Corporate Social Responsibility and Social License to Operate; Exploring activities of oil Multinationals in the Niger Delta region of Nigeria.

Abstract

Corporate social responsibility (CSR) policies and strategies in most extractive industries are adopted due to the need to obtain the social license to operate (SLO). As an emergent concept in developing countries, CSR is yet to attain its full potentials due to the constant denial of community rights to ownership of natural resources discovered on their land. This has led to conflict of interest and often unhealthy relationships between extractive companies and their host communities. Using empirical qualitative data obtained through semi-structured interviews from three host communities in the Niger Delta region of Nigeria, the paper explores the environmental concerns of the activities of oil multinationals vis-à-vis the difficulties in obtaining SLO. The evidence suggests that MNCs may continue to face inability to secure a social license to operate and other related challenges despite huge investment in CSR if they fail to adapt international principles obtainable in developed countries regarding oil spills and gas flaring in their operations.