n IFE PsychologIA : An International Journal - Corporate social responsibility of multinational oil corporations to host communities in Niger Delta Nigeria
|Article Title||Corporate social responsibility of multinational oil corporations to host communities in Niger Delta Nigeria|
|© Publisher:||IFE Centre for Psychological Studies (ICPS)|
|Journal||IFE PsychologIA : An International Journal|
|Publication Date||Sep 2010|
|Pages||21 - 34|
|Keyword(s)||Community development, Multinational oil corporations, Partnership and Sustainable development|
The volatile nature of corporate-community relations, which has meant significant loss in oil revenue for government and decline in corporate profit for multinational oil corporations (MNCs), has elevated the obtaining of a 'social licence to operate' from the periphery to the heart of strategic business thinking within the Nigerian oil industry. As a result, multinational oil corporations (MNCs) have increasingly responded to this challenge by adopting partnership strategies as a means of contributing to community development, building a mutually beneficial relationship with local communities and reinventing themselves as a force for good in their host communities.
This paper critically examines different community development partnership (CDPs) initiatives' undertaken by Exxon Mobil and Elf oil Nigeria Limited within their corporate-community relations strategy in the Niger Delta, Nigeria. Given the huge environmental control costs and the profit-minded nature of Multinational oil corporations, industry self-regulation is unlikely to be effective where it conflicts with the primary objectives of multinationals. Thus, to turn multinational oil corporations into a more positive force for sustainable development, voluntary initiatives must, by virtual necessity, be combined with effective regulatory mechanisms. The paper concludes by exploring the implications for partnerships' initiatives and business-society relations in developing countries.
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