MAJOR FUNCTIONS OF CORPORATE SOCIAL RESPONSIBILITY.

ABSTRACT

The major function of corporate social responsibility is to bridge the gaps of the major stakeholders in the affairs of an entity whether natural or artificial. This study aimed at evaluating the corporate social responsibility function of the Shell Petroleum development company in the post amnesty era in Akenfa. To do this, the study used the survey design and administered four hundred copies of questionnaire to respondents out of which 340 copies were duly returned with complete information for analysis. Findings from the research revealed that the need for corporate social responsibility is for economic development, improve quality of life and to develop the local communities; that if corporate social responsibility is done effectively will enhance corporate image of organization and that for firms to survive in their host communities, they should respond to the needs of the people. Consequently it is recommended that government should take a revolutionary step in repealing the land use act and should be firm in upholding and ensuring that oil firms in the Niger Delta adequately adhere to environment standards. 

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

          A corporate organization must be involved in the welfare of not just its employees but also members of the host communities who are directly or indirectly affected by its activities. The need for business to be socially responsible is reflected in the strong involvement of international institutions in this advocacy. Such as the world business council for sustainable development and the Dow Jones sustainable group indexes are among those underlining the need for organizations to adhere to certain degree of demonstration of responsibility to the people and communities where they exist.

          Today, most business organizations have not only realized this need but have also strived to make greater commitment in the well being of the society as a mark of good Corporate Social Responsibility (CSR). The (WBCSD) defines Corporate Social Responsibility as “the continued commitment by business organizations to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (Natufe, 2001).

          Carroll (1979) observe that Corporate Social Responsibility (CSR) has four intimately related facets, Economic, legal, ethical and philanthropic with organizations striving to achieve all the four simultaneously. On the bases of these components, he states that a socially responsible firm should strive to obey the law, be ethical and be a good corporate citizen.

          The term Corporate Social Responsibility came into use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization’s activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, strategic management: a stakeholder approach in 1984.

          Some argue that CSR is merely window dressing, or an attempt to pre-empt the role of governments and indigenes of host communities as a watchdog over powerful multinational corporations. Others who see it as corporate hypocrisy and insincerity, suggests that better governmental and international regulation and enforcement, rather than voluntary measures, are necessary to ensure that companies behave in a socially responsible manner (Rosenberg, 2007).

          The Nigerian state is a rent-seeking one and at a point up to 80 percent of its GDP was derived from crude oil sale. But not only had the state historically sided with oil sale. But not only had the state historically sided with oil multinationals but a renowned poet, Ken Saro Wiwa and his eight kinsmen were murdered by the state under General Sani Abacha for daring to complain about the environmental degradation in Ogoni land in Nigeria Niger Delta caused by shell and its allies.

          In the Niger Delta, thousands of families are exposed to polluted gases as well as benzene polluted water. As the toxic chemicals are released into the atmosphere, the ecology is continuously destroyed. A society that is natural a fishing society has been clearly disempowered by the activities of the multinational oil corporations. Yet even the transition to civil rule in 1999 has not changed the character and attitude of the state towards ensuring that the multinational corporations comply with best practices. While the former President Olusegun Obasanjo regime shifted the deadline for gas flaring, inspite of its much publicize statement of ending gas flares, post-Obasanjo administrations have continued to dilly-dally with stopping gas flaring thereby ostensibly given state support to the environmental pollution of the Niger-Delta communities.

          Unfortunately, the decision of the state to take the issue of environmental degration in the Niger Delta with kid gloves have inturn generated both “real” and “take” militants who made the exploitation of crude oil a difficult task particularly before the amnesty regime. Some of the officials of these multination oil corporations have also fallen victims of kidnapping and violent attacks. CSR was completely out of the equation oil exploration companies in Nigeria.

1.2     Statement of the Problem

          Oil exploration in the Niger Delta has no doubt brought about a decline in production output of agriculture over the years. Since agriculture is the main economic activity of the people, this has brought about difficulties in the economic life of most farmers and fishermen. Natufe (2001) notes that, “oil exploration is an energy intensive activity with severe implications on people and the environment”. The oil multinationals are expected to be socially responsible to the improvement of the welfare of their host communities. Consequently these companies have been stimulated into various degrees of response to the needs of the people and SPDC has been no exception. Being a leading oil multi-national in the country and considering its profile and the vastness of its operations in the Niger Delta, it is expected that the company maintains a high record of corporate social responsibility by improving the needs of the people especially the host communities but reverse is the case with shell. It is against this backdrop that this study seeks to assess audience perception of the corporate social responsibility of shell BP in Yenagoa.

1.3     Objectives of the Study

The objectives of this research is to:

i.                   Assess audience perception of the corporate social responsibility of shell BP in Yenagoa.

ii.                 Determine what support the company has given to its host communities in Yenagoa.

iii.              Establish the people’s level of satisfaction with the company’s social performance in their respective communities.

iv.              Appraise the relationship between SPDC and Yenagoa communities as a result of the company’s CSR to them.

1.4     Research Questions

             i.            What is the audience perception of the corporate social responsibility of shell BP in Yenagoa?

          ii.            How much have the people of Yenagoa benefited from SPDC’s community/people support programmes?

        iii.            To what extent are the people of Yenagoa satisfied with SPDC’s social performance in their respective communities?

        iv.            What relationship exists between the company and Yenagoa residents as a result of the company’s CSR practices?

1.5     Significance of the Study

          Although research exists in the field of corporate social responsibility, this study is an additional resource material to SPDC and other corporations in both the oil and other industries, as well as policy makers in their bid to enabling effective corporate social responsibility practices.

          In addition, the work is a valuable literature to the academia especially students and researchers who will delve into related topics.

1.6     Scope of the Study

          The interest of this study lies in assessing audience perception of the corporate social responsibility of shell BP in Yenagoa. Therefore the stud y is narrowed down to Yenagoa.

1.7     Limitations of the Study

          This study suffered some constraints. One of the major constraints is high level of illiteracy of the respondents. Many of the supposed respondents are illiterates. Therefore, do not appreciate and understand the importance of the study. This almost affected their disposition toward the study.

          In like manner, some of the respondents asked for gratifications before given out any piece of information relating to the study, which is quite unusual. Again, the attitudes and behaviours of the Shell staff toward disseminating information on corporate social responsibility function was quite heartbreaking. One would have thought they would have corporate optimally but reverse was the case. However, these constraints did not in any way limit the content and context of this work.

1.8     Operational Definition of Terms

       i.            Audience Perception: This based on the context of the study refers to people’s views, opinion on shell corporate social responsibility to Yenagoa’s residents.

     ii.            Corporate Social Responsibility: Corporate Social Responsibility is the continuing commitment business to behave ethically and contributing to economic development while improving the quality of life of the workforce.

  iii.            Evaluation: Due to the context of this study evaluation is the way people examine, judge or opinions of something most especially the ones that have access to it.

  iv.            Shell Petroleum Development Company: Shell Petroleum Development Company is a subsidiary of Royal Hutch Shell, with its operation dated back to 1937.

REFERENCES

Natufe, O. I. (2001). The Problematic of Sustainable Development and Corporate Social Responsibility. Policy Implication for the Nigeria Delta. Conference paper presented at the Urhobo historical society. USA: Spectrum Books.

Peak, W. J. (1991). Community Relations. In Lesley P. (ed.). Handbook of Public Relations. New York: Amacon.

Ikpeoma, E. (1988). Effective Employee Relations as a Strategy for Preventing Industrial Crisis: A Study of Nigeria Breweries PLC. (B.A Project submitted to University of Nuskka).

Ndimele, O. M. and Innocent, K. H. (2006). Fundamentals of Communication Studies. Port Harcourt: M & J. Grand Orbit Communications.