------------------------------------------------------------------------92

APPENDICES APPENDIX

1------------------------------------------------------------------------------------------102 APPENDIX

2------------------------------------------------------------------------------------------103 APPENDIX

3------------------------------------------------------------------------------------------104

APPENDIX4------------------------------------------------------------------------------------------- 105

CHAPTER ONE INTRODUCTION

.1 ENQUIRY OVERVIEW

The purpose of this research was to investigate the impact of corporate social

responsibilities hereafter referred to as CSR on oil producing communities using

Chevron (Nigeria) as a case study. Carried out as a qualitative inquiry, the research

unveils the facts underneath the case which has the intensity of impacting

positively on the business value of the organization when received by the

management. The work is sequentially arranged commencing with the description

of the scope of study and concluding by suggesting new insights for further

research direction. However, the principal aim of this section is to provide the

reader with a synopsis of the major chapters as they emerge. Specifically, it is an

overview of what is to be expected in the rest of the study so as to enhance and

provide a detailed guidance.

The research sets out with an introduction which seeks to explain to the reader the

key aims and objectives of the case understudy, not only stressing the essentiality

of such investigation but also bringing to light the background of the research which

is invaluable for the pursuit of the study as well as the possible limitations

emanating from it. The next chapter after the introduction attempts to review

extant literature relevant to the research. In this section therefore, effort was

directed in building a strong theoretical foundation and providing a framework for

data analysis. Besides this, the chapter consists of dominant theories and empirical

works of expert on the topic, their findings and recommendations and how they

relate to the present study. It goes a long way to trace the origin of the subject

matter, how it has been conceived and developed in the different eras of history.

Following the literature review is an exposition of the research methodology used in

the course of the study and the justification for employing them. This chapter

begins with a reconsideration of the research aims and objectives and how it links to

the literature exposed. This will not only enable the reader to come in terms again

with an overview of what has been done but also assist in discovering the suitability

of the methods being employed in investigating the research aims and objectives.

The chapter goes on to look at the research paradigm, the research instrument, the

data collection methods and sampling as well as the ethical considerations applied

in the study.

After the exposition of the research methodology employed the next chapter

presents the data collection process, the data analytical technique used as well the

reasons for not considering other possible methods. Using inductive thematic data

analytical tool the chapter also analyzed the empirical materials generated from the

fieldwork. Finally, the research last part which is the conclusion and

recommendations evaluates the findings, linking each of the research aims and

objectives with the literature. In addition to this, the chapter relates the implications

to management by first and foremost bringing into focus once more the research

findings as well as suggesting feasible recommendations. More so, it went further to

present possible areas of future research opportunities found during the course of

the investigation.

.2 AIMS AND OBJECTIVES

This study aimed to investigate into the impact of corporate social responsibility on

oil producing communities using Chevron: Nigeria as a case study. But research

shows that any study to be undertaken always goes with some research aims and

objectives of which will not only facilitate the inquiry but more so guide it. Aims and

objectives could be seen as the underlying factor necessitating an enquiry and any

research without it appear to be void of substance (Bryman 2001). Consequently,

the following aims and objectives were designed to accomplish this study:

1 To review extant literature on corporate social responsibility in the developing countries.

2 To assess the motivation behind CSR functions and investment projects undertaken by oil companies but with particular reference to Chevron oil Nigeria.

3 To identify and appraise these investments in terms of its impact upon intended beneficiaries and business performance.

4 To analyze and suggest feasible ways through which the impact of corporate social responsibility could be improved profitably in Chevron so as to increase business performance

1.3 RESEARCH QUESTIONS

As aforementioned this study seeks to investigate into the impacts of corporate

social responsibility on oil producing communities using Chevron Nigeria as a case

study. Consequently, in order to address the problems highlighted in the research

work certain relevant research questions were deemed necessary of which include

the followings:

1. To what extent have oil companies in Nigeria effectively and efficiently carried out their corporate social responsibility functions on their oil producing communities?

2. To what extent do the policies of oil companies reflect the interest of their host communities and is the relationship between the two cordial?

.4 BACKGROUND INFORMATION

The country Nigeria is noted to be the largest oil producer in Africa and the eighth

largest in the world (Ite 2007; Idemudia and Ite 2006a). Nigeria is made up of three

major constituent components: Northern, Western and Eastern Regions with a large

degree of autonomy in all other matters. In each of these three regions, a majority

ethnic group constituted about two-thirds of the population, the Hausa-Fulani in the

north, the Yoruba in the west and the Igbo in the east; the remaining third was

made up of various minority groups, of which there may be 250 or more in Nigeria

(Okike 2007; Okafor 2003). The peoples living in the oil-producing communities of

the southeast largely belong to these minority ethnicities, and they speak a diverse

range of languages and dialects from at least five major language groups (Ite 2007;

Onishi 2002). However, the first discovery of commercial quantities of oil in Nigeria

was in 1956 upon which by the end of the century the country produced

approximately two million barrels per day of crude oil (NNPC 2009).

Undoubtedly, the finding of oil changed Nigeria’s political economy and since the

1970s oil has provided about 90 percent of foreign-exchange earnings, and 80

percent of federal revenue (Onishi 2002; Olujide 2006; Ite 2007). The country is so

blessed that they still have huge mineral deposits of natural gas yet to be exploited.

As in the case of many other host communities, the generated revenue from oil has

appeared to be a dilemma, instead of a blessing. Rather than turning Nigeria into

one of the most flourishing states on the African continent, its natural mineral

deposits have enriched a small minority while most of population has become

increasingly indigent amidst plenty: thereby portraying Nigeria as one of the

poorest countries in the world (Onishi 2002).

According to the Nigerian constitution, all minerals, oil, and gas belong to the

Nigerian federal government, who negotiates the terms of oil production with

international oil companies. Most exploration and production activities in Nigeria are

carried out by European and U.S. oil companies operating joint ventures of which

Chevron is one of them. Chevron was established around 1879 at Pico Canyon,

north of Los Angeles (Chevron 2009). With its present headquarter in San Ramon,

California the company is noted to be one of the world’s largest integrated energy

companies conducting businesses in more than 100 countries. The company is

engaged in almost every aspect of oil and natural gas industry, including

exploration and production, manufacturing, marketing and transportation, chemical

manufacturing and sales, geothermal and power generation among others (Chevron

2009). However, its existence in Nigeria is dated to be around late 1920’s with an

estimated workforce of 2000 employers and since its existence the company has

engaged in various business activities such as investing in crude oil and natural gas

exploration and production.

1.5 STATEMENT OF THE PROBLEM

Over the years the quest for corporate success in the business sector as well as

social responsibilities has generated a lot of interest especially with the global

witness of the numerous high profile cases of corporate governance failures such as

Enron and other similar cases (Nwanji and Howell 2006; Asongu 2007; Jill 2007).

Theories upon theories have evolved all in the bid to analyze and work out systems

that would permit corporate governance especially in large public companies.

Agency theory, stakeholder theory and transaction theory are all attempts put in

place in search for well sustained governance. Despite this effort, the importance of

the environment and stakeholders’ consideration appears very much de-

emphasized especially among oil companies (Birnbaum 1995; Clarke et al 1999;

Doh and Guay 2006). While some authors attribute its cause to the exclusiveness of

agency theory by its proponents, some others in addition highlights the negligence

of companies towards abiding to the ethical demands of their business (Mitchell and

Sikka 2005; Fisman et al 2005; Nwanji and Howell 2005; Dummett 2006).

Nevertheless, the emergence of stakeholder’s theory and its accompanied theory of

corporate social responsibility ushered in a new vista to companies. Companies

were expected to broaden their accountability to include not only the shareholders

but more importantly the stakeholders at large (Nwanji 2005; Nwanji and Howell

2006; Jill 2007). Notwithstanding this development, some companies have not in

practice imbibed the corporate social responsibility teachings. The proliferation of

sequester carbon emission; neglect of the environment, and indifference to social

issues in Nigeria oil industry has not only evidenced this fact but appeared to put in

question the understanding and practicability of the demands of corporate social

responsibility by most of the oil companies (Gouldson and Bebbington 2007).

The poor socio-economic situation of the country spells poverty, diseases and low

standards of living among others (Onishi 2002; Ite 2005; Eweje 2006). This state of

affairs as underscored by the committee on Economic Development (1997) cells for

immediate attention and remedy. Evidence from some researchers makes it

possible to suggest that the protests emanating from the oil producing communities

(Niger Delta) is an indirect clamour of negligence towards the implementation of

corporate social responsibility by the oil industry (.Guobadia 2000; Onwuchekwa

2004; Olujide 2006; Godfrey et al 2008). However, although there are surprisingly

few good-quality independent scientific data on the overall or long-term effects of

hydrocarbon pollution on the oil producing communities, yet available evidence

does indicate that oil-led development in general has seriously damaged the

environment and the livelihood of many of habitants and that poor environmental

standards in relation to oil spills, gas flaring and pipe leakages have contributed to

these problems (Onishi 2002; Onwuchekwa 2004; Olujide 2006; Akpan 2006).

Notwithstanding the proliferation of various codes and clamour for ethicality among

business organizations, the impact remains patchy (Wheeler et al 2002). While the

minority ethnic groups living in the oil-producing communities of the Niger Delta

have faced the adverse effects of oil extraction, they have in general also failed to

gain from the money generated from the natural deposit (Onishi 2002; Onwuchekwa

2004). In spite of the vast wealth produced from the oil found in these communities,

the region remains poorer (Karl 1997; Onishi 2002). The ‘derivation principle’ in the

federal budget, under which a share of the revenue generated from oil producing

states, was reduced to insignificant levels, and not until 1999 when it was partially

restored (Onishi 2002; Okafor 2003; Olujide 2006). Although there are other means

through which developments have been created to reach the host communities,

these intermediate links have equally turned out to become another source through

which those implementing them add to their wealth, instead of being a source for

poverty alleviation (Onishi 2002; Akpan 2006).

Undoubtedly, the development spending by the oil companies has brought in

schools, clinics, and other infrastructure to some remote parts of the country that

might otherwise be far more marginalized by the Nigerian government, but many of

these projects are inappropriate to address the needs of the communities and more

importantly are often left uncompleted. Others, because of incompetence or

corruption, if ever completed are inconsiderately carried out efficiently. However, it

should be noted that these development spending by the oil companies has only

reached significant levels since protests began to threaten oil production (Clarke et

al 1999; Amaeshi 2006; Akpan 2006). Although a minority of politicians, traditional

leaders, and contractors have become rich on the spoils of oil, and hence support

the oil industry’s activities, the great majority of people from the minority ethnic

groups of the oil-producing areas have remained impoverished, sometimes as a

direct consequence of environmental damage caused by oil extraction (Frynas

2001; Onishi 2002). Moreover, it should be necessary to reiterate that it is not that

the oil companies are not responding at all to the corporate social issues but instead

is whether these social responsibilities efforts are able to meet with the

environmental and socio-economic requirements of their host communities and this

is one of the aims and objectives this study intend to investigate.

.6 IMPORTANCE OF THE RESEARCH

In recent years, the rise of modern exigencies and ethical issues facilitated by

globalization, the changing social expectations, the widespread incidence of

corporate failures and the increasing inability of government to meet their basic

responsibility to society as well as regulate business activities among others has

resulted in the re-evaluation of the business-society relationship and formation of

new corporate social responsibility thinking (Carroll 1979, 1991, 1999; Crane and

Matten 2003; Beauchamp and Bowie 2004; Jill 2007; Johnson et al 2008). The notion

that the sole responsibility of business organizations is ultimately to make and

increase profit as much as they could (Friedman 2004) has lost its seat to include

businesses helping out in resolving social and environmental needs otherwise

referred to as corporate social responsibility (Garriga and Mele 2004; Freeman

2004; Dick 2005).

Unfortunately, some critics in the attempt to assess this phenomenon argue that

CSR is not only a distraction for business in achieving its goal of making profit but

also an inefficient way of allocating resources of which businesses lack the

competence to take on, mindful of the fact that such responsibility falls outside its

main domain of expertise (Friedman 1962, 1970, 2004; Henderson 2001, 2004).

Addressing this issue Nwanji (2005) and Lev et al (2006) noted that business

acceptance of corporate social responsibility always appeals positively for both

business and its stakeholders. More so, the notorious failures of corporate bodies

such as Enron, Parmalat and other similar cases have equally highlighted the

utmost importance for businesses to improve and reform their corporate social

responsibility functions so as to prevent future and similar occurrence (Jill 2007).

There is a strong consensus therefore that companies who considers and put into

practice the corporate social requirements demanded of them have differential

advantage and thus would not only increase business performance but more so, has

the chances to withstand the test of time (Nwanji 2005; Lev et al 2006; Jill 2007). In

Nigeria the oil industry of which Chevron is one of them has witness a monumental

increase of assaults and allegations as a resultant effect of not fulfilling their

corporate social responsibility functions. Shell for example, although known to be

the largest producer of oil in Nigeria had been attacked by its host communities, an

attack that successfully closed down Shell’s production in Ogoni land: Nigeria, in

1993 and in turn was blamed both at the local and international level (Birnbaum

1995).

This situation therefore suggests that oil companies as well as other business

venture should re-evaluate the impact of their social responsibility strategies so as

to renew their corporate identity as well as increase business performance. This

research therefore seek to investigate into the corporate social responsibilities of

Chevron (Nigeria) with the purpose of exploring its impact on the oil producing

communities and see how it’s possible improvement would influence business

performance. The research in other words attempts to uncover how good practice of

corporate social responsibilities can be a constructive and valuable marketing

strategic tool amidst the increasing crisis between the oil companies and host

communities in Nigeria.

In addition to this there have been host of studies and literatures on corporate

social responsibility especially in developed countries. While there is dearth of such

studies in developing countries, some researchers who tend to asses this

phenomenon have most often focused attention on the theoretical discourse, the

cost benefits it offers, as well as it’s associated economic and profit derivation

among others. The emerging impacts it places on the host communities in contrast

to other host communities in developed countries were less addressed. The little

that was carried out in relation to this, from my research was not conducted in this

context for Chevron. This study therefore, is one of the early studies in the

developing countries particularly Nigeria and has the potential of exposing to the

managements of oil industries and other sectors the benefits accruing from

effective implementation of corporate social responsibility practice in the

communities in which they operate.

Hence the research will enable Chevron and other oil companies in developing

countries to re-examine whether their corporate social responsibility activities and

practices are achieving the objective for which they are being implemented and also

provide them with information that will aid in deciding whether to retain its current

programs or change them for better results. Furthermore, it will also provide the

communities with valuable information on the feasibility of their demands. Finally, it

will help the researcher in understanding and applying business and management

research techniques, thus enabling him to gain better insight about corporate social

responsibility and also be more equipped in undertaking future research.

1.7 SCOPE AND LIMITATIONS OF THE RESEARCH

This study will concern itself only with the investigation into the impact of corporate

social responsibility on oil producing communities using Chevron oil as the case

study. However, naturally it would be accepted in a research endeavour to study as

many oil companies as possible but reality often runs contrary to this situation. It is

not out of place therefore to encounter problems and obstacles in a study of this

nature. Prominent among them includes time factor, which usually is in a very short

supply and other resources such as money regulate choices in endeavours such as

this. These constraints have resulted in the selection of one company within the oil

companies in Nigeria and have neglected many choices.

Hence the generalization of the findings of the study beyond the confines of

Chevron may be considered improper. Perhaps, another unpalatable outcome is

that the choice of Chevron is restricted to Nigeria and precisely Niger Delta and its

environments. More so, it is possible that some cultural and other environmental

factors peculiar to communities can influence matters in relation to corporate social

responsibility. Furthermore, it is possible that the use of one method of analysis

might have limited the empirical data generated from the fieldwork. Nevertheless,

this study is a major effort in investigating into the impact of corporate social

responsibility in oil producing communities with particular reference to Chevron Oil

Nigeria. The study hopefully is expected to help the organization in managing their

stakeholders through the mechanism of good practice of corporate social

responsibility.

1.8 SUMMARY

This chapter has attempted to present a preview of the research, by introducing the

research aims and objectives, presenting the background information, the

importance of the research as well as its possible limitations. The subsequent

chapter provides a comprehensive review of extant literature related to the study.

CHAPTER TWO LITERATURE REVIEW

.1 INTRODUCTION

The first chapter presented an introduction and to some extent, an overview of what

is to be expected in the rest of the study. Specifically, it provided the basic premise

for this study, the basic research aims and objectives as well as the research

question, which are invaluable for the pursuit of the study objectives. In this section,

effort was directed in building a strong theoretical foundation and providing a

framework for data analysis. In addition to this, the literature review will afford us

the opportunity of knowing what others have done on the topic or related topics,

their findings, recommendations and how all these relate to the present study.

To this end, the chapter begins with a conceptual clarification and etymological

discourse of the term corporate social responsibility, its historical antecedents and

usage in the three major eras of history. Dominant theories relating to corporate

social responsibility such as business ethics, the social contract of Rousseau,

corporate governance theory, shareholders and stakeholders theory, were thus

examined. Furthermore, an attempt was made to situate the place of corporate

social responsibility in ethics and see to what extent are both of them related to

each other. This was to ensure that the theories cover comprehensively the subject

of the research.

More so, the chapter goes further to present other contemporary empirical studies

that are pertinent and useful for the research. On this note some of the major

studies conducted in relation to the subject were examined, including those that are

anti-supportive to the subject understudy. These literatures were critically reviewed

based on the objective judgments gained from the wide variety of works relevant to

the research.

2.2 CONCEPTUAL CLARIFICATION

Corporate social responsibility has become one of the most commonly used phrases

in the modern global business vocabulary. Judging from the attention paid by

researchers and social activists in recent times there seemed to have been growing

body of academic literatures on transnational and multinational companies’

negligence towards ethical and social behaviour especially as it relates to

developing countries (Birnbaum 1995; Karl 1997; Human Rights Watch 1999; Avery

1999; Fox et al 2002; Onishi 2002; Okafor 2003; Ite 2004; Frynas 2005; Hamann

2003, 2006). As the attention intensifies due to growing fears of such high

consequence risks as global environmental disaster and globalization among others

far greater definitional clarity are being achieved concerning the nature of corporate

social responsibility and the role that strong corporate social responsibility needs to

play to prevent them.

However, as the attention matures due to society protest and companies’ damages,

some corporations and various stakeholders have begun to consider the need of

broadening their \corporate agenda so as to establish effective means of identifying

and being accountable to the communities in which they operate and sustain their

businesses. Recent policies and corporate governance reforms have emphasized

and taken into cognizance of corporations focusing not only on the needs of the

shareholders but also on the needs and requirements of all corporate stakeholders

of which includes the stockholders, employees, customers, managers, suppliers and

the local community (Beauchamp and Bowie 2004; Nwanji 2005; Nwanji and Howell

2006).

In their long examination of the effects of companies attitude towards the

environment Mitchell and Sikka (2005, p.2) noted that their activities “affects the

quality of life, food, water, gas, electricity, seas, rivers, environment, schools,

hospitals, medicine, news, entertainment, transport, communications, and even the

lives of unborn babies”. Nevertheless, despite the widespread rhetoric, impact is

still patchy in practice, especially in developing countries. Many companies’

implementation is shallow and fragmented. Most organizations appear to be

lackadaisical towards CSR implementations and the unending benefits accruing

from organizations that are socially and ethically committed in practice as well as

the differential advantages it gives to organizations (Post et al 2002; Porter and

Kramer 2006).

It should be noted that despite the existence of vocal critics (for example Friedman

1970, 2004), it is now widely recognised that companies have responsibilities

broader than traditional shareholders wealth-maximisation (Margolis and Walsh

2001; Maignan & Ferrell, 2004; Godfrey et al 2008). Specifically, organisations and

businesses need to be very much aware of its social and environmental interactions

together with its economic viability (Deegan 1999b). But in order to achieve and

carry out this grandiose task, today’s organisations need to know and understand

the meaning and potential implications of CSR in all its dimensions.

The notion and importance of corporate social responsibility of corporations is not

new in extant literature. Although, the modern understanding of CSR is most often

traced to the renowned publications of Bowen (1953) who viewed it as an obligation

to make decisions and to follow lines of action which are compatible with the

objectives and values of society, the underlying concept of CSR that of an implied

social contract dates back to “the writings of the Greek philosopher Epictetus…

[and] was central to the intellectual system…in the first half of the seventeenth

century” (Anshan 1970, p.8). More so, it should be noted that as early as 1938 the

notion was seen reported in the works of Barnard (1938) and re-echoed by Van

(2003).

However, as the discipline matures, far greater definitional clarity have emerged

from diverse disciplines with differing viewpoints but central amidst its various

conceptions is the notion that organizations have to be socially responsible to the

stakeholders at large. Underlying this notion is the fundamental belief that a group

of people come together and exist as an institutions that we call a company, so that

they will be able to achieve what they could not accomplish as individuals. Thus,

they gathered together not solely to make profit but also to make contributions to

the society (William and Barrett 2000; Whitehouse 2003; Utting 2005).

Specifically speaking, the whole notion of CSR can be discerned from its

etymological conception. The concept is coined from the words that are contained

within its title phrase: ‘corporate’, ‘social’ and ‘responsibility’. The term ‘corporate’

is derived from the Latin expression for company “cum” and “panis” meaning

“breaking bread together” (Arndt 2003). At the core of its meaning is the

understanding of working collectively as a group or sharing together. Timberlake

(2002) noted that underlying this coming together, is the belief of accomplishing

what they would not have if left individually. While the use of the term CSR appear

to be new in literature the concept itself is quite primordial, as some authors dates

it back as early as the history of trade and business itself (Asongu 2007).

In the Ancient era CSR activities could be discerned in the codes of conduct enacted

for farmers, innkeepers and builders, to ensure that their activities and operations

do not inconvenience the life and freedom of others. This idea was clearly depicted

by BRASS Centre (2007), when they noted that the laws to protect the forest and

commercial logging has been in existence since 5,000 years ago. In their historical

elucidation of corporate social responsibility and corporate sustainability, BRASS

Centre (2007) buttressed and exemplified this phenomenon in their record of the

grumblings of the ancient Romans senators about the inabilities of businesses in

paying sufficient taxes to support the military. A similar view is equally reflected in

1622 by some shareholders of Dutch East Indian Company who were found

disgruntled at the secrecy and self aggrandizement of the management (Jill 2007;

BRASS Centre 2007).

More so, in Africa this element of organizations being accountable to the society in

which they live and operate their business was not left out. In his long academic

enquiry on the historical trace of CSR, Asongu (2007) found out that in Southern

Cameroons and other parts of Africa, hunters were expected to bring part of their

catch to the chief (traditional rulers). At “New Yam Festivals” farmers in Eastern

Nigeria, precisely in Igbo land brought their first harvest for the famous communal

ceremony (Asongu 2007). Professional craftsmen were seen as the custodians of

history and many of their artworks of which they were not even paid for were kept

in the palaces of the chiefs. All these among others go on to evidence that in

traditional African societies, businesses has a social responsibility and in fact was

seen as providing benefits to the society than to the individual person.

Nevertheless, the dawn of industrialization era in modern times ushered in a new

vista for CSR activities. The impact of CSR assumed a new dimension and evolved

into what some authors and academic researchers refer to as the modern CSR

(Morsing and Beckmann 2006). Within these period CSR activities was narrow in

perspective and received a less specialized attention among corporations (Gautt

1919). As rightly stated by Donham (1929), business at this time was new in its

broadening scope and social significance. They have not learned how to handle

these changes, nor does it recognize the magnitude of its responsibilities for the

future of civilization (BRASS Centre 2007).

The emergence of shareholder and stakeholder theory coupled with increased

sensitivity to and awareness of environmental and ethical issues in the

contemporary era revolutionized the concept of CSR (Freeman 2004; Solomon and

Thomson 2006; Jill 2007). At this juncture corporate social responsibility emerged as

a discipline under maturity with variegated vocabularies, and attempts to capture

its essence as well as how it is to be practiced or implemented was shallow.

Therefore, it should not be surprising to have various authors refer to this very

concept differently under the following: ‘corporate’ or ‘business responsibility’,

‘corporate’ or ‘business citizenship’, ‘good corporate citizenship’, ‘community

relations’, and ‘social responsibility’. Asongu (2007) suggested that prior to this time

effort was directed towards encouraging businesses to be responsible to its milieu

and social issues. However, as the discipline matures the attempt to analyze the

concept of corporate social responsibility has flourished several definitions and

interpretations that no universally accepted definition of the term exists in

literature.

Consequent of these, the term corporate social responsibility appear to have

definitions that tend to vary from each other owing to the fact that it is most often

viewed from two different perspectives, one that is narrow in approach and the

other that is broader. It is the intention of this paper to provide both views and

finally adopt one that would serve as a working definition for the rest of the enquiry.

A narrow definition of CSR can be found in the works of Friedman (1962, 1970 and

2004) who understood maximization of profit as the sole responsibility companies

had to the society. Embarking on social matters should be the prerogative of the

government and corporations lack the expertise as well as the legitimacy of

administering such concerns. By engaging in CSR activities other than that of profit

maximization, corporations becomes amoral and indifference to shareholders.

Although Friedman’s approach could be termed to be conservative, his thinking

undoubtedly re-echoes the agency theory of the company. Admittedly, economic

profit is one of the motives of a business but it would be unrealistic to accomplish, if

businesses appear to be insensitive or lackadaisical to the society in which they live

and operate.

A more articulated definition of CSR, one that seems to be more embracing in

outlook is found among those who held a broader perspective of CSR. While

accommodating the view that organizations exist to increase profit and account to

their shareholders, they also incorporated that accountability to extend to a broad

range of stakeholders. Thus, Freeman et al (2008) who is very much renowned on

this was of the view that companies are so large, and their impact on the society so

pervasive, that they should discharge accountability to many more sectors of

society instead of their shareholders alone. This conception of CSR has attracted the

interest of many authors and researchers that many definitions abound (Fishman et

al 2005; Freeman and Velamuri 2006), all in attempt to give credence to it. In

Davies and Frederick (1984) corporate social responsibility was defined as the

ability of a company to relate its operations and policies to the social environment

in ways that are beneficial to the company and society. The concept recognized that

both society and the firm including the shareholders and workers have an impact on

the business activity.

Commenting on the notion of CSR, McComb writing in South China Morning Post

(2002) remarked that the notion of companies looking beyond profits to their role in

society is generally termed corporate social responsibility (CSR). Carroll (1991)

integrated this conception in his long description of the pyramid of corporate social

responsibility. According to him corporate social responsibility should be framed in

such a way that the business responsibilities are embraced in entirety. In his view

corporate social responsibility consists of four social responsibilities of which

includes; the economic, legal, ethical and philanthropic aspect. It refers to company

ability in linking itself with ethical values, transparency, employee relations, legal

requirements and overall respect for the communities in which they operate. It

therefore goes beyond the occasional community service action. One of the basic

premises underlying this definition is the idea of mutual benefits and exchange in

relationship. It goes further to suggest that the social responsibility of business

encompasses the economic, legal, ethical, and discretionary expectations that

society has of organizations and addressing them at a given point in time (Carroll

1991, 1999; Nwanji and Howell 2006). Similarly A Guide to Corporate Social

Responsibility (CSR) has proposed one of the most acclaimed definitions of the

term. According to the guide CSR is a means of analyzing the inter-dependent

relationships that exist between businesses and economic systems, and the

communities within which they are based. In furtherance it is a means of discussing

the extent of any obligations a business has to its immediate society. More so, it is a

way of proposing policy ideas on how those obligations can be met (University of

Miami 2007).

While similar ideas have existed in literatures, it is important to note that what

distinguishes this definition from the narrow approach is its acknowledgment of the

fact that corporations

have to contribute to society in addition to making profit. In addition to this some

authors have explained the concept from the moral perspective, suggesting that

since businesses rely on the society and could not exist or make profit in isolation

they should therefore endeavour to add value and make life better. To this end, CSR

as echoed in Crane (2001) could be seen as recognition of that inter-dependence

and a means of delivering the obligation, to the mutual benefit of businesses and

the societies within which they are based. In other words it represents the

relationship between a company and the wider community within which the

company lives and operates and of which result to a large part of any success they

enjoy.

In summary, the definitions of corporate social responsibility found in literature tend

to share certain characteristics, one of which is the notion of accountability. While

narrow definitions are oriented around corporate accountability to shareholders,

broader definitions stress a broader level of accountability to shareholders and

other stakeholders. This paper concurs with a relatively broad definition of

corporate social responsibility by the European Foundation of Quality Management

(2004) and that of Nwanji and Howell (2006) based on my own view that the

definition is in conformity with most of the theoretical and other

related frameworks underpinning the concept of CSR, of which I intend to envelop

below. Hence for the purpose of this research, two major definitions of corporate

social responsibility of which are inter-related stands out. According to European

Foundation for Quality management (2004) corporate social responsibility could be

seen as the:

whole range of fundamentals that organizations are expected to acknowledge and to reflect in their actions. It includes – among other things-respecting human rights, fair treatment of the workforce, customers and suppliers, being good corporate citizens of the communities in which they operate and conservation of the natural environment. These fundamentals are seen as not only morally and ethically desirable ends in themselves and as part of the organization’s philosophy, but also as key drivers in ensuring that society will allow the organization to survive in the long term, as society benefits from the organization’s activities and behaviour (p.1)

Nwanji and Howell (2006, p.1) reiterated this understanding in their succinct

definition of corporate social responsibility as “addressing the legal, ethical,

commercial and other expectations society has for business, and making decisions

that fairly balance the claims of all key stakeholders”. These definitions are not only

appropriate for understanding corporate social responsibility in terms of adding

value to the shareholders and stakeholders, but also recaptures the

interdependence of both, of which concurs with Carroll (1991) pyramid of corporate

social responsibility framework. Important to note is that the definitions also

corresponds to the renowned ‘triple bottom line’ reporting strategy which places

emphasis on people, planet and profit.

2.3 HISTORICAL ANTECEDENTS OF CSR

The literature on CSR draws on a number of different theoretical traditions such as

organizational legitimacy, ethics, stakeholder’s theory and sustainable development

that are worth considering. The essence of this analysis therefore, is to depict some

extant related creative writings that are in consonance with the concept of

corporate social responsibility.

2.3.1 ORGANISATIONAL LEGITIMACY

The foundation of organizational legitimacy theory stems from the social contract

theory between companies and society (Mathews 1993). The social contract theory

is attributed to the early philosopher Rousseau, who in line with Plato argued that

the existence of the state and social order are founded on agreements of which

have a moral value. Although Rousseau was particularly referring to the state,

underlying his philosophy was the fact that the state has no value in itself but

instead emerged as a contract (Skirbekk and Gilje 2001). This license to operate did

offered a comforting foundation of developing organizational legitimacy theory,

which seeks to find out ways through which companies can demonstrate that they

have a license to operate. This expression is equally found dominant in the works of

Davies (2003) who noted that companies are under obligation and therefore need to

legitimize their existence not just to their shareholders but also to society at large.

This according to him will enable them to retain society’s implicit endorsement.

Corresponding to these Post et al (2001) resurfaced this viewpoint in his explanation

of why companies should voluntarily disclose not only the positive aspects of their

performance, a viewpoint that is also expressed earlier in the works of Donaldson

and Dunfee (1994) and re-affirmed in recent time by Deegan (1999; 2002). Of

important to note is that at this level corporate social responsibility can be best

understood as a quest for organizational legitimacy.

2.3.2 ETHICS

The concept of CSR to a great extent is anchored in the business ethics literature

(Jones 1991; Donaldson and Dunfee 1994; Lozano 2000; Crane and Matten 2003).

The concept of ethic has attracted the interest of different epoch, disciplines and

scholars that range of diverse interpretations abound. Consequently, it would be

necessary to begin by etymologically defining the term so as to capture its essence.

The term ethics is derived from two Greek words ‘itos’ meaning ‘the fibre of the

soul’ and ‘ethos’ that originally meant ‘inhabited place,’ and of which later was use

to denote a place where one lives (Skirbekk and Gilje 2001). The term later evolved

to took on the abstract meaning of ‘habit’, ‘usage’ and ‘tradition’ to finally mean

‘mores’ or ‘customs’. Thus, the idea of behaviour, compliant with customs, norms,

traditions and laws originally underlined the meaning of the word ‘ethos’ and refers

to normative appraisal of actions, characters of individuals and social groups.

In the ancient historic period Socrates, used the term ‘ethos’ to designate what an

individual should do according to his or her thoughts and convictions ((Skirbekk and

Gilje 2001). It is important to note that some authors have employed this

conception of ethics to argue that ethics has no place in business, but instead is

mainly individual. Thus, to attribute morality to business is irrational considering the

fact that business is not a human person (Friedman 2004). But Socrates was trying

to emphasize that ethics is part of human existence. This viewpoint appeared more

developed and dominant in the classical contemporary period, particularly in the

works of Sartre who noted that ethics is in heart of human existence as absolute

responsibility.

Similarly, in Heidegger’s work, the question of ethics is situated in the ‘being’ and

arises out of the very event of ‘being’ and its ‘givenness’. Ethics is understood in

terms of ‘being’ of which Heidegger calls ‘Dasein’. In his view ethics is thus…

existence itself, in its specific motion. Existence is ethical through and through and

does not need to be ‘ethicised’ from above, for ethics is ontology itself and ‘being’

displays an intrinsic ethicality (Skirbekk and Gilje 2001). With Levinas there was a

departure of ethics from ontology to the other. Levinas situated ethics in the

relationship to the other person, in the ‘intersubjective’. Although, he propounded

this theory so as to give response to the violence and dehumanization witnessed

within the Nazi regime and the Holocaust, Levinas was trying to suggest that ethics

is in opposition to traditional ontology and the principle of knowledge in Western

philosophy, which always reduces the other to a principle of identity or ‘the Same’

(Skirbekk and Gilje 2001).

However, the dawn of Levinas resulted in reversing the traditional hierarchy in

which ethics is reduced, to being a branch of ontology and epistemology and thus,

raised ethics to the level of first philosophy. As opposed to the negation of the other

human, the ethical experience – however rare it may be – enacts a respect for and a

concern for the other. Levinas describes this experience as the face to face with the

other, in which the individual is faced with the destitute and vulnerable nature of

the other. Faced with such vulnerability (ultimately the mortality or irremediable

exposure to death of the other), the individual is called to care for the other and to

attend to the other as would like others to do unto him. Ethics understood in this

way represents what is truly human in human beings, a new humanism (which

Levinas calls ‘humanism of the other human’) that breaks with ego-centred

philosophies and opens onto the infinite character of the ‘alterity’ of the other, to

whom the individual is called to be responsible to (Skirbekk and Gilje 2001). This

departure of ethics from ontology was appropriated into business with the dawn of

industrialization and appears evident in the works of some many scholars (Roger-Pol

Droit 2006; Nwanji and Howell 2006; Jill 2007), that have attempted to offer an

explanation of business ethics.

As suggested by Parkinson (1993) business ethics involves moral human conduct in

the rules and actions deemed appropriate for a particular profession or area of life.

Specifically speaking, it relates to issues regarding moral principles, actions and

conscience. In relation to corporate activity, ethics examine the role and means

through which companies pursues their business objectives. In the context of

personal activity, it deals with such questions as should an employer report or make

known to the public any information relating to his/her employees' activity which

he/she believed could not gain approval from the society. For instance, the case of

Enron came out in the open because of personal ethical perspectives where the

whistle blows from the employees of the company (Monks 2005; Jill 2007).

Moreover, this standpoint is equally reflected and highly exemplified in core pursuit

of corporate social responsibility. Thus, as suggested by many definitions, corporate

social responsibility could be seen as the quest for businesses to be ethical in

character and behaviour (Van 2003). As constructed by Ackermann (1975) it is an

attempt to reflect that managerial reflections are not fully defined by corporate

policies and procedures, but instead are constrained by their work environment and

thus, need to weigh the moral consequences of the choices they make. The World

Business Council for Sustainable Development also captured this in their definition

of corporate social responsibility as business commitment to acting in an ethically

responsible manner, and to contributing to sustainable economic development:

working with employees, their families, the local community, and society at large so

as to improve their quality of life. A viewpoint that Chardel (2004) took into

cognizance in his definition of CSR as a meeting place between legal liability and

ethical responsibility. Thus, the basic idea of corporate social responsibility is that

“business and society are interwoven rather than distinct entities: hence society has

certain expectations for appropriate business behaviour and outcomes” of which

should be carried out with commitment (Wood 1991; p.692).

2.3.3 AGENCY THEORY

One of the most interesting arguments that underpins the existence and growth of

corporate social responsibility is the agency theory otherwise, referred to as the

shareholder theory. The agency theory is a concept employed to depict the

delegation of company management to a second person or group of persons that do

not have a share in what was entrusted. In other words, the managers were

regarded as agents and the shareholders as the principal owners of the company

who entrust the running of the company to the agents, in order to maximize their

profits (Jensen and Meckling 1976). With the proliferations of the agency theory,

corporate social responsibility was understood as strictly fiduciary responsibility to

the shareholders. At that level the responsibility was understood as that which

involves maximizing the profit of the organization so as to return value to the

shareholders. The employees and the society at large were in essence not

considered as agents of the shareholders and sometimes, the agents were expected

to act and deliver even to their own detriment.

Thus, the exclusive focus on shareholders’ profit to the exclusion of other concern in

fact, was the underlying element of the theory and appeared to have led some

organizations to engage in socially destructive behaviour, with an obsessive focus

on profit (Wheeler et al 2002). The sole obligation business owns to the society was

to maximize the profit of the shareholders. This conception of responsibility can be

depicted in the works of Friedman (2004, p. 51; Henderson 2001, 2005) who

believed that the sole responsibility a company had to society was to maximize

returns to its shareholders and that any attempt other than that is tantamount to

ethical misconduct. While admitting the idea of companies being responsible to

shareholders, there is some significant evidence from literature that undermine the

agency viewpoint of responsibility. The emergence of stakeholder theory has been

identified by some many authors as a theory that resurrected in order to broaden as

well as give response to the limited responsibility upheld by agency theory

(Donaldson and Dunfee 1994; Freeman 2004; Freeman and Velamuri 2006; Nwanji

and Howell 2006).

2.3.4 STAKEHOLDER THEORY

The emergence of stakeholder theory in late 1970s opened up a new vista for

businesses. As rightly suggested by Wheeler et al (2002) the advancement was

more of a broad tradition incorporating shareholders value, philosophy and ethics

among others. Nwanji (2005) noted that the theory emerged as an ironic twist of

shareholder theory so as to indicate that firms can also have a broader obligation

than what the traditional economic theory has assumed. Nevertheless, the

development of this theory is often credited to Freeman (1984, 2004) who in his

general theory of the firm incorporated corporate accounting to a wider range of

stakeholders. However, underlying the stakeholder theory is the conception that

company should discharge their accountability beyond the table of their

shareholders, mindful of the fact that their activities have impacts on the society in

various ways. Stakeholder theory holds that the corporation is responsible to a

broader set of people than simply the shareholders. As rightly defined by Jill (2007)

stakeholders’ represents the society whose tax is being used to build and maintain

national infrastructures that are used by companies. In other words, the stakeholder

theory was developed to broaden the agency theory that limited corporate

accountability to shareholders (Nwanji and Howell 2006).

Nevertheless, it should be noted that with Freeman’s (1984) seminal book the focus

moved from legitimacy and morals towards a new theory of the firm. Social

considerations are thus no longer outside an organization but are part of its purpose

of being. CSR thus becomes a question of stakeholder identification, involvement

and communication (Mitchell et al 1997; Morsing and Beckmann 2006; Morsing and

Schultz 2006). According to Freeman and Velamuri (2006) the aim of stakeholder

management was to develop a framework that will assist in managing strategically

the myriad groups that influenced, directly and indirectly, the ability of a

corporation to achieve its corporate agenda. The aim of stakeholder management is

thus, to analyze how a company can serve its customers and be lucrative while

serving also its other stakeholders such as employees, customers, the local

community, the suppliers, and the countries in which a company operates.

In today’s world it could be said that the stakeholder perspective seems to have

dominated the reinterpretation of CSR, pushing the question of the legitimacy of

corporate power as well as the moral dimension of managerial decisions more into

the background. Employees and customers will care not only about the profitability

of the company, but more so about other dimensions of the business practice such

as treatment of the employee, safety of the products, impact on the environment,

and so forth. Thus, stakeholder theory holds a corporation responsible to the very

specific values and interests of people who are touched by a business. The theory in

other words, goes a long way to explain the issue of whose values beyond the

shareholders are to be taken into account. To this end, corporate responsibility

suggest engaging the stakeholders in conversation to understand what values are

of importance to them and carrying out those values.

2.3.5 CORPORATE GOVERNANCE

In recent years the numerous high profile cases of corporate failures have not only

resurfaced the issues of corporate social responsibility, but has also focused the

minds of government, non-governmental organizations, intellectuals, companies

and the society on the weaknesses in corporate governance systems as well as the

need for constant reform (Nwanji and Howell 2006; Jill 2007). Theories upon theories

have evolved all in the bid to analyze and work out systems that would permit

systematized corporate governance especially in large public companies or

corporations. The US Sarbanes Oxley Act of 2002, for instance, came as a quick

response to remedy the corporate failure in Enron. International bodies such as the

Organization for Economic Development (OECD) and International Corporate

Government Network (ICGN) have not only reformed their principles on corporate

governance, but also did encourage others to do so.

As a matter of fact, the concept corporate governance has no single universally

accepted definition. Amidst the various definitions two approaches have been found

dominant; one that is narrow in perspective and the other that is broad. While the

narrow one view corporate governance as a process of supervision and control

intended to ensure that the company’s management acts in accordance with the

interest of the shareholders (Parkinson 1994) the broad approach regards it as the

governance that is inclusive in approach. The Organization of Economic

Development (OECD 1999) in this regard defined corporate governance as that

structure of relationships and corresponding responsibilities among a core group

designed to foster the competitive performance required in achieving the

corporation’s primary objectives (IMF 2001). This notion of broader responsibility is

equally depicted in the works of Jill (2007) who defined corporate governance, as a

system of checks and balances whether internal or external which ensures that

companies accounts to all their stakeholders in all ramification.

In literature many scholars seems to be in much concordance with the broad

definition of corporate governance. In the book Stakeholder Corporation (1997)

Wheeler and Sillanpaa narrated the importance as well as the need for companies

to be accountable to a wide range of stakeholders. Thus, the broader definitions of

corporate governance stress the need for broader level of accountability to

shareholders and other stakeholders. It advocates for governance that is built on

corporate broader responsibility and this interpretation seems to have underpinned

the core push for corporate social responsibility. It is important to note that the

broad definition has also received criticism. Sternberg (1997) re-echoing Friedman

(1962) believes that company has no business with the society and that the only

responsibility it had to society was to expand the profit of the shareholders.

However, in good corporate governance practice it is suggested that management

should be able to meet their social responsibilities of which include making sure that

their products are not hazardous to people and to the environment, sharing their

profits for the good of the community as a natural person or human being would do,

donating to social causes, organizing activities to benefit the community in which

they sustain their being (Jill 2007). Other good corporate governance practices that

overlapped with social responsibility is complying with applicable laws, setting good

labour conditions for employees, providing good products to the community, helping

the economy through fair trade practices, paying taxes and other obligations due

the government and making sure that it is meeting commitments to other persons.

In other words, corporate governance aims to make the corporation a good citizen

by being socially responsible; an aim that underscores the dictates of corporate

social responsibility.

2.3.6 SUSTAINABLE DEVELOPMENT

The latest literature tradition to have underpinned and impacted our understanding

of corporate social responsibility is that of sustainable development; a concept that

was initially used in forestry to ensure that certain number of tress are cut down at

a particular time so that long lasting protection of the trees are guaranteed

(Meadows 1972). This theory appeared to have emerged under the assumption that

the stakeholder’s theory did not represent all the stakes in its entirety. Brundtland

Commission (1987) who was the foremost to have appropriated this concept in the

business world is also recorded in literature to have been the first to emphasize

systematically the link between poverty, environmental degradation and economic

development. Its definition of sustainable development, as meeting the needs of the

present, without compromising the ability of future generations to meet theirs,

supports as well as extends the responsibility of firms both inter-and intra

generationally. Thus, firms are expected to consider traditionally unrepresented

stakeholders such as the environment and as well as future generations. Although

many CSR authors have taken up this conception (Elkington 1997) there is still

some tensions between the CSR and the sustainable development debate (Dyllick

and Hockerts 2002).

However, the argument here is that there are groups of people or voiceless voices

who do not fall either in the categories of stakeholders or shareholders, of whom

nonetheless have a moral claim on the corporation, consequent of their corporate

practices. Such people may not have the buying power but are affected through the

various activities of companies (Hamann 2003; 2006). This understanding appears

to be evident in some definition of CSR proffered by international bodies. World

Business Council for Sustainable Development (WBCSD) has defined CSR as

"business' commitment to contribute to sustainable economic development,

working with employees, their families, the local community, and society at large to

improve their quality of life” (WBCSD 2006). Similarly but more amplified is the

definition given by the Commission of European Communities. In their views CSR

could be seen as a “concept, whereby companies integrate social and

environmental concerns into their business operations and interactions with their

stakeholders on a voluntary basis” (Commission of the European Communities

2001).

On this note therefore, sustainable development could be seen as a concept that

points to the limits and boundaries of stakeholder theory. It attempts to amplify the

stakeholders voices especially the voices that are not only unheard but are also

intangible. For example, the activities of oil company’s extractions impact directly

and indirectly on people as well as the environment. Their extractions which bring

forth pollution and carbon emission among others impact on the nature of social

lives of people, animals and the environment that most often are left untouched by

them. Besides this it is evident that we all share one world, one ocean, one air but

the notion that there are people who are not touched by a larger corporation seem

unpersuasive to the critics of this theory.

In other words, what underscores the nucleus of sustainable development theory is

the notion that stakeholders should include both the immediate stakeholders and

the unheard voices that are still touched by the activities of companies but in ways

that are not as visible or as immediate as the stakeholders. Corporate social

responsibility is thus closely linked with the principles of sustainable development in

the sense that sustainable development principles also seek to emphasize that

companies should make decisions that are not only based on the financial

considerations such as profits and dividends, but also based on the immediate and

long term social and environmental consequences of their activities. In other words

companies or corporations are expected in their social responsibilities activities to

engage in activities that are sustainable and try to envision its impacts on lives

beyond the immediate stakeholders; a fact that also underscore the kernel of CSR.

2. 4 DRIVERS OF CSR

Many authors from different disciplines have suggested various trends that appear

to motivate or drive CSR increasingly importance. While some authors tend to

address it from its positive impacts on business economic performance, others in

addition identify other trends such as the changing social expectations, increasing

affluence and globalization among others (McWilliams and Siegel 2000; Orlitzky et

al 2003; Nwanji and Howell 2006; Mackey et al 2007). But central among these

literatures is the understanding that it could be internal or external (Dummett

2006). The essence of this section therefore, is not only to highlight why CSR is

relevant today but also to expose some internal as well as external identifiable

trends that appear to motivate its growth and incorporation by businesses and

corporations.

2.4.1 INTERNAL DRIVERS OF CSR

In their long overview of corporate social responsibility Nwanji and Howell (2006)

presented a detailed body of data that demonstrated some accruing economic

benefits that appear to internally drive organizations in being socially responsible.

Some of them among others include;

2.4.1.1 IMPROVED FINANCIAL PERFORMANCE: The belief that CSR has an

impact -whether positive or negative on the financial performance of organizations

has received various results. Recently many studies have emerged all in an attempt

to give response as to whether companies that rank high in CSR earned higher

return than those doing less well in the CSR rankings (Orlitzky et al 2003; Nwanji

and Howell 2006; Mackey et al 2007; Johnson et al 2008). Among the studies

conducted by these various authors two major areas of contention appear to be

dominant. While some try to link a positive financial performance to be the

concomitant result of good CSR others in disagreement note that it has no impact

on the eventual financial decline of organizations. As rightly contested by Nwanji

and Howell (2006) there are evidence that makes it possible to suggest that

organizations that are socially responsible will not only outperform those that are

not but also stands at a better chance in attracting investors as well as retaining it

brand image. Two recent studies illustrate these viewpoints.

The recent analyses of –DePaul University study-according to them exemplified that

the “overall financial performance of the 2001 Business Ethics Best Citizens

companies was significantly better than that of the remaining companies in both

sales and profit index, based on the 2001 Business Week ranking of total financial

performance” (Nwanji and Howell 2006, p.2). In fact, the result showed that the

Best Citizens scored ten percentile points in contrast to the second. Similarly but

form another perspective Johnson et al (2008) in his careful reanalysis of Gompers

et al (2003) and Bebchucks et al (2004) articles corresponded to this but noted that

such may be found among industries that are not of the same strategic groups.

However, there is much agreement in literature that companies tend to integrate

CSR in order improve financial performance considering the fact that customers will

be more loyal to them than those who do not incorporate them. For example Shell

oil in Nigeria lost millions of money because of the attacks from host communities in

1990, consumer boycotts, and activist-led litigation of its decision to fight the

environmental movement and failure to recognize and embrace the wider

importance of CSR as a corporate strategy; a fund they would not have lost if they

were socially responsible in practice as they theoretically claimed (Shell 2005).

2.4.1.2 ENHANCED BRAND IMAGE AND REPUTATION: Brands today are one of

the key focal points of any corporate success. Many companies make effort to

inculcate and establish popular brands in consumer minds because it increases

leverage, which is directly reflected in sales and revenue (Nwanji and Howell 2006).

In essence it would not be out of contest to suggest that almost every aspect of a

company’s operations today feed into helping build the corporate brand. However,

in recent times it has been identified that customers and investors are more prone

to stick to those organizations that have good reputation in CSR related issues. One

apocalyptic accompaniment associated with companies that are socially responsible

is that they have more chances of enhancing their reputations as well as

strengthening their brand (Nwanji and Howell 2006; Johnson et al 2008).

Considering the large amount of time, money and effort companies invest in their

brands, some author believe that a good CSR policy is an effective means of

protecting that investment and maximizing its impact (Freeman 2004; Nwanji and

Howell 2006).

2.4.2 EXTERNAL DRIVERS OF CORPORATE SOCIAL RESPONSIBILITY

The external drivers of CSR seem to be more effective in motivating companies to be socially

responsible in their business endeavours. Some of these external factors include;

the growing government interest and action, increased stakeholders activism,

proliferation of codes, standards, indicators and guidelines, globalization, changing

social expectations, and increasing affluence among others. Underlying the

elements of external drivers is the notion that some companies tend to abide by

CSR issues not because they think it favours them but instead to improve

relationship with regulators and avoid be reckoned as one of the socially

irresponsible organizations.

2.4.2.1 PROLIFERATIONS OF CODES, STANDARDS, INDICATORS

AND GUIDELINES.

The growth of corporate scandals such as that of Enron and Parmalat among others

in recent times have not only called into table the importance of companies being

committed to ethical and social issues but has also necessitated the emergence of

different codes, standards,

guidelines as well as indicators both from national and international bodies. The

Cadbury Code 1992, Higgs Report of United Kingdom and the US Sarbanes Oxley

Act of 2002, for instance, came as a quick response to the corporate failures and as

such formalizes broader accountability and responsibility. International bodies such

as the Organization for Economic Development (OECD), International Corporate

Government Network (ICGN) and UN Global Compact as well as the Global Sullivan

Principles have not only presented standards and guidelines in respect to corporate

accountability but did also encourage others to integrate and consolidate it in their

social and ethical behaviour (Nwanji and Howell 2006; Jill 2007).

More so, the quest for transparency of corporate performance, the pressure to

achieve a common global standard of accounting as well as the full dimensions of

corporate reporting have burgeoned the minds of investors more especially in this

recent time, that companies are now drawn to employ CSR as a strategic tool of

surfacing their standardization of corporate governance (Dummett 2006).

Consequently in order to improve relationship as well as avoid the wrath of

stakeholders activism some companies tend to incorporate CSR issues a standard

and strategic tool to avoid being identified to have gone beyond the prevailing

standard of conduct.

2.4.2.2 CHANGING SOCIAL EXPECTATIONS AND GLOBALIZATION

The effects of the recent corporate scandals coupled with the globalization have

impacted much on the society in various forms. Consumers are now expecting more

from the companies whose products they buy unlike before. They appear to have

lost much public trust in corporations as well as public confidence in the ability of

regulatory bodies and organizations to control corporate misconduct. More so, the

increasing influence of the media and technology has made it much easier that any

mistakes made by companies are brought immediately to the attention of the

public. In addition to this, the proliferation of the internet has necessitated the rapid

spread of any communication to move faster beyond the immediate confines of any

environment (Ozuem et al 2008) thereby, empowering like-minded groups and

consumers to target any organizations they perceive as not being socially

responsible from any part of the globe.

Consequently, by spreading such message customers or the public becomes better

informed to put their beliefs in action and sometimes are given the means to

coordinate collective actions and thus achieve their wants through various means

such as public demonstrations, public exposes, boycott, attack on the company, and

sometimes denial of service among others. In order to avert any of this damage

especially the danger of losing brand value which is always very difficult to build,

some companies make effort to be socially responsible so as to enhance their

brands and reputation among others (Nwanji and Howell 2006).

2.5 CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA

The above sections discussed to some extent the related theories and definitions of

the key subject under investigation, in this section effort will be made to discuss the

CSR in Nigeria especially as it relates to oil companies and its impact on the host

communities. While no date could be found in literature as to the formal origin of

CSR in Nigeria there is evidence to suggest that the existence of formal corporate

social responsibility mechanisms in Nigeria stems from the United Kingdom

(Guobadia 2000). As identified by Guobadia (2000) the Nigerian company law

known as the Companies Ordinance of 1912 and the Nigerian Law of Companies and

Allied Matters Ac (CAMA) of 1990 was a local enactment (Consolidation) Act of 1908

of and 1948 Company Act of United Kingdom respectively. While CSR concept and

its formal applications could be said to be at the developing stage within this time,

there are still some changes that reflect the growing concern of companies being

socially and ethically responsible in Nigeria.

The emergence of Securities and Exchange Commission (SEC) which is a

government body created in 1999 was to protect investors’ interest against

unpleasant and fraudulent activities of stockbrokers (Amaeshi et al 2006). More so,

the Nigeria Stock Exchange (NSE) established afterwards was developed to support

SEC in monitoring company’s financial report through ensuring that it attains the

standard required by them. But even at that level there was much effort to see that

shareholder’s rights are protected through the introduction of disclosure in the stock

exchange. Corresponding to this Okike (2007) noted that the introduction of the

‘Merit Award’ came as an incentive to companies who were found competent in

their financial disclosures and that the NSE in some cases has suspended several

companies who were found wanting or below the standard expected of them

especially as it pertains financial disclosure.

Furthermore, to ensure better accountability and transparency the Committee on

Corporate Governance in Nigeria (CCGN) issued out Code of Best Practices among

the boards of Nigeria quoted companies (Okike 2007). The committee made

recommendation that shareholders are to be responsible for electing directors and

approving of the conditions on which these directors-both executive and non-

executive directors operate. Important to note was that at behind this idea was the

Cadbury’s Report (1992) and Higgs Report (2003) that emphasized the need of

electing the right group of individuals that are independent in their functions as

non-executive board members. In addition to this the formation of the Nigeria

Shareholders Solidarity Association (NSSA) in 1987 came as a result of the auditors’

inability to ensure accountability to shareholders. Similarly agencies such as

Institute of Chartered Accountants of Nigeria (ICAN), Independent Corrupt Practices,

Commission and Economic Financial Crime Commission were created by Nigeria

government in an attempt to ensure effective responsible governance. Atypical of

this is the fact that even government leaders who were found wanting in this regard

is charged to court and some have faced persecution in recent times. Nevertheless,

the formal practice of corporate social responsibility in Nigeria started with the

multinational oil companies who had already practiced CSR activities in their

developed countries. In 1969 Shell had set up a public relation department and

mandated it to embrace all activities relating to relations between the company on

one hand and the government of the federation at all level. Similarly and of more

recent is the creation of a model known as the Global Memorandum of

Understanding (GMOU) by Chevron oil Nigeria in 2005. The model was designed and

launched as a means through which the communities will gain better access to

participate and play greater roles in the management of their development

(Chevron 2008). To this end Chevron aimed at improving the quality of life in the

communities.

2.6 OIL DEVELOPMENT AND ITS IMPLICATIONS ON THE NIGERIAN ECONOMY

The origin of oil prospecting in Nigeria began as far back as 1908 by a German

company known as the Nigerian Bitumen Corporation in the Araromi area of the

present Ondo State (NNPC 2009). The pioneering efforts of this company could not

fully materialized consequent of the outbreak of the First World War in 1915.

However, the end of the First World War oil prospecting resumed in Nigeria once

more, but now was moved by Shell D’Argy, the forerunner of the present Shell

petroleum development company of Nigeria

whose activities were equally hampered with the Second World War of 1939 to

1945. Although the company resumed operations in 1947, oil was not discovered in

commercial quantities not until 1956 when it was finally discovered in Oloibiri in the

Niger Delta after several years of search. With over N30 billion, Shell started oil

production and export from its Oloibiri field in 1958 (NNPC 2009).

By 1961, with the successfully exploration of oil by Shell, the exploration which

formerly was granted to Shell alone was extended to new comers in line with the

government’s policy of increasing the face of exploration in Nigeria and uplifting its

economy. Thus, other companies such as Mobil, Gulf, Safrap (Life), Tennen

American Overseas, Anosees Petroleum Company (now known as Texaco/Chevron),

Nigerian Agip Oil Company, Philip’s Petroleum were given the mandate to begin

exploration activities for oil both in the on-shore and offshore areas of Nigeria. The

impact of more oil companies in Nigeria doubled the production rate of oil from

5100 barrels per day to 2.0 million barrels in 1972 and reached a peak of 2.4 million

in 1979, an achievement that helps Nigeria to attain the status of a major oil

producer, ranking the seventh position in the world by 1972 and the sixth largest oil

producing country by early 1980’s (NNPC 2009). However, the oil sector has

undergone tremendous transformations over the years. The industry has evolved

from being the most supportive economic sector it was in the 1960s to the

predominant source of foreign exchange, development finance and the most

present viable access to international investment opportunities. In fact it has

become the mainstream of contemporary Nigerian economy and no other resources

in Nigeria whether natural, material or manpower has played such a towering role

over the national economy as crude oil. From the mid-1970s to date, oil

revenues has consistently contributed over 90 percent of Nigeria’s Gross Domestic

Product (GDP) and about 85 percent of the Federal Government revenue (NNPC

2009).

2.6.1 EFFECTS OF OIL EXPLORATION AND ITS SOCIO-ECONOMIC IMPACT

ON THE ENVIRONMENT The exploration and production of oil in Nigeria just as it would be in any other place has

caused numerous environmental problems on oil producing communities in Nigeria.

In their wide description of the effects of oil spills on the environment Dicks (1998)

and Clarke et al (1999) stated that the impact can encompass physical and natural

alteration of habitats. Corresponding to this the United Group of Experts on

Scientific Aspects on Marine (1994) in their attempt to give response to the

deleterious impact of oil spills in the world presented a more detailed result of which

among others include:

1 mortality or long term impacts on sea birds, marine mammals and other sea life, 2 physical damage or permanent loss of foreshore and marine habitats, 3 impacts on the health, viability and diversity of coastal ecosystems, 4 damage to aquaculture stocks, facilities and tainting of commercial seafood, 5 smothering of, and damage to, intertidal biota and vegetation, 6 contamination of coastal infrastructure and amenities leading to impacts on tourism and other recreational activities, 7 shut-down or damage to power station cooling water, desalination plant intakes or salt pans, 8 economic loss at both the regional and national level, 9 Adverse media and political attention on the oil and shipping industries and their

operations. According to them, pollution could be seen as the introduction

by man directly or indirectly of substance or energy into the marine environment,

resulting in such deleterious effects as: harm to the living resources, hazard to

human health, hindrances to marine activities including fishing, impairment use of

sea water and reduction of amenities. Similarly in a research conducted by Okike

(2006) the author identified potential pollution outlets as air emission, water

effluent and waste generation, of which in his views are mainly the resultant effects

of oil spillage. As rightly suggested by Okike (2006) such air emission usually

originates from gas flaring in relation to gas as well as oil separation and the

accompanying consequent can be quite hazardous both on the individual and the

society at large. Water effluent on the other hand results from the separation of

production water and oil spillage of waste generation. This goes to suggest that the

emergence of such pollution on the environment most often exist as a resultant

effect of oil exploration and exploitation.

However, the definition of pollution by the Federal Environmental Protection Agency

Decree captures and provides to some extent a succinct understanding of how

pollution emerges. As rightly stated by them pollution could be seen as a man made

or man aided alteration of chemical, physical or biological quality of the

environment to the extent that it becomes detrimental beyond acceptable limits.

Commenting on the impact of oil extraction in Nigeria Babashola (2003) noted that

the greatest environmental problem often cited in connection with petroleum in

Nigeria is oil spoilage and its attendant hydrocarbon pollution. In his analysis he

went to further to state that the major oil states in the country are forecasted to

suffer an estimated quantity of 300 major oil spills in a year of which its impacts

includes:

1. Neutrality of bivalves such as oyster, fish, sub surfaces and floating macrophysics;

2. Contamination of agricultural and destruction of vegetation particularly man grove swamps, sheltered salt marshes and sheltered tidal flats;

3. Emigration of wild life and consequent loss of biodiversity;

4. Extinction/reduction of agricultural and related activities and

5. Forceful population migration.

Moreover the detrimental effects of oil pollution and its devastating consequences

on the environment can never be over emphasized. The exploration and production

of oil in the Niger Delta has given rise to a number of socio-economic and

environmental problems that have prevented the communities from realizing their

potentials for economic growth and sustainable human development (Clarke et al

1999; Akpan 2006). Important to note is that oil minerals in Nigeria currently

account for over 90 percent of Nigeria’s revenue and these oil is mainly located in

the Niger-Delta. But despite these earnings made from these area of the country

coupled with the deleterious impact of oil pollution on the habitats and

environment, the host communities is still faced with insufficient infrastructures,

high rate of unemployment, abject poverty resulting even to malnutrition and lack

of education among others (Onishi 2002).

Examining the awful predicament and state of the oil host communities in Nigeria,

the World Bank report (1995) equally evidenced this when they stated that Niger

Delta is still poor notwithstanding the vast oil reserve explored from the

communities. In fact in their view the GDP per capital is below the national average

of US $280 in the face of high population growth rate combined with several

habitable land constraints (Birnbaum 1995). The report also showed that health

indicators for the host communities are low especially when compared with the

South eastern region where water is ubiquitous. Childhood malnutrition which

increases infant mortality, reduces mental capacity, degrades quality of life and

restricts economic productivity was found to be a common phenomenon (Onishi

2002; Olujide 2006).

More so, housing in quality and quantity as well as accessible road is deficient in

most of the region. The high frequency of flooding during the rainy season even

requires that many families in low living areas and coastal barrier islands

reconstruct their houses to keep it above the flood average. As identified by Onishi

(2002) and Babashola (2003) access to portable water and sanitation was very

much deficient among the host communities. The evidence from their research

suggest that only about 20 percent of 24 percent of rural communities and less than

60 percent of urban communities in the region have access to safe drinking water,

while only 25 percent and 12 percent of households in the area use satisfactory

sanitation facilities.

Within the oil producing region also transportation is often difficult and expensive

especially in the flood season when water transport becomes the most common

form of transportation and even during the dry seasons only about 20 percent of the

communities is accessible by good roads. As encapsulated by Onishi (2002) oil

communities problem in Nigeria encompasses low level of education and technical

skills, weak economic base with little or non-existent surplus, environmental

pollution through operational hazards, aging pipes and spillage, predominant self-

employment with low productivity and presence of well informed community

pressure groups committed to addressing per cured injustice among others.

On the other hand, there is evidence that makes it possible to suggest that the oil

companies have invested some efforts towards ameliorating the socio economic

problems of the host communities. The report from Chevron Nigeria limited indicate

that the communities have benefited from its social responsibilities in various ways

especially as it regards scholarship awards, hospitals, building of classroom blocks

and agriculture among others (Chevron 2009). More so, to carry out community

development programs Chevron also established public Relation Department. This

department has the duty of seeing that the company relates well with the public

especially the host communities. The department also embarks on different

community relations and development programs that are designed to reduce the

effect of their generational activities in the communities where they operate such as

vocational trainings and so on. But to what extent are these gestures able to reflect

the needs of the host communities is one of the things this research sets out to

investigate.

2.7 SUMMARY

In this chapter effort was directed towards providing a definitional clarity of the term

corporate social responsibility. Furthermore, the chapter presented the historical

antecedents of CSR, dwelling on its conception within the three main epochs in

history. It also went further to examine the related literature that tends to underpin

the concept of CSR. In addition to this, it presented the external and internal drivers

of CSR as well as its formal development in the Nigerian context. Finally, the

chapter discusses the development of oil production in Nigeria and its impact on the

economy and environment. The subsequent chapter examines the research

methodology.

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

The preceding chapter focused on conceptual clarification and exposition of related

literatures relevant to the research. In this chapter effort is made in providing the

research methodology that the researcher intends to employ in his research, which

as identified by Jankowicz (2005, p.224), is “the analysis of, and rational for the

particular method or methods used in a given study, and in that type of study in

general”. Consequently, to be able to carry this grandiose task effectively, the

chapter opens with a brief description of the research aims and objectives the

researcher intends to meet so as to help both the researcher and prospective

readers comprehend the reasons for the research approach adopted. More so,

mindful of the fact that the selection of a primary method of investigation of a

problem is a key consideration to the success of the researched, the chapter also

opens with the research philosophy section with the purpose of ensuring that a

thorough knowledge of the basic methods of research is understood by the

researcher. In addition to this, the section explored the relevant research

approaches, the research strategy and the data collection method, presenting also

the ethical considerations given as well as the merit and demerit of each of the

approach examined.

3.2 RESEARCH AIMS AND OBJECTIVES

As aforementioned the essence of re-presenting the research aims and objectives is

to identify and reason whether research methodology applied is appropriate to the

research mindful of the fact that all factual knowledge which is ascertained by the

researcher may be classified in terms of the research methodology and techniques

selected. To this end therefore, it would be necessary to restate the research aims

and objectives so as to enable the researcher ensure that there exist a direct

bearing between the research aims and objectives and the research methodology

employed. On this note, it should be noted that the research seek to investigate the

impact of corporate social responsibility on oil producing communities, using

Chevron Nigeria as a case study. However, there were four main objectives that

sought to guide the research. The first objective was to review extant literature on

corporate social responsibility in developing countries. The second research

objective was to assess the motivation behind CSR functions and investment

projects undertaken by oil companies. Next on the line was to identify and appraise

these investments in terms of its impact upon intended beneficiaries and business

performance. Lastly, the study analyzes and suggests feasible ways through which

corporate social responsibility could be improved so as to increase business

performance.

As rightly suggested by Saunders et al (2005) and Burns (2000) the research aims

and objectives determines or shape the design of the research methodology used,

for it is on that basis that the researcher selects his basic research method, the

distinctive criteria of which he must carefully observe in the investigation of his

problem. And for this to be realized, the researcher has to be attuned with not only

the research aims and objectives but more importantly with the research

methodology of which also has a great influence on the research approach and

strategy, as well as the data collection approach and techniques.

3.3 RESEARCH PHILOSOPHY

The research has been carried out under the influence of the research philosophy of

one school of thought known as the phenomenologists who were of the view as

rightly expressed by Collis and Hussey (2003) that human behaviour is not as easily

measured as phenomena in the natural sciences or be subsumed within numerical

classification. Hence the selection of the phenomenological research philosophy

emerge from the researcher’s conception that an investigation into the corporate

social responsibility is a complex matter that may void the positivist research

philosophy that anchor its method using generalized laws. Besides this

understanding, a study of organization involving management and staff as well as

the impact of their activities on the host communities within a particular locale

cannot easily be condensed within the ambient of reasoning that appear to be

lackadaisical of the place of the human element.

As rightly encapsulated in the philosophical underpinning of the positivist’s research

philosophy, the discipline in itself is empirical and anti-speculative (Collis and

Hussey 2003; Saunders et al 2007). It concentrates on perceptible phenomena and

on the ordered relationships that can be established through empirical research.

Hence to apply such a position to a research that investigate issues of

organization’s impact on their host communities would appear out of context

considering the fact that the issue being investigated is not only relative and

approached based on the way it appear to the researcher in various context but

also may not be able to be established empirically. More so, analyzing such issues

involves looking into complex social phenomena which may be difficult using the

methods of positive philosophical analysis (Scapens 1990). In addition to this, the

formation of generalized laws of which constitutes one of the core characteristics of

positivism makes it possible to suggest that in such social context the use of

positivism research philosophy can lead to loss of valuable information of which

may necessitate the loss of valuable data (Saunders et al 2007). Also, the

researched has much direct bearing from the context of subjective experience of

which the phenomenological field of philosophy embraces. Collis and Hussey (2003)

corresponded to this when they observed that the reality of a given educational

setting may be seen not as a fixed and stable entity but as a type of variable that

might be discerned through multiple forms of understanding. However, in literature

many philosophical assumption have emerged to shed light on how a researcher

should conduct their endeavours of which to a great extent underpins the research

philosophy employed by the researcher.

Ontologically and epistemologically speaking, the social world is real and external to

the individual. It is the individuals that create the social world and not vice versa. In

other words the social world can only be understood by occupying the frame of

reference of the participant in action and not otherwise. This line of thought is quite

depicted and substantiated in the perspective of Heidegger who posited that all

research and analysis are driven by an attempt to understand self in relation to

humanity of which we understand on the basis of our projects (Skirbekk and Gilje

2001). Similarly but from another point of view, Merleau-Ponty pointed out that

knowledge is gained from particular point of view or from particular experience of

the world. Hence when we return to things themselves in research, we come to

terms to a world that precedes knowledge or science with the aim of presenting the

‘life world’ as the meaning or constitutive grounds of the sciences (Skirbekk and

Gilje 2001). To this end therefore, an investigation into the impact of corporate

social responsibility on oil producing communities, not only involves understanding

the perceptions and views of host communities but also that of comprehending the

resulting actions of the people involved. Thus there is a direct interaction between

the researcher and the object of inquiry as they continually sought to interact and it

is on this phenomenological research philosophy that this research is built on.

3.4 RESEARCH APPROACH

The essence of this section is to determine both the means of conducting the

research and the methods used. As identified by Collis and Hussey (2003) research

approach could be seen as a master plan specifying the methods and procedures of

which the researcher will use to guide and focus his research. Emphasizing on this

Saunders et al (2007) noted that the essentiality of research approach could be

deduced from what takes place within its context. This is because it is within such

scenario that the researcher is concerned with choosing the approach that would be

more pertinent in sieving out data that will be of benefit in answering the research

question. However, evidence from literature makes it possible to suggest that there

are two types of research approach: quantitative approach otherwise known as

deductive approach and qualitative approach, also referred to as inductive approach

(Bryman 2001; Collis and Hussey 2003; Jankowicz 2005; Saunders et al 2007). As

noted by Saunders et al (2007) the deductive approach owes much to what one

may think of as scientific research, while the inductive approach is oriented towards

gaining an understanding of the meanings humans attach to events as well as the

research context.

Consequently, considering the above stated point, the researcher adopted the

qualitative method otherwise referred to as inductive, based on the fact that it is

not only an approach where data would be collected and theories developed as a

result of analyzing the data that was collected, but also it is an approach that begins

with specific observation and then builds towards general patterns (Silverman 1993,

2000; Walsh 2001; Patton 2002; Maylor and Blackmon 2005). In the context of the

research therefore, it entailed collecting data by interviewing a sample of customers

and staff of Chevron Oil (Nigeria) as well as some people from the host communities

so as to comprehend their perceptions and expectations of the company towards

corporate social responsibility activities and thus, be able to assess the motivation

behind the company’s corporate social responsibility functions and investment

projects they undertake. Most importantly, the conclusions drawn through this

approach would go a long way in equipping the researcher with the enabling tool to

suggest feasible ways through which corporate social responsibility could be

improved so as to increase business performance.

It is important to note at this juncture that the researcher could not find the

deductive approach more appropriate based on an informed understanding of

suitability of the method and judging the fact that the research philosophy adopted

is not only unscientific in the sense that it is not seeking to deduce cause and effect

relationship to predict patterns of behaviour, but is primarily exploratory and

descriptive in purpose with the view of knowing what can be learned about the area

of interest (Bryman and Bell 2007). Besides this, an investigation into the impact of

corporate social responsibility of oil companies on host communities involves an

understanding of how the people involved interpret their own world and also how

the organization perceives corporate social responsibility. Therefore, using

deductive approach which not only negate the place of humans who are the

investigating field in understanding events from their viewpoints, but also refute

alternative avenues that can allow one to see that things could be other than they

appear to be within this context, may not give the researcher the tool to sieve out

the perception of the communities of which the corporate social responsibility

activities of the oil companies impact on. Investigations into the impact of corporate

social responsibility of oil companies on oil producing communities involve both the

perception of the organization and the host communities.

In addition to this, the research is context specific and as such should go with

research approach that offers and accommodate the human element increasingly,

as a critical and determining factor in the definition of what is, within the context in

which the event takes place (Burns 2000; Collis and Hussey 2003; Saunders et al

2007). This in other words goes on to entail that the collection of data would

precede the formulation of theory and this also draws the choice and

appropriateness of the researcher’s adoption of inductive approach. So it would not

be out of context therefore to state that the use of an inductive research approach

emerges from the very nature of the topic that is being researched and the research

philosophy employed.

3.5 RESEARCH STRATEGY: CASE STUDY

By research strategy which is also a subset of the research design, the researcher

intend to make it known the element through which he intend to collect data so as

to answer the research aims and objectives. Considering the research philosophy

which clearly depicts an exploratory type and the nature of the research of which

involves the observation of a bounded aspect of a selected organization: corporate

social responsibility, the researcher has adopted a case study research strategy in

order to gain an in-depth understanding and focus into the research context. As

described by Robson (2002) and re-affirmed by Saunders et al (2007) a case study

is a strategy for doing research which involves an empirical investigation of a

particular contemporary phenomenon within its real life context using multiple

sources of evidence. In other words case study offers an opportunity to study a

particular subject in depth (Bryman 2001) and this lends credence to the choice of it

as the appropriate research strategy for the research understudy. Chevron Oil

(Nigeria) is thus a bounded unit in the oil strategic industry. Corresponding to this,

Collis and Hussey (2003) represented and buttressed this point when they noted

that a case study is an extensive examination of a single instance of a phenomenon

of interest and is an example of phenomenological methodology. Thus, case study

implies a single unit or subject analysis such as a company or group of people

among others, of which is typical of the research understudy. Walsh (2001)

underscored this notion when he described case study as involving a systematic

investigation into a single individual event or situation necessitating the studies of a

single example or case of some phenomenon. This implies that with case study the

research aims at not only exploring certain phenomena, but more so, to understand

them within a particular context (Yin 1994).

However in their long elucidation of case study Collis and Hussey (2003)

corresponding to Scapens (1990) identified four types of case studies of which

include the descriptive, illustrative, experimental and explanatory. This paper

employs the explanatory case studies in which existing theory is used to understand

and explain what takes place in a particular circumstance. In literature it is

important to note that many scholars appear to give credence to the case studies

research strategy. Reflecting on the uniqueness and merits of case studies research

strategy Bryman (2001) was of the view that it can provide insights into the class of

events from which the case has been drawn. Suffice it to say that a case study may

provide anecdotal evidence that illustrates more general findings. As rightly

suggested by Collis and Hussey (2003) in addition to the fact that case study tend

to suit exploratory research, it has also the capability to generate considerable

answers to the Why, What and How questions. More so, it fit many purposes and

offers the researcher multiple potential avenues of collecting data as well as

provides easy means of combining data analytical methods. To this end therefore,

Saunders et al (2007) noted that data collection method employed may include

questionnaires, interviews, observations and documentary analysis of which as a

matter of fact constitutes the data collection method of the research understudy.

On the other hand, in as much as there are evidence of acceptance as regard the

strengths of case study, it should be noted that there are some issues inherent in

the case study strategy of which has equally raised the mind of some scholars to

question its credibility. Bryman (2001) questions the role of human objectivity when

selecting evidence to support or refute, or when choosing a particular explanation

for the evidence found, a fact which Ozuem et al (2008) depicted and identified as

the influence of the ‘etic’ (values of the researcher) and ‘emic’ (values of the

researched). One of the implications of this influence is that content analysis will

often be invoked to convert qualitative data into quantitative, of which most often

can lead to losing the uniqueness and ‘contextuality’ of the case being studied.

More so, Collis and Hussey (2003) noted that case studies are time consuming and

provide for the investigator a massive deluge of information which most often is

impossible to adequately analyzed, thereby increasing the tendency to selectivity

and biasness. Nevertheless, notwithstanding the enumerated demerits of case

study research strategy, it is important to note that considering the nature of the

research under enquiry and the research philosophy adopted, there is no or less

doubt that case study strategy amidst other research strategies stands more

appropriate in shedding light to the issue under investigation. To substantiate this

fact, it is the intention of the researcher at this juncture to justify this by examining

some other alternative research strategy.

3.6 ALTERNATIVE RESEARCH STRATEGIES

Evidence from literature makes it possible to suggest that there is many other

research strategy used in conducting research that embraced the phenomenological

research methodology. Saunders et al (2007) in addition to case study strategy

identified other strategies of which include: experimental, survey, grounded theory,

ethnography, action research among others. But the reasons why the researcher

never deemed it appropriate to adopt any of them is evidenced and summarized in

the subsequent sub headings.

3.6.1 EXPERIMENTAL RESEARCH STRATEGY

As noted by Bryman (2001) one the purpose of experimental strategy is to derive

verified functional relationships among phenomena under controlled conditions.

Simply put experimental research strategy is primarily meant to identify conditions

underlying the occurrence of a given phenomenon. From an operational viewpoint,

it consists of varying the independent variables. According to Collis and Hussey

(2003) the experimental strategy owes much to the positivist methodology even

though it features in some social science research and typically are conducted in a

systematic way.

Considering the core drive of experimental strategy, it would not be out of context

to suggest that such a strategy is inappropriate to a study that is to a greater extent

unscientific incline. This is because the experimental steps are essentially those of

the scientific method. Bryman and Bell (2007) on this note stated that it consist of

testing of hypothesis of which as a matter of fact is not the interest of the proposed

research. An investigation into the impact of corporate social responsibility of oil

companies on oil producing communities involves engaging human elements

perceptions, feelings, values, emotions as well as the state, actions and interactions

of people, groups and organizations among others, of which Maylor and Blackmon

(2005) identified as contrasting elements of experimental research strategy. In

other words, it does not seek to explore meanings but instead try to test hypothesis.

3.6.2 SURVEY RESEARCH STRATEGY

This type of research strategy is oriented towards the determination of any status of

a given phenomenon. As expressed in the works of Bryman (2001) surveys are

particularly versatile and practical especially for the researcher, in that they identify

present conditions and point to present needs. Similarly, Collis and Hussey (2003)

while categorizing survey as a positivist methodology stated that it is a situation

whereby a sample of subjects is drawn from a population and studied to make

inference about the population. According to them this type of strategy can be

relevant in business research in the form of attitude surveys and also where the aim

is to find out whether there is any relationship between different variables.

Admittedly survey research focuses on the vital facts of people, their beliefs,

opinions, attitudes, motivations as well as behaviour that one will be prompted to

ask why the researcher did not adopt it as the most suitable strategy. But it is

necessary to note that case study appears to capture the essence of the research

understudy based on the fact that surveys are generally based on large cross-

sectional samples while case studies are more oriented towards intensive and

longitudinal study of smaller samples as well as attempts to isolate or divorce

antecedents or causes of the phenomenon under investigation.

3.6.3 GROUNDED THEORY RESEARCH STRATEGY

Although the grounded theory research strategy is mostly accepted as one of the

most commonly used qualitative method that share the common research

philosophy of phenomenology, it should be noted that the researcher found it

inappropriate to yield effective result on the issue being investigated based on the

following reasons. First and foremost, as rightly identified by Collis and Hussey

(2003) grounded theory uses a systematic set of procedures to findings of the

research that constitute a theoretical formulation of the reality under investigation,

rather than a set of numbers, or a group of loosely related themes.

Furthermore, this research strategy is often associated with research that consists

of theory building of which is not the priority of the research understudy. However,

considering the nature of grounded theory, the strategy was found inappropriate

within this context based on the fact that grounded theory put much emphasis on

generating theory from observation made. This in other words, entails that the

researcher must have been within the locale of investigation for a quite period of

time and as such would not give the researcher the flexibility to alternate or employ

other necessary data collection methods like questionnaires and interviews among

others.

3.6.4 ETHNOGRAPHY RESEARCH STRATEGY

The term ethnography depicts the writings about people. In a general sense it

includes any study of a group of people for the purpose of describing their socio-

cultural activities and patterns (Saunders et al 2007). Ethnography essentially

involves descriptive data collection as the basis for interpretation. As a process

ethnography could be seen as the science of cultural description. Nevertheless the

strategy was rejected by the researcher based on some reasons among which

include that its main method of collecting data is through participant observation

and informant interviews (Collis and Hussey 2003).

Therefore, in ethnography the ethnographer or researcher has to live among

participants and collect data for long periods of time. This in other words imply that

using such a research strategy will require not only an extensive period of time but

more so, necessitate the researcher being a full time member of the host

community and organization being investigated as well as doing the research.

Consequently, considering the limited time available to conduct the research

ethnography research strategy appears unsuitable within this context and thus will

not be employed as a data collection method for the research understudy.

Moreover, out of all strategies considered, the case study research strategy appear

more appropriate as the most suitable to answer the research questions as well as

conduct a limited exploratory research within a short period of time.

3.7 RESEARCH INSTRUMENTS

Collection of data is an important part of research and as rightly envisaged by many

scholars the technique used in the course of collecting the data is very much

fundamental in research process (Bryman 2001; Saunders et al 2007). In literature

there are two main types of data of which the researcher has appropriately

configured as means of collecting his data: primary and secondary data (Saunders

et al 2007). While primary data refers to those data collected for the specific

purpose of the research project being undertaken, secondary data stands for data

collected for other purposes like published summaries and through other means

such as books, journals, scholarly articles, news papers, company documents,

internet, e-journals and data base among others (Bryman 2001; Saunders et al

2007). Hence in order to ascertain the required data which implied to some extent

the exposition of the organizations perception of corporate social responsibility and

how this viewpoint impacts on its host communities, some information from

Chevron Oil (Nigeria) was gathered through its published policies and corporate

social responsibility agenda.

Collection of primary data was undertaken from Chevron Oil (Nigeria) and some

selected members of the host communities through purposive sampling approach

using the qualitative techniques, consisting of in-depth interview, semi-structured

questionnaires and participant observation as are further explained below.

Nevertheless, it is important to note there are various methods used in collecting

data but the appropriateness of each method is most often determined by the

nature of inquiry understudy and the research methodology in use. Hence,

considering the fact that this research is based on the phenomenological research

philosophy and the nature of data required, the researcher deemed it imperative to

concentrate more on the qualitative data collection methods which most often are

used in collecting data within such periphery. Such an approach he believed would

go a long way in developing understanding on the impact of corporate social

responsibility of oil companies on their host communities in the developing

countries. On this note Saunders et al (2007) was of the view that primary data can

be collected through semi-structured, interviews and questionnaires. This we shall

briefly expose below.

3.7.1 INTERVIEWS

Interviews are one of the methods used in collecting qualitative data. The process

consists of a purposeful discussion involving two or more people. This process as

rightly stated by Saunders et al (2007) can assist in gathering valid data and can be

structured, semi-structured or unstructured. While structured interviews make use

of questionnaires that are predetermined, that of semi-structures and in-depth

interview is informal. It is important to note that the unstructured interview of which

this research will be adopting has the capability of allowing the researcher to

explore as much as possible his areas of interest. In addition to the fact that

interviews can be conducted on one to one or one versus many bases, it can also be

carried through telephone (Bryman 2001). The importance of this approach to the

research understudy is that it will offer the researcher the freedom to move into any

area of interest.

Using this approach therefore, a set of research interviews questions guidelines

were designed. The interviews questions aimed at arriving at the two main research

questions although not all of them were eventually used during the interviews. A

purposive sampling approach was employed to seek out groups and individuals

where the repositories of the issue under investigation appeared to be evident.

Letters of request were sent to prospective interviewees prior to the interview.

Important to note is that the constructed interviews questions underwent pilot study

prior to the time of the interviews and there were built upon certain features of

corporate social responsibility. In all the samples which as aforementioned were

purposively selected, the interviews often opens with the explanation of the study

and more importantly allowed respondents to seek clarification if deemed

necessary. Besides this, the respondents were requested to discuss about their

usage and experience of corporate social responsibility as it reflect within their

locale.

However it should be noted that some additional questions revolving around the

point were required at certain point in order to derive the necessary information

required and the order of asking the questions varied from one conversation to the

other. Information was obtained by interviewing 2 managers and 3 staffs of Chevron

as well as from 7 members of the host communities who had given their consent

and the data collected was recorded down with their consent through audio tapes

and note takings. The interviews conducted lasted at about one to two hours with

breaks as was suggested by Saunders et al (2007). More so, at the end of each

interview, the necessary point raised by respondents were reiterated to ensure that

the respondent’s initial point and meaning is retained unadulterated. Data gathered

in this way is likely to address the what, how and why questions thereby, aiding the

exploratory nature of the study. Above all, it should be noted that the questions

were designed to relate to each of the research aims and objectives as well. The

interview guideline contained questions aiming at gaining an understanding of the

perceived level of corporate social responsibility of the organization. Notable among

them was that of sieving out what the host communities opinions are regarding the

present level of corporate social responsibility of Chevron and the problems and

shortfalls they have experienced. More so, the views of the company on corporate

social responsibility and its practice were sought through another set of questions

used on the company’s staff and management team. All this was to ensure that all

the necessary data was well articulated so as to gain and develop understanding.

3.7.2 QUESTIONNAIRES

Questionnaires are one of the techniques used in collecting data. In research

literature there seems to be varied opinions as it relates to its definition. Generally

speaking it includes all those data collection techniques in which each person is

asked to provide an answer to the same set of question in a determined manner

(Saunders et al 2007). Questionnaires could be structured, semi-structured or

unstructured (Bryman 2001; Bryman and Bell 2007). However, the research

adopted the unstructured questionnaires approach. The choice of this particular

approach is based on the researcher’s insight of the merits it will provide in

investigating the issue under examination. The unstructured questionnaires were

used on top management and managers of Chevron oil (Nigeria) and other

stakeholders in the environment with the intention of ascertaining their views on

the company’s corporate social responsibility and organizational practices. More so,

the questionnaires took cognizance of the time that would have been wasted in

interviewing some of the managers who as a result of their tight schedule were not

able to give out much time during the interviews as earlier scheduled. It is

important to note at this juncture that the type of questionnaires used in the

research is delivery and collection questionnaires whereby the questionnaire is

handed over to each manager and collected later on (Saunders et al 2007).

In line with the interview the questionnaires for managers were designed to obtain

answers to the two main research questions. To this end, questions which seek to

investigate the impact of corporate social responsibility on oil producing

communities were included in the questionnaires so as to envelop the issue being

investigated. More so, some questions were also designed to determine whether the

organization does understand the host communities’ requirements. Besides this,

questions as regards whether the company does embrace the apocalyptic

accompaniments emanating from active practice and demonstration of corporate

social responsibilities activities were also included in the questionnaires. In this

sense therefore effort was made to see that from the organization point of view the

questionnaire adequately covered the research questions. Nevertheless, the

questionnaires were kept at a minimum number and were made short, clear and

easy to answer by the respondents whom had given their consent. In total 12

unstructured questionnaires was administered among individual using purposive

sampling approach where repository of knowledge appeared more evident

3.8 ETHICAL CONSIDERATIONS

One of the important elements in interviews as well as other enquiry where

feedback is expected to be given to a third party is that of seeking consent and

confidentiality among others. Suffice it to say that what validates any enquiry of this

nature is that the respondents have not only given their consent but more

importantly were assured its confidentiality. One of the advantages of this

consideration is that it enabled the respondents to be more open and thus, address

issues as they are. The purpose of the study was explained to the respondents and

they were assured that their participation was voluntary and as such can withdraw

at any point in time. More so, in cases where age was mentioned, the researcher

received the consent of the respondent before revealing such. In addition to this

they were equally assured that in no circumstances will their names be revealed,

whether in the course of the data analysis or other areas such as informal

discussion. This practice however, is in consonance with the recommendation of

Collis and Hussey (2003) who were of the view that the participants should be

consulted and their consent sought throughout the research process.

3.9 PILOT TEST

The essence of pilot testing was deemed necessary by the researcher so as to

ensure that the questionnaires and the interview check list being administered

yields the expected result as much as possible. Saunders et al (2007) noted that

pilot testing will enables researchers prior to administering his questionnaires, to

refine their questionnaires so that respondents will have no problem in answering

the questions as well as in recording the answers where necessary. Considering this

capability the questionnaires for the research underwent a pilot testing study by

one manager of the organization understudy based on the research questions who

also made some reasonable comments of which the researcher took into

consideration.

However, prior to the pilot testing the questionnaires was edited and commented on

by the supervisor so as to ensure that the questionnaire is quite representative and

suitable for the research under investigation. As rightly identified by Mitchell (1996)

this type of consideration helps in establishing content validity as well as providing

the opportunity to make necessary amendments before the pilot testing. More so,

information concerning any unforeseen circumstances would be identified using Bell

(1999) recommended layout of which include finding out:

1. How long the questionnaires took them to complete; 2. The clarity of instructions; 3. Which, if any, questions were unclear or ambiguous; 4. Which, if any, respondent felt uneasy about answering the questions; 5. Whether in their opinion there were any major topic omissions; 6. Whether the layout was clear and attractive; 7. Whether there are any other suggested comments. Moreover, these

processes in addition to the test-retest technique will go a long way to minimize any inadequacy in the construction of the questionnaires and more importantly establish its reliability.

3.10 ALTERNATIVE DATA COLLECTION METHODS

There are other means of collecting data when employing qualitative method that is

based on the phenomenological research philosophy of which the researcher would

like to admit and more importantly explain why he found them inappropriate for the

proposed research.

3.10.1 PARTICIPANT AND STRUCTURED OBSERVATION

Observation is one of the essential parts of collecting data, although it is most often

neglected. This method entails “the systematic observation, recording, description,

analysis and interpretation of people’s behaviour” (Saunders et al 2007, p. 282). In

their views observation is of two types: participatory observation is where the

researcher makes effort to participate entirely in the lives and activities the group,

organization, or community understudy that he in this sense becomes a member of

the organization. Although the method gives the researcher more insight of

significant social processes the closeness of the researcher to the situation can

prejudiced his data. The second type is known as structured observation. Here

observation is systematic and predetermined. One of the advantages of the

structured observation as recorded by Saunders et al (2007) is that it enables the

researcher to tell how often things happen rather than why they happen.

Notwithstanding the fact that process tends to yield higher result based on its

reliability, its data appear to be slow and expensive. Considering the nature of this

method of data collection it will not be suitable to adopt the participatory

observation approach based on the fact that the researcher has not fully

participated directly and has limited time to complete the research.

3.11 SAMPLING METHOD

No concept is as fundamental to the conduct of research and the interpretation of

its results as is sampling. It could be said that research except in few cases is

invariably conducted by means of a sample, on the basis of which generalizations

applicable to the population from which the sample was obtained are reached. The

essence of sampling is quite evident and depicted in the works of Saunders et al

(2007) when they noted that in administering research questions it would be

impracticable to survey the whole population, considering the limited time and

budget among other constraints in this type of research. As rightly suggested by

Bryman (2001) sampling could be viewed as taking any portion of a population or

universe as a representative of that population or universe. In other words sampling

is the process of selecting a sufficient number of elements from a population to

represent the properties or characteristics of that population (Collis and Hussey

2003).

However, Saunders et al (2007) identified two types of research sampling

techniques: probability or representative sampling and non-probability or

judgmental sampling. In their views while the probability samplings relates to

survey-based research where the researcher needs to make inference from the

sample about a population to answer the research questions, the non-probability

enables the researcher to select his sampling purposively and to reach difficult-to-

identify members of the population. Based on this note, the researcher will be

adopting the probability sampling having considered its advantage in remedying the

research questions as well as gaining deeper insight to a particular given

phenomenon among others. Consequently, in order to collect data as regard the

impact of corporate social responsibility on oil producing communities the

researcher will be using some sample of which include the 2 directors and

managers of Chevron Oil (Nigeria), 3 employees and 7 members from the host

communities so as to gather data. Precisely speaking, the researcher will be

employing the purposive sampling of non-probability sampling techniques.

Purposive sampling as described by Saunders (2007) supports the use of judgment

to select cases that will be best in answering the research questions. As specified

above the research is a case study dealing with a small sample size and this

enables the researcher to select most informative samples for the study. Based on

the requirements of research questions, the selection of cases was based on critical

case sampling where a logical generalization is made from the data collected from

the critical cases. Thus, data is collected from the most relevant and important

cases where understanding and repository of knowledge appeared evident. Several

clues suggested by Patton (2002) that could be used to identify critical cases were

considered as well.

Such clues include trying to examine whether, if it happens at that place will it

happen also everywhere given the same circumstance, if they are having problems,

can you be sure that everyone will have the same problems, if they cannot

understand the process, is it likely that no one will be able not to understand the

process among others were taken into consideration. All this effort was to ensure

that the information generated represent the exact state of affairs under

investigation. Moreover, as aforementioned representative samples of 12 in total

were employed for the sample population, after which random sampling was used

over the data collected from different groups of stakeholders involved. One of the

advantages of employing this method at that stage is that it is unbiased in the

sense that no member of the population has more chance of being selected than

any other member. Suffice it to say that it gives each data the chances of being

selected in the selection process, thereby avoiding partiality.

3.12 STRENGTHS OF THE METHODOLOGY

The merits of the methodology employed in this research can never be over

emphasized. Burns (2000) noted that unlike many of the traditional narrower

approach to the examination of educational experience, the qualitative mode of

inquiry which strictly is based on the phenomenological research philosophy is

characterized by methodological eclecticism, a hypothesis-free orientation and an

implicit acceptance of the natural scheme of things. In addition to this, the

methodology play the important role of allowing the researcher to see that things

could be other than they are and more so enables the researcher to gain an

insider’s view of the matter understudy (Bryman and Burgess 2004). Remarkable to

note is that the methodology offers the researcher the opportunity to capture what

people say and do as a product of how they interpret the complexity of their world,

to understand events from the viewpoints of the participants. Collis and Hussey

(2003) describes this emerging form of research as being considerably relevant,

since there can be little meaning, impact or quality in an event isolated from the

context in which it is found. As aforementioned the matter understudy is a social

fact of which draws a context-bound conclusions that could potentially point the

way to new polices and educational decisions, rather than towards scientific

generalizations.

Suffice it to say that the methodology has the capability of gaining a rich

understanding of the context of the investigating field by presenting the researcher

multiple avenues of study (Burns 2000; Walsh 2001; Collis and Hussey 2003). This

flexibility thus provides the researcher different avenues that can lead to the

discovery of deeper levels of socially constructed meanings that exist within every

social context. Enlisted in the profiles of Chevron Oil (Nigeria) for instance, is an

enormous list of high corporate social responsibilities functions embarked on by the

organization, but recent investigations and clamours from its host communities has

raised various minds to question the authenticity of such disclosures. The matter

therefore is not only context bounded but also demands a contextual model

research of which the qualitative research methodology is in consonance with.

3.13 LIMITATIONS OF THE METHODOLOGY

The problem of adequate validity and reliability is one of the major demerits placed

over the methodology adopted for this study. Because of the subjective nature of its

data and origin in single contexts, it appears difficult to apply conventional standard

of reliability and validity. On this note Saunders et al (2007) observed that in

qualitative methodology, contexts, situations, events, conditions and interactions

cannot be replicated to any extent neither will generalization be made with any

confidence to wider context than the one studied.

In addition to this, considering the limited time within which the research is

expected to be fully conducted, the researcher did not spend a considerable amount

of time in the research setting so as to examine holistically and aggregately the

interactions, reactions and activities of the subject understudy. Besides this,

Bryman (2001) noted that because of the intimacy of participant-observer

relationships within the setting there is no doubt that the researcher’s mere

presence will have profound reactive effects on the subjects of the study. However,

these stated problems among others illustrate human deficiencies and thus, draws

on the importance of further research.

3.14 SUMMARY

This chapter covers the methodological aspects selected in conducting the

research. It opens by reviewing the research aims and objectives as well as

highlighting the influence of them on the research method to be followed.

Furthermore, it presented the rationale and justification behind the chosen method.

A discussion of the research philosophy, approach, strategy, data collection method,

the ethical considerations given as well as the strengths and limitations of the

methodology were also examined respectively. The next chapter however will focus

on the analysis and findings.

CHAPTER FOUR

ANALYSIS AND FINDINGS

4.1 INTRODUCTION

The preceding chapters have respectively focused on presenting the research

overview of inquiry as well as the conceptual clarification through reviews of extant

related literatures and the research methodology adopted for the research

understudy. The succeeding chapter therefore seeks to analyze the enormous data

collected with the principal view of presenting

the findings that emerged from the analysis of the data collected. Prior to the data

analysis the chapter enveloped the data analytical method employed in the

analysis, explaining in details the why of its selection amidst other various data

analytical methods applied in qualitative research methodology. Finally, in

consonance with the dictates of the organizational structure of research, the

chapter also deemed it imperative to re-present the means through which the

researcher collected his data and the data collection method employed for each

particular sample used.

4.2 THE DATA ANALYTICAL METHOD: THEMATIC ANALYSIS AND JUSTIFICATION FOR ITS SELECTION

The data collected was analyzed using thematic analytical framework which

involved a number of distinct analyses with highly interconnected stages. The

consideration of this method of analysis was based on the fact that the framework

as identified by Bryman and Burgess (2004) is not only systematic and disciplined

but more so, is essentially about detection, defining, explaining and exploring issues

of which are among the basic tenets of qualitative research. In addition to this, it

allows the researcher to review the whole data collected without any partial or

selective treatment at the analytical table (Tuckett 2005). More so, it was deemed

as the most appropriate method considering its capability and flexibility in

facilitating an in-depth illustration and explanation of the materials collected which

invariably are unstructured and cumbersome. This is well understood when one

recapitulate that a high proportion of the data collected is not only text based but

also emerged through in-depth interviews and unstructured questionnaires. These

sources which mainly are in detailed and micro forms called for some coherency

and articulated structure. Since the researcher is not seeking to build theories nor

test hypothesis, it became imperative therefore that an analytical method which

seeks to sift, chart, sort and explain data as they relate to key issues and themes

being discussed during the data collection process be adopted (Tuckett 2005).

The adoption of thematic analytical framework in this sense not only offers this

capability but more importantly makes it possible to draw upon a priori issues,

which are those issues informed by the original research questions and brought

forward into the interview and questionnaires through the topic guide. More so, it

brings into focus the emergent issues raised by those interviewed as well as the

analytical themes from the recurrence views (Bryman 2001; Bryman and Burgess

2004). As rightly identified by Bryman and Burgess (2004) and practically

exemplified in the works of Ozuem et al (2008) such a framework enables the

researcher to reconsider and rework on the unwieldy data collected and ideas.

Nevertheless the method of study as suggested by Bryman and Burgess (2004)

consists of five systematic stages of analytical process of which include:

familiarization, identifying a thematic framework, indexing, charting, mapping and

interpretation; the stage in which the core objectives of the qualitative analysis are

addressed.

4.3 DRAWBACKS OF THEMATIC ANALYSIS

Some authors have suggested that given the flexibility of thematic analysis, there is

often the tendency for researchers to adopt this method of analysis without any

clear and concise guidelines (Antaki et al 2002). Within such scenario anything goes

and thus, makes the method uncritical. Therefore, there is that possibility of lacking

a detailed guidance for analysis, of which can result in inadequate analysis

especially in this type of circumstance. This capability in other words can not only

degenerate into uncritical subjectivity of the researcher as well as that of the

interviewee but could also lead to a superficial description of the matter understudy.

To forestall this problem, the researcher kept on linking itself as much as possible

with the detailed stages within the process, as a necessary strategy in limiting the

possibility of falling into this potential pitfall.

4.4 WHY OTHER METHODS WERE NOT FOUND APPROPRIATE

Among other various analytical tools the researcher having examined other method

found thematic analysis as the most appropriate method suitable for the present

research. This is never without reason. A detailed investigation into other analytical

methods that seek to describe patterns across qualitative data as thematic analysis

such as narrative analysis and grounded theory exemplified this fact. As rightly

identified by Smith et al (1999) and Smith and Osborn (2003) narrative analysis

although is attached to a phenomenological epistemology which gives experience

and subjectivity primacy, is more of eliciting in great detail, peoples’ everyday

experience in order to gain an understanding of the phenomenon in question.

Notwithstanding the fact that the above stated method share a search for certain

themes or patterns across the data, it should be noted that they do not search for

themes within a data item such as in an individual interview, as in the case of a

case study strategy (Murray 2003; Riessman 1993). In addition to this, the issue

being investigated was not fully experienced by the researcher and neither has the

researcher a considerable time to be fully implicated in the construction of the story

for the interviewee (Bryman and Bell 2007).

On the other hand, regardless of the fact that some authors present grounded

theory as a reliable analytical method in analyzing qualitative data. Bryman and Bell

(2007) noted that segmenting data most often bears some risk of complexity of

which can lead to elimination of the expressions, attitudes, behavioural and

gestured meanings of participants. In addition to this is the difficulty that it can

present for the researcher in identifying when the categories are saturated and the

theory is complete. Above all, it is mainly useful in research that is built on

generating theory (Holloway and Todres 2003) of which is not the intention of this

research. In the same vein the template analysis technique was considered

irrelevant within this context due to the fact that it combines both deductive and

inductive elements in the data analysis (Bryman and Burgess 2004). This capability

often leads to unnecessary complication in data analysis. Besides this, the present

research is designed in a purely inductive manner and the time limit may not

encourage the use of such analytical technique (Tuckett 2005).

In summary, the above examined methods were found inappropriate based on the

fact that they were either incompatible with the research methods and/or data

collection techniques used or unsuitable for addressing the research questions and

thus unable to reflect and unravel the surface of the issue understudy.

4.5 CATEGORIZING THE THEMES

In consonance with the stages of analytical process in thematic analysis, effort was

geared towards being attuned with the range and diversity of material gathered and

setting them in context before sifting and sorting. To this end the tapes used during

the in-depth interview with respondents who were purposefully chosen by the

researcher and had their consent were attentively listened to, notes as well as

transcripts used within the data collection period which sought to investigate the

impact of Chevron’s corporate social responsibility activities on their oil producing

communities were re-read including the studying observational notes. All these

materials were reviewed in order to ensure that the key ideas and recurrent themes

were correctly listed (Patton 2002; Tuckett 2005). However, it should be noted that

the notion of corporate social responsibility has been very tropical in recent years’

sequel to the numerous high profiles of corporate scandals by corporate bodies

especially with the fall of Enron and Parmalat among others (Jill 2007).

Hence, the ease in collecting data in such an area of study which has witnessed an

exponential rate of publicity was indeed challenging. Thus, as the topic understudy

is still a new developing discipline of which its dictates are not universally embraced

in all ramifications, effort was made in keeping abreast with what is in the offing

within the corporate social responsibility membrane. Host of literatures abounds of

which many of those are in favour of corporate social responsibility activities in its

entirety. Corresponding from this is the wide range of knowledge and willingness it

gave to respondent of which necessitated in their being more accessible as well

spending more time than earlier thought. Suffice it to say that the initial concerns

enabled the researcher gain a deeper grounded understanding in reconciling ideas.

While reviewing the amalgams of literatures and perceptions, the recurrent themes

and issues which emerged consequent of the questions posed by the researcher,

points that appeared necessary to the respondents were identified and jotted down.

As the familiarization of these data developed, the data triggered off some

interconnected categories which replicated some of the core issues in the major

themes, but of which may not categorized under the major themes due to their

complex nature and some differences which made them appear exclusive especially

when viewed from a distance. However, next on this rank or stage was the period of

identifying a thematic framework, otherwise known as key issues, concepts and

themes to which the data collected can be examined and referenced as the analysis

developed (Bryman and Burgess 2004). The composition of the major themes

identified is depicted in Table 1 below.

Tables 1 As the process continued, four more themes in addition to the a priori

issues informed by the research questions and thus introduced into the interviews

through the topic guide emerged. These themes, however, were not mutually

exclusive to the initial categories but happened to surface as necessary important

issues. Important to note is that they were pointed out by respondents themselves

throughout the entire process. The permeating themes are represented in Table 2

with categorized key issues.

Table 2 As aforementioned this research takes a case study strategy which involves

an empirical investigation of a particular contemporary phenomenon within its real

Major themes Perceived benefits Key issues Social factors Oil companies

embark on social functions through various means of which the oil producing communities are concomitant beneficiaries.

Donations Sponsorship awards Community investments Community developments Agricultural aid

Environmental factors In the same vein, the environmental factors are to some extent related to the economic goals of CSR practice as could be seen below.

Mitigation of hydroelectric production Reduction of mining activities Pollution Cleanliness

Economic factors In the developing countries oil companies employ the corporate social responsibilities functions as a means of realizing their self objectives or profit making. Hence, effort is made in matching business operations with stakeholders’ objectives.

Profit Maximization Training Technological transfer Technical support Local sourcing

life context using multiple sources of evidence and understanding. More so, as

regards the analytical tool or instrument the research employed an inductive

thematic analysis which consists of identifying, analyzing and reporting patterns or

themes within data given by respondents. In other words, data was collected from

the respondents within the communities and the company understudy using a

purposive sampling and thus analyzed. During the analyses judgments about

meanings, about the relevance and the importance of issues and about implicit

connections between ideas was sought, making sure that the original research

questions are being fully addressed.

Permeated theme Perceived consequent effects

Key issues

Redundancy crisis Many of the indigenes among the host communities are now unemployed and the predicament have resulted to other issues.

Unemployment Low income Market impact Theft Illiteracy

No cordial relationship and existence of unnecessary shut downs

To this end, the personal and social lives of the citizens within the host communities as well as between them and oil companies are affected in various ways.

Hostility Mistrust Change in social behaviour Rivalries Unnecessary shutdown

Reduced Standards of living

The cost of living between the staff and individuals in the host communities are very high and only few Individual within these communities manage to live above poverty level, the rest appears to live in abject poverty

Reduced eating habit Reduced income Changes in social life R e d u c e d p a t t e r n o f expenditure Low standard of education

Health problems Serious respiratory problems were linked to environmental pollution caused by the activities of the oil companies.

Coughing up Cancer Protein deficiency Gastrointestinal problems Kwashiorkor

In-depth interviews was used as the main research instrument of which were

designed in form of questionnaires and telephone especially in situation where

contacting some respondents appeared impossible. Effort was made to ensure that

this correspondence put in plain words the nature of the study and how the data

would be employed. Interviews of twelve respondents are reported consisting of 5

females and 7 males. However, the age of the respondents was also stated where it

was possible. More so, the interviews were not analyzed collectively, instead each of

them was transcribed and interpreted using many processes and reflective

activities.

At this juncture it is necessary to acknowledge my theoretical positions and values

in relation to the data notwithstanding the fact that an attempt was made towards

ensuring that the participants’ voice is reported the way they came out. In other

words the data being analyzed was quite reflective of participant’s voice. On the

other hand, it should be noted that the researcher did not simply give voice, for

even in giving voice there is often an unacknowledged piece of narrative evidence,

of which the researcher most often select, edit and deploy to border an argument

(Fine 2002; Bryman and Burgess 2004). It is precisely on this note that I accept the

subjectivity and unfeasibility of the universal credibility of the analysis.

Corporate social responsibility has created a new milieu for not only businesses but

the whole world at large and the analysis in this research work reflects its impact on

communities where oil companies operate on especially in the developing countries.

The analysis through an exploration of the researcher’s relationship with the

communities and the respondents’ interviewed offers an understanding of the level

of corporate social responsibility practice in Chevron Oil (Nigeria) as well as its

impact on the host communities. Generally speaking, most of the corporate social

responsibility functions described during the interviews and identified in the course

of our archival research can be grouped under the Social heading, accompanied by

the Economic and Environmental aspects of CSR. The analysis therefore is

scheduled following this pattern.

Nevertheless, while addressing the social aspect of corporate social responsibility

impact of Chevron Oil (Nigeria) on the host communities some themes were found

dominant. Respondents from the company reported a wide variety and broad scope

of project initiated and undertaken in such areas as public and general medicine,

Education, Community development, Vocational training and SME Development,

Agriculture among others of which the host communities were expected to be

concomitant beneficiaries. A respondent who was a manager in the company

reflected this when she stated:

Our company Chevron has corporate social responsibilities issues in stake at all times. Wehave been committed in providing our host communities social benefits to promote development. These social benefits are well evident and encapsulated in the numerous high profiles of donations, hospital and infrastructural projects to name only but a few. Precisely speaking, the company makes yearly donations to hospitals and clinics both within and outside the host communities. The following hospitals can testify to this: General Hospital Okolobiri in Bayelsa state, Central Hospital, Warri, in Delta state and Braithwaite MemorialHospital, Port Harcourt of Rivers state. More so, the issue of helping both government and nongovernmental organizations in generating awareness as well as combating HIV/AIDS among other areas of concern is not left out. In addition to this, we are renowned in sports and athletic sponsorship, educational projects of which our recent construction of classroomsblocks, laboratories and teachers’ quarters testifies to.

This participant saw corporate social responsibility as the company’s engagements

in assisting or supporting the government, the host communities and

nongovernmental organizations in creating and ameliorating social impediment to

life. She appears to view or narrow corporate social responsibility practices and

concepts as one way traffic, something

that is undertaken out of charity. Underlying this conception also is the notion that

they are solely investing or giving out to the host communities, without receiving.

His description of the impact of Chevron’s corporate social responsibility impact on

the host communities envisaged an expanded argument of those who believe that

corporate social responsibility implies that companies voluntarily integrate social

issues in their business operations as suggested by the European Commission

(2001). The notions of corporate social responsibility as evidenced from the review

of extant literatures is one of ethical and moral considerations and as such deserve

that companies as well as managers should consider the social impacts of corporate

activities as part of the business in decision making.

However, this idea tends to be incompatible with another respondent, a 41 year-old

man in management position in the company, as evidenced in his reflection of the

impact of corporate social responsibility on the host communities. In his views:

The impact of corporate social responsibility on the host communities is one of which Chevron Oil (Nigeria) is very much in line with. Sequel with the proliferation of international codes and media awareness, the company has continued to reform its corporate socialagendas, all in the bid to ensure that they match international standard. In recent times, Chevron has not only contributed immensely in infrastructural developments such as road construction and other technical support to government in terms of local sourcing for procurement and service delivery but more so, has improved on their staff training health careand pension benefits as well as technological transfer initiatives. We have never relented in making effort as regards sustaining the communities as well as staff with goodies and thesehave always paid us.

As indicated by this respondent, the impact of corporate social responsibility of

Chevron is felt by the host communities and the staff as well. Important to note in

his reflection is that their corporate social responsibility practices appear to be

externally influenced. It does not seem a resultant effect of self initiative or

conviction. Suffice it to say that it appears to be self imposed, of which without may

be otherwise. Admittedly, the respondent went on to express the huge financial

involvements involved in embarking on such activities of which sometimes tends to

impact on the business margin of operations. For him, there was enormous benefit

accruing from corporate social responsibility activities, only that it is not

cost effective and this is why sometimes the company tries to find other means to

ward off such task. However, it is important to note that this respondent perception

could be align with the shareholder’s view of corporate social responsibility in the

sense that they tend to search for and thus weigh if there is any corresponding

benefits accruing from their practices they embark on (Jill 2007). In other words, he

sees corporate social responsibility practices as something that should be

economically reciprocal both in character and practice. Probably, it would not be out

context to suggest therefore that the company practices of corporate social

responsibility following the line of thought of this manager are undertaken mainly

on those ones that will be to their own advantage.

While the respondent considered economic benefit as a useful symbol in capturing

what corporate social responsibility is as well as its impact on the stakeholders it

could be said that he does not seem to perceive it as being an integral component

of business in general.

Nevertheless, this perception is equally dominant in the information provided by a

member of staff in the company while reflecting on the impact of corporate social

responsibility on host communities as well. According to him:

Corporate social responsibility is about ensuring that environment do not suffer as a result of one’s business or operations. In line with this I can say that my company has always made effort in keeping with the environment especially those that are of great concern. Chevron hasalways enfolded itself in such activities that will not only mitigate the effects of mining and hydroelectric production but also do compensate for it. We also bring initiatives that willenable government to actively reduce pollution as well as ensure that the environment is kept clean. The company’s use of hyper spectral imaging among other means speaks volume ofthis: an instrument that enables us to see and gather information about the environment so as to plan ahead and maintain equilibrium in the ecosystem.

As was noted by this respondent, Chevron Oil Nigeria of which he is a reputable member of

staff is quite committed to keeping abreast with the environment. This capability of which is

greatly rooted in the company’s effort to adopt possible strategies that will aid in foreseeing

and taking appropriate measures to forestall impending trepidation is reflective of not only its

respect and interest in corporate matters but also affirms its active implementation. The host

communities therefore are attendant beneficiaries of this and the impact of such corporate

activities on the environment could be further exemplified through other means through

which the company seeks to prevent pollution. As pertinently noted by this staff, it was

through such interest in corporate social responsibilities matters that made them to undertake

a baseline survey, of which has assisted Chevron in developing a detailed map within the host

communities, thereby equipping them with the ability to give an accurate picture of the

different vegetation types of the region.

Another key issue that emerged in the search to investigate the corporate social responsibility

of Chevron Oil Nigeria as well as its impact on the host communities as was

depicted by one

respondent was that most of the social corporate functions are not discretionally motivated

but instead are consequential. In this regard a member of the staff noted:

Yes, there are evidence to show that we have corporate responsibility activities in our company and that its impact is felt among us the staff and also the community in which we operate in. Corporate social responsibility which has much to do with the company establishing a cordial relationship with the staff, government and the communities so as to remain undisturbed in operation, has been one of the practices undertaken not only by our company but also could be found among other oil companies especially after the recent crisisthat drew the attention of international bodies in early 1990’s.

In the view of this member of staff the company take care of the staffs and

community but they appear to do that, mindful of the fact that not undertaking such

may impact on their financial margin. In other words, their corporate social

responsibility is more of reacting in

terms of keeping the laws and defensive in the sense of averting the possible

consequence of working in a hostile environment. This picture of corporate social

responsibility is equally encapsulated in the thoughts of a 37 year legal assistant

who happens to be a member of the community. Reflecting on the impact of

corporate social responsibility functions of Chevron on their host communities he

noted:

There is no doubt that most of what we are experiencing in recent times in terms of Chevron being socially responsible to its community is not in vogue as a necessary consequence of system disruption in terms of recent oil pipes damages and attacks on them by those we callthe militants. In fact, for me I view those social functions as a strategic means to not only calm down the hearts of the host communities but also to create a reputable image among international bodies. In as much as I recognize some of the social projects undertaken by them, I would still note that they cannot be measured with the amount of damage caused bytheir operations in our communities. In addition to this, the activities most often do not reflect the major interest of the communities but whether this can be traced to overlap in communication or management inability to determine what societal function is more pertinent to the communities remains another issue to be investigated.

This respondent demonstrated a keen awareness of social activities of oil

companies. For this respondent, the corporate responsibility functions undertaken

by Chevron and other oil companies does not seems to be undertaken out of

conviction. This does not mean that they do not practice it but instead goes on to

suggest that the actions are more reactive and defensive just as was depicted in the

former respondent’s thought. As was noted by him, there are some evidence in

terms social projects and health services issues undertaken by them, but still they

are not enough to demonstrate the level of responsibility expected of them neither

does it reflect much those areas that are more pertinent to the communities.

Besides this, they are intentionally purported for some practical reasons of which

according to him are to avert international eye and retain legitimacy of operation.

Furthermore, as reflected in his speech, the problem could either be traced to the

overlap in communication or possibly that of management not comprehending what

is more pressing to the communities in which they operate. Corresponding to this

idea, a 43 year old man from one of the communities asserted:

Not to admit the effort of oil companies in making effort to impact their place in the hearts ofcommunities is to be unrealistic. Some of the micro and macro developments in our communities are in one way or the other consequent of their place among us. But one dilemma that appears to bother the minds of most of us is that the areas where they often seek and invest in do not capture the essential lack of the communities. Even sometimes, some ofthe projects like classroom blocks, building of local community centres among other supportive activities started are left unfinished. What I may not be able to state now iswhether they are done intentionally or are left based on overlaps in feedbacks. But what they invest in does not fulfil our essentials. We need to be taught of how to get fish and not to begiven fish. I am quite sure that you do understand what I mean by this expression. Most of our graduates are in want of job.

According to this respondent, the issue is not that the oil companies are not doing

anything in

terms of identifying itself with corporate social action but instead is on the nature of

what they undertook in relation to that. He does not mean to say that erecting

classroom block or such other activities are worthless but instead what sounds more

enticing to him is when such corporate functions are either completed or channelled

to activities that will be sustainable for future developments. Any activity that less

address or have less sustainable impact on the lives of the citizens should be

reconsidered. More so, in his view it may be possible that what the oil companies

invest in are based on the information they receive from some of the members of

communities but he believes that the companies should know what is more

beneficial and essential to the communities

In summary, while there was a consensus among respondent on the some visible

impact of corporate social responsibility functions on the staff and communities,

there appear to be a perception that most of those activities are intentionally

purported or masterminded. More so, the understanding of corporate social

responsibility was either strictly narrowed to the economic aspect, or viewed from

the social and environmental angle respectively. The notion of aligning them

together or viewing them as the same line in the value chain was less seen and this

possibly could have resulted in each respondent emphasizing each aspect more

than the other. Corporate social responsibility appears to be rated in visible

structures and institutions. The issues of sustainable development and possible

impact of the present activities of the oil companies’ activities on the future

generations was less addressed and found. Most of the corporate social

responsibility function in other words was viewed in term of its impact on the

present, while the future was left silent. This goes on to suggest the level of

understanding and practice of what corporate social responsibility is among them

and how its actions are received.

4.6 PERMEATED THEMES

4. 6.1. REDUNDANCY CRISIS

Redundancy simply put refers to the condition of being without a job. Majority of

individuals within the host communities are exposed to this predicament resulting

from the enormous land mass occupied by the oil companies as well as the

resultant effect of the oil exploration in terms of pollution on the land. This

phenomenon as depicted along the course of enquiry has necessitated or given

birth to other unexpected problems to individuals within the host communities. This

could be understood when one recapitulate that most of the individual within this

locale are farmers of different categories. Suffice it to say that they are peasant

farmers that absolutely depend on the basic fruits of their land. More so, some of

them uses this means as a source of their business, in the sense that they are not

only subsistence farmers but also uses the crops for commercial purposes. A

respondent who was a subsistent farmer and a member of the host community

stated:

Oil companies have left us in shamble. What we reap from them cannot be placed at the sametable with what we are experiencing from the result of their operation. As I have already told you I am a farmer who lives and survive by what comes from my farm. There is a lot consequence resulting from the activities of the oil companies to which have rendered most of us redundant. Not just us the farmers but even those who depend on what we produce, as a source of their business and transaction. Today, the act of theft has increased because of the thirst to survive. We have less land for cultivation and their existence has equally increased the prices of land and other things such as water. The sachet water that was sold at five (5N) naira in the cities are being sold at ten naira (10N) in our communities, but if our water is notpolluted such a business probably will not strive here.

This participant saw unemployment as a concomitant input of the existence of the

oil companies in their communities. As stated by him, most of the indigenes are

farmers but have been laid off from this service based on the massive land and

rising cost of land within the region. He noted that this impact have a successive

effects in the marketplace and increased act of theft. Retailers within these

communities who buy their product in order to business it to the public cannot

perform as they do before. The respondent went on to say that those who cannot

buy fertilizers have less production at the end of the day. Marketing content is not

only reduced but on the other hand becomes expensive due to shortage in

production. Corresponding to this a 42 year-old man reflecting on the impact of the

activities of the oil companies noted:

The issue is not that our land is no longer productive as it usually does but that they hardlyemploy us to work for them. Apart from those who were able to get loans from the bank in order to invest in mechanized farming. To farm in absence of such things like fertilizers aswell as make profit is very difficult. What is more pertinent is that when we seek for employment in their various companies, the feedback we receive is that we are not highlyskilled workers. But even to be a cleaner is very difficult to get, yet they are operating in our land and our government has been quite weak in responding to our cries for help.

As indicated this respondent, the existence and operations of the oil companies in their

communities have rendered most of them incompetent in the farming environment. Only the

mechanized farmers can sustain the business at the moment. This according to him could be

traced to the lack of fund in fertilizing both the land and the crops. As indicated by him

getting job in any of the companies is even quite difficult notwithstanding all these problems

being faced by their existence and operation. Important to note is that the role of the

government who appears to be the highest arbiter of rescue is not even felt within such

scenario, a fact that is also depicted in the statement made by a 38 years-old woman when

reflecting on the impact of corporate social responsibility functions of oil companies. As

stated by her:

The oil companies’ inability to put in place the corporate responsibility functions of which they claim to practice in their corporate agenda could be linked to inherent corruption in management and our system of governance. What is more shocking to me is that even with theconstant agitations and conflict between the oil companies and host communities, they haven’t been any serious transparent effort by our government in looking effectively into thismatter. Whether they are silent based on the fact that they are either multinationals or taking bribes is something that my mind cannot give answer to. But it appears from the look ofthings that something of which the eyes of the man on the street cannot see is going on between them and our government.

As was noted by this respondent, it could be possible that there is an overlap in management

or corruption either in the management team of the oil companies or between them and the

government. This in her view might have been the reason behind the deep silence by the

government on this issue that in recent time have drawn the attention of

international bodies especially with the execution of Ken Saro Wiwa. While the

respondent considered this as a misdemeanour, she also indicated some level of

corruption among the management team considering the fact that what they report

in their corporate issues through their websites to the world is not what they tend to

practice, but whether such is an overlap in communication remains a point to

discover.

4.6.2. HOSTILITY BETWEEN THE OIL COMPANIES AND HOST COMMUNITIES

Another emerging theme from one respondent was the hostility and conflict brought

in by the present state of corporate social responsibility actions of the oil companies

of which have equally affected the personal and social relationship. Coming from

the personal perspective, there have been issues of less income and withdrawals of

expenditures among others. Individuals do not longer enjoy the benefit of producing

organic products. More so, there have been unnecessary fracases existing among

one another as well as communities resulting from lack of trust as regard how the

funds the oil companies claimed to invest in the communities are managed or

spend. Individual has less trust among one another and one of the consequent

factor as identified by one respondent is the increased sabotage between them.

As noted by this respondent:

The existence of the oil companies has resurrected a lot of things and issues that would not have featured the way they appeared if they did not come. Today, in our communities nobody trusts the other anymore. Individuals as well as communities look at each other with suspicion. There is dearth of trust coming from the inability of detecting who appropriates thepublic funds and dividends the oil companies tell us they usually pay. In our communities, our local leaders do not come out in public to address this issue because it seemed they have been bribed. This has made it impossible for our communities to speak with one voice all this while.

The discovery of oil which was initially a cause for joy has in recent time turned out

to be a cause for mistrust and division between one another and among

communities as well as the neighbouring towns. As was depicted by this respondent

the level of disunity and rivalry among communities has made it impossible for

them to stand up and speak with one voice. Personal and social relations have been

broken to an extent that leaders now address corporate social responsibility issues

only when there is sabotage that impact on the oil companies. The impact of such

sabotage was clearly identified by one respondent in the management team as

follows:

Whenever there is pipe breakage or sabotage by those notorious gangs called the militant, thecompany not only loses huge financial resources but more importantly has its brand image at stake. Sometimes such conflict result in death, injuries or getting some of the staff and management kidnapped or put in hostage. I believe you can imagine how somebody could be working in such an environment.

From the perspective of this respondent it is evident that they do not enjoy

unhealthy working environment, but his description of the host communities youth

tend to portray his

understanding of corporate social matters. His description envisaged an expanded

thought of those who are business profit oriented in mind and attitude and never

considers much about others who have stake in the business environment.

4.6.3 REDUCED STANDARDS OF LIVING

Another intriguing emerging theme that featured concerning the impact of the oil

companies

activities on the oil host communities is the reduced standards of living among

them. Individuals within the host communities’ standards of living are quite different

from the staff of the oil companies. There is a great inequality in terms of living

standards and this is well encapsulated in the remark given by a 29 year-old man

who was doing his youth service in one of the companies. According to him:

Having served for a period of 9 months, I can rightly say that the host communities aregreatly marginalized. This could easily be seen from the great disparity in terms of living standards. Sincerely speaking, what the lowest staffs in terms of administrative ranking receive at the end of the month is most often not seen by many of the individuals in the regions where the oil companies operate. The situation can be described as a paradox of plenty. While some of the staff change their cars in months, many of the indigenes of where the money used to make this possible comes from, struggle to feed not to think of procuring a bicycle.

The inconsistent disparity in terms of standards of living as further elaborated by

this respondent calls for deep concern. As pertinently noted by him, this great

inequality is equally found in the withdrawals of basic items of life by most of the

individuals and families within these communities. The expenditure management is

despicable, that parents in the bid to cut expenses and sustain life go to the extent

of withdrawing their children from attaining the basic standard of education. But

remarkable to note is that this situation is quite opposite

among the staff of these companies who in their affluences and flamboyant lives

have some of their children abroad for studies.

4.6.4 HEALTH PROBLEMS

Another essential point that emerge in response to the oil companies activities impact on the

communities in which they operate in was pertinently noted by a female medical practitioner.

According to her there is a consequent effect of the air borne pollution and oil spillages

emanating from the oil exploration carried out by the oil companies both on the aquatic

organisms and on the human beings. Congruent to this she noted as follows:

An oil spillage can harm mammals, birds and other aquatic creatures in several ways such as: direct physical contact, toxic contamination, destruction of food sources and habitats, and reproductive problems. For birds, the risk of drowning increases, as the complex structure oftheir feathers that allows them to float or to fly becomes damaged. Animals are also at risk from ingesting oil, which can reduce the animal’s ability to eat or digest its food by damaging cells in the intestinal tract. More so, due to the fact that oil contamination gives fish and other animals’ unpleasant tastes and smells, some of us who knows this most often refuse to eattheir prey and thus gets starve. Sometimes a local population of prey organisms is destroyed, leaving no food resources for predators. On another note when rivers are used as drinking water sources, oil spills on rivers can pose direct threats to human health.

In the views of this respondent, understanding the impact of the activities of the oil

companies on us will obviously assist in shedding light both on the management team of

these companies as well as the government of the day. She went further to note that one of the

possible benefits of saying this is to enable them understand that they themselves can be

victims of the circumstance. Furthermore she called for the enactment and implementation of

stringent environmental laws to protect the areas as well as policies to reduce the crushing

level of poverty, so that a better livelihood for the communities may be guaranteed.

Corresponding to this another, one respondent who is a lecturer in one of the state universities

pertinently capitalized on the numerous respiratory problems arising from the gas flaring

resulting from the activities of the oil companies. Such has not only made them vulnerable to

various sicknesses but has assisted immensely in the rapid increase of kwashiorkor among

others. As noted by him:

The activities of the oil companies in our communities have accelerated the number of dreadful illnesses among us unlike before. I have reasons to suspect that serious respiratory problems witnessed in many our communities can be linked to environmental pollution. Todayin our communities we experience respiratory problems such as coughing up blood, skin rashes, tumours’, gastrointestinal problems, different forms of cancer, and malnourishmentand so on. Also most of our children have swollen bellies and light hair, which are evidence of kwashiorkor, a protein-deficiency syndrome. I am afraid because if something drastic is notdone as regards this, our future or generation is bleak.

As was noted by respondents interviewed the predicaments emanating from the

activities of the oil companies’ calls for urgent response. In their views there are

long term consequences of such activities on the heath of the communities as well

as the living organisms. In furtherance, they repeatedly attributed the spread of

kwashiorkor in their communities and the drastic decline in fish catch and

agriculture to the pollution of rivers, ponds, sea waters and land by oil industry

operations. While the concept of corporate social responsibility acknowledges that

companies should be responsible to the stakeholders at large (Jill 2007; Johnson et

al 2008) the empirical materials generated from the fieldwork puts a question mark

on the state of corporate social engagements of oil companies in developing

countries.

4.7 SUMMARY

This chapter explained the data analytical tool as well as the analytical aspects of

the study by first and foremost bringing to the reader’s attention the characteristics

of the data that was collected. The chapter went further to justify the rationale

behind the chosen analytical method and why other methods were not found

appropriate within this sphere. Furthermore, it went on to categorize the themes

emerging from the findings as well as the permeated themes found dominant

during the study. The succeeding chapter will therefore concentrate on drawing

necessary conclusion emanating from the findings through critical evaluation,

suggesting feasible recommendations as well as the its possible implications to

management.

CHAPTER FIVE CONCLUSION AND RECOMMENDATIONS

5.1. INTRODUCTION

The preceding chapter while drawing on the activities of Chevron Oil Nigeria

presented the empirical materials generated from the field work concerning the

impact of corporate social responsibility of oil companies on their host communities

in developing counties. While drawing a relationship between the findings and

extant theoretical framework of corporate social responsibility this chapter analyzes

these empirical findings in relation to the four research objectives. Furthermore, it

showcases its implications to the management of Chevron Oil (Nigeria) and thus

brings forth some feasible recommendations for improvement. Finally, the chapter

spots out other opportunities for further research discovered during the study.

5.2 EVALUATION OF THE FINDINGS

The issue of corporate organizations behaving in a socially responsible manner

particularly as it relates to the Nigeria Oil industries is an area of great concern that

requires utmost attention. Evidence from the respondents interviewed makes it

possible to suggest and thus, draws several conclusions about the impact of the oil

companies’ corporate social responsibility on the host communities as well as

envisage the status of their corporate social responsibility practices in developing

countries. It is imperative to note that the conclusions were drawn on the basis of

information gathered during the study and was synthesized in order to develop an

understanding of what the impact of corporate social responsibility is like on the oil

producing communities.

As was evidenced from the empirical data generated from the in-depth interviews

from the selected samples of Chevron staffs and some members of the host

communities the companies are quite cognizant of the current issues in the corridor

of corporate social responsibility. One respondent among the management team

cited various activities that to some extent fell into the corporate responsibility

framework. They contribute to the communities through investments into

infrastructural developments and environmental control.

Furthermore, they equally tend to recognize and embrace both the ethical and

practical imperative of operating in a safe and socially accountable atmosphere.

This potential and understanding admittedly aligns with the findings of Orji (2000)

and Okike (2007) as reflected in the review of literature. In fact, it indicates that

corporate social responsibility has both socio-economic and ethical undertone as

reflected in the writings of Carroll (1991) and reaffirmed by Nwanji and Howell

(2006). The oil companies were pictured as not only the primogenitor of

contemporary corporate social responsibility among other corporations but were

also identified as the most accountable in terms of its practicability. The depicted

areas of activity in the field of corporate social responsibility when discussed from

the business perspective were the social policy areas reflected in various activities

among which include: subsidized housing, health care and pension benefits for the

employees, support of the development of classrooms blocks and hospitals

infrastructure in the regions and environmental protection

On the other hand, the field work data generated suggests that there is an overlap

in communication, coordination, and partnership between oil companies and their

host communities. These aforementioned aspects of administration are imperfect at

best. As seen from data collected most of the respondents stated that such overlap

and lack of coordination are the stumbling block hindering the effective

implementation of corporate social responsibility projects and, by extension, the

attainment of sustainable economic and human development in the communities as

well as Nigeria at large. Though some of the staff of the oil company was

understandably wary about criticizing the company directly, their relative silence in

response to questions about impact of corporate social responsibility on their host

communities in fact, speak volumes. However, several respondents interviewed

were not so reserved in their criticism of what they perceived as the resource-

seeking investigation for future development.

Furthermore, results from the study shows that the consequences of the existence

of oil companies in Nigeria have given birth to other permeated issues and this

appears to be evidence in the numerous emerging themes that was discovered

during the course of the study. The permeated emerging issues reflected in the

course of the study includes: redundancy issues, low standards of living, mistrust

and rivalry among others, all of which has its own successive negative impacts.

These stated issues go a long way to suggest the inefficiency in terms of practice

and low understanding of the whole concept of corporate social responsibilities.

More so, despite the fact that corporate social policies are well encapsulated in the

corporate business strategy of oil companies it was noted that even these policies

as was stated by some of the respondent do not in most cases reflect the main

needs of the host communities. These lacunas tend to necessitate a cold

relationship and misunderstanding as well as some feeling of distrust between the

oil companies and their host communities.

In addition to this, it is equally evident from the extremely incomplete answers

supplied by some respondents on the questions about CSR impact of oil companies

on the host communities that there may not be improvements as regards the issue

being investigated unless either or both the management team and government

both at the local and national levels come in terms with the necessary areas of

importance in terms of human and community development in the communities.

This capability goes a long way to highlight the issues of transparency and

accountability in the Nigerian government: an aspect of administrative skill that has

been found wanting over the years of which its consideration is good for future

research.

More so, from the findings it was observed that most of the corporate social

responsibility functions practiced by the oil companies are inundated with some

internal or invested motives, of which in its absence would result in not being

carried out. Furthermore, some of the corporate functions do emerge as a reactive

response meant to silence the aggressions of the communities. While this

occurrence has been repeatedly done, it was also mentioned that even some of the

corporate social investments in terms of structure are ephemeral in nature: a fact

that is in great contrast with the dictates of the corporate agenda of sustainable

development as underscored in the works of Lafferty et al (2007).

However, the key issue that this section attempts to uncover is whether these

corporate social practices of the oil companies amount to a remarkable growth of

convergence in corporate social responsibility framework and by whose criteria are

these to be assessed: a fact that Ozuem et al (2008) pinpointed as the value laden

in research of which may result in the judgments being influenced either by the

‘etic’ (values of the researcher) or ‘emic’ (values of the researched). In order to limit

this pitfall this work employs the theoretical framework of corporate social

responsibility espoused by Carroll (1991) and modified by the European Foundation

of Quality Management (2004).

However, in literature, there are myriads of definitions and concept which attempts

to proffer an understanding of the major constituents of corporate social

responsibility, but central amidst these definitions is that corporate social

responsibility practices should integrate four main dimensions: economic, social,

legal and environmental. Nwanji and Howell (2006) integrated this conception in

their detailed overview corporate social responsibility. According to them corporate

social responsibility should be framed in such a way that it addresses the legal,

ethical, commercial and other expectations society has for business and also makes

decisions that fairly balance the claims of all key stakeholders. In their views

corporate social responsibility consists of three social responsibilities of which

include: the economic, legal and ethical aspect, of which is in consonance with

Carroll (1991) pyramid of

corporate social responsibility.

This line of thought as aforesaid in the review of literature is equally found dominant

in the definition propounded by The European Foundation for Quality Management

(2004). As rightly suggested by them corporate social responsibility relates to the:

whole range of fundamentals that organizations are expected to acknowledge and to reflect in their actions. It includes – among other things-respecting human rights, fair treatment of theworkforce, customers and suppliers, being good corporate citizens of the communities in which they operate and conservation of the natural environment. These fundamentals are seen as not only morally and ethically desirable ends in themselves and as part of the organization’s philosophy, but also as key drivers in ensuring that society will allow theorganization to survive in the long term, as society benefits from the organization’s activities and behaviour (p.1)

Analyzing the definitions given by the European Foundation for Quality

Management, and

Nwanji and Howell (2006) three key points could be found dominant of which are in

conformity with the Triple Bottom Line reporting strategy that placed more

emphasis on people, planet and profit as underscored in the works of Deegan

(1999) and Morland (2006). The three points however, can be diagrammatical

represented as follows:

On this note of transformation I would like to digress and use a paper written by

Erickson and Kuruvilla (1998) to buttress this fact. According to their framework, the

key element in deciding whether a transformation has occurred is, whether there

has been a serious reconsideration of key actors as it concerns the deep structure of

the matter understudy. Applying this schema in the corporate social responsibility

practices of the oil companies it would not be out of context to suggest that there is

less unambiguous evidence of transformation of its impact on the oil producing

communities. The oil companies have only adapted to meet few salient points

without significant changes in underlying deep structures of the host communities.

Applying this schema to the empirical material generated from the field work, the following conclusions could be drawn as it relates to the impact of corporate social responsibility of oil companies on the host communities. Taking the social aspect of corporate social responsibility into consideration the findings shows that there is remarkable evidence of projects undertaken by these companies in such areas as Construction of classroom blocks, tap borne water, HIV/AIDS prevention, Public Health and Donations. In the area of economics, some respondent from the management team indicated some considerable effort put in staff training and technological transfer of which has raised the competency of staffs in service delivery and profit as well. Ethically speaking, results from the findings show that most of these stated social functions are often carried out with vested interest and in reaction to the confrontations made by the communities. They are not self initiated neither are those projects in consonance with the values and norms of the communities in which they operate. As suggested by Chardel (2004) and Jill (2007) ethical responsibilities relates to how society expects organizations to clinch values and norms even if the values and norms might constitute a higher standard of performance than required by law. This incapability goes a long way to questions the ethical and legal behaviour of oil companies. Ethic and law are interwoven and one cannot be ethical unless the person is aware of the normative demands of which have legal connotations. As regards the environmental dimensions, major initiatives mentioned during the in-depth interviews include reducing the effects of mining and hydroelectric production as well as employing the hyper spectral imaging instrument. While there is fairly remarkable evidence of corporate social responsibility functions among the oil companies, the impact appear not to have much transformation on the host communities.

Despite the massive wealth generated from oil extraction from the host

communities, majority of this communities live in abject poverty. Onishi (2002) and

Olujide (2006) narrated this ordeal as a paradox of plenty.

In summary, based on the aforesaid the following points can be sieved while

drawing particularly on the activities of Chevron Oil Nigeria. The corporate social

responsibility of oil companies is being practiced in terms of a gift aid to the

communities and most of the social investments are not sustainable. In addition to

this, their policy decisions most often do not reflect the main interest of the

communities. Furthermore, there is no cordial relationship between them and some

elements of mistrust and fears could be depicted in their relations. Corruption and

lack of commitment appeared to be the concomitant factors that have instigated

this. However, as Swanson (2002) point outs, the concern in business-society

relationships today is not solely profit oriented and then giving a portion of it back

to the community in whatever means that is most convenient for the business;

rather, it is about how a company earns its money, and how that company is run

and how it interacts with communities. The economic and social dimensions of

business are not meant to be divorced from each other. Freeman et al (2004, p.

364) argue that the former “begins with the assumption that values are necessarily

and explicitly a part of doing business and rejects the separation thesis”. Businesses

as was evidenced in the literature have a moral dimension. Economics as was

rightly depicted by Carroll (2000, p. 35) “is clearly infused or embedded with ethical

assumptions, implications, and overtones”. Although the proponents of the

shareholder theory create a distinction between these two and see business as an

amoral economic activity (Friedman 2004; Sternberg 1997; Henderson 2001, 2005)

there is much consensus as has been evidenced from literature that corporations

should be responsible to the broader stakeholders and this is the stance of this

research work. However, while these tentative summaries are quite informative, it

should be repeated that this study does not include input from several key

members of the Nigerian oil sector or Chevron Oil worldwide: most notably is

Chevron Oil (Nigeria). The omission of most oil companies from the study is as a

result of the limited time frame in which the research was expected to be

completed among other reasons.

5.3 LINKING THE EMPIRICAL DATA TO THE RESEARCH AIMS AND OBJECTIVES

At this juncture it would be necessary to link the findings generated from the

detailed analysis of the empirical materials to see to what extent they have

developed understanding and thus answers to the research questions. It is

important to note that at the commencement of this work four major objectives

were stated to be the driving force necessitating the study and these could be listed

as follows:

1 To review extant literature on corporate social responsibility in the developing countries.

2 To assess of the motivation behind CSR functions and investment projects undertaken by oil companies but with particular reference to Chevron oil Nigeria.

3 To identify and appraise these investments in terms of its impact upon intended beneficiaries and business performance.

4 To analyze and suggest feasible ways through which the impact of corporate social

responsibility could be improved profitably in Chevron so as to increase

business performance

In this section therefore, effort will be directed towards finding out in turns whether

these objectives have been met. But the last objective will be looked into separately

under recommendations

OBJECTIVE ONE: TO REVIEW EXTANT LITERATURE ON CORPORATE SOCIAL RESPONSIBILITY IN THE DEVELOPING COUNTRIES.

During the course of the study, evidence from the literature studied makes it

possible to suggest that while the notion of corporate social responsibility has been

in existence in the developing countries, there has been a dearth of formal

literature regarding this aspect especially in the ancient era. Most of the formal

literatures found appeared to have originated with the dawn of globalization and the

existence of multinational companies in the modern period (Amaeshi et al 2006;

Asonju 2007). While some of these literatures were channelled towards inculcating

the ethical requirements of business in corporations, they mainly concentrated on

the activities and dealings of the oil extracting industry. More so, as could be

depicted in the writings of Onishi (2002) and Okike (2007) effort was mainly centred

in addressing corporate social responsibility in relation to the consequences of the

oil extraction.

Corporate social responsibility was circled within the sphere of reporting and

control. However, the dawn of contemporary era ushered in fairly remarkable

literature drawing from the high profiles of scandals such as Enron and Parmalat

and the proliferations of numerous codes on ethical conducts from the developed

world (Jill 2007; Nwanji 2005; Nwanji and Howell 2006).

OBJECTIVE TWO: TO ASSESS OF THE MOTIVATION BEHIND CSR FUNCTIONS AND INVESTMENT PROJECTS UNDERTAKEN BY OIL COMPANIES WHILE DRAWING ON THE ACTIVITIES OF CHEVRON OIL (NIGERIA).

The empirical materials generated from the respondents interviewed bring to light

some of the underlying factors motivating the corporate social responsibility

functions of the oil companies. During the course of the study, it was identified that

some of their corporate social functions were embarked upon based on the

pressures emanating from the stakeholders especially those of the press and the

public. In addition to this, there is always a stake in most of their undertaking.

Suffice it to say that most of the social activities were profit oriented. Infrastructural

developments were carried out not only because it will be of benefit to the

communities but also will create a positive impression on the international

regulatory bodies. More so, it enables them to reduce the hostility arising from the

communities and thus be able to carry out their business. As was noted by one of

the respondent they carry out such social investment because they are afraid of

being driven away from our community one day. The corporate social functions

were found to be dependent on the contextual factors. Most of the corporate social

functions carried out were not based on conviction and in the understanding that

the stakeholders at large have a stake in the corporate business strategy. As

suggested by European Foundation for Quality Management (2004) corporate social

responsibility should be seen as a concept whereby companies integrate social and

environmental concerns in their business operations and in their interaction with

their stakeholders on a voluntary basis. The

attitude of the oil companies, thus appear to deviate from this perspective.

OBJECTIVE THREE: TO IDENTIFY AND APPRAISE THESE INVESTMENTS IN TERMS OF ITS IMPACT UPON INTENDED BENEFICIARIES AND BUSINESS PERFORMANCE.

During the course of the study, there were considerable corporate social

investments that were noted to have emerged as a resultant consequence of the

corporate social responsibility practices of the oil companies. Notable among them

are areas such as donations, sponsorship, awards, and community developments

through construction of classroom blocks, medical services, roads maintenance and

agricultural aid among others. Furthermore, these investments were noted to have

assisted in reducing the plight of the communities but, most of the respondents

stated they do not go at length in justifying the extent of damage resulting from

their activities. Very pertinent to note is the permeated issues resulting from these

activities of which have resulted to low standards of living, unemployment crisis,

and change

in personal and social behaviour. Corresponding to this, Onishi (2002) and Olujide

(2006) stated that while the oil companies’ riches are increasingly growing, the poor

communities where source of the riches are coming dwells in abject poverty. Their

acknowledgement of this suggests to some extent the level of result yielding from

the social investment carried out by the oil companies.

Considering the impact of corporate social investments on the business

performance, evidence from the study reveals that it is not at its better best. As was

noted by one of the respondent from the management team of the company

understudy, there have been occasions when they have shut down some of their

cite due to the intense misunderstanding and rioting of the communities. While this

has not only resulted in not their conducting business as usual, it was also noted to

have impacted negatively on the financial margin, considering the fact that the

money that would have been used for more important things are in such situation

channelled towards paying bills to release the staffs held in hostage or repairing

damaged pipes and facilities. There are many studies as well that was referred to in

the review of literature that confirmed these aspects that were found in the study, a

few of which are reflected below:

In their detailed overview of corporate social responsibility Nwanji and Howell (2006,

p.2) noted that the recent analyses of –DePaul University study-revealed that the

“overall financial performance of the 2001 Business Ethics Best Citizens companies

was significantly better than that of the remaining companies in both sales and

profit index, based on the 2001 Business Week ranking of total financial

performance”. According to them a good practice of corporate social responsibility

exerts significant influence on the general performance of the company involved.

However, in literature, there is much consensus that companies who are socially

responsible have better tendencies to increase business performance (McComb

2002; Maignan and Ferrell 2004; Lev et al 2006).

Although corporate social investments provided by the organization should be in a

manner that is profitable and cost effective for the organization as suggested by

Maignan and Ferrell (2004) and Mackey et al (2007) many researchers submits that

corporate social practices would always be profitable especially in the long term

(Nwanji and Howell 2006; Jill 2007; Johnson et al 2008). According to the findings of

their data analysis, corporate social responsibility that meets the triple bottom line

of corporate reporting requirements which placed emphasis on people, planet and

profit can result in factors that contribute to profitability, reputable brand identity

and increased stakeholders’ engagements.

Considering these aforementioned points, it would not be out of context to suggest

that improvements to the corporate social responsibility practices of oil companies

especially that of Chevron Nigeria can undoubtedly increase business performance.

5.4 IMPLICATIONS TO MANAGEMENT

The above analysis has some implicit connotation of which this section intends to

uncover. The essence of this is to disclose to the management of Chevron Oil

Nigeria, the possible consequential effects of their present state of corporate social

responsibility practices on their business pursuits based on the inference drawn

from the findings. To address this therefore, the section intends to consider the

implications under the following headings:

5.4.1 UNSAFE WORKING ENVIRONMENT

Enabling working environment is one of the most important factors to be considered

in business operation. The absence of this can impact to a great extent on the

business performance of any company in various ways. It is imperative to note that

the whole essence of health and safety rules can be summed up as creating an

enabling atmosphere of which if embraced and considered in its entirety, has the

capabilities of ensuring employees’ safety. While this ability to ensure the safety of

employees could be jeopardized from the internal business environment, it should

be noted that such could also be hampered from the business external

environment. In Chevron (2008) it shows that a total recordable incident rate of the

workforce in Nigeria was up to 15 percent. The rivalry and unfriendly relationship

existing between the oil companies and their host communities have created an

insecure environment for the employees. It has equally caused the threatening and

kidnapping of staffs in recent time. This awful development resulting from the

entrained relationship between the companies and the oil producing communities

not only questions the authenticity of the companies’ acceptance of the health and

safety rules but also makes it impossible for employees to work in the expected

manner.

5.4.2 KNOCKS DOWN THE CORPORATE BRAND IMAGE OF THE COMPANY

Many researchers in recent time have revealed the importance and difficulty of

building brand image (Ozuem 2009; Ouwersloot and Duncan 2008; Kimmel 2005).

In their detailed examination of integrated marketing communications strategies,

Ouwersloot and Duncan (2008) identified product, price and place as enabling

factors that contributes to brand building. The place in this context could be

referred to as the communities in which the oil companies operate. The awful

experiences and messages perceived by the inhabitants of these communities could

be an advantage or demerit both on the company and its line of product within and

beyond. It has also revealed that when brand image is dented, it is always difficult

or better put takes time to rebuild (Ozuem 2009). In as much as reputable brand

image has the tendencies to influence the business performance of a company, the

opposite can be damaging as well. The materials generated from the fieldwork

suggest that the relationship between the communities and oil companies are not at

their best and this puts their image at risks of various kinds.

5.4.3 IMPACTS NEGATIVELY ON THE FINANCIAL PERFORMANCE

One of the aims of any business is to make profit and sustain its being among

others (Johnson et al 2008). When this is lagging behind, some researchers suggest

that other factors could be affected as well (Gompers et al 2003). The crisis

resulting from the unfriendly relationship between the oil companies and host

producing communities has sapped massive wealth. The funds spent in court issues

could go a long way in funding some projects within the communities. In addition to

this, most often money is demanded before the workers held in hostage are

released. These expenses not only dwindles the financial interests of the company

as well as the other shareholders, but ultimately have a negative impact on the

Nigerian economy as well as impact on the viability of the company. Such scenario

could also results in some stakeholders re-considering the idea of investing in the oil

share market.

5.4.4 THREATENS THE ORGANISATIONAL LEGITIMACY

As exposed in the literature organizational legitimacy could be summed up as the

license given to business to operate. Davies (2003) noted that corporations are

under obligations to legitimize their license to operate to the society at large so as

to retain their implicit endorsement. This license to operate, of which offered a

comforting ground for corporations to operate could be undermined by the

unfriendly relationship existing between the oil companies and host communities in

various ways. With the low state of corporate social responsibility practices, it would

not be out of context to note that the emergence of any of the indigenes of these

communities as the president of the country can turn around the direction of the

wind. The role and place of the communities as well as the government in the oil

industry is of paramount importance to the survival and viability of the oil

companies. The empirical materials generated from the fieldwork suggest that if not

the corrupt nature of the present leadership style in vogue, the situation would not

have been the same. In the stakeholder mapping analysis, Johnson et al (2008)

identified both the government and the stakeholders of which the host communities

in context are part of as one of the key factors to be considered in the power and

interest matrix. Considering the feedback from the fieldwork, it would not be out of

place to suggest that the oil companies’ license to operate is at risk.

5.5 RECOMMENDATIONS

The essence of this section is to suggest feasible improvements that can be made in

order to provide a solution to the critical state of corporate social responsibility on

oil producing communities so as avert any impending predicament. Suffice it to say

that it is in this section that the fourth objective of the research is addressed, which

as aforementioned seek to analyze and suggest feasible ways through which the

impact of corporate social responsibility could be improved profitably in Chevron Oil

(Nigeria).

5.5.1 CREATION OF VOCATIONAL TRAINING CENTRES

The issue of redundancy problems resulting from the land infertility and water

pollution has to be addressed since this not only affects the farmers and fishermen

but also successively impact on other lives to whom they come across and who

depends on their businesses. One of the possible panaceas to this predicament is to

create free vocational training centres where interested individuals can learn other

skills that will place them back to work. In addition to this, effort should be made in

seeing that those who have completed their vocational training scheme have

something to start with. More so, if the indigenes of these communities are

employed to work for the oil companies after their graduations, the hostile approach

and understanding of the communities is likely to change. More so, this capability

will go a long way in empowering not only the individual who now contribute to the

society but also stimulate the growth of the community as well as the financial

performance of the company. This is because the companies at this juncture will not

only receive an enabling working environment of which appears to be wanting as

was noted by one of the respondent from the management team, but also will be

able to save cost from the unnecessary pipe sabotage.

5.5.2 ENACTMENT AND IMPLEMENTATION OF STRIGENT ENVIRONMENTAL

LAWS

Considering the issue of the physical and aquatic environment the government in

‘bottom up partnership’ should reinforce and enact stringent environmental laws

that capture the essence of the situation. In addition to this, there should be high

level of commitment in ensuring the enforcement of this. To ensure the full

realization of this objective, it would be necessary that an appointment of a

corporate social responsibility position at the strategic decision-making level be

done to manage the periodical reviews of the policy and see to its implementation.

However, effort should be made in seeing that the periodical reviews are in

consonance with the current trends of regulations in developed world. In the same

vein, the establishment of different independent auditing within and outside the

company is very important as well. This will be an enabling satellite as well as

monitor that will ensure that the activities of such board are carried out in the

expected manner.

5.5.3 TRI-SECTOR CORPORATE SOCIAL REPORTING

The role of communication remains an important determinant of success in any

engagement whether is at business level or individual level. In the business

environment, this important part of any administration is referred to as corporate

reporting. The feedback from the field research reveals two important points. While

few respondents demonstrated a fairly remarkable awareness of the corporate

social activities embarked on by the oil companies, majority claims to be unaware of

such social investments. One salient reason that could be attributed to this is that

most of the corporate social reporting is often done on the websites and to the

government without much effort to make it known to the host communities in the

manner that they will understand mindful of the fact the use of internet is rare and

that only

few of them passed through formal education. This goes on to suggest that

reporting should be extended beyond the confines of the shareholders, websites

and government. Corporate social reporting that is tripartite in nature has the

potentials of not only bringing the corporate social activities going on to those it

relates to but also bring to light the people who have been entrusted with such

functions, what they have been assigned to and above all promote understanding

among the sectors.

5.5.4 BOTTOM UP PARTNERSHIP

Partnership is one of the important strategic ways of enhancing growth and

understanding. While partnership can be bottom up, it can also be top down.

Bottom up partnership is when the partnership is from below, arising within the

communities. Admittedly, there are elements of partnership as underscored from

the empirical material generated from the fieldwork, but none of them was carried

out in connection with members of the communities. This does not imply that the

partnerships with the governments whether at the national or local level in

responding to social issues is null and void but instead suggest that if it is extended

to involve some of the indigenes of these communities, it will go a long way in

creating more understanding and ameliorating the social plights of the

communities. It will assist those made redundant as a result of inability to reap good

labour from their plants and fish resources to have something doing in terms of

work. More so, bottom up partnership has also the capabilities of availing to the

companies, the necessary social aspects that are of paramount importance as well

as facilitating corporate social reporting.

5.5.5 PERIODICAL WORKSHOP AND EDUCATION

The role of periodical workshop and education in enlightening the minds of people

can never be undermined. Periodical workshop has the not only the potentials of

inculcating the dangers associated with pipe breakages and sabotage but also could

serve as an enabling environment of identifying and prioritizing the needs of the

communities. More so, it could serve as a democratic strategy for relating with

constituent communities. In addition to these it goes a long way in erasing tensions

and frictions, thereby promoting good relationship. Through workshop and

education, the communities will be able to come to terms with the necessary

understanding of the likely consequences of pipe sabotage. The implications will be

made clear and they will always be able to ask questions in areas that are not so

clear to them. One possible advantage of this is that it helps to enhance familiarity.

More so, through the questions asked, the organizers can detect their level of

understanding as well as line of thought of which can be a very good strategy in the

organization’s corporate planning.

5.6 CONCLUSION

The issue of corporate social responsibility is not of a secondary issue. As was

evidenced from the review of extant literature, the notion of corporate social

responsibility is rooted in the ‘being’ of corporation. Hence when these corporate

social activities are carried out, it should be done with high profile of dignity.

Corporate social responsibility is not a gift aid; it is rather an understanding that the

society at large has a stake in the numerous engagements of businesses. Freeman

(2004) and Jill (2007) in their long elucidations of corporate responsibility noted that

social accountability encompasses not only the shareholders but more so

incorporate the society whose tax are being used to build and maintain the national

infrastructures that are used by companies and whose general resources are being

monopolized by the strong. In essence, for corporate social investments to be

fruitful, it must be carried out with dignity and in the recognition that it is more

importantly for the good of the companies. It is only within such frame of mind

would the numerous profiles of business ethical code be meaningful.

However, based on the empirical material generated from the fieldwork conducted,

this research work while drawing on the activities of Chevron Oil (Nigeria) answers

the research questions by concluding that the oil companies do not effectively and

efficiently carry out their corporate social responsibility practices on their host

communities in the developing countries. Their corporate social policies do not

efficiently capture the core elements of corporate social responsibility and most of

the social policy decisions made in respect to this do not reflect the main needs of

the communities. While this has created unfriendly environment between them

thereby making their relationships to be cold, it has also lead to the emergences of

other predicaments.

5.7 FURTHER RESEARCH DIRECTION

During the course of this research there were some other topics of interest that was

discovered. Notable among them is that there exists an issue of accountability

resulting in the numerous incompletion of the projects being invested in the

communities. This was noted to have not only affected the communities but also the

oil companies in various ways.

Considering the scope of the research understudy as well as the limited time the

research was meant to be completed the researcher was not able to investigate this

issue. In addition to this, there is a perception that the oil companies are the sole

organizations expected to carry out social responsibility functions. The role of the

government as well as the communities was unaddressed and this tends to limit

their understanding of corporate social responsibility. More so, the same research

can be conducted using a larger sample of oil companies across the developing

countries so as to arrive at a more comprehensive result. Finally, more than one

data analysis technique could be employed in re-investigating the issue under

consideration so as to obtain any information concealed by the limitation of using

only one method. For instance, with the inductive thematic analysis there is that

possibility of lacking a detailed guidance for analysis of which can result in

inadequate analysis, thereby leading to uncritical subjectivity of the researcher as

well as that of the interviewee. Using another technique such as grounded theory

may uncover some distorted meanings in empirical materials generated.

5.8 SUMMARY

This chapter concludes the research conducted to investigate the impact of

corporate social responsibility of oil companies on their host communities especially

in developing countries. The chapter includes both the summary of the findings as

well as its evaluation. Also it went further to link the findings with the research aims

and objectives. In addition to this, the chapter brings to light some implications as

well as feasible recommendations to the management team, of which if taken into

cognizance could bring a change to their business performance. The chapter

summed up with identifying some issues of further research unravelled in the

course of the study.

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APPENDIX 1

Department of Management

Faculty of Business Administration

University of Wales

London, United Kingdom

Dear Sir/Madam,

RESEARCH QUESTIONNAIRES FOR STAFF OF CHEVRON OIL NIGERIA

I am a Post Graduate Student of the above mentioned department and institution. In fulfilment of the requirements for the award of Master of Business Administration, I am carrying out a research work on the topic ‘Corporate Social Responsibility’ of oil companies. In sourcing empirical materials for the research, I would be grateful if candid views/answers are given to the following questions in the questionnaires through an in-depth interview

Also, may you be assured that information supplied in this respect, will surely be treated in confidence.

Thanking you in anticipation.

Yours Sincerely, Cyril Chiaha Ifeamaechi

APPENDIX 2

SEMI-STRUCTURED INTERVIEW GUIDELINES FOR HOST COMMUNITIES

Data collection from the host communities of Chevron Oil (Nigeria) was conducted using semi-structured interviews. Mindful of the importance of sieving out the necessary data in answering the research questions, twelve themes that are listed below were set up so as to give answers to the two main research questions, which answers demands empirical data. To this end while questions one to six aimed at research question one, questions seven to twelve aimed at research question two. During the interviews questions and probing questions centring each theme were asked as well.

1. What is your connection with the oil companies? Are you any of the followings: Contractor/Supplier, Shareholder or Beneficiary?

2. What is your opinion about the corporate social responsibility functions carried out by oil companies especially Chevron Oil?

3. What do you think is motivating such functions?

4. Please could you explain whether the stated motivations are new or has it been the same since they started their oil business?

5. Do you think that the motivations behind their practices are self initiated or reactive?

6. Do you think the communities are quite at home with this attitude?

7. In your opinion, do you think that the way the oil companies have been using in executing corporate social responsibility programs have been beneficial to your community?

8. Could you identify corporate social investments being carried out by the oil companies in your communities?

9. In your view, do you think that these investments are efficiently carried out?

10. Do you think that such investments reflect the need of the communities and have you experienced any problem as a result of oil exploitation and could you enumerate them?

11. Can you say that the communities are satisfied with the social responsibility practices being rendered to them by oil companies?

12. What other ways do you think will be more fruitful for the oil companies in implementing their corporate social activities in your community?

APPENDIX 3

SEMI STRUCTURED INTERVIEWS GUIDELINES FOR EMPLOYEES

Data collection from the employees of Chevron Oil Nigeria was conducted using semi-structured interviews. Mindful of the importance of sieving out the necessary data in answering the research questions, twelve themes that are listed below were set up so as to give answers to the two main research questions, which answers demands empirical data. To this end, while questions one to six aimed at research question one, questions seven to twelve aimed at research question two. During the interviews questions and probing questions centring each theme were asked as well.

1. What is your status in the company? Are you any of the followings: Staff, Copper or member of the management team?

2. In your view what is corporate social responsibility?

3. What is the company policy regarding corporate social responsibility and do they practice it?

4. In your opinion, what would you say is instigating the corporate social activities of your company?

5. Do you think such motivations are in agreement with the dictates of corporate social responsibility framework?

6. Has this been the way it was or is it a new development?

7. In your opinion, do you think that the way the company has been using in executing corporate social responsibility programs have been beneficial to the communities?

8. Could you identify corporate social functions being carried out by the company in the communities?

9. In your view, do you think that these functions are efficiently carried out?

10. Do you think that such investments reflect the need of the communities?

11. Can you say that the communities are satisfied with the social responsibility practices being rendered to them by the company?

12. In what other ways do you think that the company can use to effectively carry out their corporate social activities in the communities?

APPENDIX 4

SEMI STRUCTURED QUESTIONNAIRES GUIDELINE FOR EMPLOYEES

1 Sex of Respondent?

2 What is your Educational level and in your view what is corporate social responsibility?

3 What is the company policy regarding corporate social responsibility and do they practice it?

4 In your opinion, what would you say is instigating the corporate social activities of your company?

5 Do you think such motivations are in agreement with the dictates of corporate social responsibility framework?

6 Has this been the way it was or is it a new development?

7 In your opinion, do you think that the way the company has been using in executing corporate social responsibility programs have been beneficial to the communities?

8 Could you identify corporate social functions being carried out by the company in the communities?

9 In your view, do you think that these functions are efficiently carried out?

10 Do you think that such investments reflect the need of the communities?

11 Can you say that the communities are satisfied with the social responsibility practices being rendered to them by the company?

12 In what other ways do you think that the company can use to effectively carry out their corporate social activities in the communities?

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