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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

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. some others de-emphasize it. employees and host communities in which it not only belong but more importantly operate within. Nevertheless. Four research objectives served to guide the investigation. 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. Although the organization¶s perception of corporate social responsibility was quite encouraging the theory could not be linked with what they practice. . government. considering the nature of the research topic and researcher¶s attitude towards business and management research. But where there have been diverse conceptions as regards this phenomenon appear to rest on the exact nature of these obligations. Lastly. While some researchers and business organizations tend to accommodate the social responsibility of business towards the society in which it sustain its existence. 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. 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. 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. the study was carried out in an inductive approach using case study strategy where data was collected using multiple sources of evidence. The second was to assess the motivations behind CSR functions and investment projects undertaken by oil companies. the researcher deemed it imperative to approach the investigation from a qualitative research paradigm. 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. it will inevitably impact positively on the business performance than it was before. 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.ABSTRACT The notion and discourse of corporate social responsibility of business organization is not new in extant literature. It reveals that Chevron oil Nigeria has not effectively and efficiently carried out in practice their social responsibility functions encapsulated on their policy agenda. Thus. However. 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 first objective was to review extant literatures of corporate social responsibility in developing countries. suggesting feasible ways through which corporate social responsibility could be improved so as to increase business performance. 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. Why this argument has burgeoned the mind of academia and business managers. the study analyzes the findings. Next on the line was that of identifying and appraising these investments in terms of its impact upon intended beneficiaries and business performance.

Mr.) for granting me an open door corporation during the course of this study. However. I remain grateful to them for the niche of comfort they created for me. His deep and sincere insight in the topic will always be appreciated. 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. The overwhelming tolerance and exciting dispositions of Mr. 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 . Fr. which ought to be paid. His nature is knowledge and I am indebted to Him for giving me a share of it. I pray that God¶s favours ever remain with him. I also extend many thanks to University of Wales for all the educational possibilities offered to me. 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. 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. It is in line with this fundamental truth that I construct some words of thanks to those whom they are due. My gratitude goes next to Okoye Emmanuel who arranged all the interviews and guided me during the fieldwork in Nigeria. His impact on my life through instructive guidance and exemplary life as my spiritual director helped and sharpened my disposition for this work. 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. Next on the rung of facilitators are my amiable and affable parents. I thank immensely Michael Branch (Rev. First and foremost. Cyril Chiaha and Mrs. I acknowledge with deep reverence the Almighty God whose unfathomable kindness has led me this far in my keen pursuit of knowledge.ACKNOWLEDGMENTS It was Rousseau who stated that gratitude is a duty. Alo Reilly and my siblings scored a point in achieving this goal.

2 AIMS AND OBJECTIVES---------------------------------------------------------------2 .3 HISTORICAL ANTECEDENTS OF CSR------------------------------------------------17 2.2 ETHICS------------------------------------------------------------------------------------18 AGENCY THEORY---------------------------------------------------------------------20 2.3.8 SUMMARY---------------------------------------------------------------------------------9 CHAPTER TWO--LITERATURE REVIEW---------------------------------------------------10 2.3.5 STATEMENT OF THE PROBLEM----------------------------------------------------4 .1 ENQUIRY OVERVIEW------------------------------------------------------------------1 .3 RESEARCH QUESTIONS---------------------------------------------------------------3 .7 SCOPE AND LIMITATIONS OF THE RESEARCH--------------------------------9 .1 INTRODUCTION-----------------------------------------------------------------------------10 2.3 .6 IMPORTANCE OF THE RESEARCH-------------------------------------------------7 .1 ORGANIZATIONAL LEGITIMACY------------------------------------------------17 2.4 BACKGROUND INFORMATION-----------------------------------------------------3 .TABLE OF CONTENTS ABSTRACT------------------------------------------------------------------------------------------ii ACKNOWLEGMENTS----------------------------------------------------------------------------iii CHAPTER ONE---INTRODUCTION-----------------------------------------------------------1 .3.2 CONCEPTUAL CLARIFICATION-------------------------------------------------------11 2.

1 INTRODUCTION-----------------------------------------------------------------------------37 3.2.4.4 DRIVERS OF CSR---------------------------------------------------------------------------26 2.1.4.6.2 EXTERNAL DRIVERS OF CSR--------------------------------------------------------28 2.3.2.5 CSR IN NIGERIA------------------------------------------------------------------------------29 2.1 IMPROVED FINANCIAL PERFORMANCE------------------------------------26 2.5 CORPORATE GOVERNANCE-------------------------------------------------------22 2.1 PROLIFERATIONS OF CODES. INDICATORS AND GUIDELINES---------------------------------------------------------------------------------------28 2. STANDARDS.4.3 .1 EFFECTS OF OIL EXPLORATION AND ITS SOCIO-ECONOMIC IMPACT ON THE ENVIRONMENT-----------------------------------------------------------------------------32 2.4.2 ENHANCED BRAND IMAGE AND REPUTATION--------------------------27 2.3.2 RESEARCH AIMS AND OBJECTIVES---------------------------------------------------37 RESEARCH PHILOSOPHY-----------------------------------------------------------------38 3.4.2.6 OIL DEVELOPMENT AND ITS IMPLICATIONS ON THE NIGERIAN ECONOMY-----------------------------------------------------------------------------------------------------------31 2.2 CHANGING SOCIAL EXPECTATIONS AND GLOBALIZATION------29 2.1.3.4.7 SUMMARY--------------------------------------------------------------------------------------35 CHAPTER THREE--RESEARCH METHODOLOGY----------------------------------------37 3.1 INTERNAL DRIVERS OF CSR-------------------------------------------------------26 2.4 STAKEHOLDER THEORY------------------------------------------------------------21 2.6 SUSTAINABLE DEVELOPMENT---------------------------------------------------24 2.

13 LIMITATIONS OF THE METHODOLOGY-------------------------------------------54 3.6.6.6.4 ETHNOGRAPHY RESEARCH STRATEGY----------------------------------------45 3.11 SAMPLING METHOD---------------------------------------------------------------------51 3.1 INTRODUCTION----------------------------------------------------------------------------56 4.2 QUESTIONNAIRES----------------------------------------------------------------------48 3.1 INTERVIEWS-----------------------------------------------------------------------------47 3.7.5 RESEARCH STRATEGY: CASE STUDY------------------------------------------------42 3.7.9 PILOT STUDY--------------------------------------------------------------------------------50 3.10.3 GROUNDED THEORY------------------------------------------------------------------45 3.10 ALTERNATIVE DATA COLLECTION METHODS---------------------------------51 3.1 PARTICIPANT AND STRUCTURED OBSERVATION------------------------51 3.6 ALTERNATIVE RESEARCH STRATEGIES--------------------------------------------43 3.7 RESEARCH INSTRUMENTS--------------------------------------------------------------46 3.8 ETHICAL CONSIDERATIONS------------------------------------------------------------49 3.3.12 STRENGHTS OF THE METHODOLOGY---------------------------------------------53 3.1 EXPERIMENTAL RESEARCH STRATEGY----------------------------------------44 3.14 SUMMARY----------------------------------------------------------------------------------55 CHAPTER FOUR--ANALYSIS AND FINDINGS -------------------------------------------56 4.6.2 SURVEY RESEARCH STRATEGY---------------------------------------------------44 3.2 THE DATA ANALYTICAL METHOD: INDUCTIVE THEMATIC ANALYSIS AND .4 RESEARCH APPROACH--------------------------------------------------------------------40 3.

2 HOSTILITY-------------------------------------------------------------------------------71 4.1 REDUNDANCY CRISIS----------------------------------------------------------------69 4.ITS JUSTIFICATION------------------------------------------------------------------------------56 4.6.6.6.4.5 RECOMMENDATIONS--------------------------------------------------------------------87 .3 REDUCED STANDARDS OF LIVING----------------------------------------------72 4.4 THREATENS THE ORGANIZATIONAL LEGITIMACY----------------------86 5.4 IMPLICATIONS TO MANAGEMENT---------------------------------------------------85 5.1 UNSAFE WORKING ENVIRONMENT---------------------------------------------85 5.1 INTRODUCTION------------------------------------------------------------------------------75 5.4.4.6.4 WHY OTHER METHODS WERE NOT FOUND APPROPRIATE----------------58 4.6 PERMEATED THEMES--------------------------------------------------------------------69 4.4.7 SUMMARY-----------------------------------------------------------------------------------74 CHAPTER FIVE--CONCLUSION AND RECOMMENDATIONS-----------------------75 5.3 IMPACTS NEGATIVELY ON THE FINANCIAL PERFORMANCE-------86 5.2 EVALUATION OF FINDINGS------------------------------------------------------------75 5.5 CATEGORIZING THE THEMES---------------------------------------------------------59 4.3 LINKING EMPIRICAL DATA TO THE RESEARCH AIMS AND OBJECTIVES--------------------------------------------------------------------------------------------------------------81 5.3 DRAWBACKS OF INDUCTIVE THEMATIC ANALYSIS-------------------------57 4.2 KNOCKS DOWN THE CORPORATE BRAND IMAGE -----------------------85 5.4 HEALTH PROBLEMS------------------------------------------------------------------73 4.

5.5 PERIODICAL WORKSHOP AND EDUCATION---------------------------------89 5.8 SUMMARY-------------------------------------------------------------------------------------91 REFERENCES----------------------------------------------------------------------------------------92 APPENDICES APPENDIX 1------------------------------------------------------------------------------------------102 APPENDIX 2------------------------------------------------------------------------------------------103 APPENDIX 3------------------------------------------------------------------------------------------104 APPENDIX4------------------------------------------------------------------------------------------.5.3 TRI-SECTOR CORPORATE REPORTING-----------------------------------------88 5.5.7 FURTHER RESEARCH DIRECTIONS----------------------------------------------------90 5.5.2 STRIGENT LAWS-----------------------------------------------------------------------88 5.5.1 CREATION OF VOCATIONAL CENTRES----------------------------------------87 5.105 .6 CONCLUSION---------------------------------------------------------------------------------89 5.5.4 BOTTOM UP PARTNERSHIP--------------------------------------------------------88 5.

the research instrument. The work is sequentially arranged commencing with the description of the scope of study and concluding by suggesting new insights for further research direction. In this section therefore. the principal aim of this section is to provide the reader with a synopsis of the major chapters as they emerge. . 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. This chapter begins with a reconsideration of the research aims and objectives and how it links to the literature exposed. 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. Specifically. Besides this. The next chapter after the introduction attempts to review extant literature relevant to the research. 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 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 consists of dominant theories and empirical works of expert on the topic. 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.1 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. The chapter goes on to look at the research paradigm. how it has been conceived and developed in the different eras of history. It goes a long way to trace the origin of the subject matter.CHAPTER ONE INTRODUCTION . effort was directed in building a strong theoretical foundation and providing a framework for data analysis. their findings and recommendations and how they relate to the present study. Carried out as a qualitative inquiry. However. The research sets out with an introduction which seeks to explain to the reader the key aims and objectives of the case understudy. the data collection methods and sampling as well as the ethical considerations applied in the 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. Finally. 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. 2 To assess the motivation behind CSR functions and investment projects undertaken by oil companies but with particular reference to Chevron oil Nigeria. Consequently. 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 . the research last part which is the conclusion and recommendations evaluates the findings. More so. . 3 To identify and appraise these investments in terms of its impact upon intended beneficiaries and business performance.2 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. Aims and objectives could be seen as the underlying factor necessitating an enquiry and any research without it appear to be void of substance (Bryman 2001). In addition to this. Using inductive thematic data analytical tool the chapter also analyzed the empirical materials generated from the fieldwork. it went further to present possible areas of future research opportunities found during the course of the investigation. the following aims and objectives were designed to accomplish this study: 1 To review extant literature on corporate social responsibility in the developing countries. the data analytical technique used as well the reasons for not considering other possible methods. linking each of the research aims and objectives with the literature.After the exposition of the research methodology employed the next chapter presents the data collection process.

In each of these three regions. Idemudia and Ite 2006a). Western and Eastern Regions with a large degree of autonomy in all other matters. of which there may be 250 or more in Nigeria (Okike 2007.4 BACKGROUND INFORMATION The country Nigeria is noted to be the largest oil producer in Africa and the eighth largest in the world (Ite 2007. To what extent have oil companies in Nigeria effectively and efficiently carried out their corporate social responsibility functions on their oil producing communities? To what extent do the policies of oil companies reflect the interest of their host communities and is the relationship between the two cordial? 2.1. a majority ethnic group constituted about two-thirds of the population. The peoples living in the oil-producing communities of the southeast largely belong to these minority ethnicities. Nigeria is made up of three major constituent components: Northern. . . Consequently.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. Okafor 2003). the Yoruba in the west and the Igbo in the east. in order to address the problems highlighted in the research work certain relevant research questions were deemed necessary of which include the followings: 1. Onishi 2002). and they speak a diverse range of languages and dialects from at least five major language groups (Ite 2007. the Hausa-Fulani in the north. However. the remaining third was made up of various minority groups. 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).

the finding of oil changed Nigeria¶s political economy and since the 1970s oil has provided about 90 percent of foreign-exchange earnings. 1. Clarke et al 1999. stakeholder theory and transaction theory are all attempts put in place in search for well sustained governance. The company is engaged in almost every aspect of oil and natural gas industry.S. geothermal and power generation among others (Chevron 2009). marketing and transportation. Despite this effort. With its present headquarter in San Ramon. chemical manufacturing and sales. oil. instead of a blessing. including exploration and production. Jill 2007). Olujide 2006. oil companies operating joint ventures of which Chevron is one of them. 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. Most exploration and production activities in Nigeria are carried out by European and U. 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). However. and gas belong to the Nigerian federal government. Ite 2007). its existence in Nigeria is dated to be around late 1920¶s 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. 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. While some authors attribute its cause to the exclusiveness of agency theory by its proponents. According to the Nigerian constitution. the importance of the environment and stakeholders¶ consideration appears very much de-emphasized especially among oil companies (Birnbaum 1995. north of Los Angeles (Chevron 2009). all minerals. some others in addition highlights the negligence of companies towards abiding to the ethical demands of their business (Mitchell . manufacturing.Undoubtedly. Agency theory. Doh and Guay 2006). and 80 percent of federal revenue (Onishi 2002. Chevron was established around 1879 at Pico Canyon. who negotiates the terms of oil production with international oil companies. the generated revenue from oil has appeared to be a dilemma. Rather than turning Nigeria into one of the most flourishing states on the African continent.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. California the company is noted to be one of the world¶s largest integrated energy companies conducting businesses in more than 100 countries. Asongu 2007.

. Fisman et al 2005. Nwanji and Howell 2005. Dummett 2006).and Sikka 2005.

Notwithstanding this development. Eweje 2006). Onwuchekwa 2004. Olujide 2006. Nwanji and Howell 2006. the emergence of stakeholder¶s theory and its accompanied theory of corporate social responsibility ushered in a new vista to companies. The proliferation of sequester carbon emission.Nevertheless. Onwuchekwa 2004. This state of affairs as underscored by the committee on Economic Development (1997) cells for immediate attention and remedy. neglect of the environment. However. Jill 2007). 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 in relation to oil spills. gas flaring and pipe leakages have contributed to these problems (Onishi 2002. Companies were expected to broaden their accountability to include not only the shareholders but more importantly the stakeholders at large (Nwanji 2005. some companies have not in practice imbibed the corporate social responsibility teachings.Guobadia 2000. Ite 2005. Olujide 2006. 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). diseases and low standards of living among others (Onishi 2002. 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. Akpan 2006). Godfrey et al 2008). The poor socio-economic situation of the country spells poverty. 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 (. .

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. under which a share of the revenue generated from oil producing states. and other infrastructure to some remote parts of the country that might otherwise be far more marginalized by the Nigerian government. Onishi 2002). and contractors have become rich on the spoils of oil. However. the region remains poorer (Karl 1997. if ever completed are inconsiderately carried out efficiently. Although there are other means through which developments have been created to reach the host communities. Amaeshi 2006. Akpan 2006). While the minority ethnic groups living in the oil-producing communities of the Niger Delta have faced the adverse effects of oil extraction. In spite of the vast wealth produced from the oil found in these communities. Okafor 2003. clinics.Notwithstanding the proliferation of various codes and clamour for ethicality among business organizations. and hence support the oil industry¶s activities. Although a minority of politicians. Undoubtedly. 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. the impact remains patchy (Wheeler et al 2002). Moreover. the development spending by the oil companies has brought in schools. these intermediate links have equally turned out to become another source through which those implementing them add to their wealth. The µderivation principle¶ in the federal budget. instead of being a source for poverty alleviation (Onishi 2002. . but many of these projects are inappropriate to address the needs of the communities and more importantly are often left uncompleted. the great majority of people from the minority ethnic groups of the oil-producing areas have remained impoverished. because of incompetence or corruption. was reduced to insignificant levels. they have in general also failed to gain from the money generated from the natural deposit (Onishi 2002. Others. Onwuchekwa 2004). traditional leaders. sometimes as a direct consequence of environmental damage caused by oil extraction (Frynas 2001. Akpan 2006). Onishi 2002). Olujide 2006). and not until 1999 when it was partially restored (Onishi 2002.

Unfortunately. 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). Freeman 2004. Beauchamp and Bowie 2004. in 1993 and in turn was blamed both at the local and international level (Birnbaum 1995). 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 business-society relationship and formation of new corporate social responsibility thinking (Carroll 1979. 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. 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. Lev et al 2006. Johnson et al 2008). Jill 2007. 1991. Shell for example. the changing social expectations. . has the chances to withstand the test of time (Nwanji 2005.. 2004. Henderson 2001. More so. 2004). mindful of the fact that such responsibility falls outside its main domain of expertise (Friedman 1962. an attack that successfully closed down Shell¶s production in Ogoni land: Nigeria. the notorious failures of corporate bodies such as Enron. 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. Dick 2005). Crane and Matten 2003. the rise of modern exigencies and ethical issues facilitated by globalization.6 IMPORTANCE OF THE RESEARCH In recent years. 1970. 1999. Jill 2007). although known to be the largest producer of oil in Nigeria had been attacked by its host communities. 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. 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.

This study therefore. Furthermore. Finally. The little that was carried out in relation to this. thus enabling him to gain better insight about corporate social responsibility and also be more equipped in undertaking future research. 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. the cost benefits it offers. it will help the researcher in understanding and applying business and management research techniques. 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. it will also provide the communities with valuable information on the feasibility of their demands. 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 developing countries. some researchers who tend to asses this phenomenon have most often focused attention on the theoretical discourse. 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. The emerging impacts it places on the host communities in contrast to other host communities in developed countries were less addressed. . from my research was not conducted in this context for Chevron.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. as well as it¶s associated economic and profit derivation among others. 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 it¶s possible improvement would influence business performance.

It is not out of place therefore to encounter problems and obstacles in a study of this nature. Hence the generalization of the findings of the study beyond the confines of Chevron may be considered improper.1. it is possible that the use of one method of analysis might have limited the empirical data generated from the fieldwork. More so.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. 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 possible that some cultural and other environmental factors peculiar to communities can influence matters in relation to corporate social responsibility. which usually is in a very short supply and other resources such as money regulate choices in endeavours such as this. Perhaps. the importance of the research as well as its possible limitations.8 SUMMARY This chapter has attempted to present a preview of the research. . However. presenting the background information. 1. 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. by introducing the research aims and objectives. Prominent among them includes time factor. The subsequent chapter provides a comprehensive review of extant literature related to the study. Nevertheless. These constraints have resulted in the selection of one company within the oil companies in Nigeria and have neglected many choices. another unpalatable outcome is that the choice of Chevron is restricted to Nigeria and precisely Niger Delta and its environments. Furthermore.

including those that are anti-supportive to the subject understudy. it provided the basic premise for this study. corporate governance theory. This was to ensure that the theories cover comprehensively the subject of the research. 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. an overview of what is to be expected in the rest of the study. Okafor 2003. Specifically. More so.CHAPTER TWO LITERATURE REVIEW . On this note some of the major studies conducted in relation to the subject were examined. their findings. 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. its historical antecedents and usage in the three major eras of history. Karl 1997. Frynas 2005. Avery 1999. In addition to this. Onishi 2002. the basic research aims and objectives as well as the research question. Ite 2004. were thus examined. Furthermore. 2. which are invaluable for the pursuit of the study objectives. shareholders and stakeholders theory. As the attention intensifies due to growing fears of such . To this end. the chapter goes further to present other contemporary empirical studies that are pertinent and useful for the research. Human Rights Watch 1999. These literatures were critically reviewed based on the objective judgments gained from the wide variety of works relevant to the research. the literature review will afford us the opportunity of knowing what others have done on the topic or related topics. the chapter begins with a conceptual clarification and etymological discourse of the term corporate social responsibility. 2006). the social contract of Rousseau.2 CONCEPTUAL CLARIFICATION Corporate social responsibility has become one of the most commonly used phrases in the modern global business vocabulary.1 INTRODUCTION The first chapter presented an introduction and to some extent. Hamann 2003. recommendations and how all these relate to the present study. Fox et al 2002. Dominant theories relating to corporate social responsibility such as business ethics. effort was directed in building a strong theoretical foundation and providing a framework for data analysis. In this section.

.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.

electricity. organisations and businesses need to be very much aware of its social and environmental interactions together with its economic viability (Deegan 1999b). Maignan & Ferrell.2) noted that their activities ³affects the quality of life. 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. Godfrey et al 2008). water. Many companies¶ implementation is shallow and fragmented. despite the widespread rhetoric. entertainment. medicine. rivers. employees. p. news. seas. transport. it is now widely recognised that companies have responsibilities broader than traditional shareholders wealth-maximisation (Margolis and Walsh 2001. and even the lives of unborn babies´. 2004. In their long examination of the effects of companies attitude towards the environment Mitchell and Sikka (2005. suppliers and the local community (Beauchamp and Bowie 2004. . Nevertheless. as the attention matures due to society protest and companies¶ damages. Nwanji and Howell 2006). Porter and Kramer 2006). customers. 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. hospitals. But in order to achieve and carry out this grandiose task. today¶s organisations need to know and understand the meaning and potential implications of CSR in all its dimensions. Specifically. It should be noted that despite the existence of vocal critics (for example Friedman 1970. 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. food.However. Nwanji 2005. schools. environment. impact is still patchy in practice. communications. managers. especially in developing countries. 2004). gas.

The concept is coined from the words that are contained within its title phrase: µcorporate¶.8). 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. the whole notion of CSR can be discerned from its etymological conception. The term µcorporate¶ is derived from the Latin expression for company ³cum´ and ³panis´ meaning ³breaking bread together´ (Arndt 2003). 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. Whitehouse 2003. Utting 2005). is the belief of accomplishing what they would not have if left individually. Timberlake (2002) noted that underlying this coming together. it should be noted that as early as 1938 the notion was seen reported in the works of Barnard (1938) and re-echoed by Van (2003). µsocial¶ and µresponsibility¶. Thus. While the use of the term CSR appear to be new in literature the concept itself is quite primordial. as the discipline matures. p.The notion and importance of corporate social responsibility of corporations is not new in extant literature. . More so. At the core of its meaning is the understanding of working collectively as a group or sharing together. they gathered together not solely to make profit but also to make contributions to the society (William and Barrett 2000. Underlying this notion is the fundamental belief that a group of people come together and exist as an institutions that we call a company. the underlying concept of CSR that of an implied social contract dates back to ³the writings of the Greek philosopher Epictetus« [and] was central to the intellectual system«in the first half of the seventeenth century´ (Anshan 1970. However. Although. so that they will be able to achieve what they could not accomplish as individuals. Specifically speaking. as some authors dates it back as early as the history of trade and business itself (Asongu 2007).

Asongu (2007) found out that in Southern Cameroons and other parts of Africa. At ³New Yam Festivals´ farmers in Eastern Nigeria. In his long academic enquiry on the historical trace of CSR. business at this time was new in its broadening scope and social significance. the dawn of industrialization era in modern times ushered in a new vista for CSR activities. BRASS Centre (2007) buttressed and exemplified 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. . precisely in Igbo land brought their first harvest for the famous communal ceremony (Asongu 2007). innkeepers and builders. Nevertheless. Within these period CSR activities was narrow in perspective and received a less specialized attention among corporations (Gautt 1919). They have not learned how to handle these changes. 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). hunters were expected to bring part of their catch to the chief (traditional rulers). when they noted that the laws to protect the forest and commercial logging has been in existence since 5.In the Ancient era CSR activities could be discerned in the codes of conduct enacted for farmers. This idea was clearly depicted by BRASS Centre (2007). 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. As rightly stated by Donham (1929). More so.000 years ago. to ensure that their activities and operations do not inconvenience the life and freedom of others. in Africa this element of organizations being accountable to the society in which they live and operate their business was not left out. businesses has a social responsibility and in fact was seen as providing benefits to the society than to the individual person. BRASS Centre 2007). In their historical elucidation of corporate social responsibility and corporate sustainability. nor does it recognize the magnitude of its responsibilities for the future of civilization (BRASS Centre 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.

Solomon and Thomson 2006. 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. Jill 2007). At this juncture corporate social responsibility emerged as a discipline under maturity with variegated vocabularies. and µsocial responsibility¶. one that is narrow in approach and the other that is broader. if businesses appear to be insensitive or lackadaisical to the society in which they live and operate.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. his thinking undoubtedly re-echoes the agency theory of the company. corporations becomes amoral and indifference to shareholders. economic profit is one of the motives of a business but it would be unrealistic to accomplish. By engaging in CSR activities other than that of profit maximization. Admittedly. 1970 and 2004) who understood maximization of profit as the sole responsibility companies had to the society. and attempts to capture its essence as well as how it is to be practiced or implemented was shallow. µgood corporate citizenship¶. Although Friedman¶s approach could be termed to be conservative. However. 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. Therefore. 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. µcorporate¶ or µbusiness citizenship¶. Asongu (2007) suggested that prior to this time effort was directed towards encouraging businesses to be responsible to its milieu and social issues. it should not be surprising to have various authors refer to this very concept differently under the following: µcorporate¶ or µbusiness responsibility¶. 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. . µcommunity relations¶. A narrow definition of CSR can be found in the works of Friedman (1962.

ethical. Similarly A Guide to Corporate Social Responsibility (CSR) has proposed one of the most acclaimed definitions of the term. that they should discharge accountability to many more sectors of society instead of their shareholders alone. One of the basic premises underlying this definition is the idea of mutual benefits and exchange in relationship. they also incorporated that accountability to extend to a broad range of stakeholders. This conception of CSR has attracted the interest of many authors and researchers that many definitions abound (Fishman et al 2005. legal requirements and overall respect for the communities in which they operate. and their impact on the society so pervasive. and discretionary expectations that society has of organizations and addressing them at a given point in time (Carroll 1991. and the communities within which they are based. In his view corporate social responsibility consists of four social responsibilities of which includes.A more articulated definition of CSR. all in attempt to give credence to it. It therefore goes beyond the occasional community service action. legal. The concept recognized that both society and the firm including the shareholders and workers have an impact on the business activity. . one that seems to be more embracing in outlook is found among those who held a broader perspective of CSR. legal. transparency. More so. it is a way of proposing policy ideas on how those obligations can be met (University of Miami 2007). It goes further to suggest that the social responsibility of business encompasses the economic. In furtherance it is a means of discussing the extent of any obligations a business has to its immediate society. While accommodating the view that organizations exist to increase profit and account to their shareholders. Freeman et al (2008) who is very much renowned on this was of the view that companies are so large. 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). Nwanji and Howell 2006). the economic. It refers to company ability in linking itself with ethical values. Freeman and Velamuri 2006). Commenting on the notion of CSR. 1999. Thus. 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. 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. According to the guide CSR is a means of analyzing the inter-dependent relationships that exist between businesses and economic systems. employee relations. ethical and philanthropic aspect.

of which I intend to envelop below. but also as key drivers in ensuring that society will allow the organization to survive in the long term. 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. It includes ± among other things-respecting human rights.1) reiterated this understanding in their succinct definition of corporate social responsibility as ³addressing the legal. To this end. planet and profit. In addition to this some authors have explained the concept from the moral perspective. These definitions are not only appropriate for understanding corporate social responsibility in terms of adding value to the shareholders and stakeholders. ethical.While similar ideas have existed in literatures. 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. broader definitions stress a broader level of accountability to shareholders and other stakeholders. customers and suppliers. of which concurs with Carroll (1991) pyramid of corporate social responsibility framework. the definitions of corporate social responsibility found in literature tend to share certain characteristics. fair treatment of the workforce. While narrow definitions are oriented around corporate accountability to shareholders.1) Nwanji and Howell (2006. 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. These fundamentals are seen as not only morally and ethically desirable ends in themselves and as part of the organization¶s philosophy. CSR as echoed in Crane (2001) could be seen as recognition of that inter-dependence and a means of delivering the obligation. commercial and other expectations society has for business. This paper concurs with a relatively broad definition of corporate social responsibility by the European 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. to the mutual benefit of businesses and the societies within which they are based. p. two major definitions of corporate social responsibility of which are inter-related stands out. as society benefits from the organization¶s activities and behaviour (p. being good corporate citizens of the communities in which they operate and conservation of the natural environment. Hence for the purpose of this research. . In summary. but also recaptures the interdependence of both. one of which is the notion of accountability. Important to note is that the definitions also corresponds to the renowned µtriple bottom line¶ reporting strategy which places emphasis on people. and making decisions that fairly balance the claims of all key stakeholders´. 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.

a viewpoint that is also expressed earlier in the works of Donaldson and Dunfee (1994) and re-affirmed in recent time by Deegan (1999.2. Of important to note is that at this level corporate social responsibility can be best understood as a quest for organizational legitimacy. 2. 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. is to depict some extant related creative writings that are in consonance with the concept of corporate social responsibility. ethics. . which seeks to find out ways through which companies can demonstrate that they have a license to operate. stakeholder¶s theory and sustainable development that are worth considering. The social contract theory is attributed to the early philosopher Rousseau. Although Rousseau was particularly referring to the state. This license to operate did offered a comforting foundation of developing organizational legitimacy theory.3 HISTORICAL ANTECEDENTS OF CSR The literature on CSR draws on a number of different theoretical traditions such as organizational legitimacy. 2002).3. 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 according to him will enable them to retain society¶s 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.1 ORGANISATIONAL LEGITIMACY The foundation of organizational legitimacy theory stems from the social contract theory between companies and society (Mathews 1993). The essence of this analysis therefore. 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.

. Donaldson and Dunfee 1994. disciplines and scholars that range of diverse interpretations abound. in Heidegger¶s work. With Levinas there was a departure of ethics from ontology to the other. the question of ethics is situated in the µbeing¶ and arises out of the very event of µbeing¶ and its µgivenness¶. It is important to note that some authors have employed this conception of ethics to argue that ethics has no place in business. Lozano 2000. Consequently. Ethics is understood in terms of µbeing¶ of which Heidegger calls µDasein¶. norms. The term later evolved to took on the abstract meaning of µhabit¶. used the term µethos¶ to designate what an individual should do according to his or her thoughts and convictions ((Skirbekk and Gilje 2001). which always reduces the other to a principle of identity or µthe Same¶ (Skirbekk and Gilje 2001). for ethics is ontology itself and µbeing¶ displays an intrinsic ethicality (Skirbekk and Gilje 2001). Although. the idea of behaviour. Levinas situated ethics in the relationship to the other person. traditions and laws originally underlined the meaning of the word µethos¶ and refers to normative appraisal of actions. but instead is mainly individual. particularly in the works of Sartre who noted that ethics is in heart of human existence as absolute responsibility. in its specific motion.2 ETHICS The concept of CSR to a great extent is anchored in the business ethics literature (Jones 1991. In his view ethics is thus« existence itself. characters of individuals and social groups. he propounded this theory so as to give response to the violence and dehumanization witnessed within the Nazi regime and the Holocaust.¶ and of which later was use to denote a place where one lives (Skirbekk and Gilje 2001). The concept of ethic has attracted the interest of different epoch. Levinas was trying to suggest that ethics is in opposition to traditional ontology and the principle of knowledge in Western philosophy. it would be necessary to begin by etymologically defining the term so as to capture its essence. This viewpoint appeared more developed and dominant in the classical contemporary period. The term ethics is derived from two Greek words µitos¶ meaning µthe fibre of the soul¶ and µethos¶ that originally meant µinhabited place. In the ancient historic period Socrates. Crane and Matten 2003). Existence is ethical through and through and does not need to be µethicised¶ from above. µusage¶ and µtradition¶ to finally mean µmores¶ or µcustoms¶. in the µintersubjective¶. But Socrates was trying to emphasize that ethics is part of human existence. to attribute morality to business is irrational considering the fact that business is not a human person (Friedman 2004). compliant with customs.3. Thus.2. Thus. Similarly.

ethics examine the role and means through which companies pursues their business objectives. Specifically speaking. actions and conscience. 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. . a new humanism (which Levinas calls µhumanism of the other human¶) that breaks with ego-centred philosophies and opens onto the infinite character of the µalterity¶ of the other. Levinas describes this experience as the face to face with the other. For instance. Faced with such vulnerability (ultimately the mortality or irremediable exposure to death of the other). in which the individual is faced with the destitute and vulnerable nature of the other. Nwanji and Howell 2006. the individual is called to care for the other and to attend to the other as would like others to do unto him. 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. raised ethics to the level of first philosophy.However. Ethics understood in this way represents what is truly human in human beings. Jill 2007). As opposed to the negation of the other human. that have attempted to offer an explanation of business ethics. 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. Jill 2007). In relation to corporate activity. 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. the ethical experience ± however rare it may be ± enacts a respect for and a concern for the other. it relates to issues regarding moral principles. 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. to whom the individual is called to be responsible to (Skirbekk and Gilje 2001). In the context of personal activity.

3 AGENCY THEORY One of the most interesting arguments that underpins the existence and growth of corporate social responsibility is the agency theory otherwise. corporate social responsibility could be seen as the quest for businesses to be ethical in character and behaviour (Van 2003). 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. need to weigh the moral consequences of the choices they make. Thus. As constructed by Ackermann (1975) it is an attempt to reflect that managerial reflections are not fully defined by corporate policies and procedures. With the proliferations of the agency theory. In other words. p. The employees and the society at large were in essence not considered as agents of the shareholders and sometimes.Moreover. 2. and to contributing to sustainable economic development: working with employees. . 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.3. the basic idea of corporate social responsibility is that ³business 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. and society at large so as to improve their quality of life. their families. corporate social responsibility was understood as strictly fiduciary responsibility to the shareholders. this standpoint is equally reflected and highly exemplified in core pursuit of corporate social responsibility. A viewpoint that Chardel (2004) took into cognizance in his definition of CSR as a meeting place between legal liability and ethical responsibility.692). in order to maximize their profits (Jensen and Meckling 1976). the local community. Thus. referred to as the shareholder theory. the agents were expected to act and deliver even to their own detriment. 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 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. but instead are constrained by their work environment and thus. as suggested by many definitions.

the development of this theory is often credited to Freeman (1984. Freeman and Velamuri 2006. philosophy and ethics among others. 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. While admitting the idea of companies being responsible to shareholders. Nevertheless. Freeman 2004. mindful of the fact that their activities have impacts on the society in various ways.4 STAKEHOLDER THEORY The emergence of stakeholder theory in late 1970s opened up a new vista for businesses. underlying the stakeholder theory is the conception that company should discharge their accountability beyond the table of their shareholders. 51. Nwanji and Howell 2006). This conception of responsibility can be depicted in the works of Friedman (2004. the exclusive focus on shareholders¶ profit to the exclusion of other concern in fact. Henderson 2001. 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 limited responsibility upheld by agency theory (Donaldson and Dunfee 1994. 2004) who in his general theory of the firm incorporated corporate accounting to a wider range of stakeholders. was the underlying element of the theory and appeared to have led some organizations to engage in socially destructive behaviour. Stakeholder theory holds that the corporation is responsible to a broader set of people than simply the shareholders. As rightly suggested by Wheeler et al (2002) the advancement was more of a broad tradition incorporating shareholders value. there is some significant evidence from literature that undermine the agency viewpoint of responsibility. In other words.Thus. 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. with an obsessive focus on profit (Wheeler et al 2002). 2. p. . However.3. The sole obligation business owns to the society was to maximize the profit of the shareholders. 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. the stakeholder theory was developed to broaden the agency theory that limited corporate accountability to shareholders (Nwanji and Howell 2006).

the local community. involvement and communication (Mitchell et al 1997. it should be noted that with Freeman¶s (1984) seminal book the focus moved from legitimacy and morals towards a new theory of the firm. The aim of stakeholder management is thus. CSR thus becomes a question of stakeholder identification. Social considerations are thus no longer outside an organization but are part of its purpose of being. In today¶s world it could be said that the stakeholder perspective seems to have dominated the reinterpretation of CSR. The theory in other words. The US Sarbanes Oxley Act of 2002.5 CORPORATE GOVERNANCE In recent years the numerous high profile cases of corporate failures have not only resurfaced the issues of corporate social responsibility. 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. goes a long way to explain the issue of whose values beyond the shareholders are to be taken into account. safety of the products. According to Freeman and Velamuri (2006) the aim of stakeholder management was to develop a framework that will assist in managing strategically the myriad groups that influenced. to analyze how a company can serve its customers and be lucrative while serving also its other stakeholders such as employees. for instance. Jill 2007). intellectuals. stakeholder theory holds a corporation responsible to the very specific values and interests of people who are touched by a business. the suppliers. non-governmental organizations. Morsing and Schultz 2006). corporate responsibility suggest engaging the stakeholders in conversation to understand what values are of importance to them and carrying out those values. but also did encourage others to do so. Morsing and Beckmann 2006. and so forth. impact on the environment. Theories upon theories have evolved all in the bid to analyze and work out systems that would permit systematized corporate governance especially in large public companies or corporations. the ability of a corporation to achieve its corporate agenda. but more so about other dimensions of the business practice such as treatment of the employee. pushing the question of the legitimacy of corporate power as well as the moral dimension of managerial decisions more into the background. To this end. 2. . customers.Nevertheless.3. companies and the society on the weaknesses in corporate governance systems as well as the need for constant reform (Nwanji and Howell 2006. Employees and customers will care not only about the profitability of the company. and the countries in which a company operates. directly and indirectly. came as a quick response to remedy the corporate failure in Enron. but has also focused the minds of government. Thus.

the broader definitions of corporate governance stress the need for broader level of accountability to shareholders and other stakeholders. organizing activities to benefit the community in which they sustain their being (Jill 2007). It is important to note that the broad definition has also received criticism. It advocates for governance that is built on corporate broader responsibility and this interpretation seems to have underpinned the core push for corporate social responsibility. setting good labour conditions for employees. . one that is narrow in perspective and the other that is broad. 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. While the narrow one view corporate governance as a process of supervision and control intended to ensure that the company¶s 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. In other words. Amidst the various definitions two approaches have been found dominant.As a matter of fact. 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. the concept corporate governance has no single universally accepted definition. corporate governance aims to make the corporation a good citizen by being socially responsible. sharing their profits for the good of the community as a natural person or human being would do. paying taxes and other obligations due the government and making sure that it is meeting commitments to other persons. an aim that underscores the dictates of corporate social responsibility. However. In literature many scholars seems to be in much concordance with the broad definition of corporate governance. 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. 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 corporation¶s primary objectives (IMF 2001). Other good corporate governance practices that overlapped with social responsibility is complying with applicable laws. donating to social causes. Thus. as a system of checks and balances whether internal or external which ensures that companies accounts to all their stakeholders in all ramification. helping the economy through fair trade practices. This notion of broader responsibility is equally depicted in the works of Jill (2007) who defined corporate governance. providing good products to the community.

of whom nonetheless have a moral claim on the corporation.2. In their views CSR could be seen as a ³concept. However. firms are expected to consider traditionally unrepresented stakeholders such as the environment and as well as future generations. This theory appeared to have emerged under the assumption that the stakeholder¶s theory did not represent all the stakes in its entirety. without compromising the ability of future generations to meet theirs. and society at large to improve their quality of life´ (WBCSD 2006). consequent of their corporate practices. 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). 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. Its definition of sustainable development. working with employees.6 SUSTAINABLE DEVELOPMENT The latest literature tradition to have underpinned and impacted our understanding of corporate social responsibility is that of sustainable development. supports as well as extends the responsibility of firms both inter-and intra generationally.3. the local community. Brundtland Commission (1987) who was the foremost to have 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. 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). This understanding appears to be evident in some definition of CSR proffered by international bodies. 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). 2006). Similarly but more amplified is the definition given by the Commission of European Communities. World Business Council for Sustainable Development (WBCSD) has defined CSR as "business' commitment to contribute to sustainable economic development. as meeting the needs of the present. Thus. Such people may not have the buying power but are affected through the various activities of companies (Hamann 2003. . their families.

a fact that also underscore the kernel of CSR. 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. 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. animals and the environment that most often are left untouched by them. the activities of oil company¶s extractions impact directly and indirectly on people as well as the environment. one ocean. In other words. 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. It attempts to amplify the stakeholders voices especially the voices that are not only unheard but are also intangible. Their extractions which bring forth pollution and carbon emission among others impact on the nature of social lives of people. 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. sustainable development could be seen as a concept that points to the limits and boundaries of stakeholder theory. Besides this it is evident that we all share one world. For example. but also based on the immediate and long term social and environmental consequences of their activities. .On this note therefore.

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. While some authors tend to address it from its positive impacts on business economic performance. The essence of this section therefore. increasing affluence and globalization among others (McWilliams and Siegel 2000. 2. But central among these literatures is the understanding that it could be internal or external (Dummett 2006). Among the studies conducted by these various authors two major areas of contention appear to be dominant.2. 2. Nwanji and Howell 2006. Some of them among others include. 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. Mackey et al 2007).1. 4 DRIVERS OF CSR Many authors from different disciplines have suggested various trends that appear to motivate or drive CSR increasingly importance.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. Nwanji and Howell 2006. others in addition identify other trends such as the changing social expectations. 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. Orlitzky et al 2003. 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. Two recent studies illustrate these viewpoints. . Mackey et al 2007.4. 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. Johnson et al 2008).4.

4. money and effort companies invest in their brands. consumer boycotts.2).2 ENHANCED BRAND IMAGE AND REPUTATION: Brands today are one of the key focal points of any corporate success. 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. some author believe that a good CSR policy is an effective means of protecting that investment and maximizing its impact (Freeman 2004. which is directly reflected in sales and revenue (Nwanji and Howell 2006). 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. Considering the large amount of time. Many companies make effort to inculcate and establish popular brands in consumer minds because it increases leverage. Nwanji and Howell 2006). . Johnson et al 2008). the result showed that the Best Citizens scored ten percentile points in contrast to the second. In essence it would not be out of contest to suggest that almost every aspect of a company¶s operations today feed into helping build the corporate brand. 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. However. a fund they would not have lost if they were socially responsible in practice as they theoretically claimed (Shell 2005). For example Shell oil in Nigeria lost millions of money because of the attacks from host communities in 1990. In fact. based on the 2001 Business Week ranking of total financial performance´ (Nwanji and Howell 2006.1. One apocalyptic accompaniment associated with companies that are socially responsible is that they have more chances of enhancing their reputations as well as strengthening their brand (Nwanji and Howell 2006.The recent analyses of ±DePaul University study-according to them exemplified that the ³overall 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. p. 2. 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.

International bodies such as the Organization for Economic Development (OECD). The Cadbury Code 1992. 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.2. the growing government interest and action. Higgs Report of United Kingdom and the US Sarbanes Oxley Act of 2002. . 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.1 PROLIFERATIONS OF CODES.4. globalization. the quest for transparency of corporate performance. 2. INDICATORS AND GUIDELINES. standards. came as a quick response to the corporate failures and as such formalizes broader accountability and responsibility. proliferation of codes. More so. Jill 2007). changing social expectations.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. STANDARDS. 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.4. for instance. standards. International Corporate Government Network (ICGN) and UN Global 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. Some of these external factors include. indicators and guidelines.2. increased stakeholders activism. and increasing affluence among others. that companies are now drawn to employ CSR as a strategic tool of surfacing their standardization of corporate governance (Dummett 2006). 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. guidelines as well as indicators both from national and international bodies.

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. public exposes. More so. there are still some changes that reflect the growing concern of companies being socially and ethically responsible in Nigeria. some companies make effort to be socially responsible so as to enhance their brands and reputation among others (Nwanji and Howell 2006). While CSR concept and its formal applications could be said to be at the developing stage within this time. 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. attack on the company. Consequently. 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. 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. and sometimes denial of service among others. empowering like-minded groups and consumers to target any organizations they perceive as not being socially responsible from any part of the globe. . 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).2. Consumers are now expecting more from the companies whose products they buy unlike before.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. 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.5 CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA The above sections discussed to some extent the related theories and definitions of the key subject under investigation. boycott.4. 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. 2.2. In order to avert any of this damage especially the danger of losing brand value which is always very difficult to build.

But even at that level there was much effort to see that shareholder¶s rights are protected through the introduction of disclosure in the stock exchange. 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. Important to note was that at behind this idea was the Cadbury¶s 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. 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. Nevertheless. More so. Furthermore.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). 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). the Nigeria Stock Exchange (NSE) established afterwards was developed to support SEC in monitoring company¶s financial report through ensuring that it attains the standard required by them. Independent Corrupt Practices. Commission and Economic Financial Crime Commission were created by Nigeria government in an attempt to ensure effective responsible governance. Similarly agencies such as Institute of Chartered Accountants of Nigeria (ICAN). 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 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. 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. 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). To this end Chevron aimed at improving the quality of life in the communities. Corresponding to this Okike (2007) noted that the introduction of the µMerit 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. . In 1969 Shell had set up a public 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.

0 million barrels in 1972 and reached a peak of 2. Anosees Petroleum Company (now known as Texaco/Chevron). In fact it has become the mainstream of contemporary Nigerian economy and no other resources in Nigeria whether natural. Nigerian Agip Oil Company. Philip¶s Petroleum were given the mandate to begin exploration activities for oil both in the on-shore and offshore areas of Nigeria. an achievement that helps Nigeria to attain the status of a major oil producer. the end of the First World War oil prospecting resumed in Nigeria once more. other companies such as Mobil. development finance and the most present viable access to international investment opportunities. With over N30 billion. Although the company resumed operations in 1947. The pioneering efforts of this company could not fully materialized consequent of the outbreak of the First World War in 1915. Safrap (Life).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). Shell started oil production and export from its Oloibiri field in 1958 (NNPC 2009). 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. However. Gulf. By 1961. the oil sector has undergone tremendous transformations over the years. From the mid-1970s to date.2. with the successfully exploration of oil by Shell. but now was moved by Shell D¶Argy. 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.4 million in 1979. the exploration which formerly was granted to Shell alone was extended to new comers in line with the government¶s policy of increasing the face of exploration in Nigeria and uplifting its economy. Tennen American Overseas. ranking the seventh position in the world by 1972 and the sixth largest oil producing country by early 1980¶s (NNPC 2009). The industry has evolved from being the most supportive economic sector it was in the 1960s to the predominant source of foreign exchange. Thus. The impact of more oil companies in Nigeria doubled the production rate of oil from 5100 barrels per day to 2. However. material or manpower has played such a towering role over the national economy as crude oil. oil .

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. and damage to. 9 Adverse media and political attention on the oil and shipping industries and their . 4 damage to aquaculture stocks.revenues has consistently contributed over 90 percent of Nigeria¶s Gross Domestic Product (GDP) and about 85 percent of the Federal Government revenue (NNPC 2009). 6 contamination of coastal infrastructure and amenities leading to impacts on tourism and other recreational activities. facilities and tainting of commercial seafood. 2 physical damage or permanent loss of foreshore and marine habitats. viability and diversity of coastal ecosystems. desalination plant intakes or salt pans. 7 shut-down or damage to power station cooling water. 5 smothering of. 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.6. intertidal biota and vegetation. Corresponding to this the United Group of Experts on Scientific Aspects on Marine (1994) in 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. 8 economic loss at both the regional and national level. 3 impacts on the health. marine mammals and other sea life. 2.

Water effluent on the other hand results from the separation of production water and oil spillage of waste generation. of which in his views are mainly the resultant effects of oil spillage. impairment use of sea water and reduction of amenities. Contamination of agricultural and destruction of vegetation particularly man grove swamps. Neutrality of bivalves such as oyster. sub surfaces and floating macrophysics. hazard to human health. 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. However. . 5. 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. sheltered salt marshes and sheltered tidal flats. Emigration of wild life and consequent loss of biodiversity. Similarly in a research conducted by Okike (2006) the author identified potential pollution outlets as air emission. As rightly stated by them pollution could be seen as a man made or man aided alteration of chemical. the definition of pollution by the Federal Environmental Protection Agency Decree captures and provides to some extent a succinct understanding of how pollution emerges. 4.operations. 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. pollution could be seen as the introduction by man directly or indirectly of substance or energy into the marine environment. hindrances to marine activities including fishing. Extinction/reduction of agricultural and related activities and Forceful population migration. 2. water effluent and 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. 3. resulting in such deleterious effects as: harm to the living resources. fish. physical or biological quality of the environment to the extent that it becomes detrimental beyond acceptable limits. According to them.

Important to note is that oil minerals in Nigeria currently account for over 90 percent of Nigeria¶s revenue and these oil is mainly located in the Niger-Delta. 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. degrades quality of life and restricts economic productivity was found to be a common phenomenon (Onishi 2002. 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 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. while only 25 percent and 12 percent of households in the area use satisfactory sanitation facilities. reduces mental capacity. high rate of unemployment. Childhood malnutrition which increases infant mortality. abject poverty resulting even to malnutrition and lack of education among others (Onishi 2002). 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. 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. As identified by Onishi (2002) and Babashola (2003) access to portable water and sanitation was very much deficient among the host communities. housing in quality and quantity as well as accessible road is deficient in most of the region. More so. Akpan 2006). But despite these earnings made from these area of the country coupled with the deleterious impact of oil pollution on the habitats and environment. Examining the awful predicament and state of the oil host communities in Nigeria. the host communities is still faced with insufficient infrastructures.Moreover the detrimental effects of oil pollution and its devastating consequences on the environment can never be over emphasized. 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. Olujide 2006).

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. the chapter presented the historical antecedents of CSR. 2.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. More so. Furthermore. On the other hand. 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.7 SUMMARY In this chapter effort was directed towards providing a definitional clarity of the term corporate social responsibility. Finally. it presented the external and internal drivers of CSR as well as its formal development in the Nigerian context. to carry out community development programs Chevron also established public Relation Department. . dwelling on its conception within the three main epochs in history. In addition to this. It also went further to examine the related literature that tends to underpin the concept of CSR. The subsequent chapter examines the research methodology. weak economic base with little or non-existent surplus. building of classroom blocks and agriculture among others (Chevron 2009). This department has the duty of seeing that the company relates well with the public especially the host communities. 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. environmental pollution through operational hazards. predominant self-employment with low productivity and presence of well informed community pressure groups committed to addressing per cured injustice among others. hospitals. 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. the chapter discusses the development of oil production in Nigeria and its impact on the economy and environment. As encapsulated by Onishi (2002) oil communities problem in Nigeria encompasses low level of education and technical skills. aging pipes and spillage.

to be able to carry this grandiose task effectively. . which as identified by Jankowicz (2005. 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. More so. is ³the analysis of. and rational for the particular method or methods used in a given study. Consequently.1 INTRODUCTION The preceding chapter focused on conceptual clarification and exposition of related literatures relevant to the research. 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. presenting also the ethical considerations given as well as the merit and demerit of each of the approach examined. 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. p.224). the section explored the relevant research approaches.CHAPTER THREE RESEARCH METHODOLOGY 3. and in that type of study in general´. the research strategy and the data collection method. In this chapter effort is made in providing the research methodology that the researcher intends to employ in his research. In addition to this.

as well as the data collection approach and techniques. Lastly.3. To this end therefore. 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. the distinctive criteria of which he must carefully observe in the investigation of his problem. Next on the line was to identify and appraise these investments in terms of its impact upon intended beneficiaries and business performance. for it is on that basis that the researcher selects his basic research method. there were four main objectives that sought to guide the research. 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. 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 methodology employed. The second research objective was to assess the motivation behind CSR functions and investment projects undertaken by oil companies. 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.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. the study analyzes and suggests feasible ways through which corporate social responsibility could be improved so as to increase business performance. . The first objective was to review extant literature on corporate social responsibility in developing countries. And for this to be realized.

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. analyzing such issues involves looking into complex social phenomena which may be difficult using the methods of positive philosophical analysis (Scapens 1990). Hence the selection of the phenomenological research philosophy emerge from the researcher¶s conception that an investigation into the corporate social responsibility is a complex matter that may void the positivist research philosophy that anchor its method using generalized laws. However. in literature many philosophical assumption have emerged to shed light on how a researcher should conduct their endeavours of which to a great extent underpins the research philosophy employed by the researcher. the researched has much direct bearing from the context of subjective experience of which the phenomenological field of philosophy embraces. It concentrates on perceptible phenomena and on the ordered relationships that can be established through empirical research. Also. In addition to this. the discipline in itself is empirical and anti-speculative (Collis and Hussey 2003.3 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. As rightly encapsulated in the philosophical underpinning of the positivist¶s research philosophy. .3. Saunders et al 2007). Hence to apply such a position to a research that investigate issues of organization¶s 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. 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). 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. Besides this understanding.

To this end therefore. Jankowicz 2005. not only involves understanding the perceptions and views of host communities but also that of comprehending the resulting actions of the people involved. In other words the social world can only be understood by occupying the frame of reference of the participant in action and not otherwise. Hence when we return to things themselves in research. Collis and Hussey 2003. Saunders et al 2007). 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. Emphasizing on this Saunders et al (2007) noted that the essentiality of research approach could be deduced from what takes place within its context. Similarly but from another point of view. the social world is real and external to the individual. 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). 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. while the inductive approach is oriented towards gaining an understanding of the meanings humans attach to events as well as the research context. also referred to as inductive approach (Bryman 2001. . an investigation into the impact of corporate social responsibility on oil producing communities.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 guide and focus his research. As noted by Saunders et al (2007) the deductive approach owes much to what one may think of as scientific research. It is the individuals that create the social world and not vice versa. 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. However. we come to terms to a world that precedes knowledge or science with the aim of presenting the µlife world¶ as the meaning or constitutive grounds of the sciences (Skirbekk and Gilje 2001).Ontologically and epistemologically speaking. 3. Merleau-Ponty pointed out that knowledge is gained from particular point of view or from particular experience of the world.

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. 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. 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. 2000. Maylor and Blackmon 2005). 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. Therefore.Consequently. 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. Most importantly. 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. In the context of the research therefore. 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. Besides this. 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). Patton 2002. the researcher adopted the qualitative method otherwise referred to as inductive. but also it is an approach that begins with specific observation and then builds towards general patterns (Silverman 1993. 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. considering the above stated point. . be able to assess the motivation behind the company¶s corporate social responsibility functions and investment projects they undertake. Walsh 2001.

3. case study implies a single unit or subject analysis such as a company or group of people among others. Saunders et al 2007). 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. 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. This implies that with case study the research aims at not only exploring certain phenomena. 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. 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 researcher¶s adoption of inductive approach. of which is typical of the research understudy. Collis and Hussey 2003. Thus. Chevron Oil (Nigeria) is thus a bounded unit in the oil strategic industry. to understand them within a particular context (Yin 1994).In addition to this. within the context in which the event takes place (Burns 2000. 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. but more so. Corresponding to this. as a critical and determining factor in the definition of what is.5 RESEARCH STRATEGY: CASE STUDY By research strategy which is also a subset of the research design. 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. 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. the research is context specific and as such should go with research approach that offers and accommodate the human element increasingly. 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. .

it has also the capability to generate considerable answers to the Why. it is important to note that considering the nature of the research under enquiry and the research philosophy adopted. To substantiate this fact. it is the intention of the researcher at this juncture to justify this by examining some other alternative research strategy. notwithstanding the enumerated demerits of case study research strategy. As rightly suggested by Collis and Hussey (2003) in addition to the fact that case study tend to suit exploratory research. On the other hand. More so. observations and documentary analysis of which as a matter of fact constitutes the data collection method of the research understudy. 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. . 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. Nevertheless. experimental and explanatory. of which most often can lead to losing the uniqueness and µcontextuality¶ of the case being studied. thereby increasing the tendency to selectivity and biasness. in as much as there are evidence of acceptance as regard the strengths of case study. More so. interviews. Saunders et al (2007) noted that data collection method employed may include questionnaires. a fact which Ozuem et al (2008) depicted and identified as the influence of the µetic¶ (values of the researcher) and µemic¶ (values of the researched). 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. What and How questions. To this end therefore. Collis 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. or when choosing a particular explanation for the evidence found. illustrative. Bryman (2001) questions the role of human objectivity when selecting evidence to support or refute. 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. Suffice it to say that a case study may provide anecdotal evidence that illustrates more general findings. One of the implications of this influence is that content analysis will often be invoked to convert qualitative data into quantitative. In literature it is important to note that many scholars appear to give credence to the case studies research strategy.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. This paper employs the explanatory case studies in which existing theory is used to understand and explain what takes place in a particular circumstance.

. Considering the core drive of experimental strategy. of which Maylor and Blackmon (2005) identified as contrasting elements of experimental research strategy. survey.6. 3. ethnography.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. groups and organizations among others. 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.3. action research among others. Simply put experimental research strategy is primarily meant to identify conditions underlying the occurrence of a given phenomenon. values. Saunders et al (2007) in addition to case study strategy identified other strategies of which include: experimental. According to Collis and Hussey (2003) the experimental strategy owes much to the positivist methodology even though it features in some social science research and typically are conducted in a systematic way. 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. In other words. it consists of varying the independent variables. An investigation into the impact of corporate social responsibility of oil companies on oil producing communities involves engaging human elements perceptions.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. From an operational viewpoint. feelings. grounded theory. it does not seek to explore meanings but instead try to test hypothesis. actions and interactions of people. But the reasons why the researcher never deemed it appropriate to adopt any of them is evidenced and summarized in the subsequent sub headings. emotions as well as the state.

their beliefs.6.3. or a group of loosely related themes. attitudes. 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. Admittedly survey research focuses on the vital facts of people. Similarly. But it is necessary to note that case 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.2 SURVEY RESEARCH STRATEGY This type of research strategy is oriented towards the determination of any status of a given phenomenon. 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. As expressed in the works of Bryman (2001) surveys are particularly versatile and practical especially for the researcher. 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. 3.3 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. motivations as well as behaviour that one will be prompted to ask why the researcher did not adopt it as the most suitable strategy. rather than a set of numbers. in that they identify present conditions and point to present needs. .6. opinions. First and foremost. it should be noted that the researcher found it inappropriate to yield effective result on the issue being investigated based on the following reasons.

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. considering the nature of grounded theory. Consequently.6. out of all strategies considered. 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). 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). This in other words imply that using such a research strategy will require not only an extensive period of time but more so. While primary data refers to those data collected for the specific purpose of the research project being undertaken. 3. secondary data stands for data collected for other purposes like published summaries and through other . 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).4 ETHNOGRAPHY RESEARCH STRATEGY The term ethnography depicts the writings about people.Furthermore. 3. necessitate the researcher being a full time member of the host community and organization being investigated as well as doing the research. Ethnography essentially involves descriptive data collection as the basis for interpretation. the strategy was found inappropriate within this context based on the fact that grounded theory put much emphasis on generating theory from observation made. However. Saunders et al 2007). Moreover. in ethnography the ethnographer or researcher has to live among participants and collect data for long periods of time. This in other words. 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. Therefore. this research strategy is often associated with research that consists of theory building of which is not the priority of the research understudy.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. As a process ethnography could be seen as the science of cultural description. 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.

journals. internet. news papers. some information from Chevron Oil (Nigeria) was gathered through its published policies and corporate social responsibility agenda. scholarly articles. 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. company documents.means such as books. e-journals and data base among others (Bryman 2001. Saunders et al 2007). .

This we shall briefly expose below. considering the fact that this research is based on the phenomenological research philosophy and the nature of data required. that of semi-structures and in-depth interview is informal. it can also be carried through telephone (Bryman 2001). 3. 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. 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. 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. The process consists of a purposeful discussion involving two or more people. semi-structured or unstructured. consisting of in-depth interview. 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. semi-structured questionnaires and participant observation as are further explained below.7. Nevertheless. On this note Saunders et al (2007) was of the view that primary data can be collected through semi-structured. In addition to the fact that interviews can be conducted on one to one or one versus many bases. Hence.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. .1 INTERVIEWS Interviews are one of the methods used in collecting qualitative data. While structured interviews make use of questionnaires that are predetermined. interviews and questionnaires. This process as rightly stated by Saunders et al (2007) can assist in gathering valid data and can be structured.

the interviews often opens with the explanation of the study and more importantly allowed respondents to seek clarification if deemed necessary. the respondents were requested to discuss about their usage and experience of corporate social responsibility as it reflect within their locale. the views of the company on corporate social responsibility and its practice were sought through another set of questions used on the company¶s staff and management team. A purposive sampling approach was employed to seek out groups and individuals where the repositories of the issue under investigation appeared to be evident. at the end of each interview. 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. it should be noted that the questions were designed to relate to each of the research aims and objectives as well. Above all. Data gathered in this way is likely to address the what. 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. In all the samples which as aforementioned were purposively selected. 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. 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. The interview guideline contained questions aiming at gaining an understanding of the perceived level of corporate social responsibility of the organization. The interviews questions aimed at arriving at the two main research questions although not all of them were eventually used during the interviews. All this was to ensure that all the necessary data was well articulated so as to gain and develop understanding. a set of research interviews questions guidelines were designed. More so. The interviews conducted lasted at about one to two hours with breaks as was suggested by Saunders et al (2007). how and why questions thereby. Letters of request were sent to prospective interviewees prior to the interview. the necessary point raised by respondents were reiterated to ensure that the respondent¶s initial point and meaning is retained unadulterated. . Besides this. aiding the exploratory nature of the study.Using this approach therefore. More so.

The choice of this particular approach is based on the researcher¶s insight of the merits it will provide in investigating the issue under examination. More so. some questions were also designed to determine whether the organization does understand the host communities¶ requirements. However.3. 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).2 QUESTIONNAIRES Questionnaires are one of the techniques used in collecting data. In line with the interview the questionnaires for managers were designed to obtain answers to the two main research questions. To this end. 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. 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 company¶s corporate social responsibility and organizational practices.7. Bryman and Bell 2007). In research literature there seems to be varied opinions as it relates to its definition. Besides this. In total 12 unstructured questionnaires was administered among individual using purposive sampling approach where repository of knowledge appeared more evident . semi-structured or unstructured (Bryman 2001. More so. 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. Nevertheless. 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. Questionnaires could be structured. 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 this sense therefore effort was made to see that from the organization point of view the questionnaire adequately covered the research questions. the research adopted the unstructured questionnaires approach. the questionnaires took cognizance of the time that would have been wasted in interviewing some of the managers who as a result of their tight schedule were not able to give out much time during the interviews as earlier scheduled.

One of the advantages of this consideration is that it enabled the respondents to be more open and thus. 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.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.3. 3. address issues as they are. whether in the course of the data analysis or other areas such as informal discussion. . in cases where age was mentioned. Saunders et al (2007) noted that pilot testing will enables researchers prior to administering his questionnaires. In addition to this they were equally assured that in no circumstances will their names be revealed. More so. to refine their questionnaires so that respondents will have no problem in answering the questions as well as in recording the answers where necessary. the researcher received the consent of the respondent before revealing such. 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.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. 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. 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.

if any. Whether the layout was clear and attractive. recording. 5. questions were unclear or ambiguous.1 PARTICIPANT AND STRUCTURED OBSERVATION Observation is one of the essential parts of collecting data. 2. Here observation is systematic and predetermined. Which. Moreover. Although the method gives the researcher more insight of significant social processes the closeness of the researcher to the situation can prejudiced his data. 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. or community understudy that he in this sense becomes a member of the organization. More so. description. 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. This method entails ³the systematic observation. p. 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. 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.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. if any. 3. How long the questionnaires took them to complete. The second type is known as structured observation. Whether there are any other suggested comments. 6. although it is most often neglected. its data appear to be slow and expensive. 4. organization. 3. analysis and interpretation of people¶s behaviour´ (Saunders et al 2007.10.However. Which. Whether in their opinion there were any major topic omissions. 7. 3. 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. Notwithstanding the fact that process tends to yield higher result based on its reliability. 282). information concerning any unforeseen circumstances would be identified using Bell (1999) recommended layout of which include finding out: 1. respondent felt uneasy about answering the questions. . The clarity of instructions. 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.

the researcher will be employing the purposive sampling of non-probability sampling techniques. 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.3. 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. 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. Thus. Precisely speaking. . 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). the non-probability enables the researcher to select his sampling purposively and to reach difficult-to-identify members of the population. the selection of cases was based on critical case sampling where a logical generalization is made from the data collected from the critical cases. on the basis of which generalizations applicable to the population from which the sample was obtained are reached. However.11 SAMPLING METHOD No concept is as fundamental to the conduct of research and the interpretation of its results as is sampling. 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). Based on the requirements of research questions. 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. Based on this note. Purposive sampling as described by Saunders (2007) supports the use of judgment to select cases that will be best in answering the research questions. Consequently. 3 employees and 7 members from the host communities so as to gather data. Saunders et al (2007) identified two types of research sampling techniques: probability or representative sampling and non-probability or judgmental sampling. 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. It could be said that research except in few cases is invariably conducted by means of a sample.

Moreover. In addition to this. 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. if they cannot understand the process. Collis and Hussey (2003) describes this emerging form of research as being considerably relevant. All this effort was to ensure that the information generated represent the exact state of affairs under investigation. 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 insider¶s view of the matter understudy (Bryman and Burgess 2004).Such clues include trying to examine whether. to understand events from the viewpoints of the participants. rather than towards scientific generalizations. if they are having problems. As aforementioned the matter understudy is a social fact of which draws a context-bound conclusions that could potentially point the way to new polices and educational decisions. is it likely that no one will be able not to understand the process among others were taken into consideration. as aforementioned representative samples of 12 in total were employed for the sample population. . thereby avoiding partiality. a hypothesis-free orientation and an implicit acceptance of the natural scheme of things. Suffice it to say that it gives each data the chances of being selected in the selection process. the qualitative mode of inquiry which strictly is based on the phenomenological research philosophy is characterized by methodological eclecticism. impact or quality in an event isolated from the context in which it is found.12 STRENGTHS OF THE METHODOLOGY The merits of the methodology employed in this research can never be over emphasized. can you be sure that everyone will have the same problems. Burns (2000) noted that unlike many of the traditional narrower approach to the examination of educational experience. after which random sampling was used over the data collected from different groups of stakeholders involved. if it happens at that place will it happen also everywhere given the same circumstance. 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. since there can be little meaning. 3.

Because of the subjective nature of its data and origin in single contexts. On this note Saunders et al (2007) observed that in qualitative methodology. situations. but recent investigations and clamours from its host communities has raised various minds to question the authenticity of such disclosures. events. is an enormous list of high corporate social responsibilities functions embarked on by the organization. conditions and interactions cannot be replicated to any extent neither will generalization be made with any confidence to wider context than the one studied. Collis and Hussey 2003). contexts. . 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.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. Walsh 2001. 3.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. 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. it appears difficult to apply conventional standard of reliability and validity.

considering the limited time within which the research is expected to be fully conducted. Furthermore. these stated problems among others illustrate human deficiencies and thus. It opens by reviewing the research aims and objectives as well as highlighting the influence of them on the research method to be followed. Besides this. A discussion of the research philosophy. strategy. data collection method. The next chapter however will focus on the analysis and findings. reactions and activities of the subject understudy. . 3. approach.In addition to this.14 SUMMARY This chapter covers the methodological aspects selected in conducting the research. draws on the importance of further research. it presented the rationale and justification behind the chosen method. Bryman (2001) noted that because of the intimacy of participant-observer relationships within the setting there is no doubt that the researcher¶s mere presence will have profound reactive effects on the subjects of the study. However. the researcher did not spend a considerable amount of time in the research setting so as to examine holistically and aggregately the interactions. the ethical considerations given as well as the strengths and limitations of the methodology were also examined respectively.

4. These sources which mainly are in detailed and micro forms called for some coherency and articulated structure. is essentially about detection. 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. explaining in details the why of its selection amidst other various data analytical methods applied in qualitative research methodology. it allows the researcher to review the whole data collected without any partial or selective treatment at the analytical table (Tuckett 2005). in consonance with the dictates of the organizational structure of research. defining. explaining and exploring issues of which are among the basic tenets of qualitative research. it became imperative therefore that an analytical method which seeks to sift. The consideration of this method of analysis was based on the fact that the framework as identified by Bryman and Burgess (2004) is not only systematic and disciplined but more so. chart. Prior to the data analysis the chapter enveloped the data analytical method employed in the analysis. Since the researcher is not seeking to build theories nor test hypothesis.CHAPTER FOUR ANALYSIS AND FINDINGS 4. In addition to this. sort and explain data as they relate to key issues and themes being discussed during the data collection process be adopted (Tuckett 2005). 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. 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.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. 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. Finally. More so.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 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. mapping and interpretation. makes the method uncritical. . Within such scenario anything goes and thus. identifying a thematic framework. of which can result in inadequate analysis especially in this type of circumstance. indexing. it brings into focus the emergent issues raised by those interviewed as well as the analytical themes from the recurrence views (Bryman 2001. as a necessary strategy in limiting the possibility of falling into this potential pitfall. 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. there is often the tendency for researchers to adopt this method of analysis without any clear and concise guidelines (Antaki et al 2002). charting. Nevertheless the method of study as suggested by Bryman and Burgess (2004) consists of five systematic stages of analytical process of which include: familiarization. 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. Therefore. there is that possibility of lacking a detailed guidance for analysis. More so. Bryman and Burgess 2004).3 DRAWBACKS OF THEMATIC ANALYSIS Some authors have suggested that given the flexibility of thematic analysis. To forestall this problem. 4. the researcher kept on linking itself as much as possible with the detailed stages within the process. the stage in which the core objectives of the qualitative analysis are addressed. which are those issues informed by the original research questions and brought forward into the interview and questionnaires through the topic guide.

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. 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). . Besides this. Bryman and Bell (2007) noted that segmenting data most often bears some risk of complexity of which can lead to elimination of the expressions.4. Riessman 1993). it should be noted that they do not search for themes within a data item such as in an individual interview. In addition to this.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. as in the case of a case study strategy (Murray 2003. Notwithstanding the fact that the above stated method share a search for certain themes or patterns across the data. attitudes. is more of eliciting in great detail. 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. 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. In summary. regardless of the fact that some authors present grounded theory as a reliable analytical method in analyzing qualitative data. Above all. 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. This capability often leads to unnecessary complication in data analysis. 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). behavioural and gestured meanings of participants. On the other hand. This is never without reason. 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). peoples¶ everyday experience in order to gain an understanding of the phenomenon in question. 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.

However. next on this rank or stage was the period of identifying a thematic framework. 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.4. 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). the data triggered off some interconnected categories which replicated some of the core issues in the major themes. effort was made in keeping abreast with what is in the offing within the corporate social responsibility membrane. effort was geared towards being attuned with the range and diversity of material gathered and setting them in context before sifting and sorting. the recurrent themes and issues which emerged consequent of the questions posed by the researcher. The composition of the major themes identified is depicted in Table 1 below. Tuckett 2005). concepts and themes to which the data collected can be examined and referenced as the analysis developed (Bryman and Burgess 2004). Hence. . the ease in collecting data in such an area of study which has witnessed an exponential rate of publicity was indeed challenging. as the topic understudy is still a new developing discipline of which its dictates are not universally embraced in all ramifications. 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. Thus. As the familiarization of these data developed. notes as well as transcripts used within the data collection period which sought to investigate the impact of Chevron¶s corporate social responsibility activities on their oil producing communities were re-read including the studying observational notes. points that appeared necessary to the respondents were identified and jotted down. 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.5 CATEGORIZING THE THEMES In consonance with the stages of analytical process in thematic analysis. otherwise known as key issues. While reviewing the amalgams of literatures and perceptions. Suffice it to say that the initial concerns enabled the researcher gain a deeper grounded understanding in reconciling ideas. All these materials were reviewed in order to ensure that the key ideas and recurrent themes were correctly listed (Patton 2002. Host of literatures abounds of which many of those are in favour of corporate social responsibility activities in its entirety. However.

however. Table 2 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. Profit Maximization Training Technological transfer Technical support Local sourcing Major themes Social factors Environmental factors Perceived benefits Oil companies embark on social functions through various means of which the oil producing communities are concomitant beneficiaries. 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. In the same vein. data was collected from the respondents within the communities and the company understudy using a purposive sampling and thus analyzed. 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. the environmental factors are to some extent related to the economic goals of CSR practice as could be seen below. Hence. The permeating themes are represented in Table 2 with categorized key issues. In other words. During the analyses judgments about meanings. effort is made in matching business operations with stakeholders¶ objectives. These themes. as regards the analytical tool or instrument the research employed an inductive thematic analysis which consists of identifying. Key issues Donations Sponsorship awards Community investments Community developments Agricultural aid Mitigation of hydroelectric production Reduction of mining activities Pollution Cleanliness Tables 1 As the process continued. making sure that the original research questions are being fully . analyzing and reporting patterns or themes within data given by respondents. about the relevance and the importance of issues and about implicit connections between ideas was sought.Economic factors In the developing countries oil companies employ the corporate social responsibilities functions as a means of realizing their self objectives or profit making.

The cost of living between the staff and individuals in the host communities are very high and only few Individual within these communities manage to live above poverty level. the personal and social lives of the citizens within the host communities as well as between them and oil companies are affected in various ways. the rest appears to live in abject poverty Serious respiratory problems were linked to environmental pollution caused by the activities of the oil companies. Hostility Mistrust Change in social behaviour Rivalries Unnecessary shutdown Reduced eating habit Reduced income Changes in social life R e d u c e d p a t t e r n o f expenditure Low standard of education Coughing up Cancer Protein deficiency Gastrointestinal problems Kwashiorkor addressed. Permeated theme Redundancy crisis Perceived consequent effects Many of the indigenes among the host communities are now unemployed and the predicament have resulted to other issues.No cordial relationship and existence of unnecessary shut downs Reduced Standards of living Health problems To this end. Key issues Unemployment Low income Market impact Theft Illiteracy .

it should be noted that the researcher did not simply give voice. 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. It is precisely on this note that I accept the subjectivity and unfeasibility of the universal credibility of the analysis. Interviews of twelve respondents are reported consisting of 5 females and 7 males. of which the researcher most often select. the interviews were not analyzed collectively. edit and deploy to border an argument (Fine 2002. 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. Effort was made to ensure that this correspondence put in plain words the nature of the study and how the data would be employed. instead each of them was transcribed and interpreted using many processes and reflective activities. 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. accompanied by the Economic and Environmental aspects of CSR. On the other hand. More so. for even in giving voice there is often an unacknowledged piece of narrative evidence. The analysis through an exploration of the researcher¶s 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. The analysis therefore is scheduled following this pattern. However. Bryman and Burgess 2004).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. In other words the data being analyzed was quite reflective of participant¶s voice. . the age of the respondents was also stated where it was possible.

educational projects of which our recent construction of classroomsblocks. Port Harcourt of Rivers state. Warri. In addition to this. laboratories and teachers¶ quarters testifies to. More so. . These social benefits are well evident and encapsulated in the numerous high profiles of donations. Respondents from the company reported a wide variety and broad scope of project initiated and undertaken in such areas as public and general medicine. the company makes yearly donations to hospitals and clinics both within and outside the host communities. the host communities and nongovernmental organizations in creating and ameliorating social impediment to life.Nevertheless. Vocational training and SME Development. Education. Underlying this conception also is the notion that they are solely investing or giving out to the host communities. His description of the impact of Chevron¶s 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). Agriculture among others of which the host communities were expected to be concomitant beneficiaries. She appears to view or narrow corporate social responsibility practices and concepts as one way traffic. 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. The following hospitals can testify to this: General Hospital Okolobiri in Bayelsa state. 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 Delta state and Braithwaite MemorialHospital. Community development. hospital and infrastructural projects to name only but a few. something that is undertaken out of charity. Central Hospital. This participant saw corporate social responsibility as the company¶s engagements in assisting or supporting the government. Precisely speaking. without receiving. 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. we are renowned in sports and athletic sponsorship. Wehave been committed in providing our host communities social benefits to promote development. while addressing the social aspect of corporate social responsibility impact of Chevron Oil (Nigeria) on the host communities some themes were found dominant.

as evidenced in his reflection of the impact of corporate social responsibility on the host communities. We have never relented in making effort as regards sustaining the communities as well as staff with goodies and thesehave always paid us. In other words. . 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. 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. has improved on their staff training health careand pension benefits as well as technological transfer initiatives.However. 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. Admittedly. For him. Important to note in his reflection is that their corporate social responsibility practices appear to be externally influenced. Probably. Sequel with the proliferation of international codes and media awareness. 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. the impact of corporate social responsibility of Chevron is felt by the host communities and the staff as well. there was enormous benefit accruing from corporate social responsibility activities. the company has continued to reform its corporate socialagendas. 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. It does not seem a resultant effect of self initiative or conviction. a 41 year-old man in management position in the company. As indicated by this respondent. of which without may be otherwise. In recent times. Suffice it to say that it appears to be self imposed. he sees corporate social responsibility practices as something that should be economically reciprocal both in character and practice. it is important to note that this respondent perception could be align with the shareholder¶s view of corporate social responsibility in the sense that they tend to search for and thus weigh if there is any corresponding benefits accruing from their practices they embark on (Jill 2007). this idea tends to be incompatible with another respondent. 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. all in the bid to ensure that they match international standard.

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. it was through such interest in corporate social responsibilities matters that made them to undertake a baseline survey. As pertinently noted by this staff. 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. The company¶s use of hyper spectral imaging among other means speaks volume ofthis: an instrument that enables us to see and gather information about the environment so as to plan ahead and maintain equilibrium in the ecosystem. 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. 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. . Chevron Oil Nigeria of which he is a reputable member of staff is quite committed to keeping abreast with the environment. 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. of which has assisted Chevron in developing a detailed map within the host communities. As was noted by this respondent. This capability of which is greatly rooted in the company¶s effort to adopt possible strategies that will aid in foreseeing 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. We also bring initiatives that willenable government to actively reduce pollution as well as ensure that the environment is kept clean. thereby equipping them with the ability to give an accurate picture of the different vegetation types of the region. In this regard a member of the staff noted: Yes. Chevron hasalways enfolded itself in such activities that will not only mitigate the effects of mining and hydroelectric production but also do compensate for it. 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. According to him: Corporate social responsibility is about ensuring that environment do not suffer as a result of one¶s business or operations.Nevertheless. 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 crisisthat drew the attention of international bodies in early 1990¶s.

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 callthe militants. In addition to this. 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. This respondent demonstrated a keen awareness of social activities of oil companies. In other words. 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. 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. For this respondent. as reflected in his speech. their corporate social responsibility is more of reacting in terms of keeping the laws and defensive in the sense of averting the possible consequence of working in a hostile environment. 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 respondent¶s thought. Furthermore. 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. In as much as I recognize some of the social projects undertaken by them.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. Besides this. there are some evidence in terms social projects and health services issues undertaken by them. Corresponding to this idea. they are intentionally purported for some practical reasons of which according to him are to avert international eye and retain legitimacy of operation. As was noted by him. In fact. a 43 year old man from one of the communities asserted: . the corporate responsibility functions undertaken by Chevron and other oil companies does not seems to be undertaken out of conviction. I would still note that they cannot be measured with the amount of damage caused bytheir operations in our communities. 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.

Most of the corporate social responsibility function in other words was viewed in term of its impact on the present. while there was a consensus among respondent on the some visible impact of corporate social responsibility functions on the staff and communities. 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. What I may not be able to state now iswhether they are done intentionally or are left based on overlaps in feedbacks. Some of the micro and macro developments in our communities are in one way or the other consequent of their place among us. But what they invest in does not fulfil our essentials. while the future was left silent. I am quite sure that you do understand what I mean by this expression. We need to be taught of how to get fish and not to begiven fish. According to this respondent. 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. Corporate social responsibility appears to be rated in visible structures and institutions. . 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 members of communities but he believes that the companies should know what is more beneficial and essential to the communities In summary.Not to admit the effort of oil companies in making effort to impact their place in the hearts ofcommunities is to be unrealistic. 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. 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. 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. Even sometimes. or viewed from the social and environmental angle respectively. Most of our graduates are in want of job. More so. some ofthe projects like classroom blocks. 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. there appear to be a perception that most of those activities are intentionally purported or masterminded. building of local community centres among other supportive activities started are left unfinished. the understanding of corporate social responsibility was either strictly narrowed to the economic aspect.

Suffice it to say that they are peasant farmers that absolutely depend on the basic fruits of their land. As I have already told you I am a farmer who lives and survive by what comes from my farm. some of them uses this means as a source of their business. as a source of their business and transaction. A respondent who was a subsistent farmer and a member of the host community stated: Oil companies have left us in shamble. More so. 6. Not just us the farmers but even those who depend on what we produce.4. He noted that this impact have a successive effects in the marketplace and increased act of theft. the act of theft has increased because of the thirst to survive. This participant saw unemployment as a concomitant input of the existence of the oil companies in their communities. 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. 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. The respondent went on to say that those who cannot buy fertilizers have less production at the end of the day. There is a lot consequence resulting from the activities of the oil companies to which have rendered most of us redundant. As stated by him.6 PERMEATED THEMES 4. in the sense that they are not only subsistence farmers but also uses the crops for commercial purposes. What we reap from them cannot be placed at the sametable with what we are experiencing from the result of their operation. This could be understood when one recapitulate that most of the individual within this locale are farmers of different categories. Today. Marketing content is not only reduced but on the other hand becomes expensive due to shortage in production. 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. Retailers within these communities who buy their product in order to business it to the public cannot perform as they do before. but if our water is notpolluted such a business probably will not strive here. This phenomenon as depicted along the course of enquiry has necessitated or given birth to other unexpected problems to individuals within the host communities. Corresponding to this a 42 year-old man reflecting on the impact of the activities of the oil companies noted: .1.

The issue is not that our land is no longer productive as it usually does but that they hardlyemploy us to work for them. the existence and operations of the oil companies in their communities have rendered most of them incompetent in the farming environment. 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. As was noted by this respondent. Only the mechanized farmers can sustain the business at the moment. . yet they are operating in our land and our government has been quite weak in responding to our cries for help. But even to be a cleaner is very difficult to get. 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. As indicated this respondent. 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. While the respondent considered this as a misdemeanour. 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. To farm in absence of such things like fertilizers aswell as make profit is very difficult. But it appears from the look ofthings that something of which the eyes of the man on the street cannot see is going on between them and our government. What is more shocking to me is that even with theconstant agitations and conflict between the oil companies and host communities. the feedback we receive is that we are not highlyskilled workers. 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. 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. Apart from those who were able to get loans from the bank in order to invest in mechanized farming. What is more pertinent is that when we seek for employment in their various companies. they haven¶t been any serious transparent effort by our government in looking effectively into thismatter. This according to him could be traced to the lack of fund in fertilizing both the land and the crops.

6. 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. There is dearth of trust coming from the inability of detecting who appropriates thepublic funds and dividends the oil companies tell us they usually pay. in our communities nobody trusts the other anymore.4. More so. Individual has less trust among one another and one of the consequent factor as identified by one respondent is the increased sabotage between them. The impact of such sabotage was clearly identified by one respondent in the management team as follows: . there have been issues of less income and withdrawals of expenditures among others. Coming from the personal perspective. Today. Individuals as well as communities look at each other with suspicion. 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. our local leaders do not come out in public to address this issue because it seemed they have been bribed. 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. 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. 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. In our communities. Individuals do not longer enjoy the benefit of producing organic products. This has made it impossible for our communities to speak with one voice all this while. 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.2.

As pertinently noted by him. Individuals within the host communities¶ standards of living are quite different from the staff of the oil companies. Sometimes such conflict result in death. struggle to feed not to think of procuring a bicycle. 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. . This could easily be seen from the great disparity in terms of living standards. injuries or getting some of the staff and management kidnapped or put in hostage. 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. While some of the staff change their cars in months. 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. The expenditure management is despicable. I can rightly say that the host communities aregreatly marginalized. 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. From the perspective of this respondent it is evident that they do not enjoy unhealthy working environment. this great inequality is equally found in the withdrawals of basic items of life by most of the individuals and families within these communities. According to him: Having served for a period of 9 months. I believe you can imagine how somebody could be working in such an environment. many of the indigenes of where the money used to make this possible comes from. 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. thecompany not only loses huge financial resources but more importantly has its brand image at stake. The situation can be described as a paradox of plenty. The inconsistent disparity in terms of standards of living as further elaborated by this respondent calls for deep concern.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. 4. Sincerely speaking.Whenever there is pipe breakage or sabotage by those notorious gangs called the militant. but his description of the host communities youth tend to portray his understanding of corporate social matters.6.

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 oftheir feathers that allows them to float or to fly becomes damaged. Animals are also at risk from ingesting oil, which can reduce the animal¶s 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 eattheir 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 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. Todayin our communities we experience respiratory problems such as coughing up blood, skin rashes, tumours¶, gastrointestinal problems, different forms of cancer, and malnourishmentand 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 notdone 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 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 reader¶s 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.

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 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.

coordination. they equally tend to recognize and embrace both the ethical and practical imperative of operating in a safe and socially accountable atmosphere. 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. 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 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. health care and pension benefits for the employees. These aforementioned aspects of administration are imperfect at best. and partnership between oil companies and their 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. speak volumes. 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. the field work data generated suggests that there is an overlap in communication. The permeated emerging issues reflected in the course of the study includes: redundancy issues. 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.Furthermore. by extension. several respondents interviewed were not so reserved in their criticism of what they perceived as the resource-seeking investigation for future development. 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 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. all of which has its own successive negative impacts. . However. This potential and understanding admittedly aligns with the findings of Orji (2000) and Okike (2007) as reflected in the review of literature. mistrust and rivalry among others. Furthermore. support of the development of classrooms blocks and hospitals infrastructure in the regions and environmental protection On the other hand. 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). low standards of living. In fact. 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. . However. More so. While this occurrence has been repeatedly done. 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 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. 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). 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 µetic¶ (values of the researcher) or µemic¶ (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). some of the corporate functions do emerge as a reactive response meant to silence the aggressions of 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.In addition to this. Furthermore. of which in its absence would result in not being carried out.

there are myriads of definitions and concept which attempts to proffer an understanding of the major constituents of corporate social responsibility. These fundamentals are seen as not only morally and ethically desirable ends in themselves and as part of the organization¶s philosophy. Nwanji and Howell (2006) integrated this conception in their detailed overview 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). customers and suppliers. 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. planet and profit as underscored in the works of Deegan (1999) and Morland (2006).1) Analyzing the definitions given by the European Foundation for Quality Management. social. legal and ethical aspect. being good corporate citizens of the communities in which they operate and conservation of the natural environment. but central amidst these definitions is that corporate social responsibility practices should integrate four main dimensions: economic. 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.However. ethical. The three points however. as society benefits from the organization¶s activities and behaviour (p. of which is in consonance with Carroll (1991) pyramid of corporate social responsibility. can be diagrammatical represented as follows: . but also as key drivers in ensuring that society will allow theorganization to survive in the long term. fair treatment of theworkforce. in literature. 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 environmental. According to them corporate social responsibility should be framed in such a way that it addresses the legal. It includes ± among other things-respecting human rights.

This incapability goes a long way to questions the ethical and legal behaviour of oil companies. results from the findings show that 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. 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. HIV/AIDS prevention. As regards the environmental dimensions. While there is fairly remarkable evidence of corporate social responsibility functions among the oil companies. 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. the impact appear not to have much transformation on the host communities. Public Health and Donations. tap borne water. the following conclusions could be drawn as it relates to the impact of corporate social responsibility of oil companies on the host communities. Ethic and law are interwoven and one cannot be ethical unless the person is aware of the normative demands of which have legal connotations. . Ethically speaking. 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.Applying this schema to the empirical material generated from the field work. 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.

Henderson 2001. However. . 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. According to their framework. Corruption and lack of commitment appeared to be the concomitant factors that have instigated this. The omission of most oil companies from the study is as a result of the limited time frame in which the research was expected to be completed among other reasons. p. In summary. there is no cordial relationship between them and some elements of mistrust and fears could be depicted in their relations. implications. it is about how a company earns its money. whether there has been a serious reconsideration of key actors as it concerns the deep structure of the matter understudy. while these tentative summaries are quite informative. The oil companies have only adapted to meet few salient points without significant changes in underlying deep structures of the host communities. rather. 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. Businesses as was evidenced in the literature have a moral dimension. 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). as Swanson (2002) point outs. Despite the massive wealth generated from oil extraction from the host communities. the key element in deciding whether a transformation has occurred is. However. Sternberg 1997. 364) argue that the former ³begins with the assumption that values are necessarily and explicitly a part of doing business and rejects the separation thesis´. 35) ³is clearly infused or embedded with ethical assumptions. In addition to this. p.On this note of transformation I would like to digress and use a paper written by Erickson and Kuruvilla (1998) to buttress this fact. Furthermore. and overtones´. Freeman et al (2004. 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. based on the aforesaid the following points can be sieved while drawing particularly on the activities of Chevron Oil Nigeria. Onishi (2002) and Olujide (2006) narrated this ordeal as a paradox of plenty. their policy decisions most often do not reflect the main interest of the communities. Although the proponents of the shareholder theory create a distinction between these two and see business as an amoral economic activity (Friedman 2004. and how that company is run and how it interacts with communities. Economics as was rightly depicted by Carroll (2000. majority of this communities live in abject poverty. 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 economic and social dimensions of business are not meant to be divorced from each other.

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. 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 .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. 2 To assess of the motivation behind CSR functions and investment projects undertaken by oil companies but with particular reference to Chevron oil Nigeria.

But the last objective will be looked into separately under recommendations OBJECTIVE ONE: TO REVIEW EXTANT LITERATURE ON CORPORATE SOCIAL RESPONSIBILITY IN THE DEVELOPING COUNTRIES. Asonju 2007). The corporate social functions were found to be dependent on the contextual factors. During the course of the study. During the course of the study. More so. there has been a dearth of formal literature regarding this aspect especially in the ancient era. Corporate social responsibility was circled within the sphere of reporting and control. 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. 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. they mainly concentrated on the activities and dealings of the oil extracting industry. 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. However. there is always a stake in most of their undertaking. Nwanji and Howell 2006). 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. 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. In addition to this. 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. OBJECTIVE TWO: TO ASSESS OF THE MOTIVATION BEHIND CSR FUNCTIONS AND INVESTMENT PROJECTS UNDERTAKEN BY OIL COMPANIES WHILE DRAWING ON THE ACTIVITIES OF CHEVRON OIL (NIGERIA). Nwanji 2005. More so. As suggested by European Foundation for Quality Management (2004) corporate social . 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. it was identified that some of their corporate social functions were embarked upon based on the pressures emanating from the stakeholders especially those of the press and the public. 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. Suffice it to say that most of the social activities were profit oriented.In this section therefore. While some of these literatures were channelled towards inculcating the ethical requirements of business in corporations. effort will be directed towards finding out in turns whether these objectives have been met. it enables them to reduce the hostility arising from the communities and thus be able to carry out their business.

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 .

a few of which are reflected below: . While this has not only resulted in not their conducting business as usual. Very pertinent to note is the permeated issues resulting from these activities of which have resulted to low standards of living. medical services. Furthermore. unemployment crisis. 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. most of the respondents stated they do not go at length in justifying the extent of damage resulting from their activities. evidence from the study reveals that it is not at its better best. During the course of the study. there have been occasions when they have shut down some of their cite due to the intense misunderstanding and rioting of the communities. sponsorship. these investments were noted to have assisted in reducing the plight of the communities but.attitude of the oil companies. Notable among them are areas such as donations. thus appear to deviate from this perspective. it was also noted to have impacted negatively on the financial margin. and community developments through construction of classroom blocks. 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. the poor communities where source of the riches are coming dwells in abject poverty. and change in personal and social behaviour. Corresponding to this. 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. Considering the impact of corporate social investments on the business performance. Their acknowledgement of this suggests to some extent the level of result yielding from the social investment carried out by the oil companies. awards. As was noted by one of the respondent from the management team of the company understudy. Onishi (2002) and Olujide (2006) stated that while the oil companies¶ riches are increasingly growing. roads maintenance and agricultural aid among others. OBJECTIVE THREE: TO IDENTIFY AND APPRAISE THESE INVESTMENTS IN TERMS OF ITS IMPACT UPON INTENDED BENEFICIARIES AND BUSINESS PERFORMANCE.

planet and profit can result in factors that contribute to profitability.2) noted that the recent analyses of ±DePaul University study-revealed that the ³overall 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. According to them a good practice of corporate social responsibility exerts significant influence on the general performance of the company involved. Considering these aforementioned points. According to the findings of their data analysis. . in literature. there is much consensus that companies who are socially responsible have better tendencies to increase business performance (McComb 2002. Jill 2007. corporate social responsibility that meets the triple bottom line of corporate reporting requirements which placed emphasis on people. p. However.In their detailed overview of corporate social responsibility Nwanji and Howell (2006. 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. Lev et al 2006). based on the 2001 Business Week ranking of total financial performance´. 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. Johnson et al 2008). reputable brand identity and increased stakeholders¶ engagements. Maignan and Ferrell 2004.

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. In Chevron (2008) it shows that a total recordable incident rate of the workforce in Nigeria was up to 15 percent.4. Ouwersloot and Duncan 2008. It has equally caused the threatening and kidnapping of staffs in recent time. 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. The absence of this can impact to a great extent on the business performance of any company in various ways. the section intends to consider the implications under the following headings: 5. To address this therefore. In their detailed examination of integrated marketing communications strategies. . 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. The essence of this is to disclose to the management of Chevron Oil Nigeria. It has also revealed that when brand image is dented. The materials generated from the fieldwork suggest that the relationship between the communities and oil companies are not at their best and this puts their image at risks of various kinds. Ouwersloot and Duncan (2008) identified product. The place in this context could be referred to as the communities in which the oil companies operate. 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. 5. In as much as reputable brand image has the tendencies to influence the business performance of a company. has the capabilities of ensuring employees¶ safety. it is always difficult or better put takes time to rebuild (Ozuem 2009). the opposite can be damaging as well. The rivalry and unfriendly relationship existing between the oil companies and their host communities have created an insecure environment for the employees.4 IMPLICATIONS TO MANAGEMENT The above analysis has some implicit connotation of which this section intends to uncover. Kimmel 2005).4. 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.1 UNSAFE WORKING ENVIRONMENT Enabling working environment is one of the most important factors to be considered in business operation. price and place as enabling factors that contributes to brand building. While this ability to ensure the safety of employees could be jeopardized from the internal business environment.5. it should be noted that such could also be hampered from the business external environment.

With the low state of corporate social responsibility practices. In addition to this. When this is lagging behind. Considering the feedback from the fieldwork.4 THREATENS THE ORGANISATIONAL LEGITIMACY As exposed in the literature organizational legitimacy could be summed up as the license given to business to operate. some researchers suggest that other factors could be affected as well (Gompers et al 2003). 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 crisis resulting from the unfriendly relationship between the oil companies and host producing communities has sapped massive wealth. . 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. This license 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. it would not be out of place to suggest that the oil companies¶ license to operate is at risk.4. Such scenario could also results in some stakeholders re-considering the idea of investing in the oil share market. but ultimately have a negative impact on the Nigerian economy as well as impact on the viability of the company. 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. These expenses not only dwindles the financial interests of the company as well as the other shareholders. the situation would not have been the same. most often money is demanded before the workers held in hostage are released. The empirical materials generated from the fieldwork suggest that if not the corrupt nature of the present leadership style in vogue.4. 5. 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. In the stakeholder mapping analysis.5.3 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). The funds spent in court issues could go a long way in funding some projects within the communities.

.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. More so.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.5. but also will be able to save cost from the unnecessary pipe sabotage. effort should be made in seeing that those who have completed their vocational training scheme have something to start with. 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. 5. the hostile approach and understanding of the communities is likely to change. if the indigenes of these communities are employed to work for the oil companies after their graduations. 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. 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). In addition to this. More so.5. 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.

In addition to this. websites and government. In the business environment. 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. majority claims to be unaware of such social investments. what they have been assigned to and above all promote understanding among the sectors. 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.2 ENACTMENT AND IMPLEMENTATION OF STRIGENT ENVIRONMENTAL LAWS Considering the issue of the physical and aquatic environment the government in µbottom up partnership¶ should reinforce and enact stringent environmental laws that capture the essence of the situation. 5. However. there should be high level of commitment in ensuring the enforcement of this. To ensure the full realization of this objective. 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.5. the establishment of different independent auditing within and outside the company is very important as well.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 same vein.5. While few respondents demonstrated a fairly remarkable awareness of the corporate social activities embarked on by the oil companies. this important part of any administration is referred to as corporate reporting. This goes on to suggest that reporting should be extended beyond the confines of the shareholders. The feedback from the field research reveals two important points.5. effort should be made in seeing that the periodical reviews are in consonance with the current trends of regulations in developed world. 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. More so. the communities will be able to come to terms with the necessary understanding of the likely consequences of pipe sabotage. In addition to these it goes a long way in erasing tensions and frictions. there are elements of partnership as underscored from the empirical material generated from the fieldwork. the necessary social aspects that are of paramount importance as well as facilitating corporate social reporting. One possible advantage of this is that it helps to enhance familiarity. Bottom up partnership is when the partnership is from below. More so.4 BOTTOM UP PARTNERSHIP Partnership is one of the important strategic ways of enhancing growth and understanding. The implications will be made clear and they will always be able to ask questions in areas that are not so clear to them. 5. the organizers can detect their level of understanding as well as line of thought of which can be a very good strategy in the organization¶s corporate planning. 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. bottom up partnership has also the capabilities of availing to the companies. it will go a long way in creating more understanding and ameliorating the social plights of the communities.5 PERIODICAL WORKSHOP AND EDUCATION The role of periodical workshop and education in enlightening the minds of people can never be undermined. but none of them was carried out in connection with members of the communities.5. 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. 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. While partnership can be bottom up. through the questions asked. it can also be top down. . More so. it could serve as a democratic strategy for relating with constituent communities. thereby promoting good relationship. arising within the communities. Through workshop and education. Admittedly.

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. As was evidenced from the review of extant literature. the notion of corporate social responsibility is rooted in the µbeing¶ of corporation. . This was noted to have not only affected the communities but also the oil companies in various ways. it must be carried out with dignity and in the recognition that it is more importantly for the good of the companies. In essence. Corporate social responsibility is not a gift aid.5. it should be done with high profile of dignity. 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. Hence when these corporate social activities are carried out. However.6 CONCLUSION The issue of corporate social responsibility is not of a secondary issue. While this has created unfriendly environment between them thereby making their relationships to be cold. 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 monopolized by the strong. based on the empirical material generated from the fieldwork conducted. 5. It is only within such frame of mind would the numerous profiles of business ethical code be meaningful. it is rather an understanding that the society at large has a stake in the numerous engagements of businesses. it has also lead to the emergences of other predicaments. for corporate social investments to be fruitful. 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.

5. The chapter includes both the summary of the findings as well as its evaluation. 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. In addition to this. the chapter brings to light some implications as well as feasible recommendations to the management team. 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. In addition to this. For instance. Also it went further to link the findings with the research aims and objectives.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. thereby leading to uncritical subjectivity of the researcher as well as that of the interviewee. 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. The chapter summed up with identifying some issues of further research unravelled in the course of the study. Finally. More so. with the inductive thematic analysis there is that possibility of lacking a detailed guidance for analysis of which can result in inadequate analysis.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. of which if taken into cognizance could bring a change to their business performance. Using another technique such as grounded theory may uncover some distorted meanings in empirical materials generated. .

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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 µCorporate 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.

Yours Sincerely, Cyril Chiaha Ifeamaechi

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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. What is your connection with the oil companies? Are you any of the followings: Contractor/Supplier, Shareholder or Beneficiary? What is your opinion about the corporate social responsibility functions carried out by oil companies especially Chevron Oil? What do you think is motivating such functions? Please could you explain whether the stated motivations are new or has it been the same since they started their oil business? Do you think that the motivations behind their practices are self initiated or reactive? Do you think the communities are quite at home with this attitude? 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? Could you identify corporate social investments being carried out by the oil companies in your communities? In your view, do you think that these investments are efficiently carried out? 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? Can you say that the communities are satisfied with the social responsibility practices being rendered to them by oil companies? What other ways do you think will be more fruitful for the oil companies in implementing their corporate social activities in your community?

APPENDIX 3
SEMI STRUCTURED INTERVIEWS GUIDELINES FOR EMPLOYEES Data collection from the employees 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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. What is your status in the company? Are you any of the followings: Staff, Copper or member of the management team? In your view what is corporate social responsibility? What is the company policy regarding corporate social responsibility and do they practice it? In your opinion, what would you say is instigating the corporate social activities of your company? Do you think such motivations are in agreement with the dictates of corporate social responsibility framework? Has this been the way it was or is it a new development? 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? Could you identify corporate social functions being carried out by the company in the communities? In your view, do you think that these functions are efficiently carried out? Do you think that such investments reflect the need of the communities? Can you say that the communities are satisfied with the social responsibility practices being rendered to them by the company? In what other ways do you think that the company can use to effectively carry out their corporate social activities in the communities?

what would you say is instigating the corporate social activities of your 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 10 In your view. do you think that these functions are efficiently carried out? 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? .APPENDIX 4 SEMI STRUCTURED QUESTIONNAIRES GUIDELINE FOR EMPLOYEES 1 2 3 it? 4 company? Sex of Respondent? What is your Educational level and in your view what is corporate social responsibility? What is the company policy regarding corporate social responsibility and do they practice In your opinion.

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