DECLARATION

This work has not previously been accepted in substance for any degree and is not being concurrently submitted in candidature for any degree.

Signed.. (Candidate) Date ..

STATEMENT 1 This dissertation is being submitted in partial fulfilment of the requirements for the degree of: Signed.. (Candidate) Date ..

STATEMENT 2 This dissertation is the result of my own independent work and investigation, except where otherwise stated. Other sources are acknowledged by footnotes giving explicit references. A bibliography is appended. Signed.. (Candidate) Date ..

STATEMENT 3 I hereby give consent for my dissertation, if accepted for photocopying and for inter-library loan, and for the title and summary to be made available to outside organisations.

Signed.. (Candidate) Date .. I hereby give consent for my dissertation, if accepted, to be available for photocopying and for inter-library loan after expiry of a bar on access approved by the University of Wales on the special recommendation of the institution.

Signed.. (Candidate) Date ..

AN INVESTIGATION INTO THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON OIL PRODUCING COMMUNITIES: A CASE STUDY OF CHEVRON OIL (NIGERIA)

DISSERTATION

By

CYRIL CHIAHA IFEAMAECHI

Presented in partial fulfilment of the requirements for the degree of

Masters of Business Administration of University of Wales

University of Wales
JULY 2009

ABSTRACT

The notion and discourse of corporate social responsibility of business organization is not new in extant literature. Over the years there had been a fairly remarkable conception that business organizations need to embrace as well as fulfil some obligation to the society, government, employees and host communities in which it not only belong but more importantly operate within. But where there have been diverse conceptions as regards this phenomenon appear to rest on the exact nature of these obligations. While some researchers and business organizations tend to accommodate the social responsibility of business towards the society in which it sustain its existence, some others de-emphasize it, arguing that the sole responsibility of businesses is to make profit and that it is not the province of corporation to address social responsibility issues. Why this argument has burgeoned the mind of academia and business managers, less attention has been paid towards investigating the impact of organizations being either socially responsible or not especially as it relates to the developing world.

While drawing upon the activities of Chevron Oil (Nigeria) this work sets out among other things to salvage this lacuna by leaving the contested theoretical terrain of contentions on corporate social responsibility to rather investigate on its impact on the oil producing communities. Four research objectives served to guide the investigation. The first objective
4

was to review extant literatures of corporate social responsibility in developing countries. The second was to assess the motivations behind CSR functions and investment projects undertaken by oil companies. Next on the line was that of identifying and appraising these investments in terms of its impact upon intended beneficiaries and business performance. Lastly, the study analyzes the findings, suggesting feasible ways through which corporate social responsibility could be improved so as to increase business performance. However, considering the nature of the research topic and researchers attitude towards business and management research, the researcher deemed it imperative to approach the investigation from a qualitative research paradigm. Thus, the study was carried out in an inductive approach using case study strategy where data was collected using multiple sources of evidence. An in-depth semi-structured interview and questionnaires was used for employees of the company understudy as well as on the host communities after undergoing pilot study test. The inductive thematic data analysis of which is more appropriate when it comes to qualitative analyses that seek to discover themes and emergent issues related to the data collected were employed.

Nevertheless, evidence from the research findings makes it possible to suggest that the impact of corporate social responsibilities on oil producing communities is not at its better best. It reveals that Chevron oil Nigeria has not effectively and efficiently carried out in practice their social responsibility functions encapsulated on their policy agenda. Corporate social responsibilities functions were often seen as a gift aid affair and not as an obligation towards the people and environment in which they operate within. Although the organizations perception of corporate social responsibility was quite encouraging the theory could not be linked with what they practice. However results from the findings suggest that if bottom up partnership and tri-sector corporate reporting are adopted among other

strategies enumerated in the recommendations, it will inevitably impact positively on the business performance than it was before.

ACKNOWLEDGMENTS

It was Rousseau who stated that gratitude is a duty, which ought to be paid. It is in line with this fundamental truth that I construct some words of thanks to those whom they are due. First and foremost, I acknowledge with deep reverence the Almighty God whose unfathomable kindness has led me this far in my keen pursuit of knowledge. His nature is knowledge and I am indebted to Him for giving me a share of it. I must on a special note thank my supervisor Dr Wilson Ozuem (FCIM) who spent pensive days and risked his convenience in granting my work a thorough moderation. His deep and sincere insight in the topic will always be appreciated. I also extend many thanks to University of Wales for all the educational possibilities offered to me. I thank immensely Michael Branch (Rev. Fr.) for granting me an open door corporation during the course of this study. His impact on my life through instructive guidance and exemplary life as my spiritual director helped and sharpened my disposition for this work. I pray that Gods favours ever remain with him. Next on the rung of facilitators are my amiable and affable parents; Mr. Cyril Chiaha and Mrs. Irene Chiaha whose avid interest in my welfare made them sacrifice their life earnings in order that I attain the full measure of human development. However, I pray God to keep in the safety of His bosom the soul of my father whose demise could not allow to reaping in full the fruit of his labour. My gratitude goes next to Okoye Emmanuel who arranged all the interviews and guided me during the fieldwork in Nigeria. I am also obliged to each of the interviewees and all the people I met in the course of this study for their co-operation and

time. The overwhelming tolerance and exciting dispositions of Mr. Alo Reilly and my siblings scored a point in achieving this goal. I remain grateful to them for the niche of comfort they created for me. I pray that God who can never be overtaken by the exigency of generosity provide them those to assist them in whatever they are undertaking

TABLE OF CONTENTS
ABSTRACT------------------------------------------------------------------------------------------ ii ACKNOWLEGMENTS---------------------------------------------------------------------------- iii CHAPTER ONE---INTRODUCTION----------------------------------------------------------- 1
1.1

ENQUIRY OVERVIEW------------------------------------------------------------------ 1

1.2 1.3 1.4 1.5 1.6 1.7 1.8

AIMS AND OBJECTIVES--------------------------------------------------------------- 2 RESEARCH QUESTIONS--------------------------------------------------------------- 3 BACKGROUND INFORMATION----------------------------------------------------STATEMENT OF THE PROBLEM---------------------------------------------------3 4

IMPORTANCE OF THE RESEARCH------------------------------------------------- 7 SCOPE AND LIMITATIONS OF THE RESEARCH-------------------------------- 9 SUMMARY--------------------------------------------------------------------------------- 9

CHAPTER TWO--LITERATURE REVIEW--------------------------------------------------- 10 2.1 INTRODUCTION----------------------------------------------------------------------------- 10 2.2 CONCEPTUAL CLARIFICATION------------------------------------------------------11

2.3 HISTORICAL ANTECEDENTS OF CSR------------------------------------------------ 17 2.3.1 ORGANIZATIONAL LEGITIMACY-----------------------------------------------2.3.2 ETHICS-----------------------------------------------------------------------------------2.3.3 AGENCY THEORY--------------------------------------------------------------------17 18 20

2.3.4 STAKEHOLDER THEORY------------------------------------------------------------ 21 2.3.5 CORPORATE GOVERNANCE------------------------------------------------------2.3.6 SUSTAINABLE DEVELOPMENT--------------------------------------------------2.4 DRIVERS OF CSR--------------------------------------------------------------------------22 24 26
8

2.4.1 INTERNAL DRIVERS OF CSR------------------------------------------------------- 26 2.4.1.1 IMPROVED FINANCIAL PERFORMANCE-----------------------------------2.4.1.2 ENHANCED BRAND IMAGE AND REPUTATION-------------------------2.4.2 EXTERNAL DRIVERS OF CSR-------------------------------------------------------26 27 28

2.4.2.1 PROLIFERATIONS OF CODES, STANDARDS, INDICATORS AND GUIDELINES--------------------------------------------------------------------------------------2.4.2.2 CHANGING SOCIAL EXPECTATIONS AND GLOBALIZATION-----28 29

2.5 CSR IN NIGERIA------------------------------------------------------------------------------ 29 2.6 OIL DEVELOPMENT AND ITS IMPLICATIONS ON THE NIGERIAN

ECONOMY----------------------------------------------------------------------------------------------------------31

2.6.1 EFFECTS OF OIL EXPLORATION AND ITS SOCIO-ECONOMIC IMPACT ON THE ENVIRONMENT----------------------------------------------------------------------------- 32 2.7 SUMMARY-------------------------------------------------------------------------------------- 35

CHAPTER THREE--RESEARCH METHODOLOGY---------------------------------------- 37 3.1 INTRODUCTION----------------------------------------------------------------------------- 37 3.2 RESEARCH AIMS AND OBJECTIVES--------------------------------------------------- 37 3.3 RESEARCH PHILOSOPHY----------------------------------------------------------------- 38 3.4 RESEARCH APPROACH-------------------------------------------------------------------- 40
9

3.5 RESEARCH STRATEGY: CASE STUDY------------------------------------------------ 42 3.6 ALTERNATIVE RESEARCH STRATEGIES-------------------------------------------- 43 3.6.1 EXPERIMENTAL RESEARCH STRATEGY---------------------------------------- 44 3.6.2 SURVEY RESEARCH STRATEGY--------------------------------------------------- 44 3.6.3 GROUNDED THEORY------------------------------------------------------------------ 45 3.6.4 ETHNOGRAPHY RESEARCH STRATEGY---------------------------------------- 45 3.7 RESEARCH INSTRUMENTS-------------------------------------------------------------- 46 3.7.1 INTERVIEWS----------------------------------------------------------------------------- 47 3.7.2 QUESTIONNAIRES---------------------------------------------------------------------- 48 3.8 ETHICAL CONSIDERATIONS------------------------------------------------------------ 49 3.9 PILOT STUDY-------------------------------------------------------------------------------- 50 3.10 ALTERNATIVE DATA COLLECTION METHODS--------------------------------- 51 3.10.1 PARTICIPANT AND STRUCTURED OBSERVATION-----------------------51

3.11 SAMPLING METHOD--------------------------------------------------------------------- 51 3.12 STRENGHTS OF THE METHODOLOGY--------------------------------------------- 53 3.13 LIMITATIONS OF THE METHODOLOGY------------------------------------------- 54 3.14 SUMMARY---------------------------------------------------------------------------------55

CHAPTER FOUR--ANALYSIS AND FINDINGS -------------------------------------------

56
10

4.1 INTRODUCTION---------------------------------------------------------------------------- 56 4.2 THE DATA ANALYTICAL METHOD: INDUCTIVE THEMATIC ANALYSIS AND ITS JUSTIFICATION------------------------------------------------------------------------------ 56 4.3 DRAWBACKS OF INDUCTIVE THEMATIC ANALYSIS------------------------4.4 WHY OTHER METHODS WERE NOT FOUND APPROPRIATE---------------57 58

4.5 CATEGORIZING THE THEMES--------------------------------------------------------- 59 4.6 PERMEATED THEMES-------------------------------------------------------------------- 69 4.6.1 REDUNDANCY CRISIS---------------------------------------------------------------- 69 4.6.2 HOSTILITY------------------------------------------------------------------------------- 71 4.6.3 REDUCED STANDARDS OF LIVING---------------------------------------------- 72 4.6.4 HEALTH PROBLEMS------------------------------------------------------------------ 73 4.7 SUMMARY----------------------------------------------------------------------------------- 74

CHAPTER FIVE--CONCLUSION AND RECOMMENDATIONS-----------------------

75

5.1 INTRODUCTION------------------------------------------------------------------------------ 75 5.2 EVALUATION OF FINDINGS------------------------------------------------------------ 75 5.3 LINKING EMPIRICAL DATA TO THE RESEARCH AIMS AND OBJECTIVES-------------------------------------------------------------------------------------------------------------- 81

11

5.4 IMPLICATIONS TO MANAGEMENT--------------------------------------------------- 85 5.4.1 UNSAFE WORKING ENVIRONMENT--------------------------------------------- 85 5.4.2 KNOCKS DOWN THE CORPORATE BRAND IMAGE ----------------------5.4.3 IMPACTS NEGATIVELY ON THE FINANCIAL PERFORMANCE------5.4.4 THREATENS THE ORGANIZATIONAL LEGITIMACY---------------------85 86 86

5.5 RECOMMENDATIONS-------------------------------------------------------------------- 87 5.5.1 CREATION OF VOCATIONAL CENTRES---------------------------------------- 87 5.5.2 STRIGENT LAWS----------------------------------------------------------------------- 88 5.5.3 TRI-SECTOR CORPORATE REPORTING----------------------------------------- 88 5.5.4 BOTTOM UP PARTNERSHIP-------------------------------------------------------- 88 5.5.5 PERIODICAL WORKSHOP AND EDUCATION--------------------------------- 89 5.6 CONCLUSION--------------------------------------------------------------------------------- 89 5.7 FURTHER RESEARCH DIRECTIONS---------------------------------------------------- 90 5.8 SUMMARY------------------------------------------------------------------------------------- 91 REFERENCES---------------------------------------------------------------------------------------- 92

APPENDICES APPENDIX 1------------------------------------------------------------------------------------------ 102 APPENDIX 2------------------------------------------------------------------------------------------ 103

12

APPENDIX 3------------------------------------------------------------------------------------------ 104 APPENDIX4------------------------------------------------------------------------------------------- 105

13

14

CHAPTER ONE
INTRODUCTION

ENQUIRY OVERVIEW
The purpose of this research was to investigate the impact of corporate social responsibilities hereafter referred to as CSR on oil producing communities using Chevron (Nigeria) as a case study. Carried out as a qualitative inquiry, the research unveils the facts underneath the case which has the intensity of impacting positively on the business value of the organization when received by the management. The work is sequentially arranged commencing with the description of the scope of study and concluding by suggesting new insights for further research direction. However, the principal aim of this section is to provide the reader with a synopsis of the major chapters as they emerge. Specifically, it is an overview of what is to be expected in the rest of the study so as to enhance and provide a detailed guidance. The research sets out with an introduction which seeks to explain to the reader the key aims and objectives of the case understudy, not only stressing the essentiality of such investigation but also bringing to light the background of the research which is invaluable for the pursuit of the study as well as the possible limitations emanating from it. The next chapter after the introduction attempts to review extant literature relevant to the research. In this section therefore, effort was directed in building a strong theoretical foundation and providing a framework for data analysis. Besides this, the chapter consists of dominant theories and empirical works of expert on the topic, their findings and recommendations and how they relate to the present study. It goes a long way to trace the origin of the subject matter, how it has been conceived and developed in the different eras of history.

15

Following the literature review is an exposition of the research methodology used in the course of the study and the justification for employing them. This chapter begins with a reconsideration of the research aims and objectives and how it links to the literature exposed. This will not only enable the reader to come in terms again with an overview of what has been done but also assist in discovering the suitability of the methods being employed in investigating the research aims and objectives. The chapter goes on to look at the research paradigm, the research instrument, the data collection methods and sampling as well as the ethical considerations applied in the study. After the exposition of the research methodology employed the next chapter presents the data collection process, the data analytical technique used as well the reasons for not considering other possible methods. Using inductive thematic data analytical tool the chapter also analyzed the empirical materials generated from the fieldwork. Finally, the research last part which is the conclusion and recommendations evaluates the findings, linking each of the research aims and objectives with the literature. In addition to this, the chapter relates the implications to management by first and foremost bringing into focus once more the research findings as well as suggesting feasible recommendations. More so, it went further to present possible areas of future research opportunities found during the course of the investigation.

AIMS AND OBJECTIVES

This study aimed to investigate into the impact of corporate social responsibility on oil producing communities using Chevron: Nigeria as a case study. But research shows that any study to be undertaken always goes with some research aims and objectives of which will not only facilitate the inquiry but more so guide it. Aims and objectives could be seen as the underlying factor necessitating an enquiry and any research without it appear to be void of

16

substance (Bryman 2001). Consequently, the following aims and objectives were designed to accomplish this study: 1. To review extant literature on corporate social responsibility in the developing countries. 2. To assess the motivation behind CSR functions and investment projects undertaken by oil companies but with particular reference to Chevron oil Nigeria. 3. To identify and appraise these investments in terms of its impact upon intended beneficiaries and business performance. 4. To analyze and suggest feasible ways through which the impact of corporate social responsibility could be improved profitably in Chevron so as to increase business performance

1.3 RESEARCH QUESTIONS

As aforementioned this study seeks to investigate into the impacts of corporate social responsibility on oil producing communities using Chevron Nigeria as a case study. Consequently, in order to address the problems highlighted in the research work certain relevant research questions were deemed necessary of which include the followings: 1. To what extent have oil companies in Nigeria effectively and efficiently carried out their corporate social responsibility functions on their oil producing communities? 2. To what extent do the policies of oil companies reflect the interest of their host communities and is the relationship between the two cordial?

17

BACKGROUND INFORMATION
The country Nigeria is noted to be the largest oil producer in Africa and the eighth largest in the world (Ite 2007; Idemudia and Ite 2006a). Nigeria is made up of three major constituent components: Northern, Western and Eastern Regions with a large degree of autonomy in all other matters. In each of these three regions, a majority ethnic group constituted about twothirds of the population, the Hausa-Fulani in the north, the Yoruba in the west and the Igbo in the east; the remaining third was made up of various minority groups, of which there may be 250 or more in Nigeria (Okike 2007; Okafor 2003). The peoples living in the oil-producing communities of the southeast largely belong to these minority ethnicities, and they speak a diverse range of languages and dialects from at least five major language groups (Ite 2007; Onishi 2002). However, the first discovery of commercial quantities of oil in Nigeria was in 1956 upon which by the end of the century the country produced approximately two million barrels per day of crude oil (NNPC 2009). Undoubtedly, the finding of oil changed Nigerias political economy and since the 1970s oil has provided about 90 percent of foreign-exchange earnings, and 80 percent of federal revenue (Onishi 2002; Olujide 2006; Ite 2007). The country is so blessed that they still have huge mineral deposits of natural gas yet to be exploited. As in the case of many other host communities, the generated revenue from oil has appeared to be a dilemma, instead of a blessing. Rather than turning Nigeria into one of the most flourishing states on the African continent, its natural mineral deposits have enriched a small minority while most of population has become increasingly indigent amidst plenty: thereby portraying Nigeria as one of the poorest countries in the world (Onishi 2002).

18

According to the Nigerian constitution, all minerals, oil, and gas belong to the Nigerian federal government, who negotiates the terms of oil production with international oil companies. Most exploration and production activities in Nigeria are carried out by European and U.S. oil companies operating joint ventures of which Chevron is one of them. Chevron was established around 1879 at Pico Canyon, north of Los Angeles (Chevron 2009). With its present headquarter in San Ramon, California the company is noted to be one of the worlds largest integrated energy companies conducting businesses in more than 100 countries. The company is engaged in almost every aspect of oil and natural gas industry, including exploration and production, manufacturing, marketing and transportation, chemical manufacturing and sales, geothermal and power generation among others (Chevron 2009). However, its existence in Nigeria is dated to be around late 1920s with an estimated workforce of 2000 employers and since its existence the company has engaged in various business activities such as investing in crude oil and natural gas exploration and production.

1.5 STATEMENT OF THE PROBLEM

Over the years the quest for corporate success in the business sector as well as social responsibilities has generated a lot of interest especially with the global witness of the numerous high profile cases of corporate governance failures such as Enron and other similar cases (Nwanji and Howell 2006; Asongu 2007; Jill 2007). Theories upon theories have evolved all in the bid to analyze and work out systems that would permit corporate governance especially in large public companies. Agency theory, stakeholder theory and transaction theory are all attempts put in place in search for well sustained governance. Despite this effort, the importance of the environment and stakeholders consideration appears very much de-emphasized especially among oil companies (Birnbaum 1995; Clarke

19

et al 1999; Doh and Guay 2006). While some authors attribute its cause to the exclusiveness of agency theory by its proponents, some others in addition highlights the negligence of companies towards abiding to the ethical demands of their business (Mitchell and Sikka 2005; Fisman et al 2005; Nwanji and Howell 2005; Dummett 2006). Nevertheless, the emergence of stakeholders theory and its accompanied theory of corporate social responsibility ushered in a new vista to companies. Companies were expected to broaden their accountability to include not only the shareholders but more importantly the stakeholders at large (Nwanji 2005; Nwanji and Howell 2006; Jill 2007). Notwithstanding this development, some companies have not in practice imbibed the corporate social responsibility teachings. The proliferation of sequester carbon emission; neglect of the environment, and indifference to social issues in Nigeria oil industry has not only evidenced this fact but appeared to put in question the understanding and practicability of the demands of corporate social responsibility by most of the oil companies (Gouldson and Bebbington 2007). The poor socio-economic situation of the country spells poverty, diseases and low standards of living among others (Onishi 2002; Ite 2005; Eweje 2006). This state of affairs as underscored by the committee on Economic Development (1997) cells for immediate attention and remedy. Evidence from some researchers makes it possible to suggest that the protests emanating from the oil producing communities (Niger Delta) is an indirect clamour of negligence towards the implementation of corporate social responsibility by the oil industry (.Guobadia 2000; Onwuchekwa 2004; Olujide 2006; Godfrey et al 2008). However, although there are surprisingly few good-quality independent scientific data on the overall or long-term effects of hydrocarbon pollution on the oil producing communities, yet available evidence does indicate that oil-led development in general has seriously damaged the environment and the livelihood of many of habitants and that poor environmental standards
20

in relation to oil spills, gas flaring and pipe leakages have contributed to these problems (Onishi 2002; Onwuchekwa 2004; Olujide 2006; Akpan 2006). Notwithstanding the proliferation of various codes and clamour for ethicality among business organizations, the impact remains patchy (Wheeler et al 2002). While the minority ethnic groups living in the oil-producing communities of the Niger Delta have faced the adverse effects of oil extraction, they have in general also failed to gain from the money generated from the natural deposit (Onishi 2002; Onwuchekwa 2004). In spite of the vast wealth produced from the oil found in these communities, the region remains poorer (Karl 1997; Onishi 2002). The derivation principle in the federal budget, under which a share of the revenue generated from oil producing states, was reduced to insignificant levels, and not until 1999 when it was partially restored (Onishi 2002; Okafor 2003; Olujide 2006). Although there are other means through which developments have been created to reach the host communities, these intermediate links have equally turned out to become another source through which those implementing them add to their wealth, instead of being a source for poverty alleviation (Onishi 2002; Akpan 2006). Undoubtedly, the development spending by the oil companies has brought in schools, clinics, and other infrastructure to some remote parts of the country that might otherwise be far more marginalized by the Nigerian government, but many of these projects are inappropriate to address the needs of the communities and more importantly are often left uncompleted. Others, because of incompetence or corruption, if ever completed are inconsiderately carried out efficiently. However, it should be noted that these development spending by the oil companies has only reached significant levels since protests began to threaten oil production (Clarke et al 1999; Amaeshi 2006; Akpan 2006). Although a minority of politicians, traditional leaders, and contractors have become rich on the spoils of oil, and hence support the oil industrys activities, the great majority of people from the minority ethnic groups of
21

the oil-producing areas have remained impoverished, sometimes as a direct consequence of environmental damage caused by oil extraction (Frynas 2001; Onishi 2002). Moreover, it should be necessary to reiterate that it is not that the oil companies are not responding at all to the corporate social issues but instead is whether these social responsibilities efforts are able to meet with the environmental and socio-economic requirements of their host communities and this is one of the aims and objectives this study intend to investigate.

IMPORTANCE OF THE RESEARCH

In recent years, the rise of modern exigencies and ethical issues facilitated by globalization, the changing social expectations, the widespread incidence of corporate failures and the increasing inability of government to meet their basic responsibility to society as well as regulate business activities among others has resulted in the re-evaluation of the businesssociety relationship and formation of new corporate social responsibility thinking (Carroll 1979, 1991, 1999; Crane and Matten 2003; Beauchamp and Bowie 2004; Jill 2007; Johnson et al 2008). The notion that the sole responsibility of business organizations is ultimately to make and increase profit as much as they could (Friedman 2004) has lost its seat to include businesses helping out in resolving social and environmental needs otherwise referred to as corporate social responsibility (Garriga and Mele 2004; Freeman 2004; Dick 2005). Unfortunately, some critics in the attempt to assess this phenomenon argue that CSR is not only a distraction for business in achieving its goal of making profit but also an inefficient way of allocating resources of which businesses lack the competence to take on, mindful of the fact that such responsibility falls outside its main domain of expertise (Friedman 1962, 1970, 2004; Henderson 2001, 2004). Addressing this issue Nwanji (2005) and Lev et al (2006) noted that business acceptance of corporate social responsibility always appeals positively for both business and its stakeholders. More so, the notorious failures of corporate

22

bodies such as Enron, Parmalat and other similar cases have equally highlighted the utmost importance for businesses to improve and reform their corporate social responsibility functions so as to prevent future and similar occurrence (Jill 2007). There is a strong consensus therefore that companies who considers and put into practice the corporate social requirements demanded of them have differential advantage and thus would not only increase business performance but more so, has the chances to withstand the test of time (Nwanji 2005; Lev et al 2006; Jill 2007). In Nigeria the oil industry of which Chevron is one of them has witness a monumental increase of assaults and allegations as a resultant effect of not fulfilling their corporate social responsibility functions. Shell for example, although known to be the largest producer of oil in Nigeria had been attacked by its host communities, an attack that successfully closed down Shells production in Ogoni land: Nigeria, in 1993 and in turn was blamed both at the local and international level (Birnbaum 1995). This situation therefore suggests that oil companies as well as other business venture should re-evaluate the impact of their social responsibility strategies so as to renew their corporate identity as well as increase business performance. This research therefore seek to investigate into the corporate social responsibilities of Chevron (Nigeria) with the purpose of exploring its impact on the oil producing communities and see how its possible improvement would influence business performance. The research in other words attempts to uncover how good practice of corporate social responsibilities can be a constructive and valuable marketing strategic tool amidst the increasing crisis between the oil companies and host communities in Nigeria. In addition to this there have been host of studies and literatures on corporate social responsibility especially in developed countries. While there is dearth of such studies in

23

developing countries, some researchers who tend to asses this phenomenon have most often focused attention on the theoretical discourse, the cost benefits it offers, as well as its associated economic and profit derivation among others. The emerging impacts it places on the host communities in contrast to other host communities in developed countries were less addressed. The little that was carried out in relation to this, from my research was not conducted in this context for Chevron. This study therefore, is one of the early studies in the developing countries particularly Nigeria and has the potential of exposing to the managements of oil industries and other sectors the benefits accruing from effective implementation of corporate social responsibility practice in the communities in which they operate. Hence the research will enable Chevron and other oil companies in developing countries to re-examine whether their corporate social responsibility activities and practices are achieving the objective for which they are being implemented and also provide them with information that will aid in deciding whether to retain its current programs or change them for better results. Furthermore, it will also provide the communities with valuable information on the feasibility of their demands. Finally, it will help the researcher in understanding and applying business and management research techniques, thus enabling him to gain better insight about corporate social responsibility and also be more equipped in undertaking future research.

1.7 SCOPE AND LIMITATIONS OF THE RESEARCH

This study will concern itself only with the investigation into the impact of corporate social responsibility on oil producing communities using Chevron oil as the case study. However, naturally it would be accepted in a research endeavour to study as many oil companies as possible but reality often runs contrary to this situation. It is not out of place therefore to
24

encounter problems and obstacles in a study of this nature. Prominent among them includes time factor, which usually is in a very short supply and other resources such as money regulate choices in endeavours such as this. These constraints have resulted in the selection of one company within the oil companies in Nigeria and have neglected many choices. Hence the generalization of the findings of the study beyond the confines of Chevron may be considered improper. Perhaps, another unpalatable outcome is that the choice of Chevron is restricted to Nigeria and precisely Niger Delta and its environments. More so, it is possible that some cultural and other environmental factors peculiar to communities can influence matters in relation to corporate social responsibility. Furthermore, it is possible that the use of one method of analysis might have limited the empirical data generated from the fieldwork. Nevertheless, this study is a major effort in investigating into the impact of corporate social responsibility in oil producing communities with particular reference to Chevron Oil Nigeria. The study hopefully is expected to help the organization in managing their stakeholders through the mechanism of good practice of corporate social responsibility.

1.8 SUMMARY
This chapter has attempted to present a preview of the research, by introducing the research aims and objectives, presenting the background information, the importance of the research as well as its possible limitations. The subsequent chapter provides a comprehensive review of extant literature related to the study.

25

CHAPTER TWO
LITERATURE REVIEW

INTRODUCTION
The first chapter presented an introduction and to some extent, an overview of what is to be expected in the rest of the study. Specifically, it provided the basic premise for this study, the basic research aims and objectives as well as the research question, which are invaluable for the pursuit of the study objectives. In this section, effort was directed in building a strong theoretical foundation and providing a framework for data analysis. In addition to this, the literature review will afford us the opportunity of knowing what others have done on the topic or related topics, their findings, recommendations and how all these relate to the present study. To this end, the chapter begins with a conceptual clarification and etymological discourse of the term corporate social responsibility, its historical antecedents and usage in the three major eras of history. Dominant theories relating to corporate social responsibility such as business ethics, the social contract of Rousseau, corporate governance theory, shareholders and stakeholders theory, were thus examined. Furthermore, an attempt was made to situate the place of corporate social responsibility in ethics and see to what extent are both of them related to each other. This was to ensure that the theories cover comprehensively the subject of the research. More so, the chapter goes further to present other contemporary empirical studies that are pertinent and useful for the research. On this note some of the major studies conducted in relation to the subject were examined, including those that are anti-supportive to the subject

26

understudy. These literatures were critically reviewed based on the objective judgments gained from the wide variety of works relevant to the research.

2.2

CONCEPTUAL CLARIFICATION

Corporate social responsibility has become one of the most commonly used phrases in the modern global business vocabulary. Judging from the attention paid by researchers and social activists in recent times there seemed to have been growing body of academic literatures on transnational and multinational companies negligence towards ethical and social behaviour especially as it relates to developing countries (Birnbaum 1995; Karl 1997; Human Rights Watch 1999; Avery 1999; Fox et al 2002; Onishi 2002; Okafor 2003; Ite 2004; Frynas 2005; Hamann 2003, 2006). As the attention intensifies due to growing fears of such high consequence risks as global environmental disaster and globalization among others far greater definitional clarity are being achieved concerning the nature of corporate social responsibility and the role that strong corporate social responsibility needs to play to prevent them. However, as the attention matures due to society protest and companies damages, some corporations and various stakeholders have begun to consider the need of broadening their \corporate agenda so as to establish effective means of identifying and being accountable to the communities in which they operate and sustain their businesses. Recent policies and corporate governance reforms have emphasized and taken into cognizance of corporations focusing not only on the needs of the shareholders but also on the needs and requirements of all corporate stakeholders of which includes the stockholders, employees, customers, managers, suppliers and the local community (Beauchamp and Bowie 2004; Nwanji 2005; Nwanji and Howell 2006).
27

In their long examination of the effects of companies attitude towards the environment Mitchell and Sikka (2005, p.2) noted that their activities affects the quality of life, food, water, gas, electricity, seas, rivers, environment, schools, hospitals, medicine, news, entertainment, transport, communications, and even the lives of unborn babies. Nevertheless, despite the widespread rhetoric, impact is still patchy in practice, especially in developing countries. Many companies implementation is shallow and fragmented. Most organizations appear to be lackadaisical towards CSR implementations and the unending benefits accruing from organizations that are socially and ethically committed in practice as well as the differential advantages it gives to organizations (Post et al 2002; Porter and Kramer 2006). It should be noted that despite the existence of vocal critics (for example Friedman 1970, 2004), it is now widely recognised that companies have responsibilities broader than traditional shareholders wealth-maximisation (Margolis and Walsh 2001; Maignan & Ferrell, 2004; Godfrey et al 2008). Specifically, organisations and businesses need to be very much aware of its social and environmental interactions together with its economic viability (Deegan 1999b). But in order to achieve and carry out this grandiose task, todays organisations need to know and understand the meaning and potential implications of CSR in all its dimensions. The notion and importance of corporate social responsibility of corporations is not new in extant literature. Although, the modern understanding of CSR is most often traced to the renowned publications of Bowen (1953) who viewed it as an obligation to make decisions and to follow lines of action which are compatible with the objectives and values of society, the underlying concept of CSR that of an implied social contract dates back to the writings of the Greek philosopher Epictetus [and] was central to the intellectual systemin the first half of the seventeenth century (Anshan 1970, p.8). More so, it should be noted that as early
28

as 1938 the notion was seen reported in the works of Barnard (1938) and re-echoed by Van (2003). However, as the discipline matures, far greater definitional clarity have emerged from diverse disciplines with differing viewpoints but central amidst its various conceptions is the notion that organizations have to be socially responsible to the stakeholders at large. Underlying this notion is the fundamental belief that a group of people come together and exist as an institutions that we call a company, so that they will be able to achieve what they could not accomplish as individuals. Thus, they gathered together not solely to make profit but also to make contributions to the society (William and Barrett 2000; Whitehouse 2003; Utting 2005). Specifically speaking, the whole notion of CSR can be discerned from its etymological conception. The concept is coined from the words that are contained within its title phrase: corporate, social and responsibility. The term corporate is derived from the Latin expression for company cum and panis meaning breaking bread together (Arndt 2003). At the core of its meaning is the understanding of working collectively as a group or sharing together. Timberlake (2002) noted that underlying this coming together, is the belief of accomplishing what they would not have if left individually. While the use of the term CSR appear to be new in literature the concept itself is quite primordial, as some authors dates it back as early as the history of trade and business itself (Asongu 2007). In the Ancient era CSR activities could be discerned in the codes of conduct enacted for farmers, innkeepers and builders, to ensure that their activities and operations do not inconvenience the life and freedom of others. This idea was clearly depicted by BRASS Centre (2007), when they noted that the laws to protect the forest and commercial logging has been in existence since 5,000 years ago. In their historical elucidation of corporate social responsibility and corporate sustainability, BRASS Centre (2007) buttressed and exemplified

29

this phenomenon in their record of the grumblings of the ancient Romans senators about the inabilities of businesses in paying sufficient taxes to support the military. A similar view is equally reflected in 1622 by some shareholders of Dutch East Indian Company who were found disgruntled at the secrecy and self aggrandizement of the management (Jill 2007; BRASS Centre 2007). More so, in Africa this element of organizations being accountable to the society in which they live and operate their business was not left out. In his long academic enquiry on the historical trace of CSR, Asongu (2007) found out that in Southern Cameroons and other parts of Africa, hunters were expected to bring part of their catch to the chief (traditional rulers). At New Yam Festivals farmers in Eastern Nigeria, precisely in Igbo land brought their first harvest for the famous communal ceremony (Asongu 2007). Professional craftsmen were seen as the custodians of history and many of their artworks of which they were not even paid for were kept in the palaces of the chiefs. All these among others go on to evidence that in traditional African societies, businesses has a social responsibility and in fact was seen as providing benefits to the society than to the individual person. Nevertheless, the dawn of industrialization era in modern times ushered in a new vista for CSR activities. The impact of CSR assumed a new dimension and evolved into what some authors and academic researchers refer to as the modern CSR (Morsing and Beckmann 2006). Within these period CSR activities was narrow in perspective and received a less specialized attention among corporations (Gautt 1919). As rightly stated by Donham (1929), business at this time was new in its broadening scope and social significance. They have not learned how to handle these changes, nor does it recognize the magnitude of its responsibilities for the future of civilization (BRASS Centre 2007).

30

The emergence of shareholder and stakeholder theory coupled with increased sensitivity to and awareness of environmental and ethical issues in the contemporary era revolutionized the concept of CSR (Freeman 2004; Solomon and Thomson 2006; Jill 2007). At this juncture corporate social responsibility emerged as a discipline under maturity with variegated vocabularies, and attempts to capture its essence as well as how it is to be practiced or implemented was shallow. Therefore, it should not be surprising to have various authors refer to this very concept differently under the following: corporate or business responsibility, corporate or business citizenship, good corporate citizenship, community relations, and social responsibility. Asongu (2007) suggested that prior to this time effort was directed towards encouraging businesses to be responsible to its milieu and social issues. However, as the discipline matures the attempt to analyze the concept of corporate social responsibility has flourished several definitions and interpretations that no universally accepted definition of the term exists in literature. Consequent of these, the term corporate social responsibility appear to have definitions that tend to vary from each other owing to the fact that it is most often viewed from two different perspectives, one that is narrow in approach and the other that is broader. It is the intention of this paper to provide both views and finally adopt one that would serve as a working definition for the rest of the enquiry. A narrow definition of CSR can be found in the works of Friedman (1962, 1970 and 2004) who understood maximization of profit as the sole responsibility companies had to the society. Embarking on social matters should be the prerogative of the government and corporations lack the expertise as well as the legitimacy of administering such concerns. By engaging in CSR activities other than that of profit maximization, corporations becomes amoral and indifference to shareholders. Although Friedmans approach could be termed to be conservative, his thinking undoubtedly re-echoes the agency theory of the company. Admittedly, economic profit is one of the motives of a
31

business but it would be unrealistic to accomplish, if businesses appear to be insensitive or lackadaisical to the society in which they live and operate. A more articulated definition of CSR, one that seems to be more embracing in outlook is found among those who held a broader perspective of CSR. While accommodating the view that organizations exist to increase profit and account to their shareholders, they also incorporated that accountability to extend to a broad range of stakeholders. Thus, Freeman et al (2008) who is very much renowned on this was of the view that companies are so large, and their impact on the society so pervasive, that they should discharge accountability to many more sectors of society instead of their shareholders alone. This conception of CSR has attracted the interest of many authors and researchers that many definitions abound (Fishman et al 2005; Freeman and Velamuri 2006), all in attempt to give credence to it. In Davies and Frederick (1984) corporate social responsibility was defined as the ability of a company to relate its operations and policies to the social environment in ways that are beneficial to the company and society. The concept recognized that both society and the firm including the shareholders and workers have an impact on the business activity. Commenting on the notion of CSR, McComb writing in South China Morning Post (2002) remarked that the notion of companies looking beyond profits to their role in society is generally termed corporate social responsibility (CSR). Carroll (1991) integrated this conception in his long description of the pyramid of corporate social responsibility. According to him corporate social responsibility should be framed in such a way that the business responsibilities are embraced in entirety. In his view corporate social responsibility consists of four social responsibilities of which includes; the economic, legal, ethical and philanthropic aspect. It refers to company ability in linking itself with ethical values, transparency, employee relations, legal requirements and overall respect for the communities in which they operate. It therefore goes beyond the occasional community service action. One
32

of the basic premises underlying this definition is the idea of mutual benefits and exchange in relationship. It goes further to suggest that the social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations and addressing them at a given point in time (Carroll 1991, 1999; Nwanji and Howell 2006). Similarly A Guide to Corporate Social Responsibility (CSR) has proposed one of the most acclaimed definitions of the term. According to the guide CSR is a means of analyzing the inter-dependent relationships that exist between businesses and economic systems, and the communities within which they are based. In furtherance it is a means of discussing the extent of any obligations a business has to its immediate society. More so, it is a way of proposing policy ideas on how those obligations can be met (University of Miami 2007). While similar ideas have existed in literatures, it is important to note that what distinguishes this definition from the narrow approach is its acknowledgment of the fact that corporations have to contribute to society in addition to making profit. In addition to this some authors have explained the concept from the moral perspective, suggesting that since businesses rely on the society and could not exist or make profit in isolation they should therefore endeavour to add value and make life better. To this end, CSR as echoed in Crane (2001) could be seen as recognition of that inter-dependence and a means of delivering the obligation, to the mutual benefit of businesses and the societies within which they are based. In other words it represents the relationship between a company and the wider community within which the company lives and operates and of which result to a large part of any success they enjoy. In summary, the definitions of corporate social responsibility found in literature tend to share certain characteristics, one of which is the notion of accountability. While narrow definitions are oriented around corporate accountability to shareholders, broader definitions stress a broader level of accountability to shareholders and other stakeholders. This paper concurs with a relatively broad definition of corporate social responsibility by the European
33

Foundation of Quality Management (2004) and that of Nwanji and Howell (2006) based on my own view that the definition is in conformity with most of the theoretical and other related frameworks underpinning the concept of CSR, of which I intend to envelop below. Hence for the purpose of this research, two major definitions of corporate social responsibility of which are inter-related stands out. According to European Foundation for Quality management (2004) corporate social responsibility could be seen as the:
whole range of fundamentals that organizations are expected to acknowledge and to reflect in their actions. It includes among other things- respecting human rights, fair treatment of the workforce, customers and suppliers, being good corporate citizens of the communities in which they operate and conservation of the natural environment. These fundamentals are seen as not only morally and ethically desirable ends in themselves and as part of the organizations philosophy, but also as key drivers in ensuring that society will allow the organization to survive in the long term, as society benefits from the organizations activities and behaviour (p.1)

Nwanji and Howell (2006, p.1) reiterated this understanding in their succinct definition of corporate social responsibility as addressing the legal, ethical, commercial and other expectations society has for business, and making decisions that fairly balance the claims of all key stakeholders. These definitions are not only appropriate for understanding corporate social responsibility in terms of adding value to the shareholders and stakeholders, but also recaptures the interdependence of both, of which concurs with Carroll (1991) pyramid of corporate social responsibility framework. Important to note is that the definitions also corresponds to the renowned triple bottom line reporting strategy which places emphasis on people, planet and profit.

34

2.3 HISTORICAL ANTECEDENTS OF CSR

The literature on CSR draws on a number of different theoretical traditions such as organizational legitimacy, ethics, stakeholders theory and sustainable development that are worth considering. The essence of this analysis therefore, is to depict some extant related creative writings that are in consonance with the concept of corporate social responsibility.

2.3.1 ORGANISATIONAL LEGITIMACY

The foundation of organizational legitimacy theory stems from the social contract theory between companies and society (Mathews 1993). The social contract theory is attributed to the early philosopher Rousseau, who in line with Plato argued that the existence of the state and social order are founded on agreements of which have a moral value. Although

Rousseau was particularly referring to the state, underlying his philosophy was the fact that the state has no value in itself but instead emerged as a contract (Skirbekk and Gilje 2001). This license to operate did offered a comforting foundation of developing organizational legitimacy theory, which seeks to find out ways through which companies can demonstrate that they have a license to operate. This expression is equally found dominant in the works of Davies (2003) who noted that companies are under obligation and therefore need to legitimize their existence not just to their shareholders but also to society at large. This according to him will enable them to retain societys implicit endorsement. Corresponding to these Post et al (2001) resurfaced this viewpoint in his explanation of why companies should voluntarily disclose not only the positive aspects of their performance, a viewpoint that is also expressed earlier in the works of Donaldson and Dunfee (1994) and re-affirmed in recent time by Deegan (1999; 2002). Of important to note is that at this level corporate social responsibility can be best understood as a quest for organizational legitimacy.
35

2.3.2 ETHICS
The concept of CSR to a great extent is anchored in the business ethics literature (Jones 1991; Donaldson and Dunfee 1994; Lozano 2000; Crane and Matten 2003). The concept of ethic has attracted the interest of different epoch, disciplines and scholars that range of diverse interpretations abound. Consequently, it would be necessary to begin by etymologically defining the term so as to capture its essence. The term ethics is derived from two Greek words itos meaning the fibre of the soul and ethos that originally meant inhabited place, and of which later was use to denote a place where one lives (Skirbekk and Gilje 2001). The term later evolved to took on the abstract meaning of habit, usage and tradition to finally mean mores or customs. Thus, the idea of behaviour, compliant with customs, norms, traditions and laws originally underlined the meaning of the word ethos and refers to normative appraisal of actions, characters of individuals and social groups. In the ancient historic period Socrates, used the term ethos to designate what an individual should do according to his or her thoughts and convictions ((Skirbekk and Gilje 2001). It is important to note that some authors have employed this conception of ethics to argue that ethics has no place in business, but instead is mainly individual. Thus, to attribute morality to business is irrational considering the fact that business is not a human person (Friedman 2004). But Socrates was trying to emphasize that ethics is part of human existence. This viewpoint appeared more developed and dominant in the classical contemporary period, particularly in the works of Sartre who noted that ethics is in heart of human existence as absolute responsibility. Similarly, in Heideggers work, the question of ethics is situated in the being and arises out of the very event of being and its givenness. Ethics is understood in terms of being of
36

which Heidegger calls Dasein. In his view ethics is thus existence itself, in its specific motion. Existence is ethical through and through and does not need to be ethicised from above, for ethics is ontology itself and being displays an intrinsic ethicality (Skirbekk and Gilje 2001). With Levinas there was a departure of ethics from ontology to the other. Levinas situated ethics in the relationship to the other person, in the intersubjective. Although, he propounded this theory so as to give response to the violence and dehumanization witnessed within the Nazi regime and the Holocaust, Levinas was trying to suggest that ethics is in opposition to traditional ontology and the principle of knowledge in Western philosophy, which always reduces the other to a principle of identity or the Same (Skirbekk and Gilje 2001). However, the dawn of Levinas resulted in reversing the traditional hierarchy in which ethics is reduced, to being a branch of ontology and epistemology and thus, raised ethics to the level of first philosophy. As opposed to the negation of the other human, the ethical experience however rare it may be enacts a respect for and a concern for the other. Levinas describes this experience as the face to face with the other, in which the individual is faced with the destitute and vulnerable nature of the other. Faced with such vulnerability (ultimately the mortality or irremediable exposure to death of the other), the individual is called to care for the other and to attend to the other as would like others to do unto him. Ethics understood in this way represents what is truly human in human beings, a new humanism (which Levinas calls humanism of the other human) that breaks with ego-centred philosophies and opens onto the infinite character of the alterity of the other, to whom the individual is called to be responsible to (Skirbekk and Gilje 2001). This departure of ethics from ontology was

appropriated into business with the dawn of industrialization and appears evident in the works of some many scholars (Roger-Pol Droit 2006; Nwanji and Howell 2006; Jill 2007), that have attempted to offer an explanation of business ethics.
37

As suggested by Parkinson (1993) business ethics involves moral human conduct in the rules and actions deemed appropriate for a particular profession or area of life. Specifically speaking, it relates to issues regarding moral principles, actions and conscience. In relation to corporate activity, ethics examine the role and means through which companies pursues their business objectives. In the context of personal activity, it deals with such questions as should an employer report or make known to the public any information relating to his/her employees' activity which he/she believed could not gain approval from the society. For instance, the case of Enron came out in the open because of personal ethical perspectives where the whistle blows from the employees of the company (Monks 2005; Jill 2007). Moreover, this standpoint is equally reflected and highly exemplified in core pursuit of corporate social responsibility. Thus, as suggested by many definitions, corporate social responsibility could be seen as the quest for businesses to be ethical in character and behaviour (Van 2003). As constructed by Ackermann (1975) it is an attempt to reflect that managerial reflections are not fully defined by corporate policies and procedures, but instead are constrained by their work environment and thus, need to weigh the moral consequences of the choices they make. The World Business Council for Sustainable Development also captured this in their definition of corporate social responsibility as business commitment to acting in an ethically responsible manner, and to contributing to sustainable economic development: working with employees, their families, the local community, and society at large so as to improve their quality of life. A viewpoint that Chardel (2004) took into cognizance in his definition of CSR as a meeting place between legal liability and ethical responsibility. Thus, the basic idea of corporate social responsibility is that business and society are interwoven rather than distinct entities: hence society has certain expectations for appropriate business behaviour and outcomes of which should be carried out with commitment (Wood 1991; p.692).
38

2.3.3 AGENCY THEORY

One of the most interesting arguments that underpins the existence and growth of corporate social responsibility is the agency theory otherwise, referred to as the shareholder theory. The agency theory is a concept employed to depict the delegation of company management to a second person or group of persons that do not have a share in what was entrusted. In other words, the managers were regarded as agents and the shareholders as the principal owners of the company who entrust the running of the company to the agents, in order to maximize their profits (Jensen and Meckling 1976). With the proliferations of the agency theory, corporate social responsibility was understood as strictly fiduciary responsibility to the shareholders. At that level the responsibility was understood as that which involves maximizing the profit of the organization so as to return value to the shareholders. The employees and the society at large were in essence not considered as agents of the shareholders and sometimes, the agents were expected to act and deliver even to their own detriment. Thus, the exclusive focus on shareholders profit to the exclusion of other concern in fact, was the underlying element of the theory and appeared to have led some organizations to engage in socially destructive behaviour, with an obsessive focus on profit (Wheeler et al 2002). The sole obligation business owns to the society was to maximize the profit of the shareholders. This conception of responsibility can be depicted in the works of Friedman (2004, p. 51; Henderson 2001, 2005) who believed that the sole responsibility a company had to society was to maximize returns to its shareholders and that any attempt other than that is tantamount to ethical misconduct. While admitting the idea of companies being responsible to shareholders, there is some significant evidence from literature that undermine the agency viewpoint of responsibility. The emergence of stakeholder theory has been identified by some many authors as a theory that resurrected in order to broaden as well as give response to the
39

limited responsibility upheld by agency theory (Donaldson and Dunfee 1994; Freeman 2004; Freeman and Velamuri 2006; Nwanji and Howell 2006).

2.3.4 STAKEHOLDER THEORY The emergence of stakeholder theory in late 1970s opened up a new vista for businesses. As rightly suggested by Wheeler et al (2002) the advancement was more of a broad tradition incorporating shareholders value, philosophy and ethics among others. Nwanji (2005) noted that the theory emerged as an ironic twist of shareholder theory so as to indicate that firms can also have a broader obligation than what the traditional economic theory has assumed. Nevertheless, the development of this theory is often credited to Freeman (1984, 2004) who in his general theory of the firm incorporated corporate accounting to a wider range of stakeholders. However, underlying the stakeholder theory is the conception that company should discharge their accountability beyond the table of their shareholders, mindful of the fact that their activities have impacts on the society in various ways. Stakeholder theory holds that the corporation is responsible to a broader set of people than simply the shareholders. As rightly defined by Jill (2007) stakeholders represents the society whose tax is being used to build and maintain national infrastructures that are used by companies. In other words, the stakeholder theory was developed to broaden the agency theory that limited corporate accountability to shareholders (Nwanji and Howell 2006). Nevertheless, it should be noted that with Freemans (1984) seminal book the focus moved from legitimacy and morals towards a new theory of the firm. Social considerations are thus no longer outside an organization but are part of its purpose of being. CSR thus becomes a question of stakeholder identification, involvement and communication (Mitchell et al 1997; Morsing and Beckmann 2006; Morsing and Schultz 2006). According to Freeman and

40

Velamuri (2006) the aim of stakeholder management was to develop a framework that will assist in managing strategically the myriad groups that influenced, directly and indirectly, the ability of a corporation to achieve its corporate agenda. The aim of stakeholder management is thus, to analyze how a company can serve its customers and be lucrative while serving also its other stakeholders such as employees, customers, the local community, the suppliers, and the countries in which a company operates. In todays world it could be said that the stakeholder perspective seems to have dominated the reinterpretation of CSR, pushing the question of the legitimacy of corporate power as well as the moral dimension of managerial decisions more into the background. Employees and customers will care not only about the profitability of the company, but more so about other dimensions of the business practice such as treatment of the employee, safety of the products, impact on the environment, and so forth. Thus, stakeholder theory holds a corporation responsible to the very specific values and interests of people who are touched by a business. The theory in other words, goes a long way to explain the issue of whose values beyond the shareholders are to be taken into account. To this end, corporate responsibility suggest engaging the stakeholders in conversation to understand what values are of importance to them and carrying out those values.

2.3.5 CORPORATE GOVERNANCE In recent years the numerous high profile cases of corporate failures have not only resurfaced the issues of corporate social responsibility, but has also focused the minds of government, non-governmental organizations, intellectuals, companies and the society on the weaknesses in corporate governance systems as well as the need for constant reform (Nwanji and Howell 2006; Jill 2007). Theories upon theories have evolved all in the bid to analyze and work out

41

systems that would permit systematized corporate governance especially in large public companies or corporations. The US Sarbanes Oxley Act of 2002, for instance, came as a quick response to remedy the corporate failure in Enron. International bodies such as the Organization for Economic Development (OECD) and International Corporate Government Network (ICGN) have not only reformed their principles on corporate governance, but also did encourage others to do so. As a matter of fact, the concept corporate governance has no single universally accepted definition. Amidst the various definitions two approaches have been found dominant; one that is narrow in perspective and the other that is broad. While the narrow one view corporate governance as a process of supervision and control intended to ensure that the companys management acts in accordance with the interest of the shareholders (Parkinson 1994) the broad approach regards it as the governance that is inclusive in approach. The Organization of Economic Development (OECD 1999) in this regard defined corporate governance as that structure of relationships and corresponding responsibilities among a core group designed to foster the competitive performance required in achieving the corporations primary objectives (IMF 2001). This notion of broader responsibility is equally depicted in the works of Jill (2007) who defined corporate governance, as a system of checks and balances whether internal or external which ensures that companies accounts to all their stakeholders in all ramification. In literature many scholars seems to be in much concordance with the broad definition of corporate governance. In the book Stakeholder Corporation (1997) Wheeler and Sillanpaa narrated the importance as well as the need for companies to be accountable to a wide range of stakeholders. Thus, the broader definitions of corporate governance stress the need for broader level of accountability to shareholders and other stakeholders. It advocates for governance that is built on corporate broader responsibility and this interpretation seems to
42

have underpinned the core push for corporate social responsibility. It is important to note that the broad definition has also received criticism. Sternberg (1997) re-echoing Friedman (1962) believes that company has no business with the society and that the only responsibility it had to society was to expand the profit of the shareholders. However, in good corporate governance practice it is suggested that management should be able to meet their social responsibilities of which include making sure that their products are not hazardous to people and to the environment, sharing their profits for the good of the community as a natural person or human being would do, donating to social causes, organizing activities to benefit the community in which they sustain their being (Jill 2007). Other good corporate governance practices that overlapped with social responsibility is complying with applicable laws, setting good labour conditions for employees, providing good products to the community, helping the economy through fair trade practices, paying taxes and other obligations due the government and making sure that it is meeting commitments to other persons. In other words, corporate governance aims to make the corporation a good citizen by being socially responsible; an aim that underscores the dictates of corporate social responsibility.

2.3.6 SUSTAINABLE DEVELOPMENT The latest literature tradition to have underpinned and impacted our understanding of corporate social responsibility is that of sustainable development; a concept that was initially used in forestry to ensure that certain number of tress are cut down at a particular time so that long lasting protection of the trees are guaranteed (Meadows 1972). This theory appeared to have emerged under the assumption that the stakeholders theory did not represent all the stakes in its entirety. Brundtland Commission (1987) who was the foremost to have

43

appropriated this concept in the business world is also recorded in literature to have been the first to emphasize systematically the link between poverty, environmental degradation and economic development. Its definition of sustainable development, as meeting the needs of the present, without compromising the ability of future generations to meet theirs, supports as well as extends the responsibility of firms both inter- and intra generationally. Thus, firms are expected to consider traditionally unrepresented stakeholders such as the environment and as well as future generations. Although many CSR authors have taken up this conception (Elkington 1997) there is still some tensions between the CSR and the sustainable development debate (Dyllick and Hockerts 2002). However, the argument here is that there are groups of people or voiceless voices who do not fall either in the categories of stakeholders or shareholders, of whom nonetheless have a moral claim on the corporation, consequent of their corporate practices. Such people may not have the buying power but are affected through the various activities of companies (Hamann 2003; 2006). This understanding appears to be evident in some definition of CSR proffered by international bodies. World Business Council for Sustainable Development (WBCSD) has defined CSR as "business' commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life (WBCSD 2006). Similarly but more amplified is the definition given by the Commission of European Communities. In their views CSR could be seen as a concept, whereby companies integrate social and environmental concerns into their business operations and interactions with their stakeholders on a voluntary basis (Commission of the European Communities 2001). On this note therefore, sustainable development could be seen as a concept that points to the limits and boundaries of stakeholder theory. It attempts to amplify the stakeholders voices especially the voices that are not only unheard but are also intangible. For example, the
44

activities of oil companys extractions impact directly and indirectly on people as well as the environment. Their extractions which bring forth pollution and carbon emission among others impact on the nature of social lives of people, animals and the environment that most often are left untouched by them. Besides this it is evident that we all share one world, one ocean, one air but the notion that there are people who are not touched by a larger corporation seem unpersuasive to the critics of this theory. In other words, what underscores the nucleus of sustainable development theory is the notion that stakeholders should include both the immediate stakeholders and the unheard voices that are still touched by the activities of companies but in ways that are not as visible or as immediate as the stakeholders. Corporate social responsibility is thus closely linked with the principles of sustainable development in the sense that sustainable development principles also seek to emphasize that companies should make decisions that are not only based on the financial considerations such as profits and dividends, but also based on the immediate and long term social and environmental consequences of their activities. In other words companies or corporations are expected in their social responsibilities activities to engage in activities that are sustainable and try to envision its impacts on lives beyond the immediate stakeholders; a fact that also underscore the kernel of CSR.

2. 4 DRIVERS OF CSR
Many authors from different disciplines have suggested various trends that appear to motivate or drive CSR increasingly importance. While some authors tend to address it from its positive impacts on business economic performance, others in addition identify other trends such as the changing social expectations, increasing affluence and globalization among others (McWilliams and Siegel 2000; Orlitzky et al 2003; Nwanji and Howell 2006; Mackey et al
45

2007). But central among these literatures is the understanding that it could be internal or external (Dummett 2006). The essence of this section therefore, is not only to highlight why CSR is relevant today but also to expose some internal as well as external identifiable trends that appear to motivate its growth and incorporation by businesses and corporations.

2.4.1 INTERNAL DRIVERS OF CSR In their long overview of corporate social responsibility Nwanji and Howell (2006) presented a detailed body of data that demonstrated some accruing economic benefits that appear to internally drive organizations in being socially responsible. Some of them among others include; 2.4.1.1 IMPROVED FINANCIAL PERFORMANCE: The belief that CSR has an impact -whether positive or negative on the financial performance of organizations has received various results. Recently many studies have emerged all in an attempt to give response as to whether companies that rank high in CSR earned higher return than those doing less well in the CSR rankings (Orlitzky et al 2003; Nwanji and Howell 2006; Mackey et al 2007; Johnson et al 2008). Among the studies conducted by these various authors two major areas of contention appear to be dominant. While some try to link a positive financial performance to be the concomitant result of good CSR others in disagreement note that it has no impact on the eventual financial decline of organizations. As rightly contested by Nwanji and Howell (2006) there are evidence that makes it possible to suggest that organizations that are socially responsible will not only outperform those that are not but also stands at a better chance in attracting investors as well as retaining it brand image. Two recent studies illustrate these viewpoints.

46

The recent analyses of DePaul University study- according to them exemplified that the overall financial performance of the 2001 Business Ethics Best Citizens companies was significantly better than that of the remaining companies in both sales and profit index, based on the 2001 Business Week ranking of total financial performance (Nwanji and Howell 2006, p.2). In fact, the result showed that the Best Citizens scored ten percentile points in contrast to the second. Similarly but form another perspective Johnson et al (2008) in his careful reanalysis of Gompers et al (2003) and Bebchucks et al (2004) articles corresponded to this but noted that such may be found among industries that are not of the same strategic groups. However, there is much agreement in literature that companies tend to integrate CSR in order improve financial performance considering the fact that customers will be more loyal to them than those who do not incorporate them. For example Shell oil in Nigeria lost millions of money because of the attacks from host communities in 1990, consumer boycotts, and activist-led litigation of its decision to fight the environmental movement and failure to recognize and embrace the wider importance of CSR as a corporate strategy; a fund they would not have lost if they were socially responsible in practice as they theoretically claimed (Shell 2005). 2.4.1.2 ENHANCED BRAND IMAGE AND REPUTATION: Brands today are one of the key focal points of any corporate success. Many companies make effort to inculcate and establish popular brands in consumer minds because it increases leverage, which is directly reflected in sales and revenue (Nwanji and Howell 2006). In essence it would not be out of contest to suggest that almost every aspect of a companys operations today feed into helping build the corporate brand. However, in recent times it has been identified that customers and investors are more prone to stick to those organizations that have good reputation in CSR related issues. One apocalyptic accompaniment associated with companies that are socially responsible is that they have more chances of enhancing their reputations as well as
47

strengthening their brand (Nwanji and Howell 2006; Johnson et al 2008). Considering the large amount of time, money and effort companies invest in their brands, some author believe that a good CSR policy is an effective means of protecting that investment and maximizing its impact (Freeman 2004; Nwanji and Howell 2006).

2.4.2 EXTERNAL DRIVERS OF CORPORATE SOCIAL RESPONSIBILITY The external drivers of CSR seem to be more effective in motivating companies to be socially responsible in their business endeavours. Some of these external factors include; the growing government interest and action, increased stakeholders activism, proliferation of codes, standards, indicators and guidelines, globalization, changing social expectations, and increasing affluence among others. Underlying the elements of external drivers is the notion that some companies tend to abide by CSR issues not because they think it favours them but instead to improve relationship with regulators and avoid be reckoned as one of the socially irresponsible organizations. 2.4.2.1 PROLIFERATIONS OF CODES, STANDARDS, INDICATORS AND GUIDELINES. The growth of corporate scandals such as that of Enron and Parmalat among others in recent times have not only called into table the importance of companies being committed to ethical and social issues but has also necessitated the emergence of different codes, standards, guidelines as well as indicators both from national and international bodies. The Cadbury Code 1992, Higgs Report of United Kingdom and the US Sarbanes Oxley Act of 2002, for instance, came as a quick response to the corporate failures and as such formalizes broader accountability and responsibility. International bodies such as the Organization for Economic Development (OECD), International Corporate Government Network (ICGN) and UN Global
48

Compact as well as the Global Sullivan Principles have not only presented standards and guidelines in respect to corporate accountability but did also encourage others to integrate and consolidate it in their social and ethical behaviour (Nwanji and Howell 2006; Jill 2007). More so, the quest for transparency of corporate performance, the pressure to achieve a common global standard of accounting as well as the full dimensions of corporate reporting have burgeoned the minds of investors more especially in this recent time, that companies are now drawn to employ CSR as a strategic tool of surfacing their standardization of corporate governance (Dummett 2006). Consequently in order to improve relationship as well as avoid the wrath of stakeholders activism some companies tend to incorporate CSR issues a standard and strategic tool to avoid being identified to have gone beyond the prevailing standard of conduct. 2.4.2.2 CHANGING SOCIAL EXPECTATIONS AND GLOBALIZATION The effects of the recent corporate scandals coupled with the globalization have impacted much on the society in various forms. Consumers are now expecting more from the companies whose products they buy unlike before. They appear to have lost much public trust in corporations as well as public confidence in the ability of regulatory bodies and organizations to control corporate misconduct. More so, the increasing influence of the media and technology has made it much easier that any mistakes made by companies are brought immediately to the attention of the public. In addition to this, the proliferation of the internet has necessitated the rapid spread of any communication to move faster beyond the immediate confines of any environment (Ozuem et al 2008) thereby, empowering like-minded groups and consumers to target any organizations they perceive as not being socially responsible from any part of the globe.

49

Consequently, by spreading such message customers or the public becomes better informed to put their beliefs in action and sometimes are given the means to coordinate collective actions and thus achieve their wants through various means such as public demonstrations, public exposes, boycott, attack on the company, and sometimes denial of service among others. In order to avert any of this damage especially the danger of losing brand value which is always very difficult to build, some companies make effort to be socially responsible so as to enhance their brands and reputation among others (Nwanji and Howell 2006).

2.5 CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA

The above sections discussed to some extent the related theories and definitions of the key subject under investigation, in this section effort will be made to discuss the CSR in Nigeria especially as it relates to oil companies and its impact on the host communities. While no date could be found in literature as to the formal origin of CSR in Nigeria there is evidence to suggest that the existence of formal corporate social responsibility mechanisms in Nigeria stems from the United Kingdom (Guobadia 2000). As identified by Guobadia (2000) the Nigerian company law known as the Companies Ordinance of 1912 and the Nigerian Law of Companies and Allied Matters Ac (CAMA) of 1990 was a local enactment (Consolidation) Act of 1908 of and 1948 Company Act of United Kingdom respectively. While CSR concept and its formal applications could be said to be at the developing stage within this time, there are still some changes that reflect the growing concern of companies being socially and ethically responsible in Nigeria. The emergence of Securities and Exchange Commission (SEC) which is a government body created in 1999 was to protect investors interest against unpleasant and fraudulent activities of stockbrokers (Amaeshi et al 2006). More so, the Nigeria Stock Exchange (NSE)
50

established afterwards was developed to support SEC in monitoring companys financial report through ensuring that it attains the standard required by them. But even at that level there was much effort to see that shareholders rights are protected through the introduction of disclosure in the stock exchange. Corresponding to this Okike (2007) noted that the introduction of the Merit Award came as an incentive to companies who were found competent in their financial disclosures and that the NSE in some cases has suspended several companies who were found wanting or below the standard expected of them especially as it pertains financial disclosure. Furthermore, to ensure better accountability and transparency the Committee on Corporate Governance in Nigeria (CCGN) issued out Code of Best Practices among the boards of Nigeria quoted companies (Okike 2007). The committee made recommendation that shareholders are to be responsible for electing directors and approving of the conditions on which these directors-both executive and non-executive directors operate. Important to note was that at behind this idea was the Cadburys Report (1992) and Higgs Report (2003) that emphasized the need of electing the right group of individuals that are independent in their functions as non-executive board members. In addition to this the formation of the Nigeria Shareholders Solidarity Association (NSSA) in 1987 came as a result of the auditors inability to ensure accountability to shareholders. Similarly agencies such as Institute of Chartered Accountants of Nigeria (ICAN), Independent Corrupt Practices, Commission and Economic Financial Crime Commission were created by Nigeria government in an attempt to ensure effective responsible governance. Atypical of this is the fact that even government leaders who were found wanting in this regard is charged to court and some have faced persecution in recent times. Nevertheless, the formal practice of corporate social responsibility in Nigeria started with the multinational oil companies who had already practiced CSR activities in their developed countries. In 1969 Shell had set up a public
51

relation department and mandated it to embrace all activities relating to relations between the company on one hand and the government of the federation at all level. Similarly and of more recent is the creation of a model known as the Global Memorandum of Understanding (GMOU) by Chevron oil Nigeria in 2005. The model was designed and launched as a means through which the communities will gain better access to participate and play greater roles in the management of their development (Chevron 2008). To this end Chevron aimed at improving the quality of life in the communities.

2.6 OIL DEVELOPMENT AND ITS IMPLICATIONS ON THE NIGERIAN ECONOMY

The origin of oil prospecting in Nigeria began as far back as 1908 by a German company known as the Nigerian Bitumen Corporation in the Araromi area of the present Ondo State (NNPC 2009). The pioneering efforts of this company could not fully materialized

consequent of the outbreak of the First World War in 1915. However, the end of the First World War oil prospecting resumed in Nigeria once more, but now was moved by Shell DArgy, the forerunner of the present Shell petroleum development company of Nigeria whose activities were equally hampered with the Second World War of 1939 to 1945. Although the company resumed operations in 1947, oil was not discovered in commercial quantities not until 1956 when it was finally discovered in Oloibiri in the Niger Delta after several years of search. With over N30 billion, Shell started oil production and export from its Oloibiri field in 1958 (NNPC 2009). By 1961, with the successfully exploration of oil by Shell, the exploration which formerly was granted to Shell alone was extended to new comers in line with the governments policy of increasing the face of exploration in Nigeria and uplifting its economy. Thus, other
52

companies such as Mobil, Gulf, Safrap (Life), Tennen American Overseas, Anosees Petroleum Company (now known as Texaco/Chevron), Nigerian Agip Oil Company, Philips Petroleum were given the mandate to begin exploration activities for oil both in the on-shore and offshore areas of Nigeria. The impact of more oil companies in Nigeria doubled the production rate of oil from 5100 barrels per day to 2.0 million barrels in 1972 and reached a peak of 2.4 million in 1979, an achievement that helps Nigeria to attain the status of a major oil producer, ranking the seventh position in the world by 1972 and the sixth largest oil producing country by early 1980s (NNPC 2009). However, the oil sector has undergone tremendous transformations over the years. The industry has evolved from being the most supportive economic sector it was in the 1960s to the predominant source of foreign exchange, development finance and the most present viable access to international investment opportunities. In fact it has become the mainstream of contemporary Nigerian economy and no other resources in Nigeria whether natural, material or manpower has played such a towering role over the national economy as crude oil. From the mid-1970s to date, oil revenues has consistently contributed over 90 percent of Nigerias Gross Domestic Product (GDP) and about 85 percent of the Federal Government revenue (NNPC 2009).

2.6.1 EFFECTS OF OIL EXPLORATION AND ITS SOCIO-ECONOMIC IMPACT ON THE ENVIRONMENT The exploration and production of oil in Nigeria just as it would be in any other place has caused numerous environmental problems on oil producing communities in Nigeria. In their wide description of the effects of oil spills on the environment Dicks (1998) and Clarke et al (1999) stated that the impact can encompass physical and natural alteration of habitats. Corresponding to this the United Group of Experts on Scientific Aspects on Marine (1994) in

53

their attempt to give response to the deleterious impact of oil spills in the world presented a more detailed result of which among others include: 1. mortality or long term impacts on sea birds, marine mammals and other sea life, 2. physical damage or permanent loss of foreshore and marine habitats, 3. impacts on the health, viability and diversity of coastal ecosystems, 4. damage to aquaculture stocks, facilities and tainting of commercial seafood, 5. smothering of, and damage to, intertidal biota and vegetation, 6. contamination of coastal infrastructure and amenities leading to impacts on tourism and other recreational activities, 7. shut-down or damage to power station cooling water, desalination plant intakes or salt pans, 8. economic loss at both the regional and national level, 9. Adverse media and political attention on the oil and shipping industries and their operations. According to them, pollution could be seen as the introduction by man directly or indirectly of substance or energy into the marine environment, resulting in such deleterious effects as: harm to the living resources, hazard to human health, hindrances to marine activities including fishing, impairment use of sea water and reduction of amenities. Similarly in a research conducted by Okike (2006) the author identified potential pollution outlets as air emission, water effluent and waste generation, of which in his views are mainly the resultant effects of oil spillage. As rightly suggested by Okike (2006) such air emission usually originates from gas flaring in relation to gas as well as oil separation and the accompanying consequent can be quite hazardous both on the individual and the society at large. Water effluent on the other hand results from the separation of production water and oil spillage of

54

waste generation. This goes to suggest that the emergence of such pollution on the environment most often exist as a resultant effect of oil exploration and exploitation. However, the definition of pollution by the Federal Environmental Protection Agency Decree captures and provides to some extent a succinct understanding of how pollution emerges. As rightly stated by them pollution could be seen as a man made or man aided alteration of chemical, physical or biological quality of the environment to the extent that it becomes detrimental beyond acceptable limits. Commenting on the impact of oil extraction in Nigeria Babashola (2003) noted that the greatest environmental problem often cited in connection with petroleum in Nigeria is oil spoilage and its attendant hydrocarbon pollution. In his analysis he went to further to state that the major oil states in the country are forecasted to suffer an estimated quantity of 300 major oil spills in a year of which its impacts includes: 1. Neutrality of bivalves such as oyster, fish, sub surfaces and floating macrophysics; 2. Contamination of agricultural and destruction of vegetation particularly man grove swamps, sheltered salt marshes and sheltered tidal flats; 3. Emigration of wild life and consequent loss of biodiversity; 4. Extinction/reduction of agricultural and related activities and 5. Forceful population migration. Moreover the detrimental effects of oil pollution and its devastating consequences on the environment can never be over emphasized. The exploration and production of oil in the Niger Delta has given rise to a number of socio-economic and environmental problems that have prevented the communities from realizing their potentials for economic growth and sustainable human development (Clarke et al 1999; Akpan 2006). Important to note is that oil minerals in Nigeria currently account for over 90 percent of Nigerias revenue and these oil is
55

mainly located in the Niger-Delta. But despite these earnings made from these area of the country coupled with the deleterious impact of oil pollution on the habitats and environment, the host communities is still faced with insufficient infrastructures, high rate of unemployment, abject poverty resulting even to malnutrition and lack of education among others (Onishi 2002). Examining the awful predicament and state of the oil host communities in Nigeria, the World Bank report (1995) equally evidenced this when they stated that Niger Delta is still poor notwithstanding the vast oil reserve explored from the communities. In fact in their view the GDP per capital is below the national average of US $280 in the face of high population growth rate combined with several habitable land constraints (Birnbaum 1995). The report also showed that health indicators for the host communities are low especially when compared with the South eastern region where water is ubiquitous. Childhood malnutrition which increases infant mortality, reduces mental capacity, degrades quality of life and restricts economic productivity was found to be a common phenomenon (Onishi 2002; Olujide 2006). More so, housing in quality and quantity as well as accessible road is deficient in most of the region. The high frequency of flooding during the rainy season even requires that many families in low living areas and coastal barrier islands reconstruct their houses to keep it above the flood average. As identified by Onishi (2002) and Babashola (2003) access to portable water and sanitation was very much deficient among the host communities. The evidence from their research suggest that only about 20 percent of 24 percent of rural communities and less than 60 percent of urban communities in the region have access to safe drinking water, while only 25 percent and 12 percent of households in the area use satisfactory sanitation facilities.

56

Within the oil producing region also transportation is often difficult and expensive especially in the flood season when water transport becomes the most common form of transportation and even during the dry seasons only about 20 percent of the communities is accessible by good roads. As encapsulated by Onishi (2002) oil communities problem in Nigeria encompasses low level of education and technical skills, weak economic base with little or non-existent surplus, environmental pollution through operational hazards, aging pipes and spillage, predominant self-employment with low productivity and presence of well informed community pressure groups committed to addressing per cured injustice among others. On the other hand, there is evidence that makes it possible to suggest that the oil companies have invested some efforts towards ameliorating the socio economic problems of the host communities. The report from Chevron Nigeria limited indicate that the communities have benefited from its social responsibilities in various ways especially as it regards scholarship awards, hospitals, building of classroom blocks and agriculture among others (Chevron 2009). More so, to carry out community development programs Chevron also established public Relation Department. This department has the duty of seeing that the company relates well with the public especially the host communities. The department also embarks on different community relations and development programs that are designed to reduce the effect of their generational activities in the communities where they operate such as vocational trainings and so on. But to what extent are these gestures able to reflect the needs of the host communities is one of the things this research sets out to investigate.

2.7 SUMMARY
In this chapter effort was directed towards providing a definitional clarity of the term corporate social responsibility. Furthermore, the chapter presented the historical antecedents
57

of CSR, dwelling on its conception within the three main epochs in history. It also went further to examine the related literature that tends to underpin the concept of CSR. In addition to this, it presented the external and internal drivers of CSR as well as its formal development in the Nigerian context. Finally, the chapter discusses the development of oil production in Nigeria and its impact on the economy and environment. The subsequent chapter examines the research methodology.

CHAPTER THREE
RESEARCH METHODOLOGY

58

3.1 INTRODUCTION
The preceding chapter focused on conceptual clarification and exposition of related literatures relevant to the research. In this chapter effort is made in providing the research methodology that the researcher intends to employ in his research, which as identified by Jankowicz (2005, p.224), is the analysis of, and rational for the particular method or methods used in a given study, and in that type of study in general. Consequently, to be able to carry this grandiose task effectively, the chapter opens with a brief description of the research aims and objectives the researcher intends to meet so as to help both the researcher and prospective readers comprehend the reasons for the research approach adopted. More so, mindful of the fact that the selection of a primary method of investigation of a problem is a key consideration to the success of the researched, the chapter also opens with the research philosophy section with the purpose of ensuring that a thorough knowledge of the basic methods of research is understood by the researcher. In addition to this, the section explored the relevant research approaches, the research strategy and the data collection method, presenting also the ethical considerations given as well as the merit and demerit of each of the approach examined.

3.2 RESEARCH AIMS AND OBJECTIVES

As aforementioned the essence of re-presenting the research aims and objectives is to identify and reason whether research methodology applied is appropriate to the research mindful of the fact that all factual knowledge which is ascertained by the researcher may be classified in terms of the research methodology and techniques selected. To this end therefore, it would be necessary to restate the research aims and objectives so as to enable the researcher ensure that there exist a direct bearing between the research aims and objectives and the research
59

methodology employed. On this note, it should be noted that the research seek to investigate the impact of corporate social responsibility on oil producing communities, using Chevron Nigeria as a case study. However, there were four main objectives that sought to guide the research. The first objective was to review extant literature on corporate social responsibility in developing countries. The second research objective was to assess the motivation behind CSR functions and investment projects undertaken by oil companies. Next on the line was to identify and appraise these investments in terms of its impact upon intended beneficiaries and business performance. Lastly, the study analyzes and suggests feasible ways through which corporate social responsibility could be improved so as to increase business performance. As rightly suggested by Saunders et al (2005) and Burns (2000) the research aims and objectives determines or shape the design of the research methodology used, for it is on that basis that the researcher selects his basic research method, the distinctive criteria of which he must carefully observe in the investigation of his problem. And for this to be realized, the researcher has to be attuned with not only the research aims and objectives but more importantly with the research methodology of which also has a great influence on the research approach and strategy, as well as the data collection approach and techniques.

3.3 RESEARCH PHILOSOPHY

The research has been carried out under the influence of the research philosophy of one school of thought known as the phenomenologists who were of the view as rightly expressed by Collis and Hussey (2003) that human behaviour is not as easily measured as phenomena in the natural sciences or be subsumed within numerical classification. Hence the selection of the phenomenological research philosophy emerge from the researchers conception that an investigation into the corporate social responsibility is a complex matter that may void the
60

positivist research philosophy that anchor its method using generalized laws. Besides this understanding, a study of organization involving management and staff as well as the impact of their activities on the host communities within a particular locale cannot easily be condensed within the ambient of reasoning that appear to be lackadaisical of the place of the human element. As rightly encapsulated in the philosophical underpinning of the positivists research philosophy, the discipline in itself is empirical and anti-speculative (Collis and Hussey 2003; Saunders et al 2007). It concentrates on perceptible phenomena and on the ordered relationships that can be established through empirical research. Hence to apply such a position to a research that investigate issues of organizations impact on their host communities would appear out of context considering the fact that the issue being investigated is not only relative and approached based on the way it appear to the researcher in various context but also may not be able to be established empirically. More so, analyzing such issues involves looking into complex social phenomena which may be difficult using the methods of positive philosophical analysis (Scapens 1990). In addition to this, the formation of generalized laws of which constitutes one of the core characteristics of positivism makes it possible to suggest that in such social context the use of positivism research philosophy can lead to loss of valuable information of which may necessitate the loss of valuable data (Saunders et al 2007). Also, the researched has much direct bearing from the context of subjective experience of which the phenomenological field of philosophy embraces. Collis and Hussey (2003) corresponded to this when they observed that the reality of a given educational setting may be seen not as a fixed and stable entity but as a type of variable that might be discerned through multiple forms of understanding. However, in literature many philosophical assumption have emerged to shed light on how a researcher should conduct

61

their endeavours of which to a great extent underpins the research philosophy employed by the researcher. Ontologically and epistemologically speaking, the social world is real and external to the individual. It is the individuals that create the social world and not vice versa. In other words the social world can only be understood by occupying the frame of reference of the participant in action and not otherwise. This line of thought is quite depicted and substantiated in the perspective of Heidegger who posited that all research and analysis are driven by an attempt to understand self in relation to humanity of which we understand on the basis of our projects (Skirbekk and Gilje 2001). Similarly but from another point of view, Merleau-Ponty pointed out that knowledge is gained from particular point of view or from particular experience of the world. Hence when we return to things themselves in research, we come to terms to a world that precedes knowledge or science with the aim of presenting the life world as the meaning or constitutive grounds of the sciences (Skirbekk and Gilje 2001). To this end therefore, an investigation into the impact of corporate social responsibility on oil producing communities, not only involves understanding the perceptions and views of host communities but also that of comprehending the resulting actions of the people involved. Thus there is a direct interaction between the researcher and the object of inquiry as they continually sought to interact and it is on this phenomenological research philosophy that this research is built on.

3.4 RESEARCH APPROACH

The essence of this section is to determine both the means of conducting the research and the methods used. As identified by Collis and Hussey (2003) research approach could be seen as a master plan specifying the methods and procedures of which the researcher will use to
62

guide and focus his research. Emphasizing on this Saunders et al (2007) noted that the essentiality of research approach could be deduced from what takes place within its context. This is because it is within such scenario that the researcher is concerned with choosing the approach that would be more pertinent in sieving out data that will be of benefit in answering the research question. However, evidence from literature makes it possible to suggest that there are two types of research approach: quantitative approach otherwise known as deductive approach and qualitative approach, also referred to as inductive approach (Bryman 2001; Collis and Hussey 2003; Jankowicz 2005; Saunders et al 2007). As noted by Saunders et al (2007) the deductive approach owes much to what one may think of as scientific research, while the inductive approach is oriented towards gaining an understanding of the meanings humans attach to events as well as the research context. Consequently, considering the above stated point, the researcher adopted the qualitative method otherwise referred to as inductive, based on the fact that it is not only an approach where data would be collected and theories developed as a result of analyzing the data that was collected, but also it is an approach that begins with specific observation and then builds towards general patterns (Silverman 1993, 2000; Walsh 2001; Patton 2002; Maylor and Blackmon 2005). In the context of the research therefore, it entailed collecting data by interviewing a sample of customers and staff of Chevron Oil (Nigeria) as well as some people from the host communities so as to comprehend their perceptions and expectations of the company towards corporate social responsibility activities and thus, be able to assess the motivation behind the companys corporate social responsibility functions and investment projects they undertake. Most importantly, the conclusions drawn through this approach would go a long way in equipping the researcher with the enabling tool to suggest feasible ways through which corporate social responsibility could be improved so as to increase business performance.
63

It is important to note at this juncture that the researcher could not find the deductive approach more appropriate based on an informed understanding of suitability of the method and judging the fact that the research philosophy adopted is not only unscientific in the sense that it is not seeking to deduce cause and effect relationship to predict patterns of behaviour, but is primarily exploratory and descriptive in purpose with the view of knowing what can be learned about the area of interest (Bryman and Bell 2007). Besides this, an investigation into the impact of corporate social responsibility of oil companies on host communities involves an understanding of how the people involved interpret their own world and also how the organization perceives corporate social responsibility. Therefore, using deductive approach which not only negate the place of humans who are the investigating field in understanding events from their viewpoints, but also refute alternative avenues that can allow one to see that things could be other than they appear to be within this context, may not give the researcher the tool to sieve out the perception of the communities of which the corporate social responsibility activities of the oil companies impact on. Investigations into the impact of corporate social responsibility of oil companies on oil producing communities involve both the perception of the organization and the host communities. In addition to this, the research is context specific and as such should go with research approach that offers and accommodate the human element increasingly, as a critical and determining factor in the definition of what is, within the context in which the event takes place (Burns 2000; Collis and Hussey 2003; Saunders et al 2007). This in other words goes on to entail that the collection of data would precede the formulation of theory and this also draws the choice and appropriateness of the researchers adoption of inductive approach. So it would not be out of context therefore to state that the use of an inductive research approach emerges from the very nature of the topic that is being researched and the research philosophy employed.
64

3.5 RESEARCH STRATEGY: CASE STUDY

By research strategy which is also a subset of the research design, the researcher intend to make it known the element through which he intend to collect data so as to answer the research aims and objectives. Considering the research philosophy which clearly depicts an exploratory type and the nature of the research of which involves the observation of a bounded aspect of a selected organization: corporate social responsibility, the researcher has adopted a case study research strategy in order to gain an in-depth understanding and focus into the research context. As described by Robson (2002) and re-affirmed by Saunders et al (2007) a case study is a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence. In other words case study offers an opportunity to study a particular subject in depth (Bryman 2001) and this lends credence to the choice of it as the appropriate research strategy for the research understudy. Chevron Oil (Nigeria) is thus a bounded unit in the oil strategic industry. Corresponding to this, Collis and Hussey (2003) represented and buttressed this point when they noted that a case study is an extensive examination of a single instance of a phenomenon of interest and is an example of phenomenological methodology. Thus, case study implies a single unit or subject analysis such as a company or group of people among others, of which is typical of the research understudy. Walsh (2001) underscored this notion when he described case study as involving a systematic investigation into a single individual event or situation necessitating the studies of a single example or case of some phenomenon. This implies that with case study the research aims at not only exploring certain phenomena, but more so, to understand them within a particular context (Yin 1994).

65

However in their long elucidation of case study Collis and Hussey (2003) corresponding to Scapens (1990) identified four types of case studies of which include the descriptive, illustrative, experimental and explanatory. This paper employs the explanatory case studies in which existing theory is used to understand and explain what takes place in a particular circumstance. In literature it is important to note that many scholars appear to give credence to the case studies research strategy. Reflecting on the uniqueness and merits of case studies research strategy Bryman (2001) was of the view that it can provide insights into the class of events from which the case has been drawn. Suffice it to say that a case study may provide anecdotal evidence that illustrates more general findings. As rightly suggested by Collis and Hussey (2003) in addition to the fact that case study tend to suit exploratory research, it has also the capability to generate considerable answers to the Why, What and How questions. More so, it fit many purposes and offers the researcher multiple potential avenues of collecting data as well as provides easy means of combining data analytical methods. To this end therefore, Saunders et al (2007) noted that data collection method employed may include questionnaires, interviews, observations and documentary analysis of which as a matter of fact constitutes the data collection method of the research understudy. On the other hand, in as much as there are evidence of acceptance as regard the strengths of case study, it should be noted that there are some issues inherent in the case study strategy of which has equally raised the mind of some scholars to question its credibility. Bryman (2001) questions the role of human objectivity when selecting evidence to support or refute, or when choosing a particular explanation for the evidence found, a fact which Ozuem et al (2008) depicted and identified as the influence of the etic (values of the researcher) and emic (values of the researched). One of the implications of this influence is that content analysis will often be invoked to convert qualitative data into quantitative, of which most often can lead to losing the uniqueness and contextuality of the case being studied. More so, Collis
66

and Hussey (2003) noted that case studies are time consuming and provide for the investigator a massive deluge of information which most often is impossible to adequately analyzed, thereby increasing the tendency to selectivity and biasness. Nevertheless, notwithstanding the enumerated demerits of case study research strategy, it is important to note that considering the nature of the research under enquiry and the research philosophy adopted, there is no or less doubt that case study strategy amidst other research strategies stands more appropriate in shedding light to the issue under investigation. To substantiate this fact, it is the intention of the researcher at this juncture to justify this by examining some other alternative research strategy.

3.6 ALTERNATIVE RESEARCH STRATEGIES

Evidence from literature makes it possible to suggest that there is many other research strategy used in conducting research that embraced the phenomenological research methodology. Saunders et al (2007) in addition to case study strategy identified other strategies of which include: experimental, survey, grounded theory, ethnography, action research among others. But the reasons why the researcher never deemed it appropriate to adopt any of them is evidenced and summarized in the subsequent sub headings. 3.6.1 EXPERIMENTAL RESEARCH STRATEGY As noted by Bryman (2001) one the purpose of experimental strategy is to derive verified functional relationships among phenomena under controlled conditions. Simply put experimental research strategy is primarily meant to identify conditions underlying the occurrence of a given phenomenon. From an operational viewpoint, it consists of varying the independent variables. According to Collis and Hussey (2003) the experimental strategy owes

67

much to the positivist methodology even though it features in some social science research and typically are conducted in a systematic way. Considering the core drive of experimental strategy, it would not be out of context to suggest that such a strategy is inappropriate to a study that is to a greater extent unscientific incline. This is because the experimental steps are essentially those of the scientific method. Bryman and Bell (2007) on this note stated that it consist of testing of hypothesis of which as a matter of fact is not the interest of the proposed research. An investigation into the impact of corporate social responsibility of oil companies on oil producing communities involves engaging human elements perceptions, feelings, values, emotions as well as the state, actions and interactions of people, groups and organizations among others, of which Maylor and Blackmon (2005) identified as contrasting elements of experimental research strategy. In other words, it does not seek to explore meanings but instead try to test hypothesis. 3.6.2 SURVEY RESEARCH STRATEGY This type of research strategy is oriented towards the determination of any status of a given phenomenon. As expressed in the works of Bryman (2001) surveys are particularly versatile and practical especially for the researcher, in that they identify present conditions and point to present needs. Similarly, Collis and Hussey (2003) while categorizing survey as a positivist methodology stated that it is a situation whereby a sample of subjects is drawn from a population and studied to make inference about the population. According to them this type of strategy can be relevant in business research in the form of attitude surveys and also where the aim is to find out whether there is any relationship between different variables. Admittedly survey research focuses on the vital facts of people, their beliefs, opinions, attitudes, motivations as well as behaviour that one will be prompted to ask why the researcher did not adopt it as the most suitable strategy. But it is necessary to note that case

68

study appears to capture the essence of the research understudy based on the fact that surveys are generally based on large cross-sectional samples while case studies are more oriented towards intensive and longitudinal study of smaller samples as well as attempts to isolate or divorce antecedents or causes of the phenomenon under investigation. 3.6.3 GROUNDED THEORY RESEARCH STRATEGY Although the grounded theory research strategy is mostly accepted as one of the most commonly used qualitative method that share the common research philosophy of phenomenology, it should be noted that the researcher found it inappropriate to yield effective result on the issue being investigated based on the following reasons. First and foremost, as rightly identified by Collis and Hussey (2003) grounded theory uses a systematic set of procedures to findings of the research that constitute a theoretical formulation of the reality under investigation, rather than a set of numbers, or a group of loosely related themes. Furthermore, this research strategy is often associated with research that consists of theory building of which is not the priority of the research understudy. However, considering the nature of grounded theory, the strategy was found inappropriate within this context based on the fact that grounded theory put much emphasis on generating theory from observation made. This in other words, entails that the researcher must have been within the locale of investigation for a quite period of time and as such would not give the researcher the flexibility to alternate or employ other necessary data collection methods like questionnaires and interviews among others. 3.6.4 ETHNOGRAPHY RESEARCH STRATEGY The term ethnography depicts the writings about people. In a general sense it includes any study of a group of people for the purpose of describing their socio-cultural activities and patterns (Saunders et al 2007). Ethnography essentially involves descriptive data collection as
69

the basis for interpretation. As a process ethnography could be seen as the science of cultural description. Nevertheless the strategy was rejected by the researcher based on some reasons among which include that its main method of collecting data is through participant observation and informant interviews (Collis and Hussey 2003). Therefore, in ethnography the ethnographer or researcher has to live among participants and collect data for long periods of time. This in other words imply that using such a research strategy will require not only an extensive period of time but more so, necessitate the researcher being a full time member of the host community and organization being investigated as well as doing the research. Consequently, considering the limited time available to conduct the research ethnography research strategy appears unsuitable within this context and thus will not be employed as a data collection method for the research understudy. Moreover, out of all strategies considered, the case study research strategy appear more appropriate as the most suitable to answer the research questions as well as conduct a limited exploratory research within a short period of time.

3.7 RESEARCH INSTRUMENTS

Collection of data is an important part of research and as rightly envisaged by many scholars the technique used in the course of collecting the data is very much fundamental in research process (Bryman 2001; Saunders et al 2007). In literature there are two main types of data of which the researcher has appropriately configured as means of collecting his data: primary and secondary data (Saunders et al 2007). While primary data refers to those data collected for the specific purpose of the research project being undertaken, secondary data stands for data collected for other purposes like published summaries and through other means such as books, journals, scholarly articles, news papers, company documents, internet, e-journals and
70

data base among others (Bryman 2001; Saunders et al 2007). Hence in order to ascertain the required data which implied to some extent the exposition of the organizations perception of corporate social responsibility and how this viewpoint impacts on its host communities, some information from Chevron Oil (Nigeria) was gathered through its published policies and corporate social responsibility agenda. Collection of primary data was undertaken from Chevron Oil (Nigeria) and some selected members of the host communities through purposive sampling approach using the qualitative techniques, consisting of in-depth interview, semi-structured questionnaires and participant observation as are further explained below. Nevertheless, it is important to note there are various methods used in collecting data but the appropriateness of each method is most often determined by the nature of inquiry understudy and the research methodology in use. Hence, considering the fact that this research is based on the phenomenological research philosophy and the nature of data required, the researcher deemed it imperative to concentrate more on the qualitative data collection methods which most often are used in collecting data within such periphery. Such an approach he believed would go a long way in developing understanding on the impact of corporate social responsibility of oil companies on their host communities in the developing countries. On this note Saunders et al (2007) was of the view that primary data can be collected through semi-structured, interviews and questionnaires. This we shall briefly expose below. 3.7.1 INTERVIEWS Interviews are one of the methods used in collecting qualitative data. The process consists of a purposeful discussion involving two or more people. This process as rightly stated by Saunders et al (2007) can assist in gathering valid data and can be structured, semi-structured or unstructured. While structured interviews make use of questionnaires that are

71

predetermined, that of semi-structures and in-depth interview is informal. It is important to note that the unstructured interview of which this research will be adopting has the capability of allowing the researcher to explore as much as possible his areas of interest. In addition to the fact that interviews can be conducted on one to one or one versus many bases, it can also be carried through telephone (Bryman 2001). The importance of this approach to the research understudy is that it will offer the researcher the freedom to move into any area of interest. Using this approach therefore, a set of research interviews questions guidelines were designed. The interviews questions aimed at arriving at the two main research questions although not all of them were eventually used during the interviews. A purposive sampling approach was employed to seek out groups and individuals where the repositories of the issue under investigation appeared to be evident. Letters of request were sent to prospective interviewees prior to the interview. Important to note is that the constructed interviews questions underwent pilot study prior to the time of the interviews and there were built upon certain features of corporate social responsibility. In all the samples which as aforementioned were purposively selected, the interviews often opens with the explanation of the study and more importantly allowed respondents to seek clarification if deemed necessary. Besides this, the respondents were requested to discuss about their usage and experience of corporate social responsibility as it reflect within their locale. However it should be noted that some additional questions revolving around the point were required at certain point in order to derive the necessary information required and the order of asking the questions varied from one conversation to the other. Information was obtained by interviewing 2 managers and 3 staffs of Chevron as well as from 7 members of the host communities who had given their consent and the data collected was recorded down with their consent through audio tapes and note takings. The interviews conducted lasted at about one to two hours with breaks as was suggested by Saunders et al (2007). More so, at the end
72

of each interview, the necessary point raised by respondents were reiterated to ensure that the respondents initial point and meaning is retained unadulterated. Data gathered in this way is likely to address the what, how and why questions thereby, aiding the exploratory nature of the study. Above all, it should be noted that the questions were designed to relate to each of the research aims and objectives as well. The interview guideline contained questions aiming at gaining an understanding of the perceived level of corporate social responsibility of the organization. Notable among them was that of sieving out what the host communities opinions are regarding the present level of corporate social responsibility of Chevron and the problems and shortfalls they have experienced. More so, the views of the company on corporate social responsibility and its practice were sought through another set of questions used on the companys staff and management team. All this was to ensure that all the necessary data was well articulated so as to gain and develop understanding. 3.7.2 QUESTIONNAIRES Questionnaires are one of the techniques used in collecting data. In research literature there seems to be varied opinions as it relates to its definition. Generally speaking it includes all those data collection techniques in which each person is asked to provide an answer to the same set of question in a determined manner (Saunders et al 2007). Questionnaires could be structured, semi-structured or unstructured (Bryman 2001; Bryman and Bell 2007). However, the research adopted the unstructured questionnaires approach. The choice of this particular approach is based on the researchers insight of the merits it will provide in investigating the issue under examination. The unstructured questionnaires were used on top management and managers of Chevron oil (Nigeria) and other stakeholders in the environment with the intention of ascertaining their views on the companys corporate social responsibility and organizational practices. More so, the questionnaires took cognizance of the time that would have been wasted in interviewing some of the managers who as a result
73

of their tight schedule were not able to give out much time during the interviews as earlier scheduled. It is important to note at this juncture that the type of questionnaires used in the research is delivery and collection questionnaires whereby the questionnaire is handed over to each manager and collected later on (Saunders et al 2007). In line with the interview the questionnaires for managers were designed to obtain answers to the two main research questions. To this end, questions which seek to investigate the impact of corporate social responsibility on oil producing communities were included in the questionnaires so as to envelop the issue being investigated. More so, some questions were also designed to determine whether the organization does understand the host communities requirements. Besides this, questions as regards whether the company does embrace the apocalyptic accompaniments emanating from active practice and demonstration of corporate social responsibilities activities were also included in the questionnaires. In this sense therefore effort was made to see that from the organization point of view the questionnaire adequately covered the research questions. Nevertheless, the questionnaires were kept at a minimum number and were made short, clear and easy to answer by the respondents whom had given their consent. In total 12 unstructured questionnaires was administered among individual using purposive sampling approach where repository of knowledge appeared more evident

3.8 ETHICAL CONSIDERATIONS

One of the important elements in interviews as well as other enquiry where feedback is expected to be given to a third party is that of seeking consent and confidentiality among others. Suffice it to say that what validates any enquiry of this nature is that the respondents have not only given their consent but more importantly were assured its confidentiality. One
74

of the advantages of this consideration is that it enabled the respondents to be more open and thus, address issues as they are. The purpose of the study was explained to the respondents and they were assured that their participation was voluntary and as such can withdraw at any point in time. More so, in cases where age was mentioned, the researcher received the consent of the respondent before revealing such. In addition to this they were equally assured that in no circumstances will their names be revealed, whether in the course of the data analysis or other areas such as informal discussion. This practice however, is in consonance with the recommendation of Collis and Hussey (2003) who were of the view that the participants should be consulted and their consent sought throughout the research process.

3.9 PILOT TEST

The essence of pilot testing was deemed necessary by the researcher so as to ensure that the questionnaires and the interview check list being administered yields the expected result as much as possible. Saunders et al (2007) noted that pilot testing will enables researchers prior to administering his questionnaires, to refine their questionnaires so that respondents will have no problem in answering the questions as well as in recording the answers where necessary. Considering this capability the questionnaires for the research underwent a pilot testing study by one manager of the organization understudy based on the research questions who also made some reasonable comments of which the researcher took into consideration. However, prior to the pilot testing the questionnaires was edited and commented on by the supervisor so as to ensure that the questionnaire is quite representative and suitable for the research under investigation. As rightly identified by Mitchell (1996) this type of consideration helps in establishing content validity as well as providing the opportunity to make necessary amendments before the pilot testing. More so, information concerning any
75

unforeseen circumstances would be identified using Bell (1999) recommended layout of which include finding out: 1. How long the questionnaires took them to complete; 2. The clarity of instructions; 3. Which, if any, questions were unclear or ambiguous; 4. Which, if any, respondent felt uneasy about answering the questions; 5. Whether in their opinion there were any major topic omissions; 6. Whether the layout was clear and attractive; 7. Whether there are any other suggested comments. Moreover, these processes in addition to the test-retest technique will go a long way to minimize any inadequacy in the construction of the questionnaires and more importantly establish its reliability.

3.10 ALTERNATIVE DATA COLLECTION METHODS

There are other means of collecting data when employing qualitative method that is based on the phenomenological research philosophy of which the researcher would like to admit and more importantly explain why he found them inappropriate for the proposed research. 3.10.1 PARTICIPANT AND STRUCTURED OBSERVATION Observation is one of the essential parts of collecting data, although it is most often neglected. This method entails the systematic observation, recording, description, analysis and interpretation of peoples behaviour (Saunders et al 2007, p. 282). In their views observation is of two types: participatory observation is where the researcher makes effort to participate entirely in the lives and activities the group, organization, or community

76

understudy that he in this sense becomes a member of the organization. Although the method gives the researcher more insight of significant social processes the closeness of the researcher to the situation can prejudiced his data. The second type is known as structured observation. Here observation is systematic and predetermined. One of the advantages of the structured observation as recorded by Saunders et al (2007) is that it enables the researcher to tell how often things happen rather than why they happen. Notwithstanding the fact that process tends to yield higher result based on its reliability, its data appear to be slow and expensive. Considering the nature of this method of data collection it will not be suitable to adopt the participatory observation approach based on the fact that the researcher has not fully participated directly and has limited time to complete the research.

3.11 SAMPLING METHOD

No concept is as fundamental to the conduct of research and the interpretation of its results as is sampling. It could be said that research except in few cases is invariably conducted by means of a sample, on the basis of which generalizations applicable to the population from which the sample was obtained are reached. The essence of sampling is quite evident and depicted in the works of Saunders et al (2007) when they noted that in administering research questions it would be impracticable to survey the whole population, considering the limited time and budget among other constraints in this type of research. As rightly suggested by Bryman (2001) sampling could be viewed as taking any portion of a population or universe as a representative of that population or universe. In other words sampling is the process of selecting a sufficient number of elements from a population to represent the properties or characteristics of that population (Collis and Hussey 2003).

77

However, Saunders et al (2007) identified two types of research sampling techniques: probability or representative sampling and non-probability or judgmental sampling. In their views while the probability samplings relates to survey-based research where the researcher needs to make inference from the sample about a population to answer the research questions, the non-probability enables the researcher to select his sampling purposively and to reach difficult-to-identify members of the population. Based on this note, the researcher will be adopting the probability sampling having considered its advantage in remedying the research questions as well as gaining deeper insight to a particular given phenomenon among others. Consequently, in order to collect data as regard the impact of corporate social responsibility on oil producing communities the researcher will be using some sample of which include the 2 directors and managers of Chevron Oil (Nigeria), 3 employees and 7 members from the host communities so as to gather data. Precisely speaking, the researcher will be employing the purposive sampling of non-probability sampling techniques. Purposive sampling as described by Saunders (2007) supports the use of judgment to select cases that will be best in answering the research questions. As specified above the research is a case study dealing with a small sample size and this enables the researcher to select most informative samples for the study. Based on the requirements of research questions, the selection of cases was based on critical case sampling where a logical generalization is made from the data collected from the critical cases. Thus, data is collected from the most relevant and important cases where understanding and repository of knowledge appeared evident. Several clues suggested by Patton (2002) that could be used to identify critical cases were considered as well. Such clues include trying to examine whether, if it happens at that place will it happen also everywhere given the same circumstance, if they are having problems, can you be sure that everyone will have the same problems, if they cannot understand the process, is it likely that no one will be able not to understand the process among others were taken into consideration.
78

All this effort was to ensure that the information generated represent the exact state of affairs under investigation. Moreover, as aforementioned representative samples of 12 in total were employed for the sample population, after which random sampling was used over the data collected from different groups of stakeholders involved. One of the advantages of employing this method at that stage is that it is unbiased in the sense that no member of the population has more chance of being selected than any other member. Suffice it to say that it gives each data the chances of being selected in the selection process, thereby avoiding partiality.

3.12 STRENGTHS OF THE METHODOLOGY

The merits of the methodology employed in this research can never be over emphasized. Burns (2000) noted that unlike many of the traditional narrower approach to the examination of educational experience, the qualitative mode of inquiry which strictly is based on the phenomenological research philosophy is characterized by methodological eclecticism, a hypothesis-free orientation and an implicit acceptance of the natural scheme of things. In addition to this, the methodology play the important role of allowing the researcher to see that things could be other than they are and more so enables the researcher to gain an insiders view of the matter understudy (Bryman and Burgess 2004). Remarkable to note is that the methodology offers the researcher the opportunity to capture what people say and do as a product of how they interpret the complexity of their world, to understand events from the viewpoints of the participants. Collis and Hussey (2003) describes this emerging form of research as being considerably relevant, since there can be little meaning, impact or quality in an event isolated from the context in which it is found. As aforementioned the matter understudy is a social fact of which draws a context-bound conclusions that could potentially

79

point the way to new polices and educational decisions, rather than towards scientific generalizations. Suffice it to say that the methodology has the capability of gaining a rich understanding of the context of the investigating field by presenting the researcher multiple avenues of study (Burns 2000; Walsh 2001; Collis and Hussey 2003). This flexibility thus provides the researcher different avenues that can lead to the discovery of deeper levels of socially constructed meanings that exist within every social context. Enlisted in the profiles of Chevron Oil (Nigeria) for instance, is an enormous list of high corporate social responsibilities functions embarked on by the organization, but recent investigations and clamours from its host communities has raised various minds to question the authenticity of such disclosures. The matter therefore is not only context bounded but also demands a contextual model research of which the qualitative research methodology is in consonance with.

3.13 LIMITATIONS OF THE METHODOLOGY

The problem of adequate validity and reliability is one of the major demerits placed over the methodology adopted for this study. Because of the subjective nature of its data and origin in single contexts, it appears difficult to apply conventional standard of reliability and validity. On this note Saunders et al (2007) observed that in qualitative methodology, contexts, situations, events, conditions and interactions cannot be replicated to any extent neither will generalization be made with any confidence to wider context than the one studied. In addition to this, considering the limited time within which the research is expected to be fully conducted, the researcher did not spend a considerable amount of time in the research

80

setting so as to examine holistically and aggregately the interactions, reactions and activities of the subject understudy. Besides this, Bryman (2001) noted that because of the intimacy of participant-observer relationships within the setting there is no doubt that the researchers mere presence will have profound reactive effects on the subjects of the study. However, these stated problems among others illustrate human deficiencies and thus, draws on the importance of further research.

3.14 SUMMARY
This chapter covers the methodological aspects selected in conducting the research. It opens by reviewing the research aims and objectives as well as highlighting the influence of them on the research method to be followed. Furthermore, it presented the rationale and justification behind the chosen method. A discussion of the research philosophy, approach, strategy, data collection method, the ethical considerations given as well as the strengths and limitations of the methodology were also examined respectively. The next chapter however will focus on the analysis and findings.

81

82

CHAPTER FOUR

ANALYSIS AND FINDINGS

4.1 INTRODUCTION
The preceding chapters have respectively focused on presenting the research overview of inquiry as well as the conceptual clarification through reviews of extant related literatures and the research methodology adopted for the research understudy. The succeeding chapter therefore seeks to analyze the enormous data collected with the principal view of presenting the findings that emerged from the analysis of the data collected. Prior to the data analysis the chapter enveloped the data analytical method employed in the analysis, explaining in details the why of its selection amidst other various data analytical methods applied in qualitative research methodology. Finally, in consonance with the dictates of the organizational structure of research, the chapter also deemed it imperative to re-present the means through which the researcher collected his data and the data collection method employed for each particular sample used.

4.2 THE DATA ANALYTICAL METHOD: THEMATIC ANALYSIS AND JUSTIFICATION FOR ITS SELECTION
The data collected was analyzed using thematic analytical framework which involved a number of distinct analyses with highly interconnected stages. The consideration of this method of analysis was based on the fact that the framework as identified by Bryman and

83

Burgess (2004) is not only systematic and disciplined but more so, is essentially about detection, defining, explaining and exploring issues of which are among the basic tenets of qualitative research. In addition to this, it allows the researcher to review the whole data collected without any partial or selective treatment at the analytical table (Tuckett 2005). More so, it was deemed as the most appropriate method considering its capability and flexibility in facilitating an in-depth illustration and explanation of the materials collected which invariably are unstructured and cumbersome. This is well understood when one recapitulate that a high proportion of the data collected is not only text based but also emerged through in-depth interviews and unstructured questionnaires. These sources which mainly are in detailed and micro forms called for some coherency and articulated structure. Since the researcher is not seeking to build theories nor test hypothesis, it became imperative therefore that an analytical method which seeks to sift, chart, sort and explain data as they relate to key issues and themes being discussed during the data collection process be adopted (Tuckett 2005). The adoption of thematic analytical framework in this sense not only offers this capability but more importantly makes it possible to draw upon a priori issues, which are those issues informed by the original research questions and brought forward into the interview and questionnaires through the topic guide. More so, it brings into focus the emergent issues raised by those interviewed as well as the analytical themes from the recurrence views (Bryman 2001; Bryman and Burgess 2004). As rightly identified by Bryman and Burgess (2004) and practically exemplified in the works of Ozuem et al (2008) such a framework enables the researcher to reconsider and rework on the unwieldy data collected and ideas. Nevertheless the method of study as suggested by Bryman and Burgess (2004) consists of five systematic stages of analytical process of which include: familiarization, identifying a

84

thematic framework, indexing, charting, mapping and interpretation; the stage in which the core objectives of the qualitative analysis are addressed.

4.3 DRAWBACKS OF THEMATIC ANALYSIS

Some authors have suggested that given the flexibility of thematic analysis, there is often the tendency for researchers to adopt this method of analysis without any clear and concise guidelines (Antaki et al 2002). Within such scenario anything goes and thus, makes the method uncritical. Therefore, there is that possibility of lacking a detailed guidance for analysis, of which can result in inadequate analysis especially in this type of circumstance. This capability in other words can not only degenerate into uncritical subjectivity of the researcher as well as that of the interviewee but could also lead to a superficial description of the matter understudy. To forestall this problem, the researcher kept on linking itself as much as possible with the detailed stages within the process, as a necessary strategy in limiting the possibility of falling into this potential pitfall.

4.4 WHY OTHER METHODS WERE NOT FOUND APPROPRIATE

Among other various analytical tools the researcher having examined other method found thematic analysis as the most appropriate method suitable for the present research. This is never without reason. A detailed investigation into other analytical methods that seek to describe patterns across qualitative data as thematic analysis such as narrative analysis and grounded theory exemplified this fact. As rightly identified by Smith et al (1999) and Smith and Osborn (2003) narrative analysis although is attached to a phenomenological epistemology which gives experience and subjectivity primacy, is more of eliciting in great
85

detail, peoples everyday experience in order to gain an understanding of the phenomenon in question. Notwithstanding the fact that the above stated method share a search for certain themes or patterns across the data, it should be noted that they do not search for themes within a data item such as in an individual interview, as in the case of a case study strategy (Murray 2003; Riessman 1993). In addition to this, the issue being investigated was not fully experienced by the researcher and neither has the researcher a considerable time to be fully implicated in the construction of the story for the interviewee (Bryman and Bell 2007). On the other hand, regardless of the fact that some authors present grounded theory as a reliable analytical method in analyzing qualitative data. Bryman and Bell (2007) noted that segmenting data most often bears some risk of complexity of which can lead to elimination of the expressions, attitudes, behavioural and gestured meanings of participants. In addition to this is the difficulty that it can present for the researcher in identifying when the categories are saturated and the theory is complete. Above all, it is mainly useful in research that is built on generating theory (Holloway and Todres 2003) of which is not the intention of this research. In the same vein the template analysis technique was considered irrelevant within this context due to the fact that it combines both deductive and inductive elements in the data analysis (Bryman and Burgess 2004). This capability often leads to unnecessary complication in data analysis. Besides this, the present research is designed in a purely inductive manner and the time limit may not encourage the use of such analytical technique (Tuckett 2005). In summary, the above examined methods were found inappropriate based on the fact that they were either incompatible with the research methods and/or data collection techniques used or unsuitable for addressing the research questions and thus unable to reflect and unravel the surface of the issue understudy.

86

4.5 CATEGORIZING THE THEMES

In consonance with the stages of analytical process in thematic analysis, effort was geared towards being attuned with the range and diversity of material gathered and setting them in context before sifting and sorting. To this end the tapes used during the in-depth interview with respondents who were purposefully chosen by the researcher and had their consent were attentively listened to, notes as well as transcripts used within the data collection period which sought to investigate the impact of Chevrons corporate social responsibility activities on their oil producing communities were re-read including the studying observational notes. All these materials were reviewed in order to ensure that the key ideas and recurrent themes were correctly listed (Patton 2002; Tuckett 2005). However, it should be noted that the notion of corporate social responsibility has been very tropical in recent years sequel to the numerous high profiles of corporate scandals by corporate bodies especially with the fall of Enron and Parmalat among others (Jill 2007). Hence, the ease in collecting data in such an area of study which has witnessed an exponential rate of publicity was indeed challenging. Thus, as the topic understudy is still a new developing discipline of which its dictates are not universally embraced in all ramifications, effort was made in keeping abreast with what is in the offing within the corporate social responsibility membrane. Host of literatures abounds of which many of those are in favour of corporate social responsibility activities in its entirety. Corresponding from this is the wide range of knowledge and willingness it gave to respondent of which necessitated in their being more accessible as well spending more time than earlier thought. Suffice it to say that the initial concerns enabled the researcher gain a deeper grounded understanding in reconciling ideas. While reviewing the amalgams of literatures and

87

perceptions, the recurrent themes and issues which emerged consequent of the questions posed by the researcher, points that appeared necessary to the respondents were identified and jotted down. As the familiarization of these data developed, the data triggered off some interconnected categories which replicated some of the core issues in the major themes, but of which may not categorized under the major themes due to their complex nature and some differences which made them appear exclusive especially when viewed from a distance. However, next on this rank or stage was the period of identifying a thematic framework, otherwise known as key issues, concepts and themes to which the data collected can be examined and referenced as the analysis developed (Bryman and Burgess 2004). The composition of the major themes identified is depicted in Table 1 below. Tables 1 Major themes Social factors Perceived benefits Key issues

Oil companies embark on Donations social functions through Sponsorship awards Community investments

various means of which the oil producing communities are beneficiaries.

concomitant Community developments Agricultural aid

Environmental factors

In

the

same

vein,

the Mitigation of hydroelectric

environmental factors are to production some extent related to the economic goals of CSR Reduction activities of mining

practice as could be seen

88

below.

Pollution Cleanliness

Economic factors

In the developing countries Profit oil companies employ the corporate social Training Maximization

responsibilities functions as a

means of realizing their self Technological transfer objectives or profit making. Hence, effort is made in matching business operations Local sourcing with stakeholders objectives. Technical support

As the process continued, four more themes in addition to the a priori issues informed by the research questions and thus introduced into the interviews through the topic guide emerged. These themes, however, were not mutually exclusive to the initial categories but happened to surface as necessary important issues. Important to note is that they were pointed out by respondents themselves throughout the entire process. The permeating themes are represented in Table 2 with categorized key issues.

Table 2 Permeated theme Redundancy crisis Perceived consequent effects Many of the Key issues

indigenes Unemployment

89

among the host communities Low income are now unemployed and the predicament have resulted to other issues. Theft Illiteracy No cordial relationship and To this end, the personal and Hostility existence of unnecessary shut social lives of the citizens downs within the host communities as well as between them and Change in social behaviour Mistrust Market impact

oil companies are affected in Rivalries various ways. Reduced Standards of living Unnecessary shutdown

The cost of living between Reduced eating habit the staff and individuals in the host communities are very high and only few Individual within Changes in social life pattern of Reduced income

these Reduced

communities manage to live expenditure above poverty level, the rest appears to live in abject poverty Health problems Serious respiratory problems Coughing up were linked to environmental pollution activities companies. caused of by the the oil Protein deficiency Gastrointestinal problems Cancer Low standard of education

90

Kwashiorkor

As aforementioned this research takes a case study strategy which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence and understanding. More so, as regards the analytical tool or instrument the research employed an inductive thematic analysis which consists of identifying, analyzing and reporting patterns or themes within data given by respondents. In other words, data was collected from the respondents within the communities and the company understudy using a purposive sampling and thus analyzed. During the analyses judgments about meanings, about the relevance and the importance of issues and about implicit connections between ideas was sought, making sure that the original research questions are being fully addressed. In-depth interviews was used as the main research instrument of which were designed in form of questionnaires and telephone especially in situation where contacting some respondents appeared impossible. Effort was made to ensure that this correspondence put in plain words the nature of the study and how the data would be employed. Interviews of twelve respondents are reported consisting of 5 females and 7 males. However, the age of the respondents was also stated where it was possible. More so, the interviews were not analyzed collectively, instead each of them was transcribed and interpreted using many processes and reflective activities. At this juncture it is necessary to acknowledge my theoretical positions and values in relation to the data notwithstanding the fact that an attempt was made towards ensuring that the participants voice is reported the way they came out. In other words the data being analyzed was quite reflective of participants voice. On the other hand, it should be noted that the

91

researcher did not simply give voice, for even in giving voice there is often an unacknowledged piece of narrative evidence, of which the researcher most often select, edit and deploy to border an argument (Fine 2002; Bryman and Burgess 2004). It is precisely on this note that I accept the subjectivity and unfeasibility of the universal credibility of the analysis. Corporate social responsibility has created a new milieu for not only businesses but the whole world at large and the analysis in this research work reflects its impact on communities where oil companies operate on especially in the developing countries. The analysis through an exploration of the researchers relationship with the communities and the respondents interviewed offers an understanding of the level of corporate social responsibility practice in Chevron Oil (Nigeria) as well as its impact on the host communities. Generally speaking, most of the corporate social responsibility functions described during the interviews and identified in the course of our archival research can be grouped under the Social heading, accompanied by the Economic and Environmental aspects of CSR. The analysis therefore is scheduled following this pattern. Nevertheless, while addressing the social aspect of corporate social responsibility impact of Chevron Oil (Nigeria) on the host communities some themes were found dominant. Respondents from the company reported a wide variety and broad scope of project initiated and undertaken in such areas as public and general medicine, Education, Community development, Vocational training and SME Development, Agriculture among others of which the host communities were expected to be concomitant beneficiaries. A respondent who was a manager in the company reflected this when she stated:
Our company Chevron has corporate social responsibilities issues in stake at all times. We have been committed in providing our host communities social benefits to promote

92

development. These social benefits are well evident and encapsulated in the numerous high profiles of donations, hospital and infrastructural projects to name only but a few. Precisely speaking, the company makes yearly donations to hospitals and clinics both within and outside the host communities. The following hospitals can testify to this: General Hospital Okolobiri in Bayelsa state, Central Hospital, Warri, in Delta state and Braithwaite Memorial Hospital, Port Harcourt of Rivers state. More so, the issue of helping both government and nongovernmental organizations in generating awareness as well as combating HIV/AIDS among other areas of concern is not left out. In addition to this, we are renowned in sports and athletic sponsorship, educational projects of which our recent construction of classrooms blocks, laboratories and teachers quarters testifies to.

This participant saw corporate social responsibility as the companys engagements in assisting or supporting the government, the host communities and nongovernmental organizations in creating and ameliorating social impediment to life. She appears to view or narrow corporate social responsibility practices and concepts as one way traffic, something that is undertaken out of charity. Underlying this conception also is the notion that they are solely investing or giving out to the host communities, without receiving. His description of the impact of Chevrons corporate social responsibility impact on the host communities envisaged an expanded argument of those who believe that corporate social responsibility implies that companies voluntarily integrate social issues in their business operations as suggested by the European Commission (2001). The notions of corporate social responsibility as evidenced from the review of extant literatures is one of ethical and moral considerations and as such deserve that companies as well as managers should consider the social impacts of corporate activities as part of the business in decision making.

93

However, this idea tends to be incompatible with another respondent, a 41 year-old man in management position in the company, as evidenced in his reflection of the impact of corporate social responsibility on the host communities. In his views:
The impact of corporate social responsibility on the host communities is one of which Chevron Oil (Nigeria) is very much in line with. Sequel with the proliferation of international codes and media awareness, the company has continued to reform its corporate social agendas, all in the bid to ensure that they match international standard. In recent times, Chevron has not only contributed immensely in infrastructural developments such as road construction and other technical support to government in terms of local sourcing for procurement and service delivery but more so, has improved on their staff training health care and pension benefits as well as technological transfer initiatives. We have never relented in making effort as regards sustaining the communities as well as staff with goodies and these have always paid us.

As indicated by this respondent, the impact of corporate social responsibility of Chevron is felt by the host communities and the staff as well. Important to note in his reflection is that their corporate social responsibility practices appear to be externally influenced. It does not seem a resultant effect of self initiative or conviction. Suffice it to say that it appears to be self imposed, of which without may be otherwise. Admittedly, the respondent went on to express the huge financial involvements involved in embarking on such activities of which sometimes tends to impact on the business margin of operations. For him, there was enormous benefit accruing from corporate social responsibility activities, only that it is not cost effective and this is why sometimes the company tries to find other means to ward off such task. However, it is important to note that this respondent perception could be align with the shareholders view of corporate social responsibility in the sense that they tend to search

94

for and thus weigh if there is any corresponding benefits accruing from their practices they embark on (Jill 2007). In other words, he sees corporate social responsibility practices as something that should be economically reciprocal both in character and practice. Probably, it would not be out context to suggest therefore that the company practices of corporate social responsibility following the line of thought of this manager are undertaken mainly on those ones that will be to their own advantage. While the respondent considered economic benefit as a useful symbol in capturing what corporate social responsibility is as well as its impact on the stakeholders it could be said that he does not seem to perceive it as being an integral component of business in general. Nevertheless, this perception is equally dominant in the information provided by a member of staff in the company while reflecting on the impact of corporate social responsibility on host communities as well. According to him:
Corporate social responsibility is about ensuring that environment do not suffer as a result of ones business or operations. In line with this I can say that my company has always made effort in keeping with the environment especially those that are of great concern. Chevron has always enfolded itself in such activities that will not only mitigate the effects of mining and hydroelectric production but also do compensate for it. We also bring initiatives that will enable government to actively reduce pollution as well as ensure that the environment is kept clean. The companys use of hyper spectral imaging among other means speaks volume of this: an instrument that enables us to see and gather information about the environment so as to plan ahead and maintain equilibrium in the ecosystem.

As was noted by this respondent, Chevron Oil Nigeria of which he is a reputable member of staff is quite committed to keeping abreast with the environment. This capability of which is greatly rooted in the companys effort to adopt possible strategies that will aid in foreseeing
95

and taking appropriate measures to forestall impending trepidation is reflective of not only its respect and interest in corporate matters but also affirms its active implementation. The host communities therefore are attendant beneficiaries of this and the impact of such corporate activities on the environment could be further exemplified through other means through which the company seeks to prevent pollution. As pertinently noted by this staff, it was through such interest in corporate social responsibilities matters that made them to undertake a baseline survey, of which has assisted Chevron in developing a detailed map within the host communities, thereby equipping them with the ability to give an accurate picture of the different vegetation types of the region. Another key issue that emerged in the search to investigate the corporate social responsibility of Chevron Oil Nigeria as well as its impact on the host communities as was depicted by one respondent was that most of the social corporate functions are not discretionally motivated but instead are consequential. In this regard a member of the staff noted:
Yes, there are evidence to show that we have corporate responsibility activities in our company and that its impact is felt among us the staff and also the community in which we operate in. Corporate social responsibility which has much to do with the company establishing a cordial relationship with the staff, government and the communities so as to remain undisturbed in operation, has been one of the practices undertaken not only by our company but also could be found among other oil companies especially after the recent crisis that drew the attention of international bodies in early 1990s.

In the view of this member of staff the company take care of the staffs and community but they appear to do that, mindful of the fact that not undertaking such may impact on their financial margin. In other words, their corporate social responsibility is more of reacting in

96

terms of keeping the laws and defensive in the sense of averting the possible consequence of working in a hostile environment. This picture of corporate social responsibility is equally encapsulated in the thoughts of a 37 year legal assistant who happens to be a member of the community. Reflecting on the impact of corporate social responsibility functions of Chevron on their host communities he noted:
There is no doubt that most of what we are experiencing in recent times in terms of Chevron being socially responsible to its community is not in vogue as a necessary consequence of system disruption in terms of recent oil pipes damages and attacks on them by those we call the militants. In fact, for me I view those social functions as a strategic means to not only calm down the hearts of the host communities but also to create a reputable image among international bodies. In as much as I recognize some of the social projects undertaken by them, I would still note that they cannot be measured with the amount of damage caused by their operations in our communities. In addition to this, the activities most often do not reflect the major interest of the communities but whether this can be traced to overlap in communication or management inability to determine what societal function is more pertinent to the communities remains another issue to be investigated.

This respondent demonstrated a keen awareness of social activities of oil companies. For this respondent, the corporate responsibility functions undertaken by Chevron and other oil companies does not seems to be undertaken out of conviction. This does not mean that they do not practice it but instead goes on to suggest that the actions are more reactive and defensive just as was depicted in the former respondents thought. As was noted by him, there are some evidence in terms social projects and health services issues undertaken by them, but still they are not enough to demonstrate the level of responsibility expected of them neither does it reflect much those areas that are more pertinent to the communities. Besides

97

this, they are intentionally purported for some practical reasons of which according to him are to avert international eye and retain legitimacy of operation. Furthermore, as reflected in his speech, the problem could either be traced to the overlap in communication or possibly that of management not comprehending what is more pressing to the communities in which they operate. Corresponding to this idea, a 43 year old man from one of the communities asserted:
Not to admit the effort of oil companies in making effort to impact their place in the hearts of communities is to be unrealistic. Some of the micro and macro developments in our communities are in one way or the other consequent of their place among us. But one dilemma that appears to bother the minds of most of us is that the areas where they often seek and invest in do not capture the essential lack of the communities. Even sometimes, some of the projects like classroom blocks, building of local community centres among other supportive activities started are left unfinished. What I may not be able to state now is whether they are done intentionally or are left based on overlaps in feedbacks. But what they invest in does not fulfil our essentials. We need to be taught of how to get fish and not to be given fish. I am quite sure that you do understand what I mean by this expression. Most of our graduates are in want of job.

According to this respondent, the issue is not that the oil companies are not doing anything in terms of identifying itself with corporate social action but instead is on the nature of what they undertook in relation to that. He does not mean to say that erecting classroom block or such other activities are worthless but instead what sounds more enticing to him is when such corporate functions are either completed or channelled to activities that will be sustainable for future developments. Any activity that less address or have less sustainable impact on the lives of the citizens should be reconsidered. More so, in his view it may be possible that what the oil companies invest in are based on the information they receive from some of the

98

members of communities but he believes that the companies should know what is more beneficial and essential to the communities In summary, while there was a consensus among respondent on the some visible impact of corporate social responsibility functions on the staff and communities, there appear to be a perception that most of those activities are intentionally purported or masterminded. More so, the understanding of corporate social responsibility was either strictly narrowed to the economic aspect, or viewed from the social and environmental angle respectively. The notion of aligning them together or viewing them as the same line in the value chain was less seen and this possibly could have resulted in each respondent emphasizing each aspect more than the other. Corporate social responsibility appears to be rated in visible structures and institutions. The issues of sustainable development and possible impact of the present activities of the oil companies activities on the future generations was less addressed and found. Most of the corporate social responsibility function in other words was viewed in term of its impact on the present, while the future was left silent. This goes on to suggest the level of understanding and practice of what corporate social responsibility is among them and how its actions are received.

4.6 PERMEATED THEMES

4. 6.1. REDUNDANCY CRISIS Redundancy simply put refers to the condition of being without a job. Majority of individuals within the host communities are exposed to this predicament resulting from the enormous land mass occupied by the oil companies as well as the resultant effect of the oil exploration in terms of pollution on the land. This phenomenon as depicted along the course of enquiry

99

has necessitated or given birth to other unexpected problems to individuals within the host communities. This could be understood when one recapitulate that most of the individual within this locale are farmers of different categories. Suffice it to say that they are peasant farmers that absolutely depend on the basic fruits of their land. More so, some of them uses this means as a source of their business, in the sense that they are not only subsistence farmers but also uses the crops for commercial purposes. A respondent who was a subsistent farmer and a member of the host community stated:
Oil companies have left us in shamble. What we reap from them cannot be placed at the same table with what we are experiencing from the result of their operation. As I have already told you I am a farmer who lives and survive by what comes from my farm. There is a lot consequence resulting from the activities of the oil companies to which have rendered most of us redundant. Not just us the farmers but even those who depend on what we produce, as a source of their business and transaction. Today, the act of theft has increased because of the thirst to survive. We have less land for cultivation and their existence has equally increased the prices of land and other things such as water. The sachet water that was sold at five (5N) naira in the cities are being sold at ten naira (10N) in our communities, but if our water is not polluted such a business probably will not strive here.

This participant saw unemployment as a concomitant input of the existence of the oil companies in their communities. As stated by him, most of the indigenes are farmers but have been laid off from this service based on the massive land and rising cost of land within the region. He noted that this impact have a successive effects in the marketplace and increased act of theft. Retailers within these communities who buy their product in order to business it to the public cannot perform as they do before. The respondent went on to say that those who cannot buy fertilizers have less production at the end of the day. Marketing content is not

100

only reduced but on the other hand becomes expensive due to shortage in production. Corresponding to this a 42 year-old man reflecting on the impact of the activities of the oil companies noted:
The issue is not that our land is no longer productive as it usually does but that they hardly employ us to work for them. Apart from those who were able to get loans from the bank in order to invest in mechanized farming. To farm in absence of such things like fertilizers as well as make profit is very difficult. What is more pertinent is that when we seek for employment in their various companies, the feedback we receive is that we are not highly skilled workers. But even to be a cleaner is very difficult to get, yet they are operating in our land and our government has been quite weak in responding to our cries for help.

As indicated this respondent, the existence and operations of the oil companies in their communities have rendered most of them incompetent in the farming environment. Only the mechanized farmers can sustain the business at the moment. This according to him could be traced to the lack of fund in fertilizing both the land and the crops. As indicated by him getting job in any of the companies is even quite difficult notwithstanding all these problems being faced by their existence and operation. Important to note is that the role of the government who appears to be the highest arbiter of rescue is not even felt within such scenario, a fact that is also depicted in the statement made by a 38 years-old woman when reflecting on the impact of corporate social responsibility functions of oil companies. As stated by her:
The oil companies inability to put in place the corporate responsibility functions of which they claim to practice in their corporate agenda could be linked to inherent corruption in management and our system of governance. What is more shocking to me is that even with the constant agitations and conflict between the oil companies and host communities, they 101

havent been any serious transparent effort by our government in looking effectively into this matter. Whether they are silent based on the fact that they are either multinationals or taking bribes is something that my mind cannot give answer to. But it appears from the look of things that something of which the eyes of the man on the street cannot see is going on between them and our government.

As was noted by this respondent, it could be possible that there is an overlap in management or corruption either in the management team of the oil companies or between them and the government. This in her view might have been the reason behind the deep silence by the government on this issue that in recent time have drawn the attention of international bodies especially with the execution of Ken Saro Wiwa. While the respondent considered this as a misdemeanour, she also indicated some level of corruption among the management team considering the fact that what they report in their corporate issues through their websites to the world is not what they tend to practice, but whether such is an overlap in communication remains a point to discover. 4.6.2. HOSTILITY BETWEEN THE OIL COMPANIES AND HOST COMMUNITIES Another emerging theme from one respondent was the hostility and conflict brought in by the present state of corporate social responsibility actions of the oil companies of which have equally affected the personal and social relationship. Coming from the personal perspective, there have been issues of less income and withdrawals of expenditures among others. Individuals do not longer enjoy the benefit of producing organic products. More so, there have been unnecessary fracases existing among one another as well as communities resulting from lack of trust as regard how the funds the oil companies claimed to invest in the communities are managed or spend. Individual has less trust among one another and one of

102

the consequent factor as identified by one respondent is the increased sabotage between them. As noted by this respondent:
The existence of the oil companies has resurrected a lot of things and issues that would not have featured the way they appeared if they did not come. Today, in our communities nobody trusts the other anymore. Individuals as well as communities look at each other with suspicion. There is dearth of trust coming from the inability of detecting who appropriates the public funds and dividends the oil companies tell us they usually pay. In our communities, our local leaders do not come out in public to address this issue because it seemed they have been bribed. This has made it impossible for our communities to speak with one voice all this while.

The discovery of oil which was initially a cause for joy has in recent time turned out to be a cause for mistrust and division between one another and among communities as well as the neighbouring towns. As was depicted by this respondent the level of disunity and rivalry among communities has made it impossible for them to stand up and speak with one voice. Personal and social relations have been broken to an extent that leaders now address corporate social responsibility issues only when there is sabotage that impact on the oil companies. The impact of such sabotage was clearly identified by one respondent in the management team as follows:
Whenever there is pipe breakage or sabotage by those notorious gangs called the militant, the company not only loses huge financial resources but more importantly has its brand image at stake. Sometimes such conflict result in death, injuries or getting some of the staff and management kidnapped or put in hostage. I believe you can imagine how somebody could be working in such an environment.

103

From the perspective of this respondent it is evident that they do not enjoy unhealthy working environment, but his description of the host communities youth tend to portray his understanding of corporate social matters. His description envisaged an expanded thought of those who are business profit oriented in mind and attitude and never considers much about others who have stake in the business environment. 4.6.3 REDUCED STANDARDS OF LIVING Another intriguing emerging theme that featured concerning the impact of the oil companies activities on the oil host communities is the reduced standards of living among them. Individuals within the host communities standards of living are quite different from the staff of the oil companies. There is a great inequality in terms of living standards and this is well encapsulated in the remark given by a 29 year-old man who was doing his youth service in one of the companies. According to him:
Having served for a period of 9 months, I can rightly say that the host communities are greatly marginalized. This could easily be seen from the great disparity in terms of living standards. Sincerely speaking, what the lowest staffs in terms of administrative ranking receive at the end of the month is most often not seen by many of the individuals in the regions where the oil companies operate. The situation can be described as a paradox of plenty. While some of the staff change their cars in months, many of the indigenes of where the money used to make this possible comes from, struggle to feed not to think of procuring a bicycle.

The inconsistent disparity in terms of standards of living as further elaborated by this respondent calls for deep concern. As pertinently noted by him, this great inequality is equally found in the withdrawals of basic items of life by most of the individuals and families

104

within these communities. The expenditure management is despicable, that parents in the bid to cut expenses and sustain life go to the extent of withdrawing their children from attaining the basic standard of education. But remarkable to note is that this situation is quite opposite among the staff of these companies who in their affluences and flamboyant lives have some of their children abroad for studies. 4.6.4 HEALTH PROBLEMS Another essential point that emerge in response to the oil companies activities impact on the communities in which they operate in was pertinently noted by a female medical practitioner. According to her there is a consequent effect of the air borne pollution and oil spillages emanating from the oil exploration carried out by the oil companies both on the aquatic organisms and on the human beings. Congruent to this she noted as follows:
An oil spillage can harm mammals, birds and other aquatic creatures in several ways such as: direct physical contact, toxic contamination, destruction of food sources and habitats, and reproductive problems. For birds, the risk of drowning increases, as the complex structure of their feathers that allows them to float or to fly becomes damaged. Animals are also at risk from ingesting oil, which can reduce the animals ability to eat or digest its food by damaging cells in the intestinal tract. More so, due to the fact that oil contamination gives fish and other animals unpleasant tastes and smells, some of us who knows this most often refuse to eat their prey and thus gets starve. Sometimes a local population of prey organisms is destroyed, leaving no food resources for predators. On another note when rivers are used as drinking water sources, oil spills on rivers can pose direct threats to human health.

In the views of this respondent, understanding the impact of the activities of the oil companies on us will obviously assist in shedding light both on the management team of

105

these companies as well as the government of the day. She went further to note that one of the possible benefits of saying this is to enable them understand that they themselves can be victims of the circumstance. Furthermore she called for the enactment and implementation of stringent environmental laws to protect the areas as well as policies to reduce the crushing level of poverty, so that a better livelihood for the communities may be guaranteed. Corresponding to this another, one respondent who is a lecturer in one of the state universities pertinently capitalized on the numerous respiratory problems arising from the gas flaring resulting from the activities of the oil companies. Such has not only made them vulnerable to various sicknesses but has assisted immensely in the rapid increase of kwashiorkor among others. As noted by him:
The activities of the oil companies in our communities have accelerated the number of dreadful illnesses among us unlike before. I have reasons to suspect that serious respiratory problems witnessed in many our communities can be linked to environmental pollution. Today in our communities we experience respiratory problems such as coughing up blood, skin rashes, tumours, gastrointestinal problems, different forms of cancer, and malnourishment and so on. Also most of our children have swollen bellies and light hair, which are evidence of kwashiorkor, a protein-deficiency syndrome. I am afraid because if something drastic is not done as regards this, our future or generation is bleak.

As was noted by respondents interviewed the predicaments emanating from the activities of the oil companies calls for urgent response. In their views there are long term consequences of such activities on the heath of the communities as well as the living organisms. In furtherance, they repeatedly attributed the spread of kwashiorkor in their communities and the drastic decline in fish catch and agriculture to the pollution of rivers, ponds, sea waters

106

and land by oil industry operations. While the concept of corporate social responsibility acknowledges that companies should be responsible to the stakeholders at large (Jill 2007; Johnson et al 2008) the empirical materials generated from the fieldwork puts a question mark on the state of corporate social engagements of oil companies in developing countries.

4.7 SUMMARY
This chapter explained the data analytical tool as well as the analytical aspects of the study by first and foremost bringing to the readers attention the characteristics of the data that was collected. The chapter went further to justify the rationale behind the chosen analytical method and why other methods were not found appropriate within this sphere. Furthermore, it went on to categorize the themes emerging from the findings as well as the permeated themes found dominant during the study. The succeeding chapter will therefore concentrate on drawing necessary conclusion emanating from the findings through critical evaluation, suggesting feasible recommendations as well as the its possible implications to management.

107

CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS

5.1. INTRODUCTION
The preceding chapter while drawing on the activities of Chevron Oil Nigeria presented the empirical materials generated from the field work concerning the impact of corporate social responsibility of oil companies on their host communities in developing counties. While drawing a relationship between the findings and extant theoretical framework of corporate social responsibility this chapter analyzes these empirical findings in relation to the four research objectives. Furthermore, it showcases its implications to the management of Chevron Oil (Nigeria) and thus brings forth some feasible recommendations for improvement. Finally, the chapter spots out other opportunities for further research discovered during the study.

5.2 EVALUATION OF THE FINDINGS

The issue of corporate organizations behaving in a socially responsible manner particularly as it relates to the Nigeria Oil industries is an area of great concern that requires utmost attention. Evidence from the respondents interviewed makes it possible to suggest and thus, draws several conclusions about the impact of the oil companies corporate social responsibility on the host communities as well as envisage the status of their corporate social responsibility practices in developing countries. It is imperative to note that the conclusions were drawn on the basis of information gathered during the study and was synthesized in
108

order to develop an understanding of what the impact of corporate social responsibility is like on the oil producing communities. As was evidenced from the empirical data generated from the in-depth interviews from the selected samples of Chevron staffs and some members of the host communities the companies are quite cognizant of the current issues in the corridor of corporate social responsibility. One respondent among the management team cited various activities that to some extent fell into the corporate responsibility framework. They contribute to the communities through investments into infrastructural developments and environmental control. Furthermore, they equally tend to recognize and embrace both the ethical and practical imperative of operating in a safe and socially accountable atmosphere. This potential and understanding admittedly aligns with the findings of Orji (2000) and Okike (2007) as reflected in the review of literature. In fact, it indicates that corporate social responsibility has both socio-economic and ethical undertone as reflected in the writings of Carroll (1991) and reaffirmed by Nwanji and Howell (2006). The oil companies were pictured as not only the primogenitor of contemporary corporate social responsibility among other corporations but were also identified as the most accountable in terms of its practicability. The depicted areas of activity in the field of corporate social responsibility when discussed from the business perspective were the social policy areas reflected in various activities among which include: subsidized housing, health care and pension benefits for the employees, support of the development of classrooms blocks and hospitals infrastructure in the regions and environmental protection On the other hand, the field work data generated suggests that there is an overlap in communication, coordination, and partnership between oil companies and their host

109

communities. These aforementioned aspects of administration are imperfect at best. As seen from data collected most of the respondents stated that such overlap and lack of coordination are the stumbling block hindering the effective implementation of corporate social responsibility projects and, by extension, the attainment of sustainable economic and human development in the communities as well as Nigeria at large. Though some of the staff of the oil company was understandably wary about criticizing the company directly, their relative silence in response to questions about impact of corporate social responsibility on their host communities in fact, speak volumes. However, several respondents interviewed were not so reserved in their criticism of what they perceived as the resource-seeking investigation for future development. Furthermore, results from the study shows that the consequences of the existence of oil companies in Nigeria have given birth to other permeated issues and this appears to be evidence in the numerous emerging themes that was discovered during the course of the study. The permeated emerging issues reflected in the course of the study includes: redundancy issues, low standards of living, mistrust and rivalry among others, all of which has its own successive negative impacts. These stated issues go a long way to suggest the inefficiency in terms of practice and low understanding of the whole concept of corporate social responsibilities. More so, despite the fact that corporate social policies are well encapsulated in the corporate business strategy of oil companies it was noted that even these policies as was stated by some of the respondent do not in most cases reflect the main needs of the host communities. These lacunas tend to necessitate a cold relationship and misunderstanding as well as some feeling of distrust between the oil companies and their host communities. In addition to this, it is equally evident from the extremely incomplete answers supplied by some respondents on the questions about CSR impact of oil companies on the host
110

communities that there may not be improvements as regards the issue being investigated unless either or both the management team and government both at the local and national levels come in terms with the necessary areas of importance in terms of human and community development in the communities. This capability goes a long way to highlight the issues of transparency and accountability in the Nigerian government: an aspect of administrative skill that has been found wanting over the years of which its consideration is good for future research. More so, from the findings it was observed that most of the corporate social responsibility functions practiced by the oil companies are inundated with some internal or invested motives, of which in its absence would result in not being carried out. Furthermore, some of the corporate functions do emerge as a reactive response meant to silence the aggressions of the communities. While this occurrence has been repeatedly done, it was also mentioned that even some of the corporate social investments in terms of structure are ephemeral in nature: a fact that is in great contrast with the dictates of the corporate agenda of sustainable development as underscored in the works of Lafferty et al (2007). However, the key issue that this section attempts to uncover is whether these corporate social practices of the oil companies amount to a remarkable growth of convergence in corporate social responsibility framework and by whose criteria are these to be assessed: a fact that Ozuem et al (2008) pinpointed as the value laden in research of which may result in the judgments being influenced either by the etic (values of the researcher) or emic (values of the researched). In order to limit this pitfall this work employs the theoretical framework of corporate social responsibility espoused by Carroll (1991) and modified by the European Foundation of Quality Management (2004).

111

However, in literature, there are myriads of definitions and concept which attempts to proffer an understanding of the major constituents of corporate social responsibility, but central amidst these definitions is that corporate social responsibility practices should integrate four main dimensions: economic, social, legal and environmental. Nwanji and Howell (2006) integrated this conception in their detailed overview corporate social responsibility. According to them corporate social responsibility should be framed in such a way that it addresses the legal, ethical, commercial and other expectations society has for business and also makes decisions that fairly balance the claims of all key stakeholders. In their views corporate social responsibility consists of three social responsibilities of which include: the economic, legal and ethical aspect, of which is in consonance with Carroll (1991) pyramid of corporate social responsibility. This line of thought as aforesaid in the review of literature is equally found dominant in the definition propounded by The European Foundation for Quality Management (2004). As rightly suggested by them corporate social responsibility relates to the:
whole range of fundamentals that organizations are expected to acknowledge and to reflect in their actions. It includes among other things- respecting human rights, fair treatment of the workforce, customers and suppliers, being good corporate citizens of the communities in which they operate and conservation of the natural environment. These fundamentals are seen as not only morally and ethically desirable ends in themselves and as part of the organizations philosophy, but also as key drivers in ensuring that society will allow the organization to survive in the long term, as society benefits from the organizations activities and behaviour (p.1)

112

Analyzing the definitions given by the European Foundation for Quality Management, and Nwanji and Howell (2006) three key points could be found dominant of which are in conformity with the Triple Bottom Line reporting strategy that placed more emphasis on people, planet and profit as underscored in the works of Deegan (1999) and Morland (2006). The three points however, can be diagrammatical represented as follows:

Corporate social responsibility

Socio-economic

Ethical

Environmental

Figure 5.1: The three dimensions of CSR (European Foundation for Quality Management 2004 and Nwanji and Howell 2006 with modification) Applying this schema to the empirical material generated from the field work, the following conclusions could be drawn as it relates to the impact of corporate social responsibility of oil companies on the host communities. Taking the social aspect of corporate social responsibility into consideration the findings shows that there is remarkable evidence of projects undertaken by these companies in such areas as Construction of classroom blocks, tap borne water, HIV/AIDS prevention, Public Health and Donations. In the area of

economics, some respondent from the management team indicated some considerable effort put in staff training and technological transfer of which has raised the competency of staffs in service delivery and profit as well. Ethically speaking, results from the findings show that
113

most of these stated social functions are often carried out with vested interest and in reaction to the confrontations made by the communities. They are not self initiated neither are those projects in consonance with the values and norms of the communities in which they operate. As suggested by Chardel (2004) and Jill (2007) ethical responsibilities relates to how society expects organizations to clinch values and norms even if the values and norms might constitute a higher standard of performance than required by law. This incapability goes a long way to questions the ethical and legal behaviour of oil companies. Ethic and law are interwoven and one cannot be ethical unless the person is aware of the normative demands of which have legal connotations. As regards the environmental dimensions, major initiatives mentioned during the in-depth interviews include reducing the effects of mining and hydroelectric production as well as employing the hyper spectral imaging instrument. While there is fairly remarkable evidence of corporate social responsibility functions among the oil companies, the impact appear not to have much transformation on the host communities. On this note of transformation I would like to digress and use a paper written by Erickson and Kuruvilla (1998) to buttress this fact. According to their framework, the key element in deciding whether a transformation has occurred is, whether there has been a serious reconsideration of key actors as it concerns the deep structure of the matter understudy. Applying this schema in the corporate social responsibility practices of the oil companies it would not be out of context to suggest that there is less unambiguous evidence of transformation of its impact on the oil producing communities. The oil companies have only adapted to meet few salient points without significant changes in underlying deep structures of the host communities. Despite the massive wealth generated from oil extraction from the host communities, majority of this communities live in abject poverty. Onishi (2002) and Olujide (2006) narrated this ordeal as a paradox of plenty.

114

In summary, based on the aforesaid the following points can be sieved while drawing particularly on the activities of Chevron Oil Nigeria. The corporate social responsibility of oil companies is being practiced in terms of a gift aid to the communities and most of the social investments are not sustainable. In addition to this, their policy decisions most often do not reflect the main interest of the communities. Furthermore, there is no cordial relationship between them and some elements of mistrust and fears could be depicted in their relations. Corruption and lack of commitment appeared to be the concomitant factors that have instigated this. However, as Swanson (2002) point outs, the concern in business-society relationships today is not solely profit oriented and then giving a portion of it back to the community in whatever means that is most convenient for the business; rather, it is about how a company earns its money, and how that company is run and how it interacts with communities. The economic and social dimensions of business are not meant to be divorced from each other. Freeman et al (2004, p. 364) argue that the former begins with the assumption that values are necessarily and explicitly a part of doing business and rejects the separation thesis. Businesses as was evidenced in the literature have a moral dimension. Economics as was rightly depicted by Carroll (2000, p. 35) is clearly infused or embedded with ethical assumptions, implications, and overtones. Although the proponents of the shareholder theory create a distinction between these two and see business as an amoral economic activity (Friedman 2004; Sternberg 1997; Henderson 2001, 2005) there is much consensus as has been evidenced from literature that corporations should be responsible to the broader stakeholders and this is the stance of this research work. However, while these tentative summaries are quite informative, it should be repeated that this study does not include input from several key members of the Nigerian oil sector or Chevron Oil worldwide: most notably is Chevron Oil (Nigeria). The omission of most oil companies from the study is

115

as a result of the limited time frame in which the research was expected to be completed among other reasons.

5.3 LINKING THE EMPIRICAL DATA TO THE RESEARCH AIMS AND OBJECTIVES
At this juncture it would be necessary to link the findings generated from the detailed analysis of the empirical materials to see to what extent they have developed understanding and thus answers to the research questions. It is important to note that at the commencement of this work four major objectives were stated to be the driving force necessitating the study and these could be listed as follows: 1. To review extant literature on corporate social responsibility in the developing countries. 2. To assess of the motivation behind CSR functions and investment projects undertaken by oil companies but with particular reference to Chevron oil Nigeria. 3. To identify and appraise these investments in terms of its impact upon intended beneficiaries and business performance. 4. To analyze and suggest feasible ways through which the impact of corporate social responsibility could be improved profitably in Chevron so as to increase business performance In this section therefore, effort will be directed towards finding out in turns whether these objectives have been met. But the last objective will be looked into separately under recommendations

116

OBJECTIVE ONE:

TO REVIEW EXTANT LITERATURE ON CORPORATE

SOCIAL RESPONSIBILITY IN THE DEVELOPING COUNTRIES. During the course of the study, evidence from the literature studied makes it possible to suggest that while the notion of corporate social responsibility has been in existence in the developing countries, there has been a dearth of formal literature regarding this aspect especially in the ancient era. Most of the formal literatures found appeared to have originated with the dawn of globalization and the existence of multinational companies in the modern period (Amaeshi et al 2006; Asonju 2007). While some of these literatures were channelled towards inculcating the ethical requirements of business in corporations, they mainly concentrated on the activities and dealings of the oil extracting industry. More so, as could be depicted in the writings of Onishi (2002) and Okike (2007) effort was mainly centred in addressing corporate social responsibility in relation to the consequences of the oil extraction. Corporate social responsibility was circled within the sphere of reporting and control. However, the dawn of contemporary era ushered in fairly remarkable literature drawing from the high profiles of scandals such as Enron and Parmalat and the proliferations of numerous codes on ethical conducts from the developed world (Jill 2007; Nwanji 2005; Nwanji and Howell 2006). OBJECTIVE TWO: FUNCTIONS AND TO ASSESS OF THE MOTIVATION BEHIND CSR INVESTMENT PROJECTS UNDERTAKEN BY OIL

COMPANIES WHILE DRAWING ON THE ACTIVITIES OF CHEVRON OIL (NIGERIA). The empirical materials generated from the respondents interviewed bring to light some of the underlying factors motivating the corporate social responsibility functions of the oil companies. During the course of the study, it was identified that some of their corporate

117

social functions were embarked upon based on the pressures emanating from the stakeholders especially those of the press and the public. In addition to this, there is always a stake in most of their undertaking. Suffice it to say that most of the social activities were profit oriented. Infrastructural developments were carried out not only because it will be of benefit to the communities but also will create a positive impression on the international regulatory bodies. More so, it enables them to reduce the hostility arising from the communities and thus be able to carry out their business. As was noted by one of the respondent they carry out such social investment because they are afraid of being driven away from our community one day. The corporate social functions were found to be dependent on the contextual factors. Most of the corporate social functions carried out were not based on conviction and in the understanding that the stakeholders at large have a stake in the corporate business strategy. As suggested by European Foundation for Quality Management (2004) corporate social responsibility should be seen as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. The attitude of the oil companies, thus appear to deviate from this perspective. OBJECTIVE THREE: TO IDENTIFY AND APPRAISE THESE INVESTMENTS IN TERMS OF ITS IMPACT UPON INTENDED BENEFICIARIES AND BUSINESS PERFORMANCE. During the course of the study, there were considerable corporate social investments that were noted to have emerged as a resultant consequence of the corporate social responsibility practices of the oil companies. Notable among them are areas such as donations, sponsorship, awards, and community developments through construction of classroom blocks, medical services, roads maintenance and agricultural aid among others. Furthermore, these investments were noted to have assisted in reducing the plight of the communities but, most of the respondents stated they do not go at length in justifying the extent of damage resulting
118

from their activities. Very pertinent to note is the permeated issues resulting from these activities of which have resulted to low standards of living, unemployment crisis, and change in personal and social behaviour. Corresponding to this, Onishi (2002) and Olujide (2006) stated that while the oil companies riches are increasingly growing, the poor communities where source of the riches are coming dwells in abject poverty. Their acknowledgement of this suggests to some extent the level of result yielding from the social investment carried out by the oil companies. Considering the impact of corporate social investments on the business performance, evidence from the study reveals that it is not at its better best. As was noted by one of the respondent from the management team of the company understudy, there have been occasions when they have shut down some of their cite due to the intense misunderstanding and rioting of the communities. While this has not only resulted in not their conducting business as usual, it was also noted to have impacted negatively on the financial margin, considering the fact that the money that would have been used for more important things are in such situation channelled towards paying bills to release the staffs held in hostage or repairing damaged pipes and facilities. There are many studies as well that was referred to in the review of literature that confirmed these aspects that were found in the study, a few of which are reflected below: In their detailed overview of corporate social responsibility Nwanji and Howell (2006, p.2) noted that the recent analyses of DePaul University study- revealed that the overall financial performance of the 2001 Business Ethics Best Citizens companies was significantly better than that of the remaining companies in both sales and profit index, based on the 2001 Business Week ranking of total financial performance. According to them a good practice of corporate social responsibility exerts significant influence on the general performance of the company involved. However, in literature, there is much consensus that companies who are
119

socially responsible have better tendencies to increase business performance (McComb 2002; Maignan and Ferrell 2004; Lev et al 2006). Although corporate social investments provided by the organization should be in a manner that is profitable and cost effective for the organization as suggested by Maignan and Ferrell (2004) and Mackey et al (2007) many researchers submits that corporate social practices would always be profitable especially in the long term (Nwanji and Howell 2006; Jill 2007; Johnson et al 2008). According to the findings of their data analysis, corporate social responsibility that meets the triple bottom line of corporate reporting requirements which placed emphasis on people, planet and profit can result in factors that contribute to profitability, reputable brand identity and increased stakeholders engagements. Considering these aforementioned points, it would not be out of context to suggest that improvements to the corporate social responsibility practices of oil companies especially that of Chevron Nigeria can undoubtedly increase business performance.

5.4 IMPLICATIONS TO MANAGEMENT

The above analysis has some implicit connotation of which this section intends to uncover. The essence of this is to disclose to the management of Chevron Oil Nigeria, the possible consequential effects of their present state of corporate social responsibility practices on their business pursuits based on the inference drawn from the findings. To address this therefore, the section intends to consider the implications under the following headings: 5.4.1 UNSAFE WORKING ENVIRONMENT Enabling working environment is one of the most important factors to be considered in business operation. The absence of this can impact to a great extent on the business
120

performance of any company in various ways. It is imperative to note that the whole essence of health and safety rules can be summed up as creating an enabling atmosphere of which if embraced and considered in its entirety, has the capabilities of ensuring employees safety. While this ability to ensure the safety of employees could be jeopardized from the internal business environment, it should be noted that such could also be hampered from the business external environment. In Chevron (2008) it shows that a total recordable incident rate of the workforce in Nigeria was up to 15 percent. The rivalry and unfriendly relationship existing between the oil companies and their host communities have created an insecure environment for the employees. It has equally caused the threatening and kidnapping of staffs in recent time. This awful development resulting from the entrained relationship between the

companies and the oil producing communities not only questions the authenticity of the companies acceptance of the health and safety rules but also makes it impossible for employees to work in the expected manner. 5.4.2 KNOCKS DOWN THE CORPORATE BRAND IMAGE OF THE COMPANY Many researchers in recent time have revealed the importance and difficulty of building brand image (Ozuem 2009; Ouwersloot and Duncan 2008; Kimmel 2005). In their detailed examination of integrated marketing communications strategies, Ouwersloot and Duncan (2008) identified product, price and place as enabling factors that contributes to brand building. The place in this context could be referred to as the communities in which the oil companies operate. The awful experiences and messages perceived by the inhabitants of these communities could be an advantage or demerit both on the company and its line of product within and beyond. It has also revealed that when brand image is dented, it is always difficult or better put takes time to rebuild (Ozuem 2009). In as much as reputable brand image has the tendencies to influence the business performance of a company, the opposite can be damaging as well. The materials generated from the fieldwork suggest that the
121

relationship between the communities and oil companies are not at their best and this puts their image at risks of various kinds. 5.4.3 IMPACTS NEGATIVELY ON THE FINANCIAL PERFORMANCE One of the aims of any business is to make profit and sustain its being among others (Johnson et al 2008). When this is lagging behind, some researchers suggest that other factors could be affected as well (Gompers et al 2003). The crisis resulting from the unfriendly relationship between the oil companies and host producing communities has sapped massive wealth. The funds spent in court issues could go a long way in funding some projects within the communities. In addition to this, most often money is demanded before the workers held in hostage are released. These expenses not only dwindles the financial interests of the company as well as the other shareholders, but ultimately have a negative impact on the Nigerian economy as well as impact on the viability of the company. Such scenario could also results in some stakeholders re-considering the idea of investing in the oil share market. 5.4.4 THREATENS THE ORGANISATIONAL LEGITIMACY As exposed in the literature organizational legitimacy could be summed up as the license given to business to operate. Davies (2003) noted that corporations are under obligations to legitimize their license to operate to the society at large so as to retain their implicit endorsement. This license to operate, of which offered a comforting ground for corporations to operate could be undermined by the unfriendly relationship existing between the oil companies and host communities in various ways. With the low state of corporate social responsibility practices, it would not be out of context to note that the emergence of any of the indigenes of these communities as the president of the country can turn around the direction of the wind. The role and place of the communities as well as the government in the oil industry is of paramount importance to the survival and viability of the oil companies. The

122

empirical materials generated from the fieldwork suggest that if not the corrupt nature of the present leadership style in vogue, the situation would not have been the same. In the stakeholder mapping analysis, Johnson et al (2008) identified both the government and the stakeholders of which the host communities in context are part of as one of the key factors to be considered in the power and interest matrix. Considering the feedback from the fieldwork, it would not be out of place to suggest that the oil companies license to operate is at risk.

5.5 RECOMMENDATIONS
The essence of this section is to suggest feasible improvements that can be made in order to provide a solution to the critical state of corporate social responsibility on oil producing communities so as avert any impending predicament. Suffice it to say that it is in this section that the fourth objective of the research is addressed, which as aforementioned seek to analyze and suggest feasible ways through which the impact of corporate social responsibility could be improved profitably in Chevron Oil (Nigeria). 5.5.1 CREATION OF VOCATIONAL TRAINING CENTRES The issue of redundancy problems resulting from the land infertility and water pollution has to be addressed since this not only affects the farmers and fishermen but also successively impact on other lives to whom they come across and who depends on their businesses. One of the possible panaceas to this predicament is to create free vocational training centres where interested individuals can learn other skills that will place them back to work. In addition to this, effort should be made in seeing that those who have completed their vocational training scheme have something to start with. More so, if the indigenes of these communities are employed to work for the oil companies after their graduations, the hostile approach and

123

understanding of the communities is likely to change. More so, this capability will go a long way in empowering not only the individual who now contribute to the society but also stimulate the growth of the community as well as the financial performance of the company. This is because the companies at this juncture will not only receive an enabling working environment of which appears to be wanting as was noted by one of the respondent from the management team, but also will be able to save cost from the unnecessary pipe sabotage. 5.5.2 ENACTMENT AND IMPLEMENTATION OF STRIGENT ENVIRONMENTAL LAWS Considering the issue of the physical and aquatic environment the government in bottom up partnership should reinforce and enact stringent environmental laws that capture the essence of the situation. In addition to this, there should be high level of commitment in ensuring the enforcement of this. To ensure the full realization of this objective, it would be necessary that an appointment of a corporate social responsibility position at the strategic decision-making level be done to manage the periodical reviews of the policy and see to its implementation. However, effort should be made in seeing that the periodical reviews are in consonance with the current trends of regulations in developed world. In the same vein, the establishment of different independent auditing within and outside the company is very important as well. This will be an enabling satellite as well as monitor that will ensure that the activities of such board are carried out in the expected manner. 5.5.3 TRI-SECTOR CORPORATE SOCIAL REPORTING The role of communication remains an important determinant of success in any engagement whether is at business level or individual level. In the business environment, this important part of any administration is referred to as corporate reporting. The feedback from the field research reveals two important points. While few respondents demonstrated a fairly

124

remarkable awareness of the corporate social activities embarked on by the oil companies, majority claims to be unaware of such social investments. One salient reason that could be attributed to this is that most of the corporate social reporting is often done on the websites and to the government without much effort to make it known to the host communities in the manner that they will understand mindful of the fact the use of internet is rare and that only few of them passed through formal education. This goes on to suggest that reporting should be extended beyond the confines of the shareholders, websites and government. Corporate social reporting that is tripartite in nature has the potentials of not only bringing the corporate social activities going on to those it relates to but also bring to light the people who have been entrusted with such functions, what they have been assigned to and above all promote understanding among the sectors. 5.5.4 BOTTOM UP PARTNERSHIP Partnership is one of the important strategic ways of enhancing growth and understanding. While partnership can be bottom up, it can also be top down. Bottom up partnership is when the partnership is from below, arising within the communities. Admittedly, there are elements of partnership as underscored from the empirical material generated from the fieldwork, but none of them was carried out in connection with members of the communities. This does not imply that the partnerships with the governments whether at the national or local level in responding to social issues is null and void but instead suggest that if it is extended to involve some of the indigenes of these communities, it will go a long way in creating more understanding and ameliorating the social plights of the communities. It will assist those made redundant as a result of inability to reap good labour from their plants and fish resources to have something doing in terms of work. More so, bottom up partnership has also the capabilities of availing to the companies, the necessary social aspects that are of paramount importance as well as facilitating corporate social reporting.
125

5.5.5 PERIODICAL WORKSHOP AND EDUCATION The role of periodical workshop and education in enlightening the minds of people can never be undermined. Periodical workshop has the not only the potentials of inculcating the dangers associated with pipe breakages and sabotage but also could serve as an enabling environment of identifying and prioritizing the needs of the communities. More so, it could serve as a democratic strategy for relating with constituent communities. In addition to these it goes a long way in erasing tensions and frictions, thereby promoting good relationship. Through workshop and education, the communities will be able to come to terms with the necessary understanding of the likely consequences of pipe sabotage. The implications will be made clear and they will always be able to ask questions in areas that are not so clear to them. One possible advantage of this is that it helps to enhance familiarity. More so, through the questions asked, the organizers can detect their level of understanding as well as line of thought of which can be a very good strategy in the organizations corporate planning.

5.6 CONCLUSION
The issue of corporate social responsibility is not of a secondary issue. As was evidenced from the review of extant literature, the notion of corporate social responsibility is rooted in the being of corporation. Hence when these corporate social activities are carried out, it should be done with high profile of dignity. Corporate social responsibility is not a gift aid; it is rather an understanding that the society at large has a stake in the numerous engagements of businesses. Freeman (2004) and Jill (2007) in their long elucidations of corporate responsibility noted that social accountability encompasses not only the shareholders but more so incorporate the society whose tax are being used to build and maintain the national infrastructures that are used by companies and whose general resources are being
126

monopolized by the strong. In essence, for corporate social investments to be fruitful, it must be carried out with dignity and in the recognition that it is more importantly for the good of the companies. It is only within such frame of mind would the numerous profiles of business ethical code be meaningful. However, based on the empirical material generated from the fieldwork conducted, this research work while drawing on the activities of Chevron Oil (Nigeria) answers the research questions by concluding that the oil companies do not effectively and efficiently carry out their corporate social responsibility practices on their host communities in the developing countries. Their corporate social policies do not efficiently capture the core elements of corporate social responsibility and most of the social policy decisions made in respect to this do not reflect the main needs of the communities. While this has created unfriendly environment between them thereby making their relationships to be cold, it has also lead to the emergences of other predicaments.

5.7 FURTHER RESEARCH DIRECTION

During the course of this research there were some other topics of interest that was discovered. Notable among them is that there exists an issue of accountability resulting in the numerous incompletion of the projects being invested in the communities. This was noted to have not only affected the communities but also the oil companies in various ways. Considering the scope of the research understudy as well as the limited time the research was meant to be completed the researcher was not able to investigate this issue. In addition to this, there is a perception that the oil companies are the sole organizations expected to carry out social responsibility functions. The role of the government as well as the communities was unaddressed and this tends to limit their understanding of corporate social responsibility.
127

More so, the same research can be conducted using a larger sample of oil companies across the developing countries so as to arrive at a more comprehensive result. Finally, more than one data analysis technique could be employed in re-investigating the issue under consideration so as to obtain any information concealed by the limitation of using only one method. For instance, with the inductive thematic analysis there is that possibility of lacking a detailed guidance for analysis of which can result in inadequate analysis, thereby leading to uncritical subjectivity of the researcher as well as that of the interviewee. Using another technique such as grounded theory may uncover some distorted meanings in empirical materials generated.

5.8 SUMMARY
This chapter concludes the research conducted to investigate the impact of corporate social responsibility of oil companies on their host communities especially in developing countries. The chapter includes both the summary of the findings as well as its evaluation. Also it went further to link the findings with the research aims and objectives. In addition to this, the chapter brings to light some implications as well as feasible recommendations to the management team, of which if taken into cognizance could bring a change to their business performance. The chapter summed up with identifying some issues of further research unravelled in the course of the study.

128

REFERENCES

Ackermann R and Bauer R (1976). Corporate Social Performance: The Modern Dilemma, Reston: Reston Publishing Ahunwan B (2002). Corporate Governance in Nigeria, Journal of Business Ethics, 37: 269287 Akpan W (2006). Between Responsibility and Rhetoric: Some Consequences of CSR Practices in Nigerias Oil Province, Development Southern Africa, 23(2): 223-240 Amaeshi K, Adi B, Ogbechie C and Amao O (2006). Corporate Social

Responsibility in Nigeria: Western Mimicry or Indigenous Influences? Journal of Corporate Citizenship, 24 (winter): 83-99 Antaki C, Billig M, Edwards D and Potter J (2002). Discourse Analysis Means Doing Analysis: a Critique of Six Analytic Shortcomings, DAOL Discourse Analysis Online, 1: 1

129

Anshen M (1970). 'Changing the Social Contract: A Role for Business', Colombia Journal of World Business, 6(Nov-Dec): 6-14 Arndt M (2003). An Ode to The Money-Spinner, Business Week, March 24:22-23; Review of the Company: A Short History of a Revolutionary Idea, by Micklethwait J and Wooldridge A, Modern Library Asongu J (2007). The History of Corporate Social Responsibility, Journal of Business and Public Policy, 1:2 Avery C (1999). Business and Human Rights in a Time of Change Paper Presented to the Colloquium on the Liability of Multinational Corporations under International Law, Rotterdam: Erasmus University Babashola S F (2003). Institutional Joint-Funding and Co-operation for Sustainable Agriculture and Environmental Projects in Oil Producing Communities, A Lecture on Relation and Sustainable Development, Nicon Hilton Hotel, Abuja; 23rd -25th April Barnard C (1938). The Functions of the Executive, Cambridge: Harvard University Press Bebbington J (2001). 'Sustainable Development: A Review of the International Development, Business and Accounting Literature, Accounting Forum, 25(2): 128157 Beauchamp T L and Bowie N E (2004). Ethical Theory and Business, London: Pearson Education International Bell E and Bryman A (2007). Ethical Codes and Management Research: A Comparative Content Analysis, British Journal of Management, 18: 1

130

Birnbaum M Q (1995). Fundamental Rights Denied: Report of the Trial of Ken SaroWiwa and Others, London: Article 19, December Birnbaum M C (1995). A Travesty of Law and Justice: An Analysis of the Judgment in the Case of Ken Saro-Wiwa and Others, London: Article 19, December Bowen H (1953). Social Responsibility of the Businessman, New York: Harper BRASS Centre (2007). History of Corporate Social Responsibility and Sustainability, Available at http://www.brass.cf.ac.uk Bryman A (2001). Social Research Methods, New York: Oxford University Press Bryman A and Burgess R (2004). Analyzing Qualitative Data, New York: Routledge Bryman A and Bell E (2007). Business Research Methods, New York: Oxford University Press Burns R (2000). Introduction to Research Methods, 4th edn, California: Sage Caroll A B (1979). A Three-Dimensional Conceptual Model of Corporate Performance, Academy of Management Review, 4(4): 500 Carroll A B (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders, Business Horizons, July-August Caroll A B (1999). Corporate Social Responsibility, Evolution of a Definitional Construct, Business & Society, 38(3): 268-295 Carroll A B (2000). Ethical Challenges for Business in the New Millennium: Corporate Social Responsibility and Models of Management Morality, Business Ethics Quarterly, 10(1): 33-42

131

Charkham J (1994). Keeping Good Company; A Study of Corporate Governance in Five Countries, Oxford: Clarendon Press Charmaz K (2002). Qualitative Interviewing and Grounded Theory Analysis, in Gubrium J and Holstein J (ed), Handbook of Interview Research: Context and Methods, California: Sage, 657-94 Chevron (2008). Yearly Company Annual Report, Available At www.chevron.com Chevron (2009). Yearly Company Annual Report, Available At www.chevron.com Clark H, Greeno E, Livoti L, Turner W, Quarto A, Richard M, Tate U, Wilson M and Wysham D (1999). Oil for Nothing: Multinational Corporations, Environmental Destruction, Death and Impunity in the Niger- Delta, A United States Non Governmental Delegation Report, Available at www.essentialaction.org/shell/report/ Collis J and Hussey R (2003). Business Research: A Practical Guide for

Undergraduate and Postgraduate Students, 2nd edn, Basingstoke: Palgrave Macmillan Crane A (2001). Unpacking the Ethical Product, Journal of Business Ethics, 30(4-2): 361-373 Crane A and Matten D (2003). Business Ethics: A European Perspective, Oxford: Oxford University Press Davis K and Frederick W (1984). Business and Society, New York: Mc Graw Hill Davies R (2003). The Business Community: Social Responsibility and Corporate Values, In Making Globalization Good: The Moral Challenges of Global Capitalism, Dunning (ed.), Oxford: Oxford University Press

132

Deegan C (1999b). 'Triple Bottom Line Reporting: A New Reporting Approach for the Sustainable Organisation', Charter, 70(3): 38-40 Deegan C (2002). 'The Legitimizing Effect of Social and Environmental Disclosures - a Theoretical Foundation', Accounting, Auditing and Accountability Journal, 15(3): 282-311 Dick F E (2005). Democracy Matters in Corporate Accountability: a Caribbean Case Study, Critical Perspectives on Accounting proceedings, New York: City University Doh J P and Guay T R (2006). Corporate Social Responsibility, Public Policy and NGO Activism in Europe and the United States: An Institutional Stakeholder Perspective, Journal of Management Studies, 43(1): 47-74 Donaldson T and Dunfee T (1994). Toward a Unified Conception of Business Ethics: Integrative Social Contracts Theory, Academy of Management Review, 19: 252-284 Dummett K (2006). Drivers for Corporate Environmental Responsibility (CER), Environment, Development and Sustainability, 8(3): 375-389 Dyllick T and Hockerts K (2002). Beyond the Business Case for Corporate Sustainability, Business Strategy and the Environment, 11: 130-141 Elkington J (1997). Cannibals with Forks: The Triple Bottom Line of 21st Century Business, Oxford: Capstone Erickson C and Kuruvilla (1998). Industrial Relations System Transformation, Industrial and Labour Relations Review, 52(1): 3-21

133

Eweje G (2006). The Role of MNEs in Community Development Initiatives in Developing countries: Corporate Social Responsibility at work in Nigeria and Southern Africa, Business and Society, 45(2): 93-129 Fine M (2002). Disruptive Voices: Possibilities for Feminist Research, Michigan: University of Michigan Press Fisman R, Heal F and Nair V (2005). Corporate Social Responsibility: Doing Well by Doing Good? Working Paper, New York: Columbia University Business School Fox T, Ward and Howard (2002). Public Sector Roles in Strengthening Corporate Social Responsibility: A Baseline Study Washington: World Bank Freeman R (2004). A Stakeholder Theory of the Modern Corporation, In:

Beauchamp Tom L and Bowie Norman E (eds.): Ethical Theory and Business: 56-66, London: Pearson Education International Freeman R, Harrison J and Wicks A (2008). Managing for stakeholders: Survival, Reputation and Success, New Haven: Yale University Press Freeman R and Velamuri S (2006). A New Approach to CSR: Company Stakeholder Responsibility, In Kakabdse A and Morsing M (eds.): Corporate Social Responsibility (CSR): Reconciling Aspiration with Application: 9-23, New York: Palgrave Macmillan Friedman M (1962). Capitalism and Freedom, Chicago: University of Chicago Press Friedman M (2004). The Social Responsibility of Business Is to Increase Its Profits (Reprint), in: Beauchamp Tom L and Bowie Norman E (eds.): Ethical Theory and Business: 51-56, London: Pearson Education International

134

Frynas J G (2000). Oil in Nigeria: Conflict and Litigation between Oil Companies and Village Communities, Muster: LIT Frynas J G (2001). Corporate and State Response to Anti-Oil Protest in the Niger Delta, African Affairs, 100: 2754 Frynas J G (2005). The False Development Promise of Corporate Social Responsibility: Evidence from Multinational Oil Companies, International Affairs, 81: 581598 Garriga E and Mele D (2004). Corporate Social Responsibility Theories: Mapping the Territory, Journal of Business Ethics, 53(1-2): 51-71 Garitt H L (1919). Organization for Work, New York: Hard Cover Publishing Godfrey P C (2005). The Relationship between Corporate Philanthropy and

Shareholder Wealth: a Risk Management Perspective, Academy of Management Review, 30(4): 777-798 Godfrey P C, Hatch N W and Hansen J M (2008). Toward a General Theory of CSRs: Roles of Beneficence, Profitability, Insurance and Industry Heterogeneity, Business and Society, 10: 11 Gompers P, Ishii J and Metrick A (2003). Corporate Governance and Equity Prices, Quarterly Journal of Economics, 118: 55-107 Gouldson A and Bebbington J (2007). Corporations and the Governance of Environmental Risk, Environment and Planning: Government and Policy, 25(1): 420

135

Guobadia A (2000). Protecting Minority and Public Interests in Nigeria Company Law: The Corporate Affairs Commission as a Corporations Ombudsman, International Company Law Annual, 1: 81 Hamann R (2006). Can Business make Decisive Contribution to Development? Towards a research Agenda on Corporate Citizenship and beyond, Development Southern Africa, 23: 2 Hamann R (2003). Mining companies role in Sustainable Development: the Why and How of Corporate Social Responsibility from a Business Perspectives, Development Southern Africa, 20(2): 237-254 Hamann R and Acutt N (2003). How Should Civil Society and Government Respond to Corporate Social Responsibility? A Critique of Business Motivations and the Potential for Partnerships, Development Southern Africa, 20(2): 255-270 Henderson D (2001). Misguided Virtue, False Notions of Corporate Social

Responsibility, New Zealand: Business Roundtable Henderson D (2005). The Role of Business in the World of Today, Journal of Corporate Citizenship, 17: 30-32 Holloway I and Todres L (2003). The Status of Method: Flexibility, Consistency and Coherency, Qualitative Research 3: 345-57 Human Rights Watch (1999). The Price of Oil: Corporate Responsibility and Human Rights Violations in Nigerias Oil Producing Communities, New York: Human Rights Watch Press Kimmel A J (2005). Marketing Communications, London: Prentice Hall

136

Idemudia U and Ite U E (2006a). Demystifying the Niger Delta Conflict: Towards an Integrated Explanation, Review of African Political Economy, 33:108 Idemudia U and Ite E U (2006). Corporate-Community Relations in Nigerias Oil Industry: Challenges and Imperatives, Corporate Social Responsibility and Environmental management journal, 1: 2 IMF (2001). Czech Republic; Financial Systems Stability Assessment (IMF Country Report), Washington D.C. Ite E U (2007). Changing Times and Strategies: Shells Contribution to Sustainable Community Development in the Niger Delta, Nigeria, Sustainable Development, 15(1): 114 Ite E U (2004). Multinationals and Corporate Social Responsibility in Developing Countries: A Case Study of Nigeria, Corporate Social Responsibility and Environmental Management, 11:111 Ite U E (2005). Poverty Reduction in Resource-Rich Developing Countries: What have Multinational Corporations got to do with it? Journal of International Development, 17(7): 913-929 Jankowicz A (2005). Business Research Projects, 4th edn, London: Thomson Jill S (2007). Corporate Governance and Accountability, 2nd edn, West Sussex: John Willey Johnson G, Scholes K and Whittington R (2008). Exploring Corporate Strategy, 8th edn, Essex: FT Prentice Hall Jones M T (1999). The Institutional Determinants of Social Responsibility, Journal of Business Ethics, 20:163-179

137

Karl T L (1997). The Paradox of Plenty: Oil Booms and Petro-States, Berkeley: University of California Press Kuhn T (1962). The Structure of Scientific Revolutions, Chicago: University of Chicago Press Lafferty W, Knudsen J and Larsen O (2007). Pursuing Sustainable Development in Norway: the Challenges of Living up to Brundtland at Home, European Environment, 17 (3): 177-188 Levitt T (1958). The Danger of Social Responsibility, Harvard Business Review, 36(5): 4150 Lev B, Petrovitis C and Radhakrishnan S (2006). Is Doing Good Good for You: Yes, Charitable Contributions Enhances Revenue Growth, New York: University Stern School of Business Lozano J (2000). Ethics and Organizations, Boston: Kluwer Academic Mackey A, Mackey T B and Barney J B (2007). Corporate Social Responsibility and Firm Performance: Investor Preferences and Corporate Strategies, Academy of Management Review, 32(3): 817-835 Maignan I and Ferrell O (2004). 'Corporate Social Responsibility and Marketing: An Integrative Framework', Academy of Marketing Science, 32(1): 3-19 Margolis J D and Walsh J P (2001). People and Profits: The Search for a Link between a Companys Social and Financial Performance, Mahweh: Lawrence Eribaum Maylor H and Blackmon K (2005). Researching Business and Management, 1st edn, Basingstoke: Palgrave

138

McWilliams A and Siegel D (2000). Corporate Social Responsibility and Financial Performance: Correlation or Mis-Specification, Strategic Management Journal, 21(5): 603-609 McComb M (2002). Profit to be Found in Companies that Care, South China Morning Post, April 14, 2002: 5 Meadows D H (1972). The Limits to Growth: a Report for the Club of Romes Project on the Predicaments of Mankind, London: Earth Island Limited Mitchell R, Agle B and Wood D (1997). Towards a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts, The Academy of management Review, 22: 853-886 Mitchell A and Sikka P (2005). Taming the Corporations, Association for

Accountancy and Business Affairs, U K: Essex Monks R A (2005). 'Corporate Governance-USA Fall 2004 Reform-The Wrong Way and the Right Way', Corporate Governance; An International Review, 13(2): 108-113 Morland M P (2006). Triple Bottom-Line Reporting as Social Grammar: Integrating Corporate Social Responsibility and Corporate Codes of Conduct, Business Ethics; An European Review, 15(4): 353-364 Morsing M (2006). Corporate Social Responsibility as Strategic Auto-Communication: on the Role of External Stakeholders for Member Identification, Business Ethics: An European Review, 15: 171-182 Morsing M and Beckmann S (2006). Strategic CSR Communicationan Emerging Field, Kobenhavn: Forlagene

139

Morsing M and Schultz M (2006). Corporate Social Responsibility Communication: Stakeholder Information, Response and Involvement Strategies, Business Ethics: An European Review, 15: 323-338 Nigeria National Petroleum Corporation (2009). Yearly Annual Corporate Report, Available at www.nnpcnig.com Nwanji T I and Howell K E (2006). Overview of Corporate Social Responsibility, London: Holborn College Nwanji T (2005). Ethical Implication of Corporate Governance-A deontological and Teleological: Approach Applying Grounded Theory: PhD Theory on Corporate Governance, United Kingdom: Anglia Ruskin University OECD (2004).OECD Principles of Corporate Governance, OECD, Paris OECD (2000). OECD Guidelines for Multinational Enterprises, OECD, Paris Okafor L (2003). Enhancing Business-Community Relations: ELF Petroleum Nigeria Limited, New Academy of Business and United Nations Volunteers, 17: 1 Okike E N (2007). Corporate Governance in Nigeria: the Status Quo Corporate Governance; An International Review, 15(2): 173-193 Olujide M G (2006). Perceived Effects of Oil Spillage on the Livelihood Activities of Women in Eastern Obolo Local Government Area of Akwa Ibom State, Journal of Human Ecology, 19(4): 259-266 Onishi N (2002). As Oil Riches Flow, Poor Village Cries Out, New York: Times, December 22

140

Onwuchekwa O (2004). 5,400 Spills Threaten Niger Delta, Nigeria: Daily Champion 24 November Orlitzky M and Benjamin J D (2001). Corporate Social Performance and Firm Risk: a Meta-Analytic Review, Business and Society, 40(4): 369-397 Orlitzky M, Schmidt F L and Rynes S L (2003). Corporate Social and Financial Performance: A Meta-Analysis, Organizational Studies, 24(3): 403-441 Ouwersloot H and Duncan T (2008). Integrated Marketing Communication, London: McGraw Hill Education Ozuem W, Howell K E and Lancaster G (2008). Communicating in the New Interactive Market Space, European Journal of Marketing, 42(9-10): 1059-1083 Ozuem W (2009). Marketing Communication Lecture Note, London: Holborn College Patton M Q (2002). Qualitative Research and Evaluation Methods, 3rd edn, Thousand Oaks, California: Sage Publication Post J E, Preston L E and Sachs S (2002). Redefining the Corporation: Stakeholder Management and Organizational Wealth, Stanford: Business Books Porter M E and Kramer M R (2006). Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review, December 2006 Silverman D (2000). Interpreting Qualitative Research, London: Sage: 60-144 Riessman C K (1993). Narrative Analysis, California: Sage

141

Rindova V P, Pollock T G and Hayward M (2006). Celebrity Firms: the Social Construction of Market Popularity, Academy of Management Review, 31(1): 50-71 Robson C (2002). Real World Research, 2nd edn, Oxford: Blackwell Sachs S, Maurer M, Ruhli E and Hoffmann R (2006). Corporate Social

Responsibility from a Stakeholder View Perspective: CSR Implementation by a Swiss Mobile Telecommunication Provider, Corporate Governance, 6 (4): 506-515 Saunders M, Lewis P and Thornhill A (2007). Research Methods for Business Studies, 4th edn, Harlow: Pearson Education Scapens R W (1990). Researching Management Accounting Practice: The Role of Case Study Methods, British Accounting Review, 22: 259-281 Shell Development Company Ltd (2005). Yearly Annual Company Report, Available at www.shellnig.com Silverman D (1993). Interpreting Qualitative Data: Methods for Analyzing Talks, Text and Interaction, London: Sage Silverman D (2000). Doing Qualitative Research: A Practical Handbook, London: Sage Skirbekk G and Gilje N (2001). A history of Western Thought: from Ancient Greece to the Twentieth Century, New York: Routledge Sternberg E (1997). The Defects of Stakeholder Theory, Corporate Governance, 5(1): 3-10 Timberlake L (2002). The Business Case for Sustainable Development: Making a Difference towards the Earth Summit 2002 and Beyond, Corporate Environmental Strategy, 9(3): 226-235

142

Tuckett A G (2005). Applying Thematic Analysis Theory to Practice: a Researchers Experience, Contemporary Nurse, 19: 75-87 University of Miami (2007). A Guide to Corporate Social Responsibility (CSR) Available at http://www6.miami.edu/ethics/csr_guide Utting P (2005). Corporate Responsibility and the Movement of Business,

Development in Practice, 15(3-4): 357-388 Van M M (2003). Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion, Journal of Business Ethics, 44(3-92): 95- 104 Waddocks S (2004). Creating Corporate Accountability: Foundational Principles to Make Corporate Citizenship Work, Journal of Business Ethics, 50(4): 313-327 Walsh M (2001). Research Made Real, 1st edn, Cheltenham: Nelson Thorns Wheeler D, Fabig H and Boele R ( 2002). Paradoxes and Dilemmas for Stakeholder Responsive Firms in Extractive Sector: Lessons from the Case of Shell and the Ogoni, Journal of Business Ethics, 39(3): 297318 Whitehouse L (2003). Corporate Social Responsibility, Corporate Citizenship and the Global Compact: Social Power? Global Social Policy, 3(3): 299-318 William R J and Barrett J D (2000). Corporate Philanthropy, Criminal Activity and Firm Reputation: Is there a Link?, Journal of Business Ethics, 26(4): 341-350 Wood D J (1991). Corporate Social Performance Revisited, Academy of

Management Review, 16: 691-719 World Bank (2001). World Development Report 2000/2001: Attacking Poverty. Oxford: Oxford University Press
143

Yin R (1994). Case Study Research: Design and Methods, Beverly Hills: Sage

144

APPENDIX 1

Department of Management Faculty of Business Administration University of Wales London, United Kingdom Dear Sir/Madam,

RESEARCH QUESTIONNAIRES FOR STAFF OF CHEVRON OIL NIGERIA I am a Post Graduate Student of the above mentioned department and institution. In fulfilment of the requirements for the award of Master of Business Administration, I am carrying out a research work on the topic Corporate Social Responsibility of oil companies. In sourcing empirical materials for the research, I would be grateful if candid views/answers are given to the following questions in the questionnaires through an in-depth interview Also, may you be assured that information supplied in this respect, will surely be treated in confidence. Thanking you in anticipation.

145

Yours Sincerely, Cyril Chiaha Ifeamaechi

146

APPENDIX 2

SEMI-STRUCTURED INTERVIEW GUIDELINES FOR HOST COMMUNITIES Data collection from the host communities of Chevron Oil (Nigeria) was conducted using semi-structured interviews. Mindful of the importance of sieving out the necessary data in answering the research questions, twelve themes that are listed below were set up so as to give answers to the two main research questions, which answers demands empirical data. To this end while questions one to six aimed at research question one, questions seven to twelve aimed at research question two. During the interviews questions and probing questions centring each theme were asked as well. 1. What is your connection with the oil companies? Are you any of the followings: Contractor/Supplier, Shareholder or Beneficiary? 2. What is your opinion about the corporate social responsibility functions carried out by oil companies especially Chevron Oil? 3. What do you think is motivating such functions? 4. Please could you explain whether the stated motivations are new or has it been the same since they started their oil business? 5. Do you think that the motivations behind their practices are self initiated or reactive? 6. Do you think the communities are quite at home with this attitude? 7. In your opinion, do you think that the way the oil companies have been using in executing corporate social responsibility programs have been beneficial to your community?
147

8. Could you identify corporate social investments being carried out by the oil companies in your communities? 9. In your view, do you think that these investments are efficiently carried out? 10. Do you think that such investments reflect the need of the communities and have you experienced any problem as a result of oil exploitation and could you enumerate them? 11. Can you say that the communities are satisfied with the social responsibility practices being rendered to them by oil companies? 12. What other ways do you think will be more fruitful for the oil companies in implementing their corporate social activities in your community?

148

APPENDIX 3
SEMI STRUCTURED INTERVIEWS GUIDELINES FOR EMPLOYEES Data collection from the employees of Chevron Oil Nigeria was conducted using semistructured interviews. Mindful of the importance of sieving out the necessary data in answering the research questions, twelve themes that are listed below were set up so as to give answers to the two main research questions, which answers demands empirical data. To this end, while questions one to six aimed at research question one, questions seven to twelve aimed at research question two. During the interviews questions and probing questions centring each theme were asked as well. 1. What is your status in the company? Are you any of the followings: Staff, Copper or member of the management team? 2. In your view what is corporate social responsibility? 3. What is the company policy regarding corporate social responsibility and do they practice it? 4. In your opinion, what would you say is instigating the corporate social activities of your company? 5. Do you think such motivations are in agreement with the dictates of corporate social responsibility framework? 6. Has this been the way it was or is it a new development? 7. In your opinion, do you think that the way the company has been using in executing corporate social responsibility programs have been beneficial to the communities?
149

8. Could you identify corporate social functions being carried out by the company in the communities? 9. In your view, do you think that these functions are efficiently carried out? 10. Do you think that such investments reflect the need of the communities? 11. Can you say that the communities are satisfied with the social responsibility practices being rendered to them by the company? 12. In what other ways do you think that the company can use to effectively carry out their corporate social activities in the communities?

150

APPENDIX 4

SEMI STRUCTURED QUESTIONNAIRES GUIDELINE FOR EMPLOYEES 1. Sex of Respondent? 2. What is your Educational level and in your view what is corporate social responsibility? 3. What is the company policy regarding corporate social responsibility and do they practice it? 4. In your opinion, what would you say is instigating the corporate social activities of your company? 5. Do you think such motivations are in agreement with the dictates of corporate social responsibility framework? 6. Has this been the way it was or is it a new development? 7. In your opinion, do you think that the way the company has been using in executing corporate social responsibility programs have been beneficial to the communities? 8. Could you identify corporate social functions being carried out by the company in the communities? 9. In your view, do you think that these functions are efficiently carried out? 10. Do you think that such investments reflect the need of the communities?

151

11. Can you say that the communities are satisfied with the social responsibility practices being rendered to them by the company? 12. In what other ways do you think that the company can use to effectively carry out their corporate social activities in the communities?

152