Impact of Corporate Social Responsibility on Traditional Livelihoods in the Niger Delta Region of Nigeria

Abstract

Business organizations are creations of society whose survival depends on the very society of which they are a part. Businesses need to respond to changing societal expectations by increasingly redefining and modifying their involvement in corporate social responsibility (CSR). The Nigerian economy depends on oil; approximately 90 percent of its earnings and 80 percent of federal revenue is derived from oil. This places the multinational oil companies at the forefront of business and makes them a focal point for the economic well-being of the nation as well as the welfare of the Nigerian society. Petroleum exploration and exploitation in the Niger delta region in recent decades has had major impacts on the oil producing communities. This paper considers one multi-national oil company and the impact of its operations on the traditional livelihoods of local communities and populations in the Niger Delta, Nigeria. Drawing on empirical data obtained through twenty-four in-depth face-to-face interviews and critical analysis, this paper argues that the failure to seek, understand and integrate community needs into CSR policies and practices results in the absence of an enabling environment for the firms’ operation. The paper concludes that unless these gaps are addressed, by reducing the negative impact and replacing the livelihoods of the people through effective CSR activities, the Nigerian oil industry is likely to continue to fail in the attainment of its full potential.

Keywords: Corporate Social Responsibility, Livelihoods, Oil exploration, Host communities, Multinational oil companies, Stakeholder, Niger Delta.