Assessing the Effects of Corporate Social Responsibility of Multinational Oil Companies on Riverrine Communities in Rivers State of Nigeria

Abstract

The study examined effects of corporate social responsibility of multinational oil companies on riverine communities in Rivers State of Nigeria. In line with the objective of the study, three null hypotheses were formulated to guide the research. The theoretical framework was based on the sustainable development framework endorsed by the World Business Council. The study adopted descriptive survey research design. The population size was based on the National population commission, 2007 of Rivers State, which cut across the eighteen (18) Local Government Areas. A sample size of 400 people was obtained using Topman’s formula for an infinite population. A purposive random sampling technique was further used to distribute the sample size across the five study centre selected. A self-constructed questionnaire instrument of five point likert scale was used in data collection. Frequency, percentages, bar and pie charts were used in analyzing both the demographic data of the respondents and to answer research questions, while Kendall tau_b was implored in testing the three hypotheses formulated. All the null hypotheses formulated were rejected. The research therefore revealed that: Shell host communities in riverine areas of Rivers State can only attest to less that 30 percent of their expectation from Shell in the area of electricity provision, they also acknowledged that shell has not done much in providing portable drinking water, constructing feeder roads for their communities and Shell has not provided adequate health facilities which had affected the health standard of the communities. It was concluded that, Shell does not involve the communities in the planning and implementation of CSRs, and that the communities have no sense of belonging as some of the CSRs shell may have embarked on are not touching their felt needs. It was therefore recommended amongst others that, multinational oil companies should recognize their responsibilities, their host communities’ expectations and develop partnership as a preferred model for their communities’ development activities for peaceful co-existence.

Keywords: Corporate Social Responsibility (CSR), Multinational Oil Companies (MOC) Shell Petroleum Development Company (SPDC), Socio-economic effect, riverine communities, capacity development.