CORPORATE SOCIAL RESPONSIBILITY (CSR) AS A CONFLICT

MANAGEMENT STRATEGY INSELECTED OIL PRODUCING

COMMUNITIESIN DELTA STATE, NIGERIA

ABSTRACT
Corporate Social Responsibility (CSR) involves giving back to the community where a business
organisation operates. CSR is not supposed to be an occasional activity but a strategy that should
be integrated into the overall operational plan of companies, especially those involved in oil
exploration in the Niger Delta region of Nigeria. Uncoordinated or misdirected CSR has often
led to conflicts between oil companies and their host communities, resulting in hostility,
kidnapping and vandalisation of oil installations, which has impacted negatively on the country’s
economy. There is a dearth of literature on the relevance of CSR to conflict management in
Beneku, Ekakpramre and Kokori communities of Delta state, Nigeria. Therefore, this study
assessed Corporate Social Responsibility (CSR) as a Conflict Management Strategy in Selected
Oil Producing Communities in Delta State, Nigeria.
Triangulation research design that combined survey and indepth interview was adopted in this
study. The population of the study according to the 2006 census figures comprised 148,341
members of Beneku, Ekakpamre and Kokori communities in Delta State, Nigeria. Multi-stage
sampling technique was adopted to select a sample of 345 respondents for the survey. The
composite Crobach’s Alpha score for the questionnaire indicated an internal consistency score of
0.797 meaning it had a high internal consistency. Representatives of the communities and the oil
companies were purposively chosen for the indepth interviews. Data were collected using
validated questionnaire and interview guide. Quantitative data were analysed using frequency
count, simple percentages, charts and linear regression analysis. Qualitative data were analysed
using content analysis to report responses to the interviews.
Findings of the study indicated that CSR had not improved the relationship between the oil
companies and the oil producing communities (Average Weighted Mean=1.98; SD=0.94) and
that CSR projects provided to the host communities were partially adequate (Mean=1.89,
SD=1.21). Respondents also indicated that CSR was a moderately significant strategy for
managing conflict in the oil producing communities of Delta State (Mean=2.15, SD=1.24), rating
the management of crisis by oil companies in Delta Sate as moderately effective (Mean=1.70,
SD=1.00). Results also showed that the effectiveness of CSR as a conflict management strategy
in oil producing communities was low (Mean=1.85, SD=0.72) because respondents believed
mostly that CSR projects were provided by oil companies after conflicts had started in the area
(n=215, 63.6%). CSR was observed to have a significant effect on conflict management in oil
producing communities, indicating a strong positive correlation coefficient and positive slope,
which are statistically significant (β=0.744; B=0.358; p<0.05) as assessed by a t-test (T=20432).
The study concluded that there was no cordial relationship between the oil producing companies
and their host communities, and CSR was not effectively handled as a conflict management
strategy. The study recommended that oil companies should consult stakeholders widely and be
proactive in implementing CSR projects in their host communities. The Federal government
should also monitor the activities of the oil companies and directly intervene in the development
of the area.
Keywords: Corporate social responsibility (CSR), Conflict, Conflict Management, Oil
producing communities, Mutual relationship

Word Count: 484

 TABLE OF CONTENTS
Content Page

Title Page i

Certification ii

Dedication iii

Acknowledgements iv

Abstract v

Table of Contents ix

List of Tables xi

List of Figures xii

List of Abbreviations xiii

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study 1

1.2 Statement of the Problem 7

1.3 Objective of the Study 8

1.4 Research Questions 9

1.5 Hypothesis 9

1.6 Scope of the Study 9

1.7 Significance of the Study 10

1.8 Operational Definition of Terms 11

CHAPTER TWO: REVIEW OF LITERATURE

2.0 Introduction 15
Content Page

2.1 Conceptual Review 15

2.1.1 Corporate Social Responsibility

Premise, Origin and Meaning 15

2.1.2 Arguments Against and in Favour of Corporate

Social Responsibility (CSR) 20

2.1.3 The Charity and Stewardship Principles 21

2.1.4 Importance of Corporate Social Responsibility (CSR) 23

2.1.5 Conflict and Conflict Management 26

2.1.6 Communication in Conflict Management 31

2.1.7 Corporate Social Responsibility (CSR) in Managing Conflict 32

2.2 Theoretical Framework 33

2.2.1 Definition of Theory 33

2.2.2 Stakeholders Theory 34

2.2.3 Social Responsibility Theory of the Press 36

2.2.4 Social Relations Theory 38

2.2.5 Games Theory 39

2.2.6 Conceptual Model of the Study 41

2.3 Review of Past Studies 43

2.4 Summary of Literature Review 49

2.5 Gap in Literature 50

Content Page

CHAPTER THREE: METHODOLOGY

3.0 Introduction 52

3.1 Research Design 52

3.2 Population 53

3.3 Sample size and sampling Technique 53

3.4 Instrument of Data Collection 58

3.5 Validity 58

3.6 Reliability 59

3.7 Procedure for Collecting Data 59

3.8 Method of Data Analysis 60

3.9 Ethical Consideration 60

3.10 Post-Research Benefits 60

CHAPTER FOUR: DATA ANALYSIS, RESULTS

AND DISCUSSION OF FINDINGS
4.0 Introduction 62
4.1 Presentation of Results 62

4.1.1 Respondents’ Demographic Characteristics 63

4.1.2 Analysis of Research Questions 65

4.2 Test of Hypothesis 74

4.3 Report of Indepth Interviews 76

Content Page

4.3.1 An Interview with a representative of the Beneku Community

Development Committee (CDC) (02/03/17) Respondent I 76

4.3.2 An Interview with another representative of Beneku Community

in Ndokwa-East Local Government Area of
Delta State (2/3/2017) Respondent II 77

4.3.3 Interview with a representative of Sterling Oil Exploration and

Energy Production Company Limited (Sepco), Beneku Respondent III 77

4.3.4 An Interview with a representative of Kokori community

(15/03/17) Respondent IV 78

4.3.5 Interview with a representativeEkakpamre Development

Community (13/03/17) Respondent V 80

4.3.6 An Interview with a representative of Nigerian Gas Company

(NGC) Western Region (13/03/17) Respondent VI 81

4.4 Discussion of Findings 81

4.4.1 Level of Cordiality between the oil companies and the oil
producing communities in Delta State, Nigeria 82

4.4.2 Specific CSR Programmes Carried Out in the Oil Producing

Communities by the Oil Companies in Delta State, Nigeria 84

4.4.3 Adequacy and Effectivenessof Oil Companies’ CSR Programmes

In the Oil Producing Communities as Conflict Management
Strategy in Delta State, Nigeria 85

4.4.4 Significance of Corporate Social Responsibility (CSR) as Conflict

Management Strategy by Oil Producing Communities in Delta State, Nigeria 87
Content Page

4.4.5 Extent to which CSR programmes of Oil producing companies

have promoted better relationship with the Host Communities
In Delta State, Nigeria 88
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.0 Introduction 90
5.1 Summary 90
5.2 Conclusion 93
5.3 Recommendations 94
5.4 Contribution to Knowledge 96
5.5 Limitations of the Study 97
5.6 Suggestion for Further Studies 98

REFERENCES

APPENDICES
 LIST OF TABLES
Table Page

3.1 Oil Producing Communities and Quarters 54

3.2 Proportion of the Number of Residents across communities 56
3.3 Proportion & Distribution of sample size 57
3.4 Oil Producing Communities aid Quarters 57
4.1 Respondents’ Demographic Details 63
4.2 CSR Programmes and improvement of cordial relationship 66
4.3 CSR Programmes provided in communities 67
4.4 Adequacy of CSR Project to Host Communities 68
4.5 CSR as a Significant Strategy For Managing Conflict 69
4.6 Rating of the Handling and Management of Crisis by the
Oil Company 70
4.7 Perception of the Effectiveness of CSR as a Conflict Management Strategy
in Oil Producing Communities 71
4.8 Success of CSR in Promoting Better Relationship between Oil
Producing Companies and Communities 72
4.9a Model Summary for the Effect of Corporate Social Responsibility
On Conflict Management 75
4.9b Simple Linear Regression Showing the Effect of Corporate Social
Responsibility on Conflict Management 75
 LIST OF FIGURES
Figure Page

2.1: Conceptual Model of the Role of CRS in Conflict Management

In Oil Producing Areas in Delta skto, Nigeria 41
4.1 Length of Service for Respondents working in Oil Producing
Or Service Companies 64
4.2 Groups Respondents Belong 65
4.3 Measures Adopted To Manage Conflict in Oil Producing Areas 68
4.4 Causes of Conflict between Oil Companies and Host Communities 73
4.5 Period CSR Projects are Provided by Oil Companies in Host Communities 74
 LIST OF ABBREVIATIONS
NDND: Niger Delta News Digest
SPDC: Shell Petroleum Development Company
CSR: Corporate Social Responsibility
MEND: Movement for the Emancipation of Niger Delta
CDC: Community Development Committee
CLO: Community Liaison Officer
NAOC: Nigerian Agip Oil Company Limited
NNPC: Nigerian National Petroleum Company
NPDC: Nigerian Petroleum Development Company
EC: European Commission
OECD: Organization for Economic Cooperation and Development
WBCSD: World Business Council for Sustainable Development
HR: Human Resources
BP: British Petroleum
US: United States
SEPCO: Sterling Oil Exploration and Energy Production Company Limited
MOU: Memorandum of Understanding
NGC: Nigerian Gas Company
PR: Public Relations
NDDC: Niger Delta Development Commission
 CHAPTER ONE
INTRODUCTION

1.1 Background to the Study

All nations in the world survive by one means or the other. Some rely on tourism for survival,
while others depend solely on agriculture. There are however some that are fortunate enough to
be blessed with mineral resources such as oil and gas, which bring in a lot of revenue. At a time,
Nigeria depended mainly on agricultural products like groundnut, cocoa, palm produce and
others to survive. This was before the discovery of oil in 1956 at Olobiri in Rivers State. Today,
the main sources of revenue to the country are oil and gas. The blessing also came with its
attendant problems and these include environmental degradation, damage of economic crops and
fish ponds, pollution of sources of drinking water and general hazards to the health of the people
in the oil and gas producing areas.

According to Okoko and Nna (1998), oil and gas are the main energy sources in most
industrialized countries in the world today, and by all standards Nigeria’s most economic
resource, as it contributes about 90 percent of the country’s revenue. The Niger Delta with
distribution of oil fields in the geo-political areas of Abia, Akwa-Ibom, Bayelsa, Cross River,
Delta, Imo, Ondo, and Rivers is the hub of the petroleum industry in Nigeria. Before the advent
of oil and gas activities in the area, Niger Delta could boast of different agricultural and natural
resources that sustained the economic life of the people. Whiteman (1982), observed that
traditional medicine practice and subsistence occupations were common among the people.

Things have changed significantly, as the area has been engulfed in crisis of instability due to
protests carried out by communities in these oil producing areas because of the influence of oil
activities on the environment resulting into degradation of the environment, poverty and lack of
social development and employment opportunities. Sometime in February and March 2001, the
youths of four of the host communities barricaded the access roads leadings to Mobil Production
Terminal, in Eket, Akwa-Ibom state in Nigeria. The youths’ reason for the action was that they
were being marginalized in the company’s employment policies, contracts and services. The
government, apart from the activities of the youths had also mobilized its machinery –
legislature, executive, judiciary and the media against the company as reaction against
degradation of the environment and other unfavourable activities of the companies.

There have also been protest over the years which cut across Okoloba to Ogidigben, Ogbotobo to
Bonny; Ogoni to Iko; Gbaran to Obagi, Umuechem to Peremabiri, Egbema to Odegberi and
other areas. All these are as a result of problems associated with poor attitude to spill clean up,
and unnecessary delay in environmental impact assessment and non payment of compensation to
the areas that their environment are affected. November 1990 for instance, witnessed the people
of Umuechem community in Rivers state demonstrating against environmental degradation by
SPDC, the oil company operating in the area that their operations affected the environment. This
led to the Soldier’s invasion of the community in which a lot of people were killed and about 300
houses destroyed (NDND, 1991). The people of Ogoni in Rivers State, between January, 1993
and March 1997 also staged a series of protests against oil exploration by SPDC in the area that
have resulted to ‘stealing’ of natural resources (Crude Oil) and the degradation of environment
without adequate compensation for the people.

The reaction of the Federal government was spontaneous and soldiers invaded the area and many
Ogoni people were killed, so were foreigners of which some were kidnapped for ransom and
other measures inimical to the corporate existence of Nigeria. The Ogoni’s boycotted the 1999
presidential election, operations of oil companies in the area stopped leading to an unprecedented
drop of the country’s earning from oil and the economic loss was conservatively put at 7.2
billion dollars (Barinuwa, 1999; Human Rights Watch, 2001; ICE case study, No 64, 1997).

In the last two decades, there have been drastic changes in the relationship between the private
sector and other stakeholders. Therefore, one of the most important and significant corporate
trends of the last decade is the growth of Corporate Social Responsibility (CSR). The concept of
CSR is highly complex and contentious among writers, scholars and practitioners due to lack of
consensus on the true meaning and contents of CSR practices (Carroll & Shabana, 2010;
Dahlsrud, 2008; Dobers & Halme 2009; Taneja, Taneja, & Gupta, 2011). Although, the
definitions of CSR vary from author to author, however, it generally refers to serving people,
communities and the environment in a way that goes above and beyond what is legally required
of a firm. CSR is a commitment to improving community well-being through best business
practices and contributions of corporate resources (Kotler & Lee, 2005).
The definition of this concept actually depends on how those who believe in it and those who do
not, see it. People see it from different perspectives. To those that believe in it, it is the
responsibility to plan and manage an organization’s relationship with everybody involved in or
affected by all its activities in all its ramifications of operations. It is a beneficial social
investment and they believe that a socially responsible company is that, that do not take actions
that might be perceived as unreasonable, callous or insensitive by the public. On the other hand,
those who do not believe in it, strongly argue that business cannot be “responsible”, only people
can have responsibilities. To them, it is a loss of accountability to shareholders who have
invested their hard earned resources to make profit. (Ogbemi, 2015). The truth is that profit
making should not be at the expense of the public. Profit making should be fair and human.

The concept of CSR is concerned with critical issues that concerns environmental policies and
actions. Its main business is about organizations giving back to societies where they make profit.
According to Zadek (2000) organizations take part in it not only to attract good image but also to
bring in stakeholders into the main stream of the business. CSR usually encourages mutual
understanding between organizations and the communities where they operate. (Keinert, 2008;
Matten & Moon, 2008; Monowar & Humphrey, 2013). In this contemporary times, the practice
of Corporate Social Responsibility is now an important part of business organizations which
encourages a lot of gains in the future. (Brik, Rettah & Mellahi, 2010; Carroll & Shabana, 2010;
Halme & Laurila, 2009; Kemper, Schilke, Reimann, Wang & Brettel, 2013; Monowar &
Humphrey, 2013; Porter & Kramer, 2006; Rodriguez; Melo & Mansouri, 2011). Its importance
has also come to the fore as most companies and organisations have now come to embrace the
concept.

Kurucz, Colbert, and Wheeler (2008) listed and categorized the organization being involved in
CSR as follows. These are cost and risk reduction, gaining competitive advantage; developing
reputation and legitimacy; and seeking win-win outcomes through synergistic value creation. In
contrast to what Kurucz, Colbert, and Wheeler (2008) did, Carroll (1991) developed a model that
consists of four other kinds of social responsibilities namely: economic, legal, ethical, and
philanthropic. Similarly, other dimensions of CSR activities include: Profit Concerns -
Economic Responsibility, Legal Concerns - Legal Responsibility, Ethical Concerns - Ethical
Responsibility and Voluntary action Concerns - Philanthropic Responsibility (Olajide, 2014).
Corporate Social Responsibility as a concept is closely associated with corporate governance
because they are both concerned with the corporate image of the organization and its portrayal as
a good corporate citizen. Corporate governance can be described as the stewardship
responsibility of directors and corporate bodies to provide oversight for the overall goals and
strategies of a company and see to their implementation. It may therefore be seen as the set of
related rules by which corporations, shareholders and management govern and guide their
corporate behavior. These rules refer to the attributes of individual firms and factors that allow
companies to practice sound governance even where public institutions are somehow weak.
According is Cornelius and Kogut (2003) such factors normally include a corporation’s
ownership structure, its relationships with stakeholders, financial transparency and information
disclosure practices as well as the makeup of its managing boards. It is the company
management techniques, and processes in general or the way a particular company is managed. It
further refers to the mechanisms, processes and relations by which corporations are controlled,
directed and managed. (www.investpedia.com/terms/c/arpirategover).

Cornelius and Kogut (2003), also defined corporate governance as a system that consists of those
formal and informal institutions, laws, values, and rules that generate the menu of legal and
organizational forms available in a country and which in turn determine the distribution of power
on how ownership is assigned, managerial decisions are made and monitored, information is
audited and released, and profits and benefits allocated and distributed. Corporate governance is
also a philosophy and mechanism that entails processes and structure which help and facilitate
the creation of shareholders value through management of the corporate affairs in such a way
that ensures the protection of the individual and collective interest of all the stakeholders. It is
generally associated with the existence of agency problem and its roots can be traced back to
separation of ownership and control of the firm. Corporate governance therefore involves
transparency to the public and shareholders and it is closely related to Corporate Social
Responsibility (CSR). They both emphasize responsibility to the shareholders and stakeholders,
which is a way of managing conflict.

Conflict management is very important in the peaceful resolution of conflicts in any

organization. Conflict theory helps in explaining how it affects societies and organizations.
Studies in management of conflict states that it is important especially as regards to the changes
and growth of organizations. (Azar, 1990). Conflict theory further states that conflict creeps into
the society when there arise a situation when the interest of the majority is ruled against by a
few privileged and powerful minority groups. Conflict is very rampant and prominent in the
Niger delta region of Nigeria, where most of the multinationals or oil and gas companies
operations are carried out and this has resulted to a lot of violence (Ojokarotu, 2008). Conflict is
unabated and variegated because of how long it lasts. This is what has been characterized as
“deep rooted” conflict. Azar (1990) considers it as protracted and tractable i.e. as complex,
severe community enduring and often violent.

Conflict can be explained as disagreements which arise because unidentical ideas, interest and
beliefs by those involved. It can also be looked at as a tussle among people that feels their
interest are being threatened. The ways and plans used in handling it is what is called conflict
management. Conflict management involve those strategies and processes which aid in
controlling or resolving conflict. These include proper method of solving conflicts,
communication challenges and complaints and to achieve organizational objectives as well as
cordial and sustainable relationship. Researches on communication and related fields have given
an insight on the ability of communication to bring about sustainability in relationship, which
can drive change in the right direction (Kotter, 1990). This will also help to foster peaceful and
smooth business transactions between them and the host communities –wider stakeholders.

Information and communication are very vital ingredients for the survival of any organization.
There is basically a thin line between information and communication. “While communication
always contain information, not all information has communication value”. (Myers & Myers,
1982, p. 15). They are therefore not exactly the same thing but very similar in meaning. As
Myers and Myers (1982) further said:

Information is like an enormous umbrella, a broad concept which

covers communication as one particular type of information.
Information is a global concept referring to any pattern of energy
input you are exposed to. ‘Communication’ refers to a special kind of
patterning which is expressed in symbolic form. For communication
to take place between and among people, two requirements must be
met: (1) a symbolic system must be shared by the people involved.
(2) The association between the symbols and their referents must be
shared (p. 15).
Communication is based on perception, which requires a message to be sent by somebody to a
recipient who in turn decodes the message, thus communication involves at least two entities. On
the other hand, information is based on logic and is not enshrined in mutuality (Drucker, 2007).
Communication is the sending and receiving of messages by means of symbols and in this
context, organizational communication is a key element of organizational climate (Kotter, 1990).
Communication is the process by which individuals promote meanings in the minds of others by
means of verbal or nonverbal messages (McCroskey & Richmond, 1996). The most
uncomplicated conceptualization of communication can be found within the Encoder/Decoder
paradigm, in which communication is described as the transfer of information by means of a
code (Ivancevich, 2002), where communicators understand each other based on shared social and
communicative cues. However, where this is absent, conflict comes up. In order for
communication to be effective and shared within and outside an organization for managing
conflict, people’s (stakeholders) views have to be factored in for mutuality.

According to Ivancevich (2002) the degree of meaning in relation to understanding is quite often
signified by the reaction of the recipient. When messages are understood by the receivers, the
chances of understanding between the sender and receiver increases. When there is
understanding, there is bound to be mutual relationship. This also helps in resolving conflicts.
Corporate Social Responsibility (CSR) practice has therefore become an accepted means and
method of trying to resolve conflicts between organizations, corporate bodies and stakeholders
which include host communities. This is because Corporate Social Responsibility (CSR)
involves communication between the oil producing companies and members of the host
communities with a view to arriving at an understanding of the areas of needs of the
communities. The result of the ensuing effective communication process could be responsiveness
of the oil producing companies to the needs of the host communities based on the understanding
achieved. As the oil producing companies meet the communities’ needs, friction between the
communities and the companies is bound to reduce as goodwill could be shared between the two
parties. It is in this light that this study examines the roles of Corporate Social Responsibility
(CSR) as a conflict management strategy in selected oil producing communities in Delta State,
Nigeria.
1.2 Statement of the Problem

Since the discovery of oil in Nigeria, specifically in the Niger-Delta region, there have been lots
of activities involving oil producing, oil marketing, seismic companies and all other allied
businesses. Oil exploration has resulted to a lot of benefits and also inconveniences and hardship
to the people in these areas. According to Wosu (2013), the exploration activity of oil companies
in the Niger-Delta region of Nigeria has resulted in oil spillage and other forms of pollution and
degradation of the ecosystem, which invariable is the means of livelihood of the inhabitants. The
oil companies operating in the areas which are supposed to help in developing the areas are
accused of not caring about the welfare of the people. They have also often been accused of
deceit and failed promises in respect of the welfare of people of their host communities. The
result is that the people seem to be experiencing increased hardship, poor and lack of
engagement, poverty, famine, unemployment and malnutrition. Some of the consequences
arising from the situation are inter and intra communal conflicts, fervent agitations and even
kidnapping of both indigenous and foreign staff of oil companies.

Furthermore, oil exploration by various companies in the area usually results into a lot of social
problems within host communities. There are many cases where explosives used in prospecting
activities damage aquatic life and leaving cracks in buildings, oil leakage as a result of
vandalized pipelines which spill into the areas and destroy the environment. There are also
terrible destruction to crops, farmlands and soil become sterile and unproductive (Adekola &
Uzoagu, 2012). Other problems include the destruction of aquatic life which make fishing which
is the main occupation of the people become impossible.

These problems experienced by the people make them resort to violence, protests and reactions
against the oil companies such that managing, solving or ending the conflicts seem impossible.
For instance, there were serious protests by the peoples of Kokori community, in Ethiope East
local government area of Delta state, Nigeria in 2008 and 2010 respectively. This led to the
blocade and disruption of operations of Shell Petroleum Development Company (SPDC) and
Nigeria Petroleum Development Company (NPDC) that were operating in the area. These were
resolved by the intervention of the Federal and State Governments who stepped into the matter
and the companies were forced to review their CSR strategies. Similarity, there have been such
protests at various times in Ekakpamre in Ughelli South Local Government Area, Beneku in
Ndokwa East Local Government area and Out-Jeremi in Ughelli South Local Government Area,
all in Delta State related to the activities of the oil producing company and the neglect of the
welfare of members of their Host Communities.

To minimize and reduce the conflicts that result between oil producing companies and host
communities and enable organizations engage in the development of the host communities, the
principle of Corporate Social Responsibility (CSR) emerged. The principle thus requires some
responsibilities on the part of oil producing firms to invest some of their revenue through
physical and human resources development to the host communities (Adekola & Uzoagu, 2012).
Some oil companies such as Mobil Producing Oil Company, and Elf Oil Producing Company
and others have for some time engaged in the concept of Corporate Social Responsibility to
handle problems of violence between them and their host communities.

What are Corporate Social Responsibility (CSR) activities of these oil companies? How
successful have they been in managing the conflicts between the oil producing companies and
the host communities? Have these CSR measures been working? These and other related
questions need answers. There is therefore the need to study the effectiveness of Corporate
Social Responsibility (CSR) as a conflict management strategy and to know the effectiveness of
the CSR approaches adopted by the oil companies in addressing the situation.

1.3 Objective of the Study

The main objective of this study was to assess Corporate Social Responsibility (CSR) as a
conflict management strategy in selected oil producing communities in Delta State of Nigeria.
This specific objective are to:

1. find out the degree of cordiality of the relationship between the oil companies and the oil
producing communities in Delta State, Nigeria;

2. investigate the CSR programmes done in the oil producing communities by the oil producing
companies in Delta State, Nigeria;
3. determine the adequacy of the CSR programmes carried out in the oil producing
communities as conflict management strategy by the oil producing companies in Delta State,
Nigeria;

4. ascertain the significance of Corporate Social Responsibility (CSR) as conflict management

strategy by oil companies in oil producing communities in Delta State, Nigeria;

5. establish the effectiveness of CSR as conflict management strategy in oil producing

communities in Delta State, Nigeria and

6. examine how the CSR programme of the oil producing companies have promoted better
relationship with the host communities in Delta State, Nigeria.

1.4 Research Questions

This study provided answers to the following research questions:

1. What is the degree of cordiality of the relationship between the oil companies and the oil
producing communities in Delta State, Nigeria.

2. Which are the specific CSR programmes done in the oil producing communities by the oil
producing companies in Delta State, Nigeria.

3. How adequate are the CSR programmes carried out in the oil producing communities as
conflict management strategy by the oil companies in Delta State, Nigeria.

4. Of what significance is Corporate Social Responsibility (CSR) as conflict management

strategy by oil producing communities in Delta State, Nigeria.

5. Howeffective is CSR as conflict management strategy in oil producing communities in Delta

State, Nigeria.

6. To what extent has CSR programmes of oil producing companies promoted better
relationship with the host communities in Delta State, Nigeria.

1.5 Hypothesis

The study also tested the following hypothesis at 0.05 level of significance.
Ho: Corporate Social Responsibility (CSR) has no significant effect on conflict management in
oil producing communities in Delta State, in Nigeria.

1.6 Scope of the Study

The study is limited to studying three oil producing communities in Delta State Nigeria. The
communities that were studied are Ekakpamre in Ughelli South Local Government Area, Beneku
in Ndokwa East Local Government Area and Kokori in Ethiope East Local Government Area, all
in Delta State. Delta State is particularly rich in crude oil and contributes considerable amount of
gas to the economy. It also supplies more than 35 percent of the country’s crude oil and is rated
as the third largest contributor to the national economy.

Delta state has 25 local government council areas and the oil producing ones are Ndokwa East
and West, Warri North and South, Ethiope East and West, Sapele, Burutu, Isoko North and
South, Ugheli North and South and Okpe. Delta state is the hot bed of crisis between oil
producing companies and host communities, especially the Ijaw speaking areas. Most of the
activities of the militants, notably Movement of the Emancipation of the Niger Delta (MEND)
and recently the AVENGERS have been very visible in Delta State. The state also has more
ethnic groups then any other in the Niger Delta. These include the Itsekiris, Urhobos, Isokos,
Okpes, Ijaws, Ikas, Unuanis and other Ibo speaking areas. The state has also produced prominent
crusaders of “Resource Control” which include Chief Edwin K. Clark, Chief J.O.S Ayomike and
Late Chief Francis Okpouzo.

1.7 Significance of the Study

The very essence of public relations is the creation, maintenance and sustenance of cordial and
favourable relationship and goodwill between the oil prospecting and producing companies and
their host communities. In order to project such organsiations as good and responsible corporate
citizens, their managements have to engage in the provision of basic infrastructures, social
amenities, protection of the environment, provision of job opportunities, scholarships and other
basic amenities for their host communities. This is the whole essence of Corporate Social
Responsibility (CSR) which is a means of the organization impacting favourably and positively
in terms of welfare packages on the lives of members of their host communities. For the
specialized and focused area of community relations and Corporate Social Responsibility (CSR),
the findings of this study might be of great importance to oil prospecting and producing
companies, federal, state and local governments, other companies in the oil industry and all
stakeholders. The oil prospecting companies operating in the oil industry in Nigeria, might in
addition, find the findings of this study useful for their Corporate Social Responsibility (CSR)
programmmes. Other multi-national corporations may equally tap from the value bank of this
study to enrich, as well as, enhance their Corporate Social Responsibility (CSR) practices.

The outcome of the study might significantly contribute to and enhance the knowledge of staff of
corporate institutions in Delta State of Nigeria and serve as reference materials in teaching and
research in the field of public relations, mass communication, management and other related
fields. It might also serve as input in financial and management policy documents for
sustainable national development. The outcome and findings of the study will contribute to
academic knowledge and practical policy making in public and private institutions in Nigeria.
Finally, students, scholars and researchers would find the conclusions and recommendations of
this study as a ready resource material.

1.8 Operational Definition of Terms

Corporate Social Responsibility (CSR): Corporate Social Responsibility (CSR) refers to the
practice by which organizations and institutions plan and implement social initiatives that
benefits the society. It is therefore a responsibility placed on organizations and institutions to be
accountable for the impact of their activities on stakeholders and to present themselves as good
corporate citizens. For the purpose of the study if is the efforts that oil producing firms make to
provide in infrastructures aid other projects for their host communities in Delta State, Nigeria.

Corporate Governance: Corporate governance is the broad term that has to do with the manner
in which rights and responsibilities are shared amongst owners, managers and shareholders of a
given institution. In the context of this study, it is the ability of the oil companies to show that
there are rights and responsibilities shared among owners, managers and shareholders.

Conflict: Conflict can be described as what comes up when the goals, objectives or values of
competing groups, which are host communities and oil companies in Delta State in this case
clash and result to confirmation of aggression and even disruption of operations and destruction
of properties.
Conflict Management Strategies: They refer to, in the case of this study, the elaborate and
systematic well organized plans that are put in place to resolve conflicts between host
communities and oil companies. Such strategies include meetings with and lobbying
stakeholders with a view to identifying areas of needs, provision of welfare programmes,
packages and projects in the oil producing areas, provision of employment to indigenes of the
areas, to mention a few.

Oil Producing Communities: These are communities in Niger Delta, Nigeria where oil have
been discovered, explored and exploited by multi-national corporations like Shell Petroleum
Development Company (SPDC), Agip Nigeria Oil Company (AGIP), and others. They are
therefore the areas that suffer environmental degradation, oil spillage, destruction of farmland
fishing ponds and others, specifically in Delta State, Nigeria.

Oil Producing States: These are states recognised by the Federal Government of Nigeria as oil
producing states and benefit from the derivation fund of the federal government. The states are
Delta, Rivers, Cross-Rivers, Akwa-Ibom, Bayelsa, Imo, Ondo, Lagos, Abia and Edo. Delta State
is of particular focus in this study.

Stakeholders:Stakeholders are those people or persons with an interest or concern in the

operations of the oil companies. They can affect or be affected by the organisation’s actions,
objectives and policies. In the case of oil companies, they are the creditors, the directors,
employees, government (and its agencies), owners (shareholders), suppliers, unions and the
community from which the business draws its resources.

Ekakpamre:Ekakpamre is in Ughelli South Local Government Area of Delta State of Nigeria. It

has a population of approximately 41,536 and is an oil producing area where Shell Petroleum
Development Company (SPDC) and Nigerian Petroleum Development Companies (NPDC)
operates.The town is made up of five quarters which are Ekrezeghe, Ekruoghe, Ekrusiero,
Ekeneghe and Ekraka.

Beneku:Beneku is in Ndokwa East Local Government Area of Delta State of Nigeria and has a
population of approximately 10, 342 people. It is an oil producing area and the main oil
producing company operating in the area is Nigerian Agip Oil Company (NAOC). The town is
made up of two quarters which are Umu-Edem and Umu-Igwe.
Kokori:Kokori is a town in Ethiope East Local Government Area of Delta State of Nigeria and it
has a population of approximately 96,463. It is an oil producing area hosting Shell Petroleum
Development Company Limited (SPDC) and NPDC. The town is made up of three quarters
which are Umigighwa, Urhuokpokpo and Anaka

Community Relations:It is the planned programs and policies of an oragnisation intended to

create, build up and sustain mutual trust, understanding, goodwill, support and create a
favourable image for an oragniasation. It is the community relations programmes of the
organization that constitute its Corporate Social Responsibility (CSR). In the context of the study
oil companies use CSR and other community relations strategies to manage conflict.

Corporate Social Responsibility (CSR) Strategies:It is the calculated and planned means of
attaining and achieving the organisation’s Corporate Social Responsibility (CSR) goals and
objectives such as provision of infrastructures, employment of members of the host communities,
award of scholarships, promotion of cultural values and other assistances to the host
communities.

Niger Delta:Niger Delta in the study refers to the land mass of Nigeria that spreads from the
East-West direction and spreads from South West Cameroon to the Okitippa ridge, from an apex
at the South East of the River Niger and Benue confluence (Asakitikpi & Oyelaran, 2000). They
are mostly areas in the South-South geopolitical zone of the country such as Akwa-Ibom, Rivers,
Bayelsa, Cross Rivers, Delta and Edo States.

Public Relations:Public relations is the creation and sustenance of mutual relationship between
an organization and its publics. Webster international dictionary (2004) defines it as: (1) The
promotion of rapport and goodwill between a person, individuals, firms, or institutions and other
persons specifically publics or community at large, through the distribution of interpretative
materials and assessment of the state of its relationship with public. (2) In this study it
specifically refers to the promotion of rapport and goodwill between the oil producing companies
and the host communities.

Information:Information applies to facts told, read, or communicated that may be unorganized

and even unrelated (www.dictionary.com). Information can also be viewed as messages used for
decision making in organizations. In case of this study, it is the messages used by the oil
producing companies and the host communities for decision making.

Communication:It is the process and means of sharing meanings and bringing people or places
in business together. It involves the process of sending a message from a source through a
channel to a receiver. It is the presence of feedback that shows that the communication is
effective.

Community Development Committees (CDC):This is a community development committee

that is formed in oil producing areas for the purpose of negotiating and pressing for the demands
of the people from the oil producing companies. It is usually comprised of a chairman and
executive members. It is this committee that the oil companies consult on major issues. They are
also reached in case of conflicts.

Community Liaison Officer (CLO):This is an officer appointed by the oil producing company
from the community where it is operating to liaise between it and the host community. It is now
statutory for all oil and Gas Companies to have liaison officers in their area of operation.
However, some oil companies employs persons who are not indigenes of the community where
they operate as CLOs.

AGIP: It is an Italian oil prospecting and producing company and operates in Nigeria as the
Nigerian Agip Oil Company Limited (NAOC). The NAOC is a joint venture operated with the
Nigerian National Petroleum Company (NNPC) which has a larger share capital of (55%). The
original Italian name is Azienda Generale Italiana Petroli and this means General Italian Oil
Agency.

SPDC:The full meaning is Shell Petroleum Development Company (SPDC) which is a

subsidiary of Royal Dutch Shell, a British/Dutch company and operates in Nigeria as a joint
venture with the Nigerian National Petroleum Corporation (NNPC) and other oil companies.
 CHAPTER TWO

REVIEW OF LITERATURE

2.0 Introduction

This chapter is made up of two major areas which are the Review of Relevant Literature and
Theoretical Framework. The Literature Review will be divided into two parts, which are
Conceptual Review and Empirical Review, while the Theoretical Framework will review four
relevant theories.

2.1 Conceptual Review

2.1.1 Corporate Social Responsibility: Premises, Origin and Meaning

Corporations all around the world, specifically oil companies are struggling with a new emerging
role, and this is to meet the needs and aspirations of the present generations without
compromising the ability of the next generations to meet their own needs. Organizations are now
being enjoined to take the responsibility for the ways their operations affect societies and the
natural environment. In addition, they are also being called upon to apply sustainability
principles to the ways in which they carry out their businesses. Sustainability here refers to an
organisation’s activities, considered voluntary, which demonstrates the inclusion of social and
environmental concerns in the operations of the business and interactions with stakeholders
(D’Amato, Henderson & Florence, 2009). Organizations are expected to act responsibly by
taking into consideration the interest of the individuals in the area where they operate. This
should come in the form of sustainability. It is therefore not proper for companies to make
abnormal profits to the detriment of those agents affected by its actions. A firm must now
therefore consciously focus its attention seriously on both increasing its bottom line and
presenting itself as a good corporate citizen. In other words, corporations must now focus more
on giving back some of its wealth to the society where they are making such. This is what
justifies the concept of Cooperate Social Responsibility (CSR).

It is even now more relevant in the context of developing country, especially those that are
blessed with natural mineral resources. One of such countries is Nigeria where oil was first
discovered in 1956 at Olobiri in Rivers State. Since the discovery in this area, there has been
little or nothing to show for the existence of oil in the area which is now generally referred to as
the Niger-Delta region. After being exploited for years and as a result experiencing famine,
environmental degradation, unemployment poverty, and lack of infrastructure the people of the
area have started resisting the exploitation and this has resulted to a lot of conflicts in the area.
This has been very difficult for the management of the oil companies to manage. The result is the
application of Corporate Social Responsibility (CSR) programmes as a possible way out. The
concept of Corporate Social Responsibility (CSR) has over time gained new focus and
remarkable prominence since the 1980s. What is however noteworthy now is that it has
transcended local and national boundaries and has now become the subject of global attention
looked at in the context of developing countries. It has become part of broader debates in
development and poverty reduction in relation to the absence of governance in various areas
(Marchant, 2014).

It is believed that the idea of Corporate Social Responsibility (CSR) began in the 20th century.
Corporations at that time faced serious criticisms from being too big, powerful and anti-social.
They were also accused of engaging in anti-competitive practices and efforts were made to
curtail corporate powers through laws and regulations. A few far-sighted and proactive business
executives then advised the business community to use its power and influence for broader and
beneficial purposes, instead of for just selfish profit pursuit. This call was responded to positively
by lots of business executives and CSR emerged. According to Heald (1970), wealthy business
owners and executives such as Andrew Carnegie, a steel maker and philanthropist gave much of
their wealth to charitable institutions. Also Automaker, Henry Ford, the owner of Ford Motors
and others developed paternalistic programmes to support the recreational and health needs of
their employees that advanced the course of the poor and the general good of the society.
(p.191). Two broad principles, the Charity and Stewardship, the bedrock of Corporate Social
Responsibility, emerged from these initial ideas.

As good as the idea of CSR may sound, not all businessmen believed in it. One group believed
that businessmen and investors set up businesses to make profits and have no reason to give
anything back to society. The other school of thought however holds the contrary opinion that
business should give part of what they make from society back to it. Naturally, this school of
thought has become more popular and Corporate Social Responsibility is thriving today. Okiyi
(2004) said Corporate Social Responsibility (CSR) has proponents, as well as antagonists who
are of the view that society should not expect much from corporate bodies and that “social
responsibility is entirely too expensive and rarely subjected to cost/benefits analysis” (p.211).
However, there are other views of CSR and in Nigeria today, governments at all levels clamour
for the participation in governance, vis-à-vis their contributions to sustainable development and
the growth of the society where they exist. Corporate Social Responsibility (CSR) simply put,
are those activities of a firm, company or corporation aimed at investing and ploughing back
part of its profit for the purpose of developing the area where it makes the profit. It emphasizes
that all the corporate decisions of the organization should not be economic but include some that
are social from which the host community can benefit. Ikiriko (2012) explained that:

The entirety of Corporate Social Responsibility (CSR) can be

discerned from the three words contained within its little phrase
“Corporate Social and Responsibility”. Therefore in broad terms
(CSR) covers the responsibilities corporations (or other profit
organisations) have to the societies within which they are based and
operate (p. 12).
Although this definition is limited to profit making organisations, non-profit making
organisations also carry out their Corporate Social Responsibility (CSR) by identifying with and
participating in the activities of the community where they operate. They provide free training
facilities, advice and counsels to help such communities. Corporate Social Responsibility (CSR)
goes further to a business identifying its stakeholder groups and incorporating their specific
needs and values into the strategic decision making process of the organization and linking itself
with the ethical values, transparency, employee relations, compliance with legal requirements
and overall respect for the host communities. (Arndt, 2003; Handy, 2002). It is not limited to but
goes further beyond community services that are carried out once in a while. It is incorporating
the idea in the goals and objectives of the company and involves sticking religiously to it.

Corporate Social Responsibility (CSR) according to Adekola and Uzoagu (2012) stated that
organizations should consider first and foremost the effect of their business on society by
accepting responsibility for the effect of the business and its operations on employees,
customers, shareholders, host communities, as well as the environment. This goes beyond
statutory obligations, but involves voluntarily taking more steps to raise the quality of living of
its employees, members of the host communities and the larger society. It also involves the
companies operating in a particular area identifying with the people and actively taking part in
all their activities, including cultural festivals, fund raising for development projects, arts,
educational development and such other projects that benefit members of the host communities.
In this way, they become part and parcel of the communities where they operate. This can help to
reduce the possibilities of conflict as they will be avenues to resolve them before they escalate.

To curb and if possible stop the restiveness of youths in most oil producing communities, the
stakeholders therefore have come to consider Corporate Social Responsibility (CSR) from the oil
companies as a major strategy. It is doing with how the programmes of CSR will help with the
development of the places where the oil companies do their business. (Igbara, Etu, Alobari &
Naenwi, 2014). It also helps to create mutual understanding and reduce tensions that might result
to conflict. Writing on why companies should take special interest in policies and activities, that
should benefit their host communities, in terms of sustainable environment, human rights,
education, health and so on, which are considered corporate social responsibilities, Anuforo
(2007) stated that:

Corporate Social Responsibility is a way for the companies to reach

out to their host communities by positively impacting on their
environs, it is the corporate act of giving back to the immediate and
wider community in which the organization carry out their business in
a manner that is meaningful and valuable and relevant to their
community. (P. 36)
The principle of CSR expects every responsible company to give back to the community, part of
what it makes from such community where it operates. In this way, it projects itself as a good
corporate citizen. Corporate Social Responsibility (CSR) has also been looked at by Aghaline
(2004) as “The business organization actions that are taken beyond the organisation’s direct
economic and technical interest” (p.15). It is therefore an effort to give back to the community
part of the gains of the organization from the community. It is no doubt necessary for any
organization that wants to develop, grow and succeed to become a good corporate citizen and the
easiest way to achieve this is by carrying out corporate social responsibilities to its host
communities, especially its immediate host community.

According to Bowen (1953) programmes meant to benefit Corporate Social Responsibility refers
to the “obligation of businessmen to pursue those policies, to make those decisions, or to follow
those lines of action which are desirable in terms of the objectives and values of society” (p.58).
It means that all responsible organisations should pursue those things that are beneficial to
society particularly where they operate.
Steiner (1971) in his contribution to the explanation of CSR states that:

Business is and must remain fundamentally an economic institution

but… it does have responsibilities to help society achieve its basics
goals and does therefore have social responsibilities. The larger a
company becomes the greater are these responsibilities, but all
companies can assume some share of them at no cost and often at a
short-run as well as a long-run profit. Furthermore, it is a philosophy
that looks at the social interest and that enlightened self-interest of
business all over the long-run as compared with the old, narrow,
unrestrained short-run self-interest. (p. 164) that through businesses
are a corporate institutions, they have social responsibility to help their
host communities to achieve basic good and add value to the
individuals and the society at large.
In this definition, the author argued that although business is run primarily for profit, it
does have some obligations to society in the form of Corporate Social Responsibility (CSR) and
this gets greater as the company grows. In line with the above definition, Manne and Wallich
(1972,) asserts that:

To qualify as socially responsible corporate action a business

expenditure or activity must be one for which the marginal returns to
the corporation are less that the returns available from some
alternative expenditure, must be purely voluntary and must be an
actual corporate expenditure rather than a conduit for individual
largesse. (p. 6)
Corporate Social Responsibility (CSR) are actions taken by businesses which goes beyond the
direct economic and technical benefit of the organization but to create mutual relationship in the
areas where they operate. According to Aghaline (2004):

Corporate Social Responsibility refers to the ‘business organisation’s

actions that are taken for instance at least particularly beyond the
organisation’s direct economic and technical interest to make profit’.
Concern for social responsibility has risen as society’s expectation of
Corporate Social Responsibility has become increasingly ambivalent.
In the midst of all this uncertainty, corporations have sought to
improve their internal machinery to effecting reasonable response to
societal expectations (p. 14).
The point is that Corporate Social Responsibility (CSR) is important, notwithstanding, there are
different opinions about its desirability. While some feel it is the company’s responsibility to
provide some welfare benefits to its host community, others are of the opinion that they only
really have obligations to their shareholders who invested primarily for profit returns. Corporate
Social Responsibility (CSR) is the ability of business to be committed ethically and generously
contribute to the sustainable economic progress of the host community and its workforce. It
involves the fulfillment of legal obligations and expectations and even going beyond this to
invest in human capital development and environmental protection activities. It is also a strategic
move to strengthen the basis of mutual confidence between an organization and its host
communities. (EC, 2001. OECD, 2000; WBCSD, 2001).

Corporate Social Responsibility (CSR) is, therefore not an occasional activity, but what should
be integrated into the active operational plans of the company. It should be part of the issues
management mechanism and the company being proactive to prevent conflicts and be able to
manage them when they rear their ugly heads. Holme and Walt (2001) are of the view that
Corporate Social Responsibility (CSR) is the regular and sustained commitment of business
enterprises to act and behave efficiently in contributing economically to the growth of their host
communities and also to the improved quality of their workers, families, as well as the local
community and society generally. It helps to guide business in their ethical decisions, insulate
them directly from government agencies regulations and can be categorized as legal, ethical,
economic and voluntary. (Ferrell & Fracdrich, 1997; Kaliada, 2001) Corporate Social
Responsibility (CSR) is not limited but covers a whole large area of business decisions.

The point here is that Corporate Social Responsibility is not an obligation that is imposed by law,
but it is in the interest of the company because it promotes good reputation and favorable
corporate image. The concept of Corporate Social Responsibility is not new, although there are
various versions. It is believed to have started in the 20th century by some businessmen who saw
enough reason to give back part of their wealth to the less fortunate.

2.1.2 Arguments Against and in Favour of Corporate Social Responsibility (CSR)

The concept and practice of CSR is unnecessary according to some scholars such as (Henrique &
Reynard, 2002; Robins, Roberts & Abot, 2000) because the role of efficient and well run
companies is to make profit for equity holders and not charity. The case against CSR according
to them therefore include but are not limited to the following:
1. CSR negates the original reason of establishing business which is to make as much profits
as possible for shareholders. Any effort to do away with profit in favor of human rights and
the protection of the environment is not in the interest of investors
2. CSR is against efficient market economics, bringing in barriers inimical to freedom of
choice and enterprise and therefore to wealth creation
3. Inappropriate Corporate Social Responsibility standards in business may lead to job losses,
under-investment, and lack of services
4. CSR contrast the concept of sustainable development, fair trade and environmentalism

However, there are some strong arguments and rationale for Corporate Social Responsibility
according to the authors which include:

1. CSR can help companies find new ways to work, develop skills, manage risks, seize
opportunities and solve problems
2. Better alignments with current and emerging consumer concerns and access to new
markets. CSR can help organisations gain some specific contracts, relationship in trading
with other companies, carrying out communication directly with the best preferred
communities through environmental and social labels
3. Greater efficiency and better management encouraged by CSR can help companies to
improve the quality and productivity of their output
4. Even where companies do not have nationally or internationally recognized brands, their
reputation and relationships with the local people, suppliers and with local government
councils can be enhanced by better social and environmental performance
5. CSR can help to reduce operational cost of companies. This can derive from environmental
efficiency measures such as waste reduction and energy efficiency reduction in
absenteeism and staff turnover
6. CSR can promote closer relationship with host communities, civil societies and
government

2.1.3 The Charity and Stewardship Principles

As earlier mentioned the twin principles on which Corporate Social Responsibility stand are the
Charity and Stewardship principles. The Charity principle is of the notion that the privileged and
well to do members of the society should be magnanimous enough to be charitable towards the
poor and less fortunate. This started in the ancient times when members of the royalty were
expected to provide for the poor. This different ancient principle is supported by biblical
passages and sacred writings of other religions that people have always been their “brother’s
keepers”. When renowned industrialists, like Andrew Carnegie, auto-guru like Henry Ford and
others reached out to help other members of their communities, they were accepting some
responsibilities for the improvement of the conditions of life in their communities.
(http//:www.bing.com/search=charity). There is no doubt that the onetime responsibility of
wealthy individuals and families has now become more of a shared responsibility of business
firms, their employees and their top-level managers. Modern Corporate Social Responsibility
means this kind of participation in community affairs making charitable contributions. The
Charity principle is a part of the modern public relations practice which involves giving funds for
scholarships, community development, and other developmental projects for host communities
(Heald, 1970).

The Stewardship principle, on the other hand, refers to today’s corporate executives seeing
themselves as stewards or trustees who act in the public’s interest. The fact that their companies
are privately owned notwithstanding, they try to make profits for the stockholders. The resources
of the organisation according to Heald, (1970) are managed and directed by professional
managers who believe that they have an obligation to see that the general public benefit from the
company’s wealth. It is their responsibility therefore to ensure that part of the profit that are
made from the society where the organization is established is ploughed back to the host
community. (https/www.course.hen.file). Both principles, the Charity and Stewardship principles
became the foundation on which Corporate Social Responsibility stands. While the Charity
principle encourages business firms to give voluntarily aids to society’s unfortunate or needy
groups, the Stewardship principle encourages them to be trustees of public interest. In other
words, they should act in the interests of all members of society who are affected by the
company’s operations. A socially responsible company is therefore one that is guided by these
two principles (Heald, 1970).

In all their operations, the two principles have therefore become the framework that emphasizes
the need to welcome CSR. Ancrum (2006) in agreement with the view said that “a new frame
work for emphasis to embrace CSR emanates from the recognition “that profit only can in no
way guarantee sustainable success (pp.57-58). According to him, there is need to balance diverse
interests which sustain and guarantee the operational success of a firm. The new frame work
implies a combination of personal principles, corporate ethics and commercial sustainability. The
leader’s courage to implement these three factors simultaneously will go a long way in helping to
achieve the objectives and goals of the company. The point to note here, is that CSR must always
be an integral part of the company’s policy, if it is to project good corporate governance and
present itself to the various stakeholders as a good corporate citizen. The archaic and abandoned
principle that wealth creation which is just a matter of pursuing profit and growth at the expense
of every other thing is now obsolete. Modern business therefore must always consider giving
back something to the society where the wealth is created.

2.1.4 Importance of Corporate Social Responsibility (CSR)

The importance of CSR in any business is further emphasized by Berkhout (2005) who states
that “CSR provides the vital beginning which all businesses need to move in the direction of
sustainability. Companies should therefore push to seek something other than lowest short term
cost for higher short term gain for CSR to achieve its potentials”. (pp. 15-18)The following
challenges are inevitable for all companies that want to operate under the principle of CSR,
According to him, how to balance social and environmental responsibilities with its clearly
defined economic responsibility to earn a profit; how CSR glass ceiling is merely a reflection of
society’s expectations; How evolving norms and rules determine what constitutes acceptable
corporate behavior; and How companies position to see a value in CSR beyond public relations
to the short term bottom line (P.19). The important principle of CSR is therefore recommended
to take vital steps towards sustainability. Added to this, companies need to ensure that their
short-term economic goals do not continue to override their long term social, environmental and
economic responsibilities to society and the natural environment.

Furthermore, Black and Hartel (2003) describe CSR “as the firm’s ability to proactively
recognize and effectively respond to firm-stakeholders relationship. This covers four areas of
strategic management, social responsiveness, public relations and marketing to establish a model
that identified capabilities required by firms in order to be socially responsible” (pp 112-114)

The authors, in addition, stated some of the goals and capabilities of CSR as follows:
1. Stakeholders management, the process of a manufacturing stakeholders interest into
operational decision making, as well as the actual communication of socially responsible
behavior;
2. Stake holders engagement, comprised of stakeholders identity, the extent to which a firm
sees its long term interest linked to those of its stakeholders
The remaining capabilities, they said are segregated by public relations orientation, including the
following:

1. CSR orientation, focused on ethical business behavior and accountability and disclosure as
key transaction
2. “Value attained” behavior and dialogue with stakeholders as the key transactions (p. 144).

The concept of Corporate Social Responsibility (CSR) is “an interaction that build confidence
between firms and stakeholders. Individually these interaction and engagements could not
produce social performance, but they establish the organizational behavior that could lead to
acceptable socially responsible performance” (Black & Hartel, 2003, pp. 125-144). CSR is
therefore a positive contribution by the organization to society which in the long run will
eventually benefit the organization in terms of good reputation and corporate image. The point is
that CSR needs of developing countries are different from that of developed economies. The
environment therefore has to be considered in the provision of projects.

The level of Corporate Social Responsibility (CSR) in any organisation is influenced by certain
propositions and Campbell (2007) identified eight of these as:

1. Financial conditions of the firm and health of the economy;

2. Too much or too little competition;
3. Institutional factors such as well enforced state regulations;
4. Well organized and effective individuals self regulations;
5. Private independent organisations, including NGOS, social movement organisations,
institutional investors and the press;
6. Important business publications, business school curricula and other educational a venues
in which corporate managers participate;
7. Membership in trade or employers association which are organized in ways that promote
socially responsible behavior
8. Business climate, the community where the company operates, existing laws, cooperation
of shareholders and stakeholders and so on (P. 967).

These are the factors that can determine the level and extent to which an organization could be
involved in Corporate Social Responsibility (CSR) practice. They could either enhance or slow
down the company’s level of participation in CSR activities. Specifically identifying what CSR
does and could mean for the poor marginalized in developing countries, Blowfield and Frynas
(2005) states that: the claims that “CSR contributes to the alleviation of poverty and of the
achievement of other developmental goals are unwarranted” p. 513. They identified CSR as a
term that covers a variety of theories and practices and recognize the following.

1. That business needs to manage its relationship with wider society, whether for reasons of
commercial viability or to add value to society.

2. That companies have a responsibility for their impact on society and natural environment
sometimes beyond legal compliance and the liability of individuals

3. That companies have a responsibility for the behaviour of others with whom they do
business (e.g. within supply chains.) (p. 513).

The authors further looked at the criticisms of CSR which included two schools of thought "CSR
is totally bad capitalism "and "every weak CSR is bad development". They then identified and
discussed four areas that need to be addressed to answer some questions: the meaning of CSR for
developing countries, its relationship to international governance, its analytical limitations, and
the consequences of thinking in terms of the business case for CSR. These four points clearly
state what CSR is all about in developing countries and its implications for business practices.

Blowfield (2005) however cautions that there may be areas of overlap between developmental
and business goals, companies engaged with developing economies for commercial reasons and
not developmental ones. This applies to most multi-nationals, including oil producing companies
operating in the Niger-Delta region of Nigeria. The author therefore suggested the following as
long - term test.

1. Whether CSR can help companies redefine the meaning of good business practice in the
interest of the poor and marginalized.

2. Whether CSR help development practitioners manage the possibilities and consequences of
global capitalism for poor countries more effectively (p. 524).

Understanding how business affects development, therefore depends largely on our

distinguishing between the business case and the case for business. Le Jeune (2008) explains the
concept of Corporate Social Responsibility (CSR) as “the prime analytical tool used to decide
just how positive the corporate-society relationship, actually is in sustainable development”
(p.10), and that CSR is a corporate commitment to sustainable development. In other words, as
an organisation you put back as much as you take out in any activity. This could be in the form
of human capital, natural resources, economic growth or any other form. Any organisation that
does not engage in this, and point to some form of socially valuable activity is a ready target for
a hostile press and community. This of course is not good for the organization and its corporate
image.

2.1.5 Conflict and Conflict Management

Having looked at the concept of Corporate Social Responsibility (CSR) it would be proper to
also look at the concept of Conflict and Conflict Management. Conflict can simply be described
as a clash or disagreement, in most cases violent between two opposing groups or individuals.
Conflict in, and of itself is not bad. “A conflict can sooth or destroy, sometimes quickly. Conflict
too, looked at properly, could be good when properly handled. However if it is not properly
handled, it can explode” (Ikpah, 2008, p 2). The term conflict has been defined in different ways
by various scholars. For example, Otite (2001) said that conflict arises when groups or
individuals in a particular environment pursue different goals, interests and ambitions. In any
case where there is a change in the social environment, the discovery of new resources from
development in the physical environment, a fertile ground for conflict automatically abound.
This is to say changes in our social environment and discoveries of fresh economic resources are
potential grounds for conflict. Consequently, conflicts arise in the process of the pursuit of these
new opportunities. Conflict is therefore a conscious act in which personal or group contact and
communication are involved.

Furthermore, “conflict arises”, according to Park and Burgess (1921) “to settle and resolve
divergent dualism and to achieve a common ground” (p. 20). Its propensity to eliminate one of
the conflicting parties notwithstanding, conflict, as was also noted by Ikpah, (2008) should not
be only looked at from the negative perspective, it has some positive angles if well handled. This
view is also supported by Folarin (1998) who said that conflict is not necessarily a bad thing, but
can be both functional and dysfunctional. Conflict as a matter of fact is part and parcel of
development. There is hardly any development process that is not characterized by one form of
conflict or the other. What matters most in such situations is the way and manner the conflict is
handled and the lesson that was learnt from it.

The issue of conflict is not new in Nigeria. The exploration of oil in the Niger Delta region of the
country has resulted to a lot of conflicts between the oil producing companies and the host
communities. Host communities and adjoining communities have continuously complained of
being short-changed as the areas suffer a lot of degeneration without enough compensation in
form of provision of infrastructures, portable water, job opportunities, environmental protection
and so on. This has eventually led to the disruption of operations of the companies, kidnapping
of both foreign and local workers, agitations for adequate compensation and the destruction of
oil facilities by aggrieved individuals.

Omeje (2005) carefully identified the following as some of the causes of conflict in the Niger
Delta region of Nigeria.

1. Staggering and growing levels of youth unemployment, leading to hopelessness,

restiveness and feelings of frustration, which often precipitates or fuel violence.

2. Dysfunctional structural divide and discrimination at various levels of state and society
which impacts adversely on issues such as employment, promotion, opportunities, as well
as groups and community relations and land rights, often linked to the problem of
indigenes.

3. Promotion of violence as an economic opportunity by any subaltern and jobless youths.

4. Institutional pressures on public agencies whose roles and functions should ideally
contribute to conflict prevention and management such as the police and other law
enforcement and adjudication agencies.

5. Pervasive patterns of domestic and cultural violence in Nigeria such as harmful traditional
practices and the clash between traditional institutions and forces of modernisation.

6. The high incidence of state failure. The states abdication or perhaps inability to meet the
primary social obligations, notably development provision and maintenance of internal
orders and unconcealed appetite for misrule (pp. 22-25). These and other factors have led
to the unfortunate situation in the Niger Delta today that is making the country lose billions
 of dollars in the form of revenue from oil which is presently the main stay of the economy.

Conflict Management on the other hand, according to www.transconflict.com (2016) is the

process of limiting the negative aspects of conflict, while increasing the positive aspects of
conflict. The aim of conflict management is to enhance learning and group outcome, including
effectiveness or performance in organizational setting. Conflict management is therefore very
vital if there is to be organisational peace and harmony and cordial relationship between
organizations and stakeholders, including the host communities. As Pruit and Rubin (1986) put
it, conflict is a normal outcome of organisational differences or lack of understanding
incompatibility of interest or just expressed as disagreement among others because of
contradictory power and orientations. Conflicts could be between individuals, groups, between
organisations and communities, organisations and so on. This study however, focuses mainly on
conflicts between organizations -oil producing companies and group- stakeholders which are
specifically oil producing communities which have experienced conflicts.

Irobi. (2010) further defines conflict as the normal struggle between groups or more that consider
themselves as incompatible and this can degenerate into protest, destruction of property and
disruption of organisational operations in the case of oil producing companies and host
communities if not properly handled. It is therefore necessary to properly manage conflicts.
Conflict Management can therefore simply be referred to as processes, methods and strategies
adopted to help in the prevention, control or elimination of conflicts. It involves effective ways
of handling and resolving conflicts, communication challenges and complaints and similar issues
to achieve organizational objectives, as well as sustainable relationship (Aminu & Marfo, 2010;
Botes, 2003; Nwagbara & Brown, 2016).

Conflicts are normal features that occur as long as human beings exist and can also not live in
isolation but in groups. According to Keghku (2004) conflicts are a continuing feature of social
existence. It is not the absence of conflict that marks out a great nation, but the manner in which
conflicts are resolved. It is a negative behavior intended to disturb or obstruct the realization of
organisational objectives, as are the cases in the Niger Delta region of Nigeria where
communities from time to time disrupt the operations of oil production companies in their areas.
The main reason being that they are neglected, and such organisations fail to carry out their
Corporate Social Responsibility obligations to the people. Conflicts come in various forms, they
could be within an individual, between individuals, between individuals and groups, between
groups in the same organisation, between organizations, between communities and
organizations, and so on. Some other causes of conflict include differences in values, attitudes or
perceptions among members of different units, interdependence of work activities in
organizations, the need to share scarce resources, differences in goals between organizational
units, ambiguously defined work responsibilities and communication problems and so on.

The main methods of managing conflict in an organisation, according to Keghku (2004) are
conflict simulation, reduction and resolution through:

1. Restructuring the organization. The authority, responsibility, relationship should be

clarified when the structure is changed.

2. Rearrangement of tasks and work relations.

3. Human resource policies and procedures can be made more equitable and attention paid to
the possibility of monetary rewards.

4. Development of staff interpersonal group process skills

5. Encouraging a more participative and supportive style of leadership with the aim of
creating greater employee commitment and cooperation (p. 151).

Apart from these general methods of conflict resolution, public relations can also be specifically
applied in the resolution of conflicts Haywood (1997) has said that an organisation that succeeds
without public relations, is as likely as say a salesman, a politician, a lawyer (or any other
professional person) succeeding without a personality. Every reputable and responsible
organization has to have a personality. It is the personality that is the corporate image of the
organization. All organisations in order to survive have to cultivate good relationship between
themselves and their publics. There are therefore very few organisations that have such a
revolutionary product and unassailable monopoly or privileged role in society that they can
afford not to bother about making friends and influencing people. Public relations is the art of
reputation building and maintaining cordial relationship between an organisation and its public.
In line with this, the British Institute of Public Relations (BIPR) defined public relations as the
deliberate, planned and sustained effort to establish and maintain mutual understanding between
an organisation and its public

From the above definition, four functions, according to Achison (2005) can be implied. These
are: “To ascertain and evaluate public opinion as it relates to an oraganisation, to counsel
executives on ways of dealing with opinion as it exists, to use various communications tools to
influence public opinion and to devise and implement programmes that will gain favorable
interpretation of the organisations policies and operations” P 10. The last function here is directly
concerned with using Corporate Social Responsibility (CSR) to gain favorable interpretation of
the organisation’s policies and operations and in the process gain favorable and cordial
relationship and avoid conflicts. Keghku (2004) has also outlined some general principles of
public relations in conflict management which are: Isolate a conflict resolution team from daily
business concern to focus on the problem. Centralize and control the flow of information through
team. Have a designated spokesman, develop a strategy based on a worst case scenario, aim at
containment, not at suppression, identify potential allies advancement and call them for support,
have a long-term plan ready and rehearse the conflict resolution team. Test your plan and the
system with a fire drill.

According to Ogbemi (2014) in line with these principles, multi-national giant Shell Petroleum
Development Company (SPDC) has developed its own procedure for handling conflicts that
result into community disturbance. The procedures are: Discussing the communities demands
and problems, using local and government arbitrators, pursuing amiable settlement of the dispute
and shutting down if peaceful operations are not possible. Apart from in-house strategies used by
individual organizations to handle conflict situations, Ogbuoshi (2004) highlights various general
public relations strategies used in resolving community conflict, which can be applied to other
situations. These are:
1. Negotiation: This involves discussions between both parties in any dispute and their allies
with a view to reconciling divergent opinions and views or at least understanding the
differing positions of the stakeholders
2. Mediation: This involves the use of a third party in settling of conflict. The third party
must be a person or persons of integrity, trustworthy and credible to both parties
3. Inquiry: This happens where differences of opinion on factual matters underline a conflict
between parties. The logical solution is to institute a commission of inquiry to be conducted
by reputable observers such as public relations experts and other experts from disciplines
to ascertains precisely the fact in contention
4. Conciliation: This involves a third party investigation of the causes of the dispute and the
submission of report embodying suggestions on how to resolve the conflict
5. Arbitrations: It involves resolving a conflict between two parties by neutral body, panel or
tribunal
6. Mass Media: Objective media reports can help in resolving conflicts. It resolves conflict
situation by avoiding inflammatory reports, sensational captions or playing to the gallery,
but by maintaining a neutral position and reporting the conflict as it is without allowing
emotions to come in. Rather the media should appeal for calm and peaceful resolution of
the conflict
7. Public Opinion: this is used to know the feelings and views on the matters under dispute.
Knowing this can help immediately in resolving any type of conflict
8. Propaganda: this can be the need to change beliefs and views of the parties making them
to change their mind or agree to negotiate their differences; (P 169-171).

2.1.6 Communication in Conflict Management

In conflict situations, communication is very important if the situation is to be properly managed.

Communication is therefore important in trying to use Corporate Social Responsibility (CSR) in
managing conflicts. The management of the organization has to open up communication
channels between them and stakeholders. The stakeholders have to be constantly informed of the
efforts of the corporation in trying to execute projects, because if their efforts are not publicized
people will not know and they might not win the sympathy of the public when there are conflicts.
It is therefore the duty of the public relations manager or consultant to effectively manage this
area. Communication during conflict periods, would be referred to as the effort to inform
employees, or the public of a potential hazard which could have a catastrophic impact. (James &
Roberts, 2009). Communication is an essential ingredient of public relations. An informed public
is more likely to be sympathetic to the cause of the organisation. People are not magicians to
know what you are doing without telling them. As it is said in public relations parlance “you do
not light a candle and put it under a bed”.

During any conflict or crisis situation, the media can help to play a positive role by showing
concern in their reporting. Negative reporting may aggravate the conflict thereby causing
damage to the company’s reputation which the public relations practitioners is hired to build,
maintain and protect. The answer to getting the media and subsequently public opinion to the
company’s side is proactive public relations (Ajala, 2005). This can only be done by opening up
channels of communication with the media. Hoarding of information does not help, it brings
about speculations and this always have negative consequences. Periods of conflicts or crisis are
normally trying ones for any organization and the survival of the organization is largely
dependent on the handling of the situation. The first principle in managing a conflict or crisis
situation is to be prepared. All organisations should realize and face the reality that there will be
conflict or crisis one day. Recognizing the fact is one way of solving the problem. For instance,
big corporations, like Shell Petroleum Development Company (SPDC) and Nigerian Agip Oil
Company (NAOC) have procedures for handling community disturbances. The point is that all
organisations should be ready and prepared for the inevitable. Banks, for instance should be
ready for liquidity problems, management of higher institutions should be ready for conflicts
between the school authorities and students, airlines should be ready for conflicts with customers
or plane crashes and oil companies should be ready for conflicts with their host communities and
oil spills. They must face reality.

Another point is that all organizations should have conflict/crisis team made up of skilled and
professional people from various areas of operations of the organisation. There must also be
control of information that goes out to the media and the public during conflict or crisis periods.
Organisations should not try to cover up the truth during such periods. Covering up could just be
a short-term remedy, but the after effect is always disastrous. This is because the truth will
always come out and this could lead to the organization losing its credibility. Apologies should
be tendered when the organization is at fault and such apologies must be followed by action.
Hanson (2005), cited in Ogbemi (2014) said that “when Ford Motors had trouble with the tyres
of its Explorer SUV, they apologized to the public and followed up by stopping production of the
particular vehicle in order to have enough time for the recall of the affected tyres” (p. 154). The
conflict/crisis management team should try as much as possible not to allow internal politics,
competition, jealousy, insecurity and other irrelevant issues to surface during such critical
periods. There must also be a workable plan and the team must have a check-list to look at from
time to time. There could also be simulations of real conflict/crisis situations by the standing
conflict/crisis management team from time to time. This will make the team to be battle ready
for any such situations.

Conclusively, it is very important to do everything possible to prevent conflict in an

organization. The only way to do this is to be proactive and embark on such policies and
programmes that will prevent conflicts and one way to do this is to carry out the organisation’s
Corporate Social Responsibility (CSR) programmes at the right time in conjunction with all
stakeholders. To do this effectively, public relations techniques should be utilized involving
consultants and in-house public relations staff members.

2.1.7 Corporate Social Responsibility in Managing Conflicts

Essentially, Corporate Social Responsibility (CSR) is of different types and these include
Environmental CSR which involves eco-issues such as climate change and environmental
pollution, Community based CSR which involves working with other organisations to improve
the quality of life of the people in the host community, Human Resources (HR) based CSR that
involves projects that improve the wellbeing and welfare of staff and Philanthropy in which
businesses donate or gives money to a good cause, usually through intermediaries like charity
partners.

There is no doubt that there are a lot of advantages and benefits that are associated with CSR.
CSR make employees happy and satisfied. They are happy and feel proud because they are part
of the organization. This raises their morale and help in boosting productivity. CSR also creates
satisfied customers. It improves customers’ attitude towards the organization and leads to brand
loyalty. Furthermore, CSR according to Vodafone, (2010) reports, creates positive public
relations. It provides the necessary platform opportunity to share positive stories and events
online and through traditional media. More importantly, it generates good publicity and aids
marketing. CSR to some extent also reduces cost. Cost can be reduced through most efficient
staff recruitment and retention, managing potential risks and liabilities and far less investment in
traditional media. CSR also provide more business opportunities for the company and creates
long term future for the business. (Vodafone, 2010).

Other benefits include that it improves public image, increases media coverage, boost employee
engagement, attracts and retains investors. Non-profit organisations also benefit from Corporate
Social Responsibility through funding via matching gift programmes, more volunteer
participation, forging corporate partnerships and varied sources of revenue. Employees’ specific
benefits include positive work force environment, increase in creativity, encouragement of
professional and personal growth and promotion of individual philanthropy (Double the
Donation research, 2016).

2.2 Theoretical Framework

2.2.1 Definition of Theory

Hornby (2000) defines theory as “a formal set of ideas that is intended to explain why something
happens or exists and they are derived from hypotheses” (pp. 12-41). They describe in details,
the reason why things exist or happen and they evolve from hypotheses. Theories therefore are
tentative conclusions derived from hypotheses. In every theory, is that threat of amendment.
(Nwosu cited in Ofor, 2004). Theories are not the final conclusions, they have the possibility of
being amended. They are practical. Furthermore, a theory can be looked at as a description of
how something works. They provide explanations of what conditions or factors seem to bring
some sort of consequences. “Theories are some sort of knowledge that is developed in any field
when a description is necessary of how something works” (Defleur, 2010 p. 41). They are
therefore fundamental principles that gives an insight to various concepts and phenomena so that
meanings and understanding can be got.

Theories have as their characteristics intellectual rigour, dynamism, datedness, and economy.
“They are studied because they help manage realities, as there is nothing as practical as a good
theory, since they help us to put facts in perspective and to predict what will happen, even before
the events and what we are theorizing about got completed” (Folarin, 1998, pp3-4). Theories are
usually planned systematically and subjected to test over a period of time, and if found to be
consistent over the periodically can be generated and adopted as valid and becomes a reference
points. Based on the fact that theories are very important and are germane to studies of this
nature, this study used based on four theories which are the Stakeholder Theory, Social
Responsibility Theory, Social Relations Theory and the Games Theory.

2.2.2 Stakeholders Theory

Freeman and Philip (2002) noted that the theory emphasizes ethical values and principles need
for business and organizational management while dealing with Stakeholder who are interested
in the company’s work. The theory states that Stakeholders comprises of a collection of people
with interest in an organisations operations (Freeman, 1984; Friedman, 2007). The stakeholder
theory is important in Corporate Social Responsibility (CSR) because of some reasons. Legal
justice is what controls profit maximization for the simple reason that though profit is important,
it should not be pursued recklessly with disregard to the rights of the individuals. This should be
extended to all stakeholders (Weiss, 2008). To secure their legitimacy companies therefore need
to be socially responsible and management should try to adopt decisions with some sense of
ethics to include justice, rights and fairness which should be implemented through a socially
responsible manner for the benefit of the communities where the business operates.

Stakeholder-view of Corporate Social Responsibility

The modern view of CSR and stakeholder theory, is that corporate organizations need to put the
interest of all groups affected by their activities and decisions first. Not only should shareholders
be considered in decision-making processes, but also all individuals affected by business
decisions.

According to Lashgari (2004), companies in the modern idea of CSR are saddled with a social
obligation and responsibility which make them to put the interest of the affected parties first in
all their actions. Apart from shareholders, all individuals affected by the decisions of the
business must be considered.

Neo-classical view of Corporate Social Responsibility

The focus of this view is that those that operate the company should concentrate on improving on
Shareholders investment instead of considering the interest of the stakeholders. There has been
an evolution of the modern organization from the traditional industrial capitalist company which
came up as a result of the industrial revolution. The company of the industrial revolution period
was established with the sole aim of maximizing the wealth of the owners. (Lashgari, 2004)
Managers are just the trustees or agent of companies owned by shareholders. If the owners of
the business want to support social goals they could do so with the returns from their
shareholders rather than through CSR. Investors prefer to maximize their financial returns and
they allocate returns to consumption of social giving. This view states that as long as the
companies worked within the limits of the law they are free and legitimate in pursuit of profit as
long as a company does not engage in any dubious activities. When this is done, the company
should only use its resources to carry out those business activities that can bring in and maximize
its profit in a capitalist economy. There should be no fraud and deception in the process of profit
maximization. The argument of the neo-classical economists therefore is that managers on
behalf of their stakeholders should concern themselves only on increasing the wealth of the
shareholders. Although the argument might look logical, it is myopic and is capable of directing
managers to forget the host communities, society, employees, customers and suppliers who are
stakeholders.

The theory is relevant to this study in the sense that apart from companies, specifically oil
producing companies meeting their obligations to the shareholders in the business they should
also carryout Corporate Social Responsibility (CSR) activities to touch the lives of members of
their host communities who bear the brunt of all their activities. In other words, they should
engage in Corporate Social Responsibility (CSR) which is a time to give back to the host
communities who are, to put it in another way, their benefactors. If they meet their corporate
social responsibilities it is very likely that conflicts will not occur. Even when they occur they
can be more easily and effectively handled and managed.
2.2.3 Social Responsibility Theory of the Press

Another theory that is relevant to this study is the Social Responsibility Theory of the Press. It is
relevant because it emphasizes the publics’ right to know and the responsibility of the media to
the public. The media determines the extent to which the public is to know in carrying out this
important function. The point is that a well informed public will not act irrationally. Stakeholders
therefore need to be well informed about the activities of the organisations where they are
stakeholders. If they are well informed, they are not likely to be conflicts between them and such
organisations.

Baran (2002) said that:

In rejecting government control of media, social responsibility theory

calls for responsible, ethical, industry operation, but it does not free
audiences from their responsibility. People must be sufficiently media
literate to develop firm yet reasonable expectations and judgments of
media performance. But ultimately it is the practitioners, through the
conduct of their duties, who are charged with operating in a manner
that obviates the need for official intrusions. (p. 449)
It challenges and encourages media professionals to regard themselves as front line participants
to save democracy from a world moving towards totalitarianism. It therefore challenges the press
to publish those things that are generally to the benefit of society. In this case, it should be fair to
the oil producing companies, the host communities and other stakeholders.

The theory was propounded by F.S. Siebert, T.B. Peterson and W, Schramm in 1963. The main
principles of the theory as stated by McQuail (2005) are:

1. That media should accept and fulfill certain obligations to society.

2. That, through professional standards of informativeness, truth, accuracy, objectivity and

balance, these obligations can be met.

3. That media should regulate itself within the framework of law and established institutions
to be able to carry out its responsibilities

4. That the media should reflect its society’s plurality, giving access to various points of view
and granting all the rights to reply.
5. That whatever might lead to crime, violence, civil disorder or offence to minority groups,
should be avoided by the media

6. Based on the principle (1), the society has the right to expect high standards of performance
from the media. Intervention can only be justified to secure pubic good.

7. Accountability of media professionals should be to the society, employers and the market.

The Social Responsibility theory, according to its propounders postulates five specific functions
for the press and these are:

1. To serve the political system by making information, discussion and consideration of

public affairs generally accessible;

2. To inform the public to enable it take self-determined action;

3. To protect the right of the individuals by acting as watchdog over the government;

4. To serve the economic system, for instance by bringing together buyers and sellers through
the medium of advertising; and

5. To preserve financial autonomy in order not to become dependent on special interests and
influences; (pp. 57-58).

The press is to be given a free hand to carry out these functions without interference of any form
from any arm of the government.

Severin and Tankard (2001) noted that the theory advocates that everyone, that is a stakeholder
should be given the opportunity and forum to express their views” (p. 314). Consequently, where
there exist a conflict situation, the media are expected to open doors to the affected parties
involved especially those with valuable information or methods of resolving or managing the
conflict.

One of the major functions of the media therefore is to help in managing conflicts. Reports
during conflict situations therefore should be meant to encourage the resolving of such conflict
situations rather than to escalate them. In this sense, this theory is very relevant to this study on
Corporate Social Responsibility (CSR) as a management strategy of conflicts between oil
producing companies and the host communities in the Delta State Nigeria. This is because a
socially responsible press will report objectively the areas where the oil producing companies are
contributing in terms of infrastructures and other social activities to the community. The press
will also endeavour to point out those areas where the oil producing companies are not meeting
the expectations of the oil producing communities. In this way, the press can create mutual
understanding between the oil producing companies and their host communities. Even in
situations where there are conflicts the press should give impartial coverage and try as much as
possible to ameliorate, rather than escalate the situation. In this way, the press will be portraying,
itself as a socially responsible press, the way the oil producing companies are also expected to
portray themselves as socially responsible corporate citizens.

2.2.4 Social Relations Theory

Also relevant to this study is the Social Relations Theory. The theory basically is hinged on the
prescription that human beings can be put together into broad categories and characeristics. It is
of the view that if people belong to the same group they are very likely to pick information that
have identical content and also react to it in a fairly uniform manner. Demographic variables
such as race, income, sex, age, occupation, education, place of residence and so on can singly or
in combination determine the saliency of the messages for the groups. The social relations
theory, according to Anaeto, Onabajo and Osifeso (2012) was propounded by Melvin De Fleur in
1970. The assumptions and principles of the theory are as follows:

1. Members of the mass media audience belonging to the same social category interact or
relate with each other.

2. The interactions and relationships among members of the same social categories determine
the effect of mass media messages on them. (pp. 133-134)

The theory was on the interactions or relationship between members of identical social category
and it is anchored on the fact that people’s reaction to a mass media message and action upon it
is modified by their informed social relationship with friends, social groups, et cetera (Anaeto,
Onabajo & Osifeso, 2012). In oil producing communities in Delta State with varying
components such as leaderships in communities, groups, civic/cultural groups, students, local
merchants/industrialists as well as women groups. This would play important roles in
determining their perception, opinion and attitudes towards the organisation. It is therefore
necessary for organisations like oil producing companies in Delta State to know the different
socio-cultural group formation within their host communities, be well informed of their make-up
and the objectives for their existence to be able to work towards establishing mutual relationship
with the immediate and extended host communities.

This theory is no doubt very relevant to this study because it is important that there should be
cordial and mutual relationship between oil producing companies and their host communities to
avoid conflicts in the Delta State, Nigeria. If the officials and management of the oil producing
companies have these necessary information about the people, they will be in a better position to
interact very well with them. With constant interactions they will be in a very good positions to
know their needs and provide such through their Corporate Social Responsibility programmes.
The theory is therefore very relevant to this study.

2.2.5 Games Theory

According to Okwechime (2008) “the Game Theory was developed by John Von Newmann and
Oskar Morgenstern initially as a tool for the study of economic behavior but has since become an
anchor point for research disciplines including the study of conflicts” (p. 57). The theory which
is not necessarily a relational communication theory, has some implications for relationships
because game research comprises of moves and counter moves of individuals. The theory lays
emphasis on national decision making in which a player involved may make moves that lead to
rewards or punishment with an objective to maximize gains and to minimize losses. Like in all
human endeavours the important role of communication cannot be ignored in human interactions
and consequently in conflict situations. The reason is that communication plays a crucial role in
observing the opponents every move and in deciding the next move to take. In a conflict
situation, this is a very great asset because it helps to make inferences from the situation of the
opponent’s strategy. ‘The player would study the game matrix and try to guess what the
opponent’s strategy is likely to be’.

Communication is very important in every conflict situation because it helps the parties involved
in managing or resolving the conflict to observe and anticipate what the next move of the other
party would be and respond appropriately. Communication makes it possible to conduct the
entire conflict at symbolic level, with each party stating how he would respond the stated, rather
than the actual moves of the other. In reviewing literature in which games were used to
investigate the process of communication in conflict management, Stemfatt and Miller (1994)
stated that “beside avoiding hostility, disruption, actual moves, negotiations allow the parties to
move away from a winner take all position toward a solution that provides some rewards for
everyone” (p. 54).

The theory is relevant to this study in the sense that in managing conflicts between the oil
producing companies and host communities in the oil producing areas, communication plays a
very vital role. Without opening a line of communication, negotiations cannot be possible. In
such negotiations, every party have to watch, observe and tactically respond to every move of the
other party in the negotiation. “By communication, the parties (in a conflict)” according to
Littlejohn (1996) “may reduce their own tendencies to behave chauvinistically” (p. 275). In
conflict situations, the fuller the communication, the more open the channels and the resultant
cooperation. It is communication that is the grease that makes the wheel of negotiations to move
freely and make for easy resolution of the conflict. It is therefore very relevant to this study.
 2.2.6 Conceptual Model

Independent Variable

CSR Programmes Dependent Variable

1 2 Conflict Management
1. Economic Programmes Profit Concerns
2. Educational programmes Benefits
1.
Other factors
3. Legal compliance 1. Peaceful Coexistence
4. Regulatory compliance
2.
Lack of consultations
3.
Wrong target publics 2. Corporate image
5. Infrastructural provisions 3. Mutual goodwill
6. Environmental protection 4.
Poor implementation of
programmes 4. Issues management
7. Empowerment programme
5. Interpersonal 5. Corporate govnernance
8. Job creation 3
6. Inter group 6. Industry standards
9. Ethical philanthropy
7. Inter organization 7. Equipment and employee
41 safety
8. Good welfare packages for
employees
5
4 6

Stakeholders
1. Community leaders
2. Residents/indigenes
3. Employees
4. Customers
5. Suppliers
6. Contractors
7. Creditors
8. Government (Federal,
State and Local)
9. Regulating agencies
10. Ownerships
11. Environment

Figure 2.1: A conceptual model of the role of CSR in conflicts management in oil producing
areas

Source: Researcher, 2017

Interpretation of the Model

The model above shows the interrelationships between the independent and dependent variables
in the study. It clearly explains that the CSR programmes which are economic programmes,
educational programmmes, legal compliance, regulatory compliances, infrastructural provisions,
environmental protection, empowerment programmes, job creation ethical considerations and
philanthropy among others satisfy the members of the host community and how they can
influence conflict management and bring about benefits for peaceful coexistence. For example,
effective management of each of the programmes can contribute to the efficient management of
conflicts between the oil producing companies and the host communities, and other stakeholders.
The arrow linking the boxes show that when stakeholders effectively handle the dimensions of
Corporate Social Responsibility (CSR) and conflict management, the final outcome and benefits
will include to protect the organisation’s reputation (corporate image) provide benefit over costs,
integrate stakeholders into strategies, improve relationship between business and society and
bring understanding, innovations and manage risks among others.

The model further shows the sources of conflict, which include too much emphasis on profit
(profit concern), lack of consultation, wrong target audience, poor implementation of
programmes, inter personal, inter group and inter organizational disagreements. If these sources
are properly managed, they will bring numerous benefits and help the reputation and image of
the organisation. The model also went further to identify the stakeholders that will benefit from
the Corporate Social Responsibility (CSR) programmes. These include community leaders,
residents/indigenes, employees, customers, suppliers, contractors, creditors, government (federal,
state and local), regulatory agencies, ownership and the environment. Although the host
communities members are the major beneficiaries, the other stakeholders also benefit one way or
the other. The benefits from the programmes specifically are peaceful coexistence, good
corporate image, mutual goodwill, issues management, corporate governance, equipment and
employees’ safety, good welfare package for employees and so on.

The point is that if well planned, articulated, executed and managed Corporate Social
Responsibility (CSR) programmes will bring long lasting peaceful coexistence between the
organization and its various stakeholders, especially the host communities. The result is that it
would boost production, the reputation of the organization and portray it as a good corporate
citizens. It will also make the company a model for other organisations to emulate and copy
from.

2.3 Review of Past Studies

Conflicts between oil producing companies and host communities in Delta State, Nigeria and
other areas can be effectively managed and resolved with the application of good Corporate
Social Responsibility (CSR) strategies, and there are many empirical evidences to support this.
Various studies have been carried out on how Corporate Social Responsibility (CSR) can be used
to manage and resolve conflicts in host communities. Some looked at how CSR can be used as a
strategy to reduce conflicts between oil companies and host communities specifically in Delta
State and other in the Niger Delta region of Nigeria. Some other have looked at how conflicts as
a result of oil exploration can be managed by the application of Corporate Social Responsibility
in the oil producing communities. (Adekola & Uzoagu, 2012; Marchant, 2014; Wosu, 2013).
This study, apart from seeking general information on how Corporate Social Responsibility
(CSR) can be used for conflict resolution, will specifically look at how Corporate Social
Responsibility (CSR) can be used as a conflict management strategy in selected oil producing
communities in Delta State, Nigeria.

The issue and importance of Corporate Social Responsibilities (CSR) is becoming more critical
and important in today’s business environment. Other studies have been carried out to confirm
this assertion. For instance, in a study by Blowfield and Googins (2006) 48 top executives,
representing 27 multinational companies from a cross section of industries were interviewed to
learn what they perceive as trends and challenges facing business and wider society in the 21st
century. Three of the major findings were that:

1. Public perception of the role of business has changed since the 1970s
2. New responsibilities are being thrust on companies
3. The current business model is on a collision course with trouble unless companies
recognize that society’s issues are impacting positively and negatively their long term
business success
Other findings of the study were that 10 percent of the executives interviewed felt that the quest
for profits should be the focus of the company. Many executives also want to address societal
issues because they are important to their companies and business as a whole yet they are
hesitant to take it too far because of the reactions that may come from investor’s analyst and
board members. Although, there is more need to recognize society’s expectations from corporate
organizations like oil companies, there is mounting evidence of a gap between the stated
intentions of business leaders and their actual behavior and impact in the real world. The point is
that business in most cases do less than they actually claim they intend to do. The fact that they
usually fall below the expectations of the people in the oil producing areas is a major reason why
there continue to be conflicts in these areas. This is one area the study intends to focus on. This
reasoning is in line with Fynas (2005) argument that:

Despite its spending of over US$500 million in 2001 … and despite a

long list of community development programmes and other CSR
initiatives, the effectiveness of CSR initiatives in oil, gas and mining
sectors have been increasingly questioned. And there is a mountain of
evidence of a gap between the skilled intentions of business leaders
and their actual behavior and impact in the real world (pp. 581-198).
This clearly shows that there are a lot of discrepancies between what is on ground and what the
oil companies and other multinationals claim they spend on Corporate Social Responsibility
(CSR) programmes. In line with one of the objectives of this study, there are doubts whether
some of the amount quoted as being spent are actually spent. There is no doubt that there are a
lot of failures when it come to the execution of community development programmes in the form
of Corporate Social Responsibility (CSR).

The prevalence of conflict in most oil producing communities is enough evidence of the failure
of community development programmes by multinational oil producing giants such as Texaco,
SPDC and BP. Explanations for this trend by Frynas (2005) include the primacy of the “business
case”, incompatibility of corporate objectives with development objectives, country and context
specific issues, failure to involve the beneficiaries of CSR, lack of human resources, social
attitudes of oil company staff, a focus on technical and managerial solutions and failure to
integrate CSR initiatives into larger development plans. For these reasons, CSR as it exists today
in the oil and gas industry has very limited potentials for bringing about genuine local
community development.
However, a study by Graafland and vande Ven (2006) found that a positive strategic view of
CSR is not enough condition for a company to undertake enhancement measures. CSR
implementation is more basically related to moral commitment than making of profits and this
emphasised a cautious view of CSR and its financial advantage. The study which used a sample
of III Dutch companies tested the hypothesis that positive strategic and moral view of CSR
stimulates small efforts. Results also showed that majority of respondents had positive views of
CSR. There is however a weak correlation between strategic CSR and actual CSR efforts. From
the study above it could be seen that firms carry out their CSR responsibilities based more on
moral commitments than profit maximization which is of interest to shareholders and investors.
Opinions are certainly more in favour of the argument for CSR than profit maximization. This
and how CSR can be used to manage conflict between oil producing companies and their host
communities are the focus of this study.

Another study by Hartman, Rubbis and Dhanda (2007) on a cross cultural analysis of
communication of CSR activities in a total of 16 United States and European corporations found
that “US-based companies favour more heavily economic justification for engaging CSR and
that European union-based companies favor sustainability argument in order to bolster their
actions in stakeholders engagement” (Pp. 373-389). The results, according to the researchers
support the view and expectation that US companies tend to communicate about and justify CSR
using economics or bottom-line terms and arguments as against European companies. This is in
line with the current trend in the world today that has made CSR an acceptable and popular
approach to management of crisis and this is what this study intends to confirm or disprove.

In carrying out their CSR responsibilities it is very important that organizations should properly
understand stakeholder’s interests if their efforts are to be properly appreciated. A study by
Olajide (2014) which used the Carrols’s (1991) CSR model to examine CSR and stakeholders
expectations in Nigeria found that four dimensions of CSR (economic, legal, ethic and
philanthropic) are not ascribed equal importance in Nigeria. Stakeholders it was found, place
more emphasis on economic legal and ethical responsibilities than on philanthropic components.
The implication is that care is not taken to identify stakeholders that are relevant and put their
interest into organizational strategic planning. The study was carried out among employees,
customers, shareholders and local communities which were identified as the main stakeholders in
the context of the business environment in Nigeria. Questionnaires were administered among
240 respondents selected through purposive sampling technique in the six geo-political zones of
Nigeria. Return rate of questionnaire was 158 out of the 240 making a total of 66 percent.

There is no doubt that in recent years, organizations have greatly increased their allocation to
CSR activities especially in the Niger Delta area of Nigeria because of the conflict between such
organizations and the communities who are major stakeholders. A study carried out by Barnea
and Rubin (2005) categorized the largest 3,000 US corporations to being either socially
responsible or socially irresponsible. They tried to investigate the relations between firms CSR
ratings and their ownership and capital structure. Findings suggested that insiders’ ownership
and leverage are negatively related to the social rating of firms, while institutional ownership is
uncorrelated with it. The result supported the researcher’s hypothesis that affiliated shareholders
induce firms to over invest in CSR when they do not bear much of the cost associated with it.
Similarly, a study by Igbara, Eti, Ndubuisi, Alobari and Naenwi (2014) used a sample of 230
respondents sampled from 10 oil producing communities in Rivers State found among other
things “that for development programmes and projects to be considered okay, it must have to
take the important needs of the people of the areas of operation into consideration”(p. 92).
Findings here showed that the perceived requirements of the host communities are different from
those of the oil producing companies and this brought about dissatisfaction of CSR undertaken
by oil producing companies which led to projects being abandoned and this resulted to
disillusionment that degenerated to restiveness in the areas.

In the Niger Delta region of Nigeria, various reasons have been advanced for the occurrences of
conflicts. Studies on conflict management states that conflict is a complex phenomenon
especially regarding the way it affects organizational formation, performance and its prolonged
nature (Azar, 1990; Obi, 2009; Ojokaroti, 2008). No one reason can therefore be identified for
such conflicts. Findings by Ogbemi and Imide (2008) also suggested that oil companies
perceived needs of the people in most cases were not correct. The researchers found that in Eket,
and other host communities of Mobil Producing Unlimited, the people preferred being given paid
employment in any form than development projects executed by the oil company. The result is
that most of them are dissatisfied and this led to restiveness. Igben (2008) in his study found that
of the 120 respondents interviewed, 31 (25.8%) said it was lack of compensation, 14 (11.7%)
said it was neglect by oil companies, six (6%) said it was degradation effects, 20 (16.7%) said it
was exploitation by oil companies, while 49 (40.8%) said it was for some other reasons. He
observed that although a lot of money has been spent by the oil companies, yet the level of
conflicts has failed to play down.

He also found that oil companies have often experience difficulties as regards their CSR
programmes for various reasons which include:

1. Insistence by the host communities to use their community members even when
unqualified in the execution of projects. Poor project quality has often been attributed to
this arrangement and some cases of misappropriation of fund.

2. Intra-communal disputes at the location of project sites.

3. Endless shift in the needs of the communities.

4. Demands that are almost impossible to fulfill.

5. Government neglect which is perceived to be the responsibility of the taxpaying

companies.

6. Wrong host community representatives who promote selfish interest at the expense of the
host communities (pp. 611-617). These constraints often lead to the oil companies not
being able to meet their responsibilities and these can result to conflicts.

Since these conflicts were inevitable; companies have to device strategies to manage them. The
question now is how do these companies manage these conflicts? Findings from Mjenels (2013)
study on SPDC in which 225 respondents (200 from the communities and 25 staff of SPDC were
interviewed through questionnaires using a multi-stage sampling technique to select the
respondents concluded that Shell Petroleum Development Company (SPDC) used strategies
which include communication, educational programmes, skill acquisition and meetings with
stakeholders among others. Some respondents however see these as not effective. The problem
they observed is that SPDC does not directly identify problems and deal with them after
considering the needs of the people. They suggested dialogue to really know the needs of
stakeholders. This supports the findings of Igbara, Eti, Ndubuisi, Mobari and Naenwi (2014) and
that of Ogbemi and Imide (2008) that members of the host communities should be consulted to
find out their preferences and areas of needs before developmental projects in form of CSR are
carried out.

Still dwelling on the CSR activities of SPDC, Marchant (2014) said that “some of the problems
found within the communities exist independently of any of the company’s activity. “Yet by
ignoring the structural causes of these issues and the role of the corporation therein, the CSR
projects can have no more than a superficial impact at best and may, in some cases, exacerbate
the problems faced by local communities”( p. 1). The point is that there are issues that
government should handle and not leave for the oil companies. They should live up to their
responsibilities. Ndu and Agbonitoh (2014) in their study titled: Corporate Social Responsibility
in Nigeria: a study of the petroleum industry and the Niger Delta Area found among other things
that the entire area is poor in terms of development as a result of the unwillingness of the
government to sacrifice expected high returns on petroleum exploration for the basic
development of the oil producing areas and its lack of knowledge of and will power to make and
execute uninformed decisions concerning the exploration and management of the activities of
multi-national companies operating in the area. The geographical scope of the study include the
entire Niger-Delta States of Akwa-Ibom, Bayelsa, Delta, Cross-River, Ondo and Rivers. Specific
attention was however given to the activities of oil companies in Akwa-Ibom, Bayelsa, Cross
River and Rivers States. With Shell Petroleum Development Company of Nigeria Limited,
Mobil Producing Nigerian Unlimited, Nigerian Agip oil Company limited and Texaco Overseas
Petroleum company of Nigeria unlimited – strategic communities of importance to both
government and the oil companies in those areas were the focus of the study. The findings of this
study goes further to support other findings earlier reviewed which suggest that the community
relations strategies adopted by most oil producing companies are not good enough in helping in
the prevention and resolution of conflicts.

Another study by Amodu (2012) examined the community relations strategies used by oil
companies in managing crisis in the Niger Delta with a study population which comprised the
community relations units of the oil companies in the Niger Delta among which were Shell
Petroleum Development Company (SPDC), CHEVRON, Nigerian Agip oil company (NAOC)
and the indigenes of Omoku and Obrikom communities in Rivers state and Eruemukokwavien,
Tisum and Kolokolo communities in Niger Delta were interviewed. Both quantitative (survey)
and quantitative (key informant) interview and focus group discussion methods of data collection
were employed. The respondents for the survey were randomly selected while those for the
interview were purposely selected. The findings of the study included that conflicts between oil
companies and host communities had serious implications for the two parties and that the
community relations strategies adopted by the selected oil companies were not adequate in
preventing and resolving conflicts in the Niger Delta. This is because there was a lacuna between
the strategies the oil companies believed host communities preferred for conflict resolution and
the ones actually preferred by those communities.

Some of the findings that are in tandem with those of Amodu (2012) are that of Ikiriko (2012) in
which the Corporate Social Responsibility (CSR) practice in SPDC was evanluated. The survey
research method was used and the population included all persons affected directly and indirectly
by the activities of multinational oil exploration in Rivers State, Nigeria. A total of 400
respondents were interviewed through questionnaires. They are made up of 360 members of the
communities and 40 staff of Shell Petroleum Development Company (SPDC). Findings from the
study showed that the activities of oil exploration by SPDC in Rivers State is a far cry from what
CSR practice should be and that the operating environment from these multinational oil
corporations was one of mistrust between the companies and the communities in which these
companies operate. The study also found that the crisis nature of the region paved way for youths
to engage in all forms of disturbances. Other findings were that huge losses were recorded by oil
companies and the federal government of Nigeria in form of revenue because of the perennial
crisis situation in the Niger Delta and that the exploitative tendencies in the activities of SPDC
due to environmental degradation affects the means of livelihood of the people and this fuels
conflict in the area.

2.4 Summary of Literature

The whole idea of this chapter is to look at some relevant literatures on Corporate Social
Responsibility (CSR) and the management of conflicts. These are works and studies that have
been done by scholars in this area. The review is divided into three parts which are the
conceptual review, the theoretical framework and review of past studies.
The conceptual review looked at the origin and definition of the concepts of Corporate Social
Responsibility, Conflict and Conflict Management. It also compared the views of various
scholars and writers on them. The research also developed a conceptual model which will acted
as a guide to the study and the model was explained. This was followed by the theoretical
framework, four theories namely Stakeholders Theory, Social Responsibility Theory of the
Press, Social Relations Theory and the Games Theory were reviewed and their relevance to the
study stated. The review of past studies which looked at the discussed past research findings in
the area of Corporate Social Responsibility (CSR) and its relevance to conflict management
generally and specifically how it relates to the Delta State of Nigeria followed.

From the review of literature, there was no doubt that the concept of Corporate Social
Responsibility (CSR) is relevant to conflict management between oil producing companies and
their host communities in Delta State, Nigeria. The purpose of the study therefore is to
support/collaborate or disprove some of these findings.

2.5 Gap in Literature

A lot of studies and scholarly works have been done on oil production and conflicts in Delta
State specifically, and Niger-Delta in general. Some studies have looked at the political
dimensions of the Niger Delta crises (Omeweh, 2010) and the notion that most of the conflicts in
the area are handiwork of some privileged elites who use the jobless youths as pawns to cause
problems in the area (Ibaba, 2016). Other works have also been done on Corporate Social
Responsibility (CSR) and the part it can play in the management of conflict between the host
communities and oil producing companies and the host communities (Igben, 2008; Omotola,
2007). Furthermore there have been studies on the role of public relations and specifically
community relations in the management of conflicts in the oil rich Niger Delta in Nigeria
(Adelabu, 2008; Asak, 2008; Rolands, 2008; Sanda, 2008).

The issue of oil and gas exploration and production in the Niger Delta area in Nigeria has been
on for some time, with people expressing divergent opinions on the way forward. The point is
that a lot of stakeholders are of the view that the oil companies have not been doing enough for
their host communities. This has led to individuals, groups, government at various levels even
the mass media calling on the oil companies to show more commitments and demonstrate more
social responsibility to the members of their host communities. There are however other opinions
that most claims by the oil companies that they spend much cannot be actually substantiated with
what is on ground in these host communities. For instance, Aaron (2008) said that the financial
records of oil companies operating in the oil producing areas in Nigeria show “a phenomenal rise
in budgeting allocation to community development projects. Shell alone spent $59 million and
paid $114 million to NDDC in 2006”.

He noted that despite these huge amount claimed to have been spent, the Corporate Social
Responsibility (CSR) of the oil companies cannot be said to have developed the communities
who are supposed to be beneficiaries or help in reducing substantially the agitations of the youths
in the area. The claims and counter claims raises a lot of issues. If it is true that the oil companies
are spending so much and there is not much to show for it, then it is either that their claims can
be faulted or that these things are entrusted to the wrong hands. There is also the possibility that
the needs of the people might be different from what the oil companies are providing for them.
These raises a new question on whether the strategies employed by the oil company are the right
ones.

This study therefore focuses on the gap between the oil producing companies and the beneficiary
host communities which might be due to the wrong strategies that have been employed over
time. As against past studies which focused on the extent of CSR or identification of key CSR
drivers, its benefits and theoretical developments, mechanisms of CSR and how it relates to
increasing competitive advantage, sales turnover and productivity, the uniqueness of this study is
that it will provide empirical evidences that show the significance of Corporate Social
Responsibility (CSR) as conflict management strategy in the oil sector in Delta State in Nigeria.
Besides, the CSR-conflict is different from the traditional conflict resolution strategies on two
different dimensions. First the traditional conflict is usually between the managers and the
shareholders, while the CSR-conflict is between insiders and other shareholders. Second, CSR-
conflict seems to have public effect, unlike traditional conflict resolution strategies. These are the
reasons for adopting Corporate Social Responsibility in conflict resolution.

Another point that makes the study very unique is that most studies have always focused on
Rivers State, Cross Rivers and Bayelsa States. There are not many available studies on Delta
State, especially, Ekakpamre, Kokori and Beneku which are hot beds of conflicts between the
communities and oil producing companies that operate in the area. This particularly, makes this
study special in the sense that it will provide data that have not been available from the areas.
The study will therefore focus on Corporate Social Responsibility (CSR) as a conflict
management strategy in selected oil producing communities in Delta State Nigeria – specifically
Ekakpamre, Kokori and Beneku.
 CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter is concerned with the entire procedure adopted in the collection of data and its
analysis in the study. It included the definition of the population studied, sampling procedure and
data collection method in order to arrive at decisions that clearly answered the research questions
and proved or disproved the hypothesis formulated.

There are however, a wide range of alternative methodologies, or approaches and criteria for
understanding social phenomena in social sciences. The approach selected depends on the
objectives of the study, the research design, the availability of time, money and personnel.
According to Fishers and Wag (1998) “an important consideration in deciding on which best way
to collect data is whether the study is intended to produce relatively precise quantitative findings
or qualitative descriptive information in the process” (pp. 15-19). This study adopted both
methods; therefore data were collected qualitatively and quantitatively.

3.1 Research Design

Research design, according to Asika (2006) means “the structuring of investigation aimed at
identifying variables and their relationships to one another. This is used for the purpose of
obtaining data to enable the researcher test hypotheses or answer research questions. It is an
outline of a scheme that serves as a useful guide to the researcher in his effort to generate data
for the study” (p. 27). It goes further to specify the approach or approaches or steps a researcher
takes in conducting an investigation in a particular area of study.

For the purpose of this study, survey research design was adopted; this is because it is best used
to collect data in a large population, it is easy to use and helps to complete a study in a
reasonable time frame. The qualitative and quantitative research methods were used; this
approach is called the mixed method; it is also referred to by some as triangulate method or
triangulation. The qualitative method (indepth interview) was used to gather information from
Community Liaison Officers (CLO) of the oil companies operating in the communities,
Chairmen of the Community Development Committees (CDCs) and the traditional rulers. This
involved face to face interviews, while the quantitative method involved the administration of
copies of the questionnaire on the sampled members of the selected communities.

3.2 Population

The population of the study comprised of residents of oil producing communities in Delta State.
These communities are Ekakpamre in Ughelli South Local Government, Beneku, in Ndokwa East
Local Government and Kokori in Ethiope East Local Government Area. The population of these
areas according to the 2006 census figures are as follows (Kokori), 96,463, (Beneku) 10,342 and
41,536 (Ekekpamre), totaling 148,341. The population of study included: all members of the
communities. Furthermore, the oil companies that operate in the areas are Kokori: Shell
Petroleum Company Development (SPDC),Nigeria Petroleum Development Company (NPDC)
Ekekpamre: SPDC and NPDC, Beneku: Nigerian Agip Oil Company (NAOC).

3.3 Sample size and sampling Technique

The sampling technique adopted for this study was the multi-stage sampling technique. This is
because it involves the use of more than one sampling technique in series of step-by-step process
in order to get to the sample population of the study. The first stage was to purposively select
Delta state from all the oil producing states that make up the Niger Delta area of Nigeria. This
was followed by selecting by random sampling technique (balloting) three oil producing Local
Government Areas from all the oil producing local government areas in Delta State, stated in the
scope of the study. From the oil producing Local Government Areas, a community each was
purposively selected which are Kokori, Ekakpamre and Beneku. They were selected because
these communities have one time or the other been involved in protest that disrupted the
operations of the oil companies operating in their communities because of neglect by the oil
producing companies.

It is noteworthy to state that the geographical nature of the study area in terms of it being
dominated by water necessitated its administrative divisions into quarters. Hence, two quarters
were randomly selected from each of the three oil producing communities in Delta State through
simple random sampling technique (balloting), so as to give equal chance for all the quarters in
the study areas to be considered without bias in this study. From Kokori, Anaka and Umigighwa
were randomly selected, from Ekekpamre, Ekeneghere and Eraka were selected; while from
Beneku, Umu-edem and Umu-igwe were selected by considering total enumerationbecause there
were only two quarters in Beneku which met the selection criteria.

The next stage involved the sampling of the respondents from the two quarters each selected
from each community. The Saunders, Lewis and Thornhills (2009) formula was used as
discussed under the Sample Size section below. After the sample size had been got, the next
stage involved purposively sampling randomly only those with up to West African Examination
Certificate (WAEC) or Senior School Leaving Certificate (SSCE). This was deliberate so that
only those who can at least read and interpret the question were sampled since the researcher and
his research assistant were not available to interpret the questions to them.
Table 3.1 Oil Producing Communities and Quarters
Kokori Ekakpamre Beneku

Anaka Ekeneghere Umu-edem

Umigighwa Ekrezeghe Umu-igwe

Urhuokpokpo Ekruoghe

Ekrusiero

Eraka

A sample is a subset of the population that is taken to be representative of the entire population.

From the population, it is quite impossible to sample the entire universe. The calculation of the

sample size was carried out by adopting Saunders, Lewis and Thornhill’s (2009) formula. There

were three stages in the refinement of the final sample size for the study.

1st Stage

This stage is designed to estimate the minimum sample size for the study using the following

formula:
n is the minimum sample size that is required

p% is the assumed or estimated proportion belonging to the specified category

q% is the assumed or estimated proportion not belonging to the specified category

z is the z value corresponding to the level of confidence required

e% is the margin of error required.

Therefore: it is assumed that residents in the oil producing communities have a high chance of

being exposed to the use of Corporate Social Responsibility (CSR) as a conflict management

strategy (90% chance that they are exposed and 10% chance that they are not exposed):

Therefore n, which is the minimum sample size is =138.3 approximately 138.

(2) 2nd Stage

This stage further upgrades the sample size by putting the population of the study into

consideration so as to ensure adequate representation of the target population. Therefore 138

which is n the result of the minimum sample size calculated earlier was substituted for n in the

equation while 148,341 was substituted for population in the following formula:
Therefore the adjusted sample size was 137.87, approximately 138
(3) 3rd Stage

This is the final stage where the response rate according to the authors Saunders, Lewis and

Thornhill (2009) was considered. This is designed to ensure that the researcher projected the

proportion of the response rate of data gathering processes. The response rate for this study is

projected to be 40% (re). This projection helped to increase the sample size; this was because

lower response rate projection resulted in higher sample size while higher response rate

projection resulted in lower sample size while still dealing with the issue of non-response.

Therefore, 138 was substituted for n in the following formula.

na= n X 100
re%

Therefore, na= 138 X 100

40
The sample size for this study was 345 respondents

The next stage is the proportional distribution of the sample size across selected quarters

Table 3.2 Proportion of the Number of Residents across Communities

Communities Population Proportion of the Total Population
Kokori 96,463 65.03%
Beneku 10,342 6.97%
Ekekpamre 41,536 28%
Total 148,341 100%

As shown in Table 3.2, the sample size for this study (345) was proportionally distributed across

the oil communities (See Table 3.3).

Table 3.3 Proportional Distribution of Sample Size

Communities Proportion of the Total Population Sample Size

Kokori 65.03% 224
Beneku 6.97% 24
Ekekpamre 28% 97
Total 100% 345

Table 3.3 indicates that Kokori had 224 respondents, Beneku, 24; while Ekekpamre had 97

respondents. The next stage was the equal distribution of the sample size across the selected

quarters in the oil producing communities (see Table 3.4).

Table 3.4 Oil Producing Communities and Quarters

Kokori Ekekpamre Beneku

Anaka 112 Ekeneghere 49 Umu-edem 12

Umigighwa 112 Eraka 49 Umu-igwe 12

Total 224 98 24

Grand Total= 346

Table 3.4 shows that equal distribution of the sample size was done in order to represent the oil

communities at the quarter level. This process led to the final number of respondents to be 346.

In order to cater for the qualitative aspect of this study, the Community Liaison Officers of the

three (3) oil producing communities, the chairmen of the Community Development Committee

(CDC) and the traditional rulers of the three communities were purposively selected to be
interviewed because they were in a position to have details about the oil companies CSR

activities and its utilization as a conflict management strategy.

3.4 Instrument of Data Collection

The instrument of data collection adopted for the study was the questionnaire and it was divided
into three sets, one for the Community Liaison Officers (CLOs) of the oil producing companies,
another for the chairmen of the Community Development Committees (CDCs), the traditional
rulers and the third for the general public that are members of the communities. For the two sets
of questionnaires which was in form of an interview guide for the CLOs, CDC chairmen and
traditional rulers the open ended questionnaire was used. This allowed the respondents answer
questions sufficiently, from the companies’ and community officials standpoint. The third set of
questionnaire contained simple, precise and very clear questions covering only one issue at a
time that elicited the exact information. The choice of a close ended questionnaire was because
answers which are standard and could be compared from person to person were much easier to
code and analyze, thus saving time and money. Another advantage was that respondents were
clear about the meaning of the questions and answers were relatively complete. The technique
that was adopted in the administration of the questionnaire was more systematic random
approach.

The questionnaire was appropriate for the study because it ensured complete anonymity.
Questions that respondents would ordinarily be unwilling to answer in a face-to-face interview
are most likely to be answered in a self-administered questionnaire. The method was also
impersonal, cheaper and quicker than interview survey. It also had the advantage of being easy to
administer to a large number of individuals simultaneously. However, it had the disadvantage of
wrong completion. This is due to the fact that the researcher was not always around to explain
questions not well understood by respondents.

3.5 Validity

A proper analysis of the research interactive showed the existence of many validation procedures
for this study. The questionnaire was subjected to face validation which is ultimately a matter of
judgment. Two major questions were considered which are:
 i. Whether the research instruments which was used in the study could really measure
what (perception) the researcher claimed.
ii. If they provide adequate samples of the kinds of perception that the researcher set out
to measure.

The first question exposed the aspect of the actual measurability of the instrument. The second
question probed the ability of the instrument to gather germane information about the issues
observed. From the above analysis, face validity needed the judgment of experts in the
researcher’s field of study and research methodology adopted.

For this study, the researcher’s instrument face validity was ensured by both experts in mass
communication, public relations and of measurement and evaluation. The questionnaire
(Instrument) was certified okay by the experts. They determined among other factors the
simplicity of the questions, clarity and unambiguity. They also ascertained whether the questions
satisfactorily measured the variables of the study. Good suggestions, advice and modification
that led to satisfactory face validity of the instrument were sought and applied.

3.6 Reliability

It is a statistical concept that presupposes the consistency, stability or dependency of data. A

reliable measurement connotes one that, if repeated a second time will give the same result as it
did the first time.

As reliability depicts consistency in the scores in two alternative measures, test for reliability was
achieved through repeated application of the same measure (Bailey, 1982). In view of this, test-
retest approach of testing for reliability was used, this was done by administering the
questionnaire and a standard one on the same respondent to see whether the responses got was
the same and this was achieved. To further test the reliability of the questionnaire, 40 copies of
the questionnaire were administered on residents of Otu-Jeremi town another oil producing
communities in Ughelli-South Local Government Area of Delta State to test for the reliability of
the questions and ensure that respondents understood the questions and can provide answers that
helped to achieve the objectives of the study. This was also achieved. The Composite
Cronbach’s Alpha score for the questionnaire indicated an internal consistency score of 0.797
which indicate that the questionnaire had a high internal consistency.
3.7 Procedure for Collecting Data

Questionnaire were administered on the 346 respondents directly and were retrieved in the same
way after they were duly completed. The Community Liaison Officers (CLO) of the oil
companies and the Chairmen of the Community Development Committees (CDC) were
interviewed directly (face to face interview) with an Interview Guide. They were recorded and
notes were also taken. The questionnaires were administered with the aid of trained research
assistants from the communities. They also assisted with the interviews.

3.8 Method of Data Analysis

The quantitative and qualitative methods of analyses were employed. Qualitative method used
content analysis to report the responses of the interviews with the Community Liaison Officers
(CLO) in the three oil producing communities by grouping such responses according to their
inherent themes which is called thematic analysis. This was also applied to the Chairmen of the
Community Development Committees (CDC) and the traditional rulers. For the quantitative
aspect, frequency distribution tables, simple percentages and charts were used to represent the
data. Linear regression analysis was used to test the hypothesis because it could predict the
proportion of variation that occurs when the independent variable interacts with the dependent
variable. The Statistical Product and Service Solutions (SPSS) version 21 was used as the
software for data analysis.

3.9 Ethical Consideration

The information gathered in this study is for the purpose of academic research and would be
treated with the required confidentiality. Participants are very free to refuse, leave or participate
in the survey part of the study. Participation is voluntary and is dependent on participants’
willingness to accept or reject the questionnaire to be administered on them. However,
participants have the opportunity to contribute to the body of knowledge in the field of mass
communication, specifically public relations through the participation. The study will help to
appreciate how Corporate Social Responsibility (CSR) can be used as a conflict management
strategy in oil producing communities in Delta State, Nigeria. Through their participation in the
study, therefore, participants will gain an insight into how Corporate Social Responsibility (CSR)
an aspect of community relations can be used to create cordial relationship between
organizations and their host communities.

3.10 Post-Research Benefits

There are several benefits that can be derived from this study after its completion.

1. This study on Corporate Social Responsibility as a conflict management strategy in oil

producing communities in Delta State will be of immense benefit to the federal, state and
local governments and oil producing companies, especially during this period when the
country is losing millions of dollars daily as a result of the activities of the militants in the
Niger Delta region of the country.

2. The study will provide the governments at all levels with the tools and knowledge about
how to minimize and eventually put to an end the wanton destruction of pipelines and the
resultant oil spillages in these areas.

3. It will also help the oil producing companies to devise strategies to improve on their
relationship with their host communities.

4. In addition, it will help members of the host communities on how to handle negotiations
with the oil companies operating in their areas.

5. Finally, the field of academics will find the study especially useful as it will advance
knowledge substantially.
 CHAPTER FOUR
DATA ANALYSIS, RESULTS AND DISCUSSION OF FINDINGS

4.0. Introduction

This chapter presented different sections which were directed to quantitatively report the
findings of the study using descriptive and inferential statistics in order to answer the research
questions and test the hypothesis raised for the study. A total of three hundred and forty five
(345) copies of the questionnaire were distributed, while three hundred and thirty eight (338)
valid copies were retrieved and used for the analysis. The response or return rate of the
instrument was therefore 98 percent. Apart from the quantitative analysis, the chapter also
reported the results of the indepth interviews held with representatives of the oil producing
companies and the community leaders in Beneku in Ndokwa East Government Area, Kokori in
Ethiope East Local Government Area and Ekakpamre in Ughelli South Local Government Area/
in Delta State.

4.1 Presentation of Results

Table 4.1 present data relating to demographic characteristics of the study respondents
and the data are hereby complemented by Figures 4.1 and 4.2.
4.1.1 Respondents’ Demographic Characteristics

Table 4.1: Respondents’ Demographic Details

Frequency Percentage (%)
Gender
Male 233 68.9
Female 105 31.1
Total 338 100.0
Marital Status

Married 221 65.4

Single 117 34.6

Total 338 100.0
Educational Qualification

SSCE/WASC/GCE, A and O’Levels 152 45.0

Diplomas, OND, HND, HNC 73 21.6

B.Sc,B.A., B.Ed 113 33.4

Total 338 100.0
Occupational Status

Government employee 33 9.8

Private sector employee 45 13.3

Unemployed 260 76.9

Total 338 100.0
Age

25-34 113 33.4

35-44 143 42.3

45-54 45 13.3

55-64 37 10.9
Total 338 100.0
Source: Field Study, 2017
Table 4.1 indicates that majority of the respondents were males (n=233, 68.9%), while
females constituted the minority (n=105, 31.1%) of the study participants. This suggests that out
of about 10 respondents, seven were males while three were females; hence this study was male
dominated. Majority of the respondents were married (n=221, 65.4%), while the rest were single
(n=117, 34.6%). This indicates that majority of the study participants were married. In addition,
the most common educational qualifications among respondents were SSCE/WASC/GCE A and
O’Levels(n=152, 45%), followed by those with BSc, BA and B. Ed. qualifications, while those
with Diplomas, OND, HND, and HNCwere the least among the study participants. This shows
that 55 percent (n=186) of the respondents had more than O’Level or its equivalent qualification,
while the rest had O’Levels or its equivalents qualification. This implies that majority of the
study participants could read and write having attained the basic literacy level of education.
Table 4.1.1 also indicates that 76.9 percent (n=260) of the respondents were unemployed, while
13.3 percent (n=45) were private sector employees and 9.8 percent (n=33) were government
employees. This suggests that majority of the participants of this study were not gainfully
employed. Finally, the most common age category among the study participants was between 35
years and 44 years (n=143, 42.3%), followed by those between 25 years and 34 years (n=113,
33.4%). This indicates that majority, 75.7 percent, of the study participants were between the
ages of 25 years and 44 years, while 42.3 (n=143) were in their middle adulthood. This age
distribution places the respondents in the right position to comment on issues of social
responsibility, having attained the age of maturity.
Figure 4.1: Length of Service for Respondents working in Oil Producing or Service
Companies
Source: Field Study, 2017

Figure 4.1 indicates that out of the respondents who were working in oil producing companies,
23.1 percent (n=78) had spent less than two years, while 9.8 percent (n=33) had spent between 9-
11 years.

50.0%
46.4%
45.0%
40.0%
35.0%
30.0%
25.0% 23.1%
20.7%
20.0%
15.0%
9.8%
10.0%
5.0%
0.0%
Employee Community resident Community leader Safety officer

Figure 4.2: Groups to which Respondents Belong

Source: Field Study, 2017

From Figure 4.2, almost half of the study participants (n=157, 46.4%) were community
residents, while employees were 23.1 percent (n=78) and community leaders were 20.7 percent
(n=70) while safety officers were 9.8 percent (n=33). This shows that the study sample
comprised mostly residents, who were in positions to explain how they benefited from the oil
companies’ social responsibility programmes. Also, one out of five respondents were community
leaders, while almost a quarter are employees.

4.1.2 Analysis of Research Questions

Responses to the questionnaire items developed to test various variables relating to the subject
matter of this study are analyzed in this sub-section. The analysis is carried out in line with the
research questions earlier set in this study so that such questions could be answered with the
findings of the study.
Research Question One: What is the degree of cordiality of the relationship between the oil
companies and the oil producing communities in the Delta State, Nigeria?
 Table 4.2: CSR Programmes and Improvement of Cordial Relationship
Statement SA A D SD Mean SD
4 3 2 1

CSR justifies host communities welfare 35 66 155 82 2.16 0.91

benefits over profits (10.4) (19.5) (45.9) (24.3)

CSR protects oil producing firm's 68 66 37 167 2.10 1.22

reputation in the host community (20.1) (19.5) (10.9) (49.4)

CSR helps oil producing companies to 33 - 227 78 1.96 0.79

manage risks in business (9.8) (67.2) (23.1)

CSR promotes harmony between oil 33 33 155 117 1.95 0.91

producing firms and host communities (9.8) (9.8) (45.9) (34.6)

CSR integrates stakeholders into oil 33 - 148 157 1.73 0.89

producing firms' strategies (9.8) (43.8) (46.4)
Total Scale Average Weighted Mean 1.98 0.94
KEY: SA=Strongly Agree, A=Agree, D=Disagree, SD=Strongly Disagree *** Decision Rule
if mean is ≤ 1.49 =Strongly Disagree; 1.5 to 2.49 = Disagree; 2.5 to 3.49 =Agree; 3.5 to 4 =
Strongly Agree
Source: Field Study, 2017
The data in Table 4.2 shows that generally, respondents averagely disagreed that CSR
programmes had improved the relationship between the oil companies and the oil producing
communities (Average Weighted Mean= 1.98; SD=0.94). In details, Table 4.2 depicts that
respondents averagely disagreed with all the scale items. They disagreed with the following that:
CSR justifies host communities welfare benefits over profits (Mean=2.16, SD=0.91), CSR
protects oil producing firm's reputation in the host community (Mean=2.10, SD=1.22), CSR
helps oil producing companies to manage risks in business (Mean=1.96, SD=0.79), CSR
promotes harmony between oil producing firms and host communities (Mean=1.95, SD=0.91)
and that CSR integrates stakeholders into oil producing firms' strategies (Mean=1.73, SD=0.89).
This implies that members of oil producing communities had a negative perception towards CSR
projects and activities carried out by oil producing communities. In other words, the purpose of
CSR programmes carried out by oil producing companies, which are geared towards ultimately
enhancing cordial relationship with host communities might not have been achieved because of
the negative perception towards such programmes or activities.

Research Question Two: What are the specific CRS programmes carried out in the oil
producing communities by the oil producing companies in Delta State, Nigeria?
Table 4.3: CSR Programmes Provided in Communities by Oil Producing Companies
Statement VT T F VF Mean SD
4 3 2 1
66 33 239 - 2.49 0.80
Legal services to support communities
(19.5) (9.8) (70.7)

Healthcare facilities for members of the - 66 272 - 2.20 0.40

communities (19.5) (80.5)

Economic empowerment of members of 66 33 119 120 2.13 1.10

the communities (19.5) (9.8) (35.2) (35.5)

Educational policies of children and 33 33 197 75 2.07 0.84

youth (9.8) (9.8) (58.3) (22.2)

Environmental support programmes to - 66 199 73 1.98 0.64

enhance living (19.5) (58.9) (21.6)

Welfare and support to the aged and the - 33 194 111 1.77 0.61
poor (9.8) (57.4) (32.8)
Average Weighted Mean 2.11 0.73
KEY: VT=Very True, T=True, F=False, VF=Very False*** Decision Rule if mean is ≤ 1.49
= Very False; 1.5 to 2.49 = False; 2.5 to 3.49 =True; 3.5 to 4 = Very True
Source: Field Study, 2017

Table 4.3 presents data that show that generally, study participants indicated that the fact that
CSR programmes were provided in communities was false (Average Weighted Mean=2.11,
SD=0.73). Results also suggest that it was false according to the respondents that CSR activities
such as provision of legal services (Mean=2.49), SD= 0.80 healthcare facilities (Mean=2.20),
SD= 0.40 economic empowerment (Mean=2.13), SD= 1.10 educational policies (Mean=2.07),
SD= 0.64 environmental support programmes (Mean=1.98) and welfare programmes
(Mean=1.77) were provided in oil producing communities by oil companies. The implication of
these is that the oil producing companies did not provide the programmes in the estimation of
community members.

Research Question Three: How adequate are the CSR programmes carried out in the oil
producing communities as a conflict management strategy by the oil companies in the Delta
State, Nigeria?
Table 4.4: Adequacy of CSR Projects to Host Communities as a Conflict Management
Strategy
Variable Frequency Percent (%) Mean (SD)

1)Not Adequate 202 59.8

2)Partially Adequate 37 10.9 1.89

3)Adequate 33 9.8 (1.21)

4)Very Adequate 66 19.5

Total 338 100.0

Decision Rule if mean is ≤ 1.49 = Not Adequate; 1.5 to 2.49 = Partially Adequate; 2.5 to 3.49
=Adequate; 3.5 to 4 = Very Adequate
Source: Field Study, 2017

From the data in Table 4.4, respondents indicated on the average that the CSR projects
provided to host communities were partially adequate (Mean=1.89, SD=1.21). This suggests that
CSR projects in host communities were perceived not to be enough or do not fully measure up to
the host communities expectations.

80.5%
80.0%
60.0%
40.0%
20.0% 9.8% 9.8%
0.0% 0.0%
0.0%

Figure 4.3: Measures Adopted to Manage Conflict in Oil Producing Areas

Source: Field Study, 2017
The measures adopted by the oil producing companies to manage conflict in the oil
producing communities of Delta state were tested. Responses to items related to this variable
were analysed in Figure 4.3 and result indicates that the oil companies mostly gave incentives to
community chiefs and opinion leaders (n=272, 80.5%) as a means of managing conflict in oil
producing areas. Other methods such as regular consultation, and carrying out developmental
projects were sparingly adopted (n=33, 9.8%) oil companies as ways of managing conflict in oil
producing areas. This implies that rather than carrying out developmental projects in the oil
producing communities, giving adequate compensation to the host communities and regular
consultation, oil companies mainly gave incentives to the chiefs and opinion leaders as a way of
managing conflict in oil producing areas. Results in this regard confirm the earlier results that the
CSR projects in host communities were perceived not to be enough or do not fully measure up to
the host communities expectations (See Table 4.4) because the oil companies mostly offered
incentives to community leaders rather than carrying out programmes that would benefit the
entire communities.

Research Question Four: Of what significance is Corporate Social Responsibility (CSR) as

conflict management strategy by oil producing communities in the Delta State, Nigeria?

Table 4.5: The Significance of CSR as a Strategy for Managing Conflict

Variable Frequency Percent (%) Mean (SD)

1)Not Significant 165 48.8

2)Moderately Significant 33 9.8 2.15

3)Significant 66 19.5 (1.24)

4)Very Significant 74 21.9

Total 338 100.0

Decision Rule if mean is ≤ 1.49 = Not Significant; 1.5 to 2.49 = Moderately Significant; 2.5
to 3.49 =Significant; 3.5 to 4 = Very Significant
Source: Field Study, 2017
From Table 4.1.5, on the average, respondents indicated that CSR was a moderately significant
strategy for managing conflict in the oil producing communities of Delta State (Mean=2.15,
SD=1.24). This implies that the host communities did not perceive CSR as a very significant
strategy for managing conflict which also suggests that CSR was not seen as a very important
means of managing conflict. Rather, CSR was considered as a measure that moderately reduced
conflict in oil producing communities.
Table 4.6: Rating of the Handling and Management of Crisis by the Oil Company
Variable Frequency Percent (%) Mean (SD)

1)Not Effective 202 59.8

2)Moderately Effective 70 20.7 1.70

3)Effective 33 9.8 (1.00)

4)Very Effective 33 9.8

Total 338 100.0

Decision Rule if mean is ≤ 1.49 = Not Effective; 1.5 to 2.49 = Moderately Effective; 2.5 to
3.49 = Effective; 3.5 to 4 = Very Effective
Source: Field Study, 2017
Table 4.1.6 depicts that the rating of the handling and management of crisis by oil companies in
Delta Sate was on the average, moderately effective (Mean=1.70, SD=1.00). This suggests that
oil companies were perceived by members of the oil producing communities of Delta State to
have managed crisis in oil producing communities moderately, hence oil producing companies
were not seen as being very effective in handling or managing crisis in the area.

Research Question Five: How effective is CSR as conflict management strategy in oil
producing communities in Delta State, Nigeria?
Table 4.7: Respondents’ Perception of the Effectiveness of CSR as a Conflict Management
Strategy in Oil Producing Communities
Items VH H L VL Mean SD
4 3 2 1

Oil producing firms invest in the growth 33 33 272 - 2.29 0.64

of laws and regulations (9.8) (9.8) (80.5)

Oil producing firms are best known for - 103 145 90 2.04 0.76
the growth and well being of employees (30.5) (42.9) (26.6)

Oil producing firms enhance - 66 160 112 1.86 0.71

environmental condition (19.5) (47.3) (33.1)

Oil producing firms enhance peace and 33 33 115 157 1.83 0.96
reduce conflict violence (9.8) (9.8) (34.0) (46.4)

Oil producing firms maximize value of - 33 180 125 1.73 0.63

shareholders (9.8) (53.3) (37.0)

Oil producing firms create value for the - 33 156 149 1.66 0.65
local community in which it operates (9.8) (46.2) (44.1)

Oil producing firms offer equal - 33 117 188 1.54 0.67

opportunities for employment (9.8) (34.6) (55.6)
Average Weighted Mean 1.85 0.72
KEY: VH=Very High, H=High, L=Low, VL=Very Low***Decision Rule if mean is ≤ 1.49
Very Low; 1.5 to 2.49 = Low; 2.5 to 3.49 =High; 3.5 to 4= Very High
Source: Field Study, 2017
The data in Table 4.7 showed that on the average, respondents from the oil producing
communities perceived the effectiveness of CSR as a conflict management strategy in oil
producing communities as low (Mean=1.85, SD=0.72). This suggests that CSR had not been
very effective as a conflict management strategy in the areas under study. Respondents
specifically averagely rated all the scale items to a low extent. Respondents averagely rated the
following items: oil producing firms invested in the growth of laws and regulations to a low
extent (Mean=2.29, SD=0.64), oil producing firms werebest known for the growth and wellbeing
of employees to a low extent (Mean=2.04, SD=0.76), oil producing firms enhanced
environmental condition to a low extent (Mean=1.86, SD=0.71), oil producing firms enhanced
peace and reduced conflict to a low extent, oil producing firms created value for the local
community in which they operated to a low extent (Mean=1.66, SD=0.65), and that oil
producing firms offered equal opportunities for employment to a low extent (Mean=1.54,
SD=0.67). These imply that specifically, oil producing firms’ effectiveness in the handling of
CSR activities as a conflict management strategy was perceived to be low.

Research Question Six: To what extent have CSR programmes of oil producing companies
promoted better relationship with the host communities in Delta State,Nigeria?

Table 4.8: Success of CSR in Promoting Better Relationship between oil Producing
Companies and communities
Variable Frequency Percent (%) Mean (SD)
1)Very Low 194 57.4
2)Low 78 23.1 1.72
3)High 33 9.8 (1.00)
4)Very High 33 9.8
Total 338 100.0
Decision Rule if mean is ≤ 1.49 =Very Low; 1.5 to 2.49 = Low; 2.5 to 3.49 =High; 3.5 to 4=
Very High
Source: Field Study, 2017

Table 4.1.8 depicts that the likelihood of success of CSR in promoting better relationship
between oil producing companies and communities was averagely low (Mean=1.72, SD=1.00).
This suggests that the host communities perceived CSR as an ineffective tool for promotion of
positive relationship between host communities and oil companies
 50.0% 46.4%
40.0% 34.0%
30.0% 28.0%
19.5%
20.0%
10.0%
0.0% 0.0%
0.0%

Figure 4.4: Causes of Conflict between Oil Companies and Host Communities
Source: Field Study, 2017

Figure 4.4 shows that the main causes of conflict between oil companies and their host
communities were lack of compensation to the community (n= 157, 46.6%), neglect of the
community by oil companies (n=115, 34%), environmental degradation in the community (n=95,
28%) and lack of community participation in decision making about issues that affect them.
These suggest that the issue that mostly account for conflict between oil firms and host
communities was lack of compensation, while lack of community participation in decision
making ranked lowest among the issues identified. This implies that members of the oil
producing communities of Delta State mostly expected compensation from the oil producing
companies for the damages caused in the area through oil exploration activities.
 70.0%
63.6%
60.0%

50.0%

40.0%

30.0%

20.0%
9.8%
10.0%
0.0% 0.0%
0.0%
Before confliict started After the conflict started On request Before request

Figure 4.5: Period CSR Projects were Provided by Oil Companies in Host Communities
Source: Field Study, 2017
Figure 4.5 illustrates that majority of the study respondents said CSR projects were provided by
oil companies after conflict had started in the oil producing area (n=215, 63.6%) while the
minority observed that CSR projects were executed on request (n=33, 9.8%). This indicates that
CSR projects in the oil companies’ host communities were not provided before conflict started
and before request. This implies that oil companies operating in oil producing communities were
not proactive in providing CSR projects, neither were they responsive to the requests of host
communities. Rather, CSR projects were provided when conflict has started, which suggests that
CSR was taken by the oil companies as a retroactive strategy in response to situations of conflict
in the host communities.

4.2 Test of Hypothesis

Decision Rule

The pre-set level of significance for this study is 0.05. The null hypothesis assumes that no
relationship or effect exists between the variables under consideration. On the other hand, the
alternative hypothesis assumes that a significant relationship or effect exists between the
variables under consideration. On the whole, if the P-value (that is, the significance or the
probability value) exceeds the pre-set level of significance (which is 0.05), the null hypothesis
will be accepted and the alternative hypothesis will be rejected; but if the P-value is less than or
equal to 0.05, this means that the null hypothesis will be rejected and the alternative hypothesis
accepted.

Null hypothesis One: Corporate Social Responsibility (CSR) has no significant effect on
conflict management in oil producing communities in Delta State, in Nigeria.

Table 4.9a: Model Summary for the Effect of Corporate Social Responsibility on Conflict
Management

Model R R Square Adjusted R Square Std. Error of the

Estimate

1 0.744a 0.554 0.553 0.94336

a. Predictors: (Constant), Corporate Social Responsibility

Source: Field Study, 2017

Table 4.9b: Simple Linear Regression Showing the Effect of Corporate Social
Responsibility on Conflict Management

Model Unstandardized Standardize T Sig.

Coefficients d
Coefficients

B Std. Error Beta

(Constant) -1.167 0.199 -5.856 0.000

1 Corporate Social 0.358 0.018 0.744 20.432 0.000
Responsibility

a. Dependent Variable: ConflictManagement

Source: Field Study, 2017

Table 4.9b depicts that Corporate Social Responsibility (CSR) has a significant effect on conflict
management in oil producing communities (p<0.05). Furthermore, the table indicates a strong
positive correlation coefficient (β=0.744) and positive slope (B=0.358) which are statistically
significant (p<0.05) as assessed by a t-test (T=20432). This suggests that an increase in CSR will
lead to a proportional increase in conflict management in oil producing communities, while a
decrease in CSR will lead to a proportional reduction in conflict management in oil producing
communities. This implies that a strategic means of managing conflict in oil producing
communities is to increase CSR activities and projects and as long as this increases, there is
likelihood that it would positively affect conflict management in the area. Table 4.9a shows that
CSR could explain 55.4 percent (R2=0.554) variation of conflict management in oil producing
communities. The model accounts for a significant amount of conflict management variance (F
(1,336) =417.456, p<0.05). Hence, the null hypothesis which states that Corporate Social
Responsibility (CSR) has no significant effect on conflict management in oil producing
communities in Delta State is hereby rejected.

4.3 Report of Indepth Interviews

Indepth interviews conducted in the qualitative aspect of data gathering of this study

are reported in this sub-section of this study.

4.3.1 An Interview with a representative of the Beneku Community Development

Committee (CDC) (02/03/17) -Respondent I
On the degree of cordiality between the community and the oil companies operating in the area,
the representative said the relationship was not cordial at all. This was as a result of the fact that
the oil companies have failed to keep their promises of providing Corporate Social
Responsibilities (CSR) projects, despite the signing of several Memoranda of Understanding
(MOU) between the oil companies and the community. On the day of the interview (02/03/17)
coincidentally there was a meeting between a representative of the Delta State Commissioner of
Police and the community as a result of a petition written by the community to the Commissioner
because of an MOU between the community and Sterling Oil Exploration and Energy Production
Company Limited (SEPCO) which the company has failed to honour and fulfill four years after.

On the specific programmes provided by the oil companies for the community, the representative
said that Nigerian Agip Oil Company Limited (NAOC) has provided electricity which runs for
24 hours free to all members of the community. They also provided a bus and employment for
some members of the community, but not at management and senior levels, despite the fact that
there were qualified members of the community for such jobs. Bursary awards were also paid
yearly to students from the community who were in institutions of higher learning. These
however were said not to be enough as the community wanted the companies to provide
scholarships to cover the total expenses of the students.
The specific projects the community wanted the companies to provide included a bridge linking
Ndokwa West and Ndokwa East Local Government areas. They also wanted a modern market to
be built and pipe borne water provided. More importantly, they wanted proper youth
empowerment and soft loans for market women. They however agreed that the community
members were consulted before some CSR programmes were provided but said that such
programmes took a very long time before they materialized.

The Respondent said that CSR programmes were very significant and useful as conflict
management strategies only when such projects were implemented on time to the specifications
requested by the community. The CSR prorammes currently carried out by the companies, were
said not to be adequate and they could only be effective as conflict management strategies if they
were consistently carried out. CRS programmes were said to be capable of promoting better
relationship with the host community if they were well implemented after consultation with the
community.

4.3.2 An Interview with another representative of Beneku Communityin Ndokwa-East

Local Government Area of Delta State (2/3/2017) - Respondent II

The respondent a well respected in the community, said that the community was very unhappy
with the oil companies because they have “exploited our community for many years without the
community having anything to show for it”. He added that the friction between the community
and the oil companies was “because they have been operating in my community for a very long
time now and the community is still not developed. They are just after their projects and
transporting our crude oil outside the country”. According to him, several MOUs signed with the
community have not been implemented and that CSR could only be a good conflict management
strategy if the companies met their obligations to the community. He also wanted the oil
companies to employ indigenes in senior and management positions, provide more
infrastructures and development programmes for the community. He concluded that the
relationship between the community and the companies was not cordial at all, and that there
would have been a lot of conflicts if not for the fact that the community was peace loving.

4.3.3 Interview with a representative of Sterling Oil Exploration and Energy Production
Company Limited (SEPCO), Beneku - Respondent III
On whether the company has provided CSR projects for the community, the respondent said that
his company has tried within the available resources and budget to carry out its Corporate Social
Responsibilities. He however agreed that the relationship between his company and the
community was not cordial and that the company was doing everything possible to honour and
implement the outstanding MOU signed by them a few years ago. This is in tandem with the
opinions of the community leaders who asserted that the relationship between the oil companies
and the communities were not cordial. The respondent said Corporate Social Responsibility was
an adequate and effective strategy in managing conflicts but that “this would only be possible if
it is well planned, managed and implemented”. He appealed to the community to be patient and
show more understanding with the oil companies. The officials at the Nigeria AGIP Oil
Company (NAOC) in Beneku refused to grant an interview but referred the researcher to the
Divisional Manager, Stakeholders Management and Community Development Division,
Nigerian AGIP Oil Company, Port Harcourt. He could not however be reached as he refused to
pick his calls.

4.3.4 An Interview with a representative of Kokori community (15/03/17) - Respondent

IV
The respondent said that the relationship between the various oil companies that operated in the
community had been gradually improving over the years and could be said to be cordial to some
extent at present. This notwithstanding, he said “the community still expects some improvement
on the present CSR model being operated”. According to him, Shell Petroleum Development
Company Limited (SPDC) started operating the Kokori Oil field since 1958 and the flow stations
were built between 1961 to 1962, with over 40 oil wells. SPDC disinvested in 2013 and sold
their interest in the field to another company Nigeria Petroleum Development Company (NPDC)
a subsidiary of Nigerian National Petroleum Corporation (NNPC). However, by April 2017 the
field would be handed over to another company, Heritage Petroleum Company Limited, which
would now take over its operation.

He said that over the period, different models of CSR have been operated depending on the
company operating the field. According to him, during the period of SPDC there was a budget
allocated for CSR, but it was not well managed. The strategy was that projects were only carried
out when there were agitations by the community. Managers of the oil company were promoted
and rewarded for saving money from their CSR budget. Money negotiated in those days was
very small. It was just like an obligation, not CSR. Early in 1990, SPDC gave community
assistance and to be qualified for such a scheme, the community had to set up a Community
Development Committee (CDC). The various villages that make up Kokori therefore made their
requests through the CDCs and got assistance through them. Kokori field consists of villages in
Kokori and some in Orogun. More than 20 villages were said to be involved in the scheme. He
said “during this period Samagidi – Kokori got a town hall and some small projects such as
micro credits, some scholarship awards for secondary and university students”. There was also
the SPDC Erhoike Cottage Hospital with paid doctors and drugs provided.

There were already agitations for a change and improvement before NPDC took over in 2013.
At the time, most of the fields were not working and negotiations had to be carried out for the
OML 30 to function. A different and more acceptable CSR model was then adopted. In this
model, “the company signed an MOU to set aside N600 million annually as CSR budget for
community development”, the interviewee asserted. Under the arrangement, a certain amount
was paid into the account of each of the 23 communities as CSR budget for development. In
other words, each community was assured of a project no matter how small every year. The
MOU would be operational till 2018. The respondent noted that “in this arrangement, three
percent (3%) of the amount is kept aside for the traditional rulers in the OML areas of operation.
So, all the traditional rulers benefited according to their status or grade. Money is also set aside
for administrative cost and projects. The important thing is that all communities must benefit”.

The interesting aspect of the MOU, according to the interviewee was that there was an arbitration
clause and a penalty for failure or delay to implement it. The community could petition the
Ministry of Justice for delay and interest would be paid on the money delayed for the period. He
recalled that there were protests in 2008 and 2010 that led to blockade and disruption of
operations before they were resolved through dialogue and the adoption of the new model
operated by NPDC.

Presently, New Grid Petroleum Company is said to be prospecting OPL 283 and the need
assessment of all communities are being carried out. “There is an understanding and all parties
know their responsibilities. Giving back to the communities is now a debt because there is an
understanding”. He said that the Federal Government on its part was not doing enough to assist
the communities. Oil exploration is a partnership and joint venture. The Federal government
owns 60 percent shares, while the oil companies operating the field only own 40 percent. The
community leader observed that 13 percent derivation fund paid to States which in most cases
was not spent on the oil producing areas and advised the Federal government to intervene
directly and develop the areas. He concluded that if CSR is well articulated and managed, “it is
good in the promotion of peace and cordial relationship between oil producing companies and
host communities”.

4.3.5 Interview with a representative Ekakpamre Development Community (13/03/17) -

Respondent V
The respondent, said the relationship between his community and the oil company operating in
the area, specifically, Nigeria Petroleum Development Company (NPDC) and Nigeria Gas
Company (NGC) - a subsidiary of the National Petroleum Corporation (NNPC) - was not at all
cordial. “This is as a result of the fact that the oil companies operating in the areas are not giving
back enough to the community where they operate”. He said the community was not giving
enough employment opportunities and where they were provided, it was only in the lower cadre.

He observed that “the community is very strategic in the sense that it hosts the Nigerian Gas
Company (NGC), which supplies Delta 4 (Delta Power Station) gas and that any disruption of
the company’s operations will affect the whole country’. According to him, they still paid
electricity bills despite hosting the power station and the gas company unlike other oil producing
communities to which electricity was supplied free. He said that the community vigilante
groups had been very helpful in the provision of security and the only visible projects to show
was one toilet facility built in the market in 2011 and some other small projects. He said that two
months ago, the community wrote letters to NPDC and NGC warning that it was going to shut
down the company’s operations but the managers came to plead with the community to show
some understanding. Although the action was suspended, “the community is running out of
patience”, he added.

On the specific assistance the community wanted from the oil companies, he said that they
required the employment of qualified indigenes into management and senior staff cadres. They
also wanted the construction of some strategic roads in the community, the construction of a
modern community hall, not the renovation that they have done. They wanted the hospital
earlier built by Shell Petroleum Development Company (SPDC) to be upgraded with modern
facilities and qualified personnel. In addition, they wanted the establishment of a higher
institution of learning, youth empowerment and scholarship for their indigenes. Finally, “the
community wants to be consulted before projects are carried out in the community”, he observed.

The respondent agreed that “CSR is a very vital and effective strategy for the management of
conflict between oil producing companies and host communities if it is sincerely conceived,
managed and implemented”. He however said that CSR was inadequate in the community for
now and that for it to be effective the oil companies had to show more commitment and sincerity.

4.3.6 An Interview with a representative of Nigerian Gas Company (NGC) Western

Region (13/03/17) - Respondent VI
The respondent said that since he resumed in the area in 2013 the relationship between the
community and the company had not been very cordial but that there have not been any major
conflict because he had been in constant touch and dialogue with the communities under the area
of the company’s operations. Ekakpamre community members have had series of meetings with
him in which he asked them to articulate their requests in form of a document. This he said they
had done and he had forwarded such to the Headquarters Public Affairs Department and it is
being handled. The community members were also said to be aware of the fact that their requests
were receiving attention. However, the community members were said to have been offered
assistance from time to time. He agreed that “CSR is an effective strategy for conflict
management and that the company is committed to meeting this for the benefit of both parties”.
He said to be good corporate citizens, all responsible companies have to pursue and implement
CSR programmes.

By implication, both parties – the oil producing companies and their host communities – agreed
to the facts that there has been lack of cordial relationship between the two parties; and CSR
porgrammes have been inadequate in the communities, a situation that has caused conflicts in the
area. Also, both parties recognize the need for CSR in the area, observing that it is an effective
strategy for conflict management, which is to the benefits of both parties.

4.4 Discussion of Findings

This study examined Corporate Social Responsibility (CSR) as a Conflict Management Strategy
in Selected Oil Producing Communities in Delta State, Nigeria. In view of this, the researcher
purposively selected three of the oil producing communities namely, Ekakpamre in Ughelli
South Local Government Area, Beneku, Ndokwa East Local Government Area and Kokori in
Ethiope East Local Government Area in Delta State, Nigeria. To proffer answers to the questions
raised in this study, the survey research design was adopted while the quantitative and qualitative
research methods were utilized. Three hundred and forty five (345) copies of the questionnaire
were administered to respondents in Delta state. However, only three hundred and thirty eight
(338) copies were retrieved and validated for analysis, representing 98 percent return rate.

Findings indicated that male respondents were more represented in the study (68.9%) than
female, while the majority of the respondents were married (65.4%). In addition, respondents
having a minimum of SSCE/WASC/GCE, A and O’Levels were more represented (45.0%) in the
study while majority of the study participants were unemployed (76.9%). For the respondents
working with the oil companies, majority have not been there for up to two years (23.1%) while
only 9.8 percent have been there for less than six years. As earlier planned, indepth interviews
were also carried out with representatives of the oil producing companies operating in the area
and the representatives of the three communities namely: Beneku, Kokori and Ekakpamre.
Findings of this study are hereby discussed in line with the objectives earlier set in the study.

4.4.1 Level of Cordiality between the oil companies and the oil producing communities in
Delta State, Nigeria

From the general point of view, findings of this study showed that the CSR programmes
employed by oil companies in Delta state, Nigeria have not been able to foster cordial
relationship between these companies and the oil producing communities. This result is in
tandem with the report of Fynas (2005) which stated that though the oil companies have
expended well over US$500 million in order to address some community issues, the outcome of
these activities still leave a lot to be questioned because the anticipated results have not been
realized. The author asserts that there is a gap between the oil companies’ intention and the real
outcome of such initiatives. The implication of this is that the planning and execution of the CSR
programmes by oil companies might not have taken the needs of the oil producing communities
into cognizance, which eventually affected the outcome of such initiatives. The inadequacy of
the CSR projects, coupled with the irresponsive attitudes of the managements of the oil
companies may account for the low level of cordiality between the two parties as observed in this
study.
Graafland and vandeVen (2006) asserted that for CSR activities to yield expected results, such as
creation of mutually positive relationship between, the Host community and the Oil companies,
profit making should not be the focus of such activity, stating that all CSR focus should be
diverted to everything but profit making. This observation relates to the result of the study,
which focused on the CSR initiatives of three Dutch companies, in which the respondents had a
positive perception of these activities employed by the Dutch companies; the positive perception
of the respondents was ascribed to the strategic usage of the initiatives to develop positive
relationship and not a profitmaking venture. The result of Graafland and vandeVen (2006)
negates the finding of this study as well as the outcome of Fynas (2005) study, which showed
negative perception of members of the oil companies’ host communities about the CSR
programmes of the oil companies.

Olajide (2014) succinctly explains that for any CSR initiative to be successful, organizations
should properly understand stakeholders’ interests if their efforts are to be properly appreciated.
In the case of this study, the stakeholders are the oil producing communities who should be
critically involved in the selection and planning of the CSR activities in order to build cordial
relationship between the communities and the companies. Olajide (2014) adds that to improve
the cordiality level between the companies and the oil producing communities, it is expedient to
identify relevant stakeholders and integrate their interests into organizational strategic planning
of the oil companies.

On the average, the respondents in this study asserted that the CSR initiatives of these oil
companies did not in any way recognize host communities’ welfare benefits. Rather, the focus
was solely on profits, which was a minus on the part of these oil companies as shown on the first
item on Table 4.2. In addition, the study participants noted that the oil companies’ CSR activities
were not geared towards management of risks or crisis in business neither was it designed to
foster harmonious relationship between the parties involved.

In line with the propositions of the stakeholders theory, the oil companies in the oil producing
communities have not adequately taken the presence, interests, needs and aspirations of the host
communities into play hence, the surging conflicts. It is essential to realise that the stakeholders
play a key role in the sustenance or destruction of organizations. Should their needs be ignored
or there be lack of communication, there will be no cordial relationship in any way. In line with
this, oil producing companies should map out ways of meeting their obligations to the
shareholders in the business by carrying out strategic Corporate Social Responsibility (CSR)
activities to touch the lives of members of their host communities, who bear the damages arising
from their oil exploration activities. In other words, they should engage in Corporate Social
Responsibility (CSR), which is a strategy to give back to the host communities who are their
benefactors. If they meet their corporate social responsibilities there is likelihood that conflicts
will be mitigated to the barest minimum and should in case they occur, they can be more easily
and effectively handled and managed.

Findings from the survey also agreed with the result of the indepth interview. Representatives of
all the three oil producing communities were in agreement that the relationship between their
communities and the oil producing companies was not very cordial. However, the respondent
from Kokori community, where an improved model of CSR was being implemented by the
Nigerian Petroleum Development Company (NPDC), a subsidiary of NNPC, observed that the
relationship was gradually improving because each party now knew their responsibilities. Even
the representatives of the oil companies interviewed also agreed that the relationship was not
very cordial between the two parties.

4.4.2Specific CSR Programmes Carried Out in the Oil Producing Communities by the Oil
Companies in Delta State, Nigeria

As against the assertions of the oil companies on the CSR initiatives embarked upon, this study
reveals that members of the oil producing communities did not agree with the existence of some
of the CSR initiatives of these companies such as legal services to support communities,
Healthcare facilities for members of the communities, economic empowerment of members of
the communities, educational policies of children and youth, environmental support programmes
to enhance living and welfare and support to the aged and the poor. According to the members
of these communities, the oil companies did not embark on any of these, while it may be
possible that the oil companies are doing this, the level of awareness and involvement of the
communities may account for the oil producing communities’ denial of the existence of these
initiatives.
This findings in this regard can be summed up in what Ndu and Agbonitoh (2014) described as
lack of citizenry involvement in the planning and execution of the CSR activities being done by
the oil companies in this region. Marchant (2014) gave an apt explanation of what is responsible
for the synergy of voice between these oil companies and the oil producing communities that
“some of the problems found within the communities exists independently of any of the
company’s activity. Yet by ignoring the structural causes of these issues and the role of the
corporation therein, the CSR projects can have no more than a superficial impact at best and
may, in some cases, exacerbate the problems faced by local communities”( p. 1). This implies
that the oil producing communities may not be aware of the initiatives such as eradication of
poverty, welfare of the aged, education not because the initiatives did not exist, rather because
their interest, needs have not been targeted for instance, a community in need of pipe borne
water and the CSR initiative focuses on beauty pageant, definitely, the outcome of such action
may not yield any positive reward.

As espoused by the games theory, communication is essential in the management of conflicts

especially between organizations and stakeholders because CSR programmes may not be
properly felt if the beneficiaries are not carried along in the decision making process, therefore,
the oil companies and the oil producing companies should actively involve the communities.
The indepth interviews however revealed that some projects have been executed in the three
communities as CSR. For instance the representative of the Beneku Community Development
Committee (CDC) said that AGIP has provided electricity for the community which runs for 24
hours uninterrupted at no cost to members of the community and this has been on for years.
Students are also awarded bursary and there are a few job opportunities although in the lower
cadre. In the same vein, the representative of Kokori also confirmed the provision of a cottage
hospital and other projects on yearly basis in their new CSR model operated by NPDC. In line
with this, the representative also agreed that some projects have been executed in the
community. However, all the communities representatives were in agreement that the oil
companies have done just a little compared to what they are benefiting from the communities.
They urged the oil companies to do more to justify their operations in the communities.

4.4.3 Adequacy and Effectivenessof Oil Companies’ CSR Programmes in the Oil
Producing Communities as Conflict Management Strategy in Delta State, Nigeria
On the efficacy of the CSR programmes carried out by the oil companies, members of the
selected oil producing communities have an impression that the programmes have not been
adequate as shown on Table 4.1.4. Furthermore, Ndu and Agbonitoh (2014) explained that in
line with other studies in this research area, the CSR strategies employed by these oil producing
companies are not good enough in helping in the prevention and resolution of conflicts in these
communities. This may indicate that the focus of the CSR programmes carried out by these oil
producing companies may not truly be to tackle conflicts, it may have some undertone that may
be in favour of the companies as against the interest of the communities. The result of Amodu’s
(2012) study which also focused on the CSR programmes of the oil producing companies shows
that there is a big gap between the projected outcomes and the real adequacy of such
programmes.

Amodu (2012) explains that on the level of adequacy of the CSR programmes as a conflict
management strategy, there was a lacuna between the strategies the oil companies believed host
communities preferred for conflict resolution and the ones actually preferred by those
communities. This shows a breakdown in communication between the oil producing companies
and the oil producing communities. If there was a proper communication system between the
parties involved, the right CSR programmes that will mitigate conflicts between them would
have been identified and executed, and the result of such decisions would have yielded a positive
result that this study would have uncovered.

Ikiriko (2012) attempts to provide a reason for the inadequacy of the CSR programmes for
managing conflict by affirming that the activities of oil exploration by SPDC in Rivers State is a
far cry from what CSR practice should be and that the operating environment from these
multinational oil corporations was one of mistrust between the companies and the communities
in which these companies operate. This leaves an issue at hand because from the premise that
Ikiriko (2012) posited, it suggests that these oil companies may not even have an idea of what a
proper CSR programme should address and how it should be used as a conflict resolution
strategy. On a general scale, the major conflict management CSR activity as shown on Figure
4.3 that the members of the oil producing communities are aware of is that Oil companies give
incentives to community chiefs and opinion leaders as a means of managing conflict in oil
producing areas. This on its own accounts for the inadequacy of these CSR programmes as a
conflict management tool because as monetary incentives are provided to the community heads
and opinion leaders, these individuals share the money amongst themselves thereby ignoring the
major problem necessitating the provision of incentives and this will further escalate into a
bigger conflict which may be almost impossible to address.

Conflicts should be proactively tackled and not handled with levity as the aftermath may not be
easily wished away even if the most adequate of stringent measures is applied. In addition,
adequate information and compensation is not provided to these oil producing communities
rather, to a selected few such as community and opinion leaders which is not beneficial to both
parties. Regular consultation, as well as implementation of development projects, seems not to
have a place in the management of conflicts which on its own is a problem.

Results from the indepth interviews held with representatives of the three communities showed
that the CSR strategies adopted by the oil companies are not adequate. According to them the
approach is only to try to engage them with a few projects once there are protests and go back to
their old ways once there is peace. The strategy they said is inadequate because it only brings
temporary peace which is not good for mutual coexistence. The findings here are in total
agreement with those got from the quantitative method through administering questionnaires and
some past findings by other researchers, earlier mentioned.

4.4.4 Significance of Corporate Social Responsibility (CSR) as Conflict Management

Strategy by Oil Producing Communities in Delta State, Nigeria

The respondents in the oil producing communities described CSR as a moderately significant
conflict management strategy being employed by the oil companies as depicted in Table 4.5.
Furthermore, in the handling of conflicts by the oil companies, there seemed to be a moderate
level of effort being put in by the companies. The implication is that there is more to be done to
improve on the management of conflicts between these oil companies and the oil producing
communities. Blowfield and Googins (2006) emphasize that though the oil companies want to
address societal issues because they are important to their companies and business as a whole,
yet, they are hesitant to take it too far because of the reactions that may come from investor’s
analyst and board members thus giving a false view of what they intend to achieve and the
achieved goals ultimately. Fynas (2005) stresses that while the oil companies unduly sensitize
the communities on the programmes to be carried out, their inability to meet these expectations
yield further crises which makes the CSR programmes ineffective. Hartman, Rubbis and Dhanda
(2007) justifies CSR as a necessary conflict management strategy which may make or mar a
company’s image therefore, it is necessary to strategically plan and design the CSR programmes
that will help to solve whatever conflict that the company is faced with as soon as possible.

Findings from the field indepth interviews to a large extent agree with those got from the survey
because those interviewed from the three communities all agreed that the oil companies
operating in their areas have provided some CSR projects, but they are not just enough. In other
words, they can only be rated as moderate. That is to say their efforts are just moderately
significant and effective as conflict management strategies as shown in Tables 4.5 and 4.6 of the
quantitative results. The conclusion therefore is that the oil companies have not done enough of
CSR, hence they should do more for the communities from which they are getting so
much.
4.4.5 Extent to which CSR programmes of Oil producing companies have promoted
better relationship with the host communities in Delta State, Nigeria

The findings of this study showed that the oil companies’ CSR programmes have not been able
to sufficiently promote better relationship between the oil producing communities and the oil
companies in Delta state, Nigeria. In addition, the causes of the conflicts which led to the
reduction of mutually beneficial relationship between these parties are hinged on lack of
compensation to the host community. This result is supported by Olajide (2014) who reported
that compensating community and opinion leaders at the expense of the looming crises would
only extend the escalation of crisis between parties. Rather than paying these leaders, the goal
should be to identify the crises and then use CSR programmes to adequately address such issues.
In most cases, the leaders of the community only seek ways of enriching their personal purses
and not seeking the interest of the community, therefore, compensating leaders should not be
encouraged.

Furthermore, the members of the selected communities identified neglect as another cause of
conflict between both parties because as the oil companies are benefiting from the communities,
it is essential to give back to the communities in terms of scholarship, motorable roads,
electricity, healthcare facilities, welfare packages for the aged, widows, orphans and individuals
with disabilities depending on the needs of the community. Neglecting the host communities will
not affect these communities alone, rather the oil companies will not benefit from the ripple
effect of such neglect.

Additionally, environmental degradation was another major cause of conflict between the oil
companies and the oil producing communities. This is not a good one because the oil companies
have gainfully utilized the ambience of these communities to the extent that what is left of it is
environmental degradation such as polluted water, degraded and oil polluted lands that cannot be
farmed on leaving a lot of needs on the part of the oil producing communities. According to
Adekola and Uzoagu, (2012) and Wosu(2013) conflicts may not come to an end in these oil
producing states and communities until these oil companies universally agree on finding ways of
compensating these communities and not a selected few so that the compensation can make up
for the high level of environmental degradation.
Also, a germane issue that affects the fostering of positive relations between the companies and
the communities is the issue of lack of involvement in the decision and planning of development
programmes being carried out by the oil companies. This challenge is also identified by Frynas
(2005) to be a major reason for the inefficiency of the CSR programmes done by these oil
companies. Since this is the case, it is essential to harvest all the needs of the community and
tactically identify the ones that are of utmost priority to the community and address them
urgently. It is essential for these oil companies to realize that the easiest and most cost-efficient
time to address an issue is before it becomes full blown because several factors such as time,
resources, manpower, and technical know-how will be required to now solve such when it
escalates like what is happening in the oil producing regions.

As depicted on Figure 4.5, the oil companies only used CSR programmes after the conflicts have
commenced in most cases and in few cases, they do so on request. The implication is that this
may suggest to the communities that these oil companies are not after the interest of the
community rather, for their own image and enrichment. All the representatives of the
communities including those of the oil producing companies agreed that CSR programmes
carried out by the oil producing companies were good avenues of providing better relationship
between them and the host communities. This however has not been the case because the oil
producing companies have not done enough to promote lasting good relationship with the
communities. They therefore urged the oil producing companies to do more of the really desired
long lasting cordial relationship with their host communities.

In all, it can be summed up that Corporate Social Responsibility (CSR) has a positive effect on
conflict management in oil producing communities in Delta State, Nigeria. By implication, this
suggests that an increase in the implementation of appropriate CSR programmes will lead to an
increase in conflict management in the oil producing communities therefore, for oil companies to
manage conflicts between themselves and their hosts, it is essential to integrate CSR into their
overall strategy.

Findings from the indepth interviews with representatives of the three communities and the oil
companies confirmed that CSR if well planned, managed and implemented can lead to improved
relationship between the Oil Producing Companies and the Host Communities
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter is the concluding part of this study. It provides a summary of the entire dissertation.
It also concludes the study and offers recommendations based on the findings of the study.

5.1 Summary

The major aim of this study was to assess Corporate Social Responsibility (CSR) as a Conflict
Management Strategy in selected Oil Producing Communities in Delta State, Nigeria. Chapter
one of the study was basically the introductory aspect of the work which provided background
information on the genesis of oil exploration in Nigeria and the rationale for the introduction of
Corporate Social Responsibility (CSR) in the oil sector. It also discussed the neglect of the host
communities, which led to crisis situation, and the need to execute CSR programmes to solicit
and win the understanding of the oil companies’ host communities.

Most of the communities in Delta State, in the Niger Delta region of Nigeria have since the
discovery of oil in Olobiri in 1956 suffered neglect and exploitation due to the activities of the
oil producing companies, most of which are multi-nationals. As a result of this, the area has
been crisis ridden due to protests by some of the affected communities because of palpable
poverty, absence of basic social amenities, lack of employment opportunities, environmental
pollution and so on. This study was therefore aimed at assessing Corporate Social Responsibility
(CSR) as a Conflict Management Strategy in selected Oil Producing Communities in Delta State.

The specific objective of this study were to:

1 find out the degree of cordiality of the relationship between the oil companies and the oil
producing communities in Delta State, Nigeria;
2 investigate the CSR programmes carried out in the oil producing communities by the oil
producing companies in Delta State, Nigeria;
3 determine the adequacy of the CSR programmes carried out in the oil producing
communities as conflict management strategy by the oil producing companies in Delta
State, Nigeria;
 4 ascertain the significance of Corporate Social Responsibility (CSR) as Conflict
Management Strategy by Oil Companies in Oil Producing Communities in Delta State,
Nigeria;
5 Establish the effectiveness of CSR as conflict management strategy in oil producing
communities in Delta State, Nigeria; and
6 examine how the CSR programme of the oil producing companies have promoted better
relationship with the host communities in Delta State, Nigeria.

Chapter two of the study was the literature review of the study. The review commenced with the
conceptual review, which dealt with the concept of Corporate Social Responsibility (CSR), its
premise, origin and meaning. It also looked at the arguments for and against CSR, the Charity
and Stewardship principles and the importance of Corporate Social Responsibility (CSR). This
review also looked at conflict and conflict management, communication in conflict management
and Corporate Social Responsibility (CSR) in managing conflict. Under the theoretical
framework, the review examined four theories, namely the stakeholders theory, social
responsibility theory of the press, social relations theory and the games theory. A conceptual
model depicting the relationship between the variables under study was developed by the
researcher and the review of the findings of studies related to the subject matter of this study was
carried out.

In chapter three, the methodology adopted for the study was detailed. The study made use of the
mixed method research design, a combination of quantitative and qualitative research methods.
In the quantitative methods, survey was conducted on the members of three selected
communities namely Beneku, Ekakpamre and Kokori all in Delta State. In the qualitative aspect,
indepth interviews were conducted with the representatives of the communities and the oil
companies. The multi-stage sampling technique was adopted to sample 345 respondents from
the three communities. The instruments used were structured questionnaire and the interview
schedule.

Chapter four of the dissertation presented the results from the survey and indepth interviews.
Data gathered from the qualitative aspect were analysed using content analysis to report the
responses of the interviews while the quantitative data generated from the survey were analysed
using frequency distribution tables, simple percentages and charts to represent the data. Linear
regression analysis was used to test the hypothesis.

After investigating the questions raised in the study from the objectives earlier stated, findings
revealed as follows:

(1) Majority of the respondents believed that there was no cordial relationship between the
oil producing companies and their host communities. The conclusion of this was that
CSR programmes carried out by oil producing companies in Delta State have not been
able to foster cordial relationship between the oil companies and the oil producing
communities. The result indicated by the quantitative data was supported by the
qualitatively data. For instance, one of the representative of Beneku Community, and
other representatives interviewed from the other communities were emphatic that the
relationship was not cordial. This position was also corroborated by the representatives
of the oil companies.
(2) Findings also indicated that there was inadequate CSR programmes carried out in the
three communities selected. Although some programmes were carried out, they were not
to the satisfaction of members of the host communities. For instance, in the area of
employment only low cadre-staff were employed from the host communities. This
position was supported by data collected both qualitatively and quantitatively.
(3) The CSR strategies used by the oil producing companies was found not to be adequate
and effective as is shown in Table 4.4. Members would have preferred a situation where
they were adequately consulted before projects were carried out. They strongly believed
that what the oil companies were giving to them are not commensurate with what they
were taking away from their communities. Data gathered qualitatively also agreed with
the position.
(4) It was found from the indepth interviews that most of the Memoranda of Understanding
(MOUs) entered into and duely signed by both parties were not honoured by the oil
producing companies. For instance, on the day the researcher visited Beneku (02/02/17),
the representative of the Delta State Commissioner of Police visited to resolve issues
arising from an MOU signed with SEPCO four years ago that have not been honoured.
This is also the case with the other communities.
(5) Another finding from the study was that CSR was not significantly handled as a strategy
for managing conflicts between oil producing companies and their host communities. As
shown in Table 4.5, about half of the respondents 165 (48.8% said it was not significant,
while only 74 (21.9%) said it was very significant. This was also supported by the
interviews conducted in the three communities.
(6) It was also found that CSR programmes of the oil producing companies to a large extent
have not promoted better relationship with the host communities. This is clearly shown
in Figure 4.5. This is because most of the programmes were carried out only after the
conflict had started. The representative from Kokori said that at a time SPDC operated a
CSR Model where Managers were rewarded and promoted for saving from their CSR
budgets. They only carried out projects after agitation to placate members of the
community.
(7) Another very important finding of the study was that CSR had a significant effect on
conflict management in oil producing areas in Delta State. The hypothesis that stated that
Corporate Social Responsibility (CSR) has no significant effect on Conflict Management
in Oil Producing Communities in Delta State, Nigeria was rejected. This is because the
data gathered indicated a strong positive Correlation Coefficient (p≤ 0.05). Even the
community representatives acknowledged the importance of CSR in promoting good
relationship. Their only quarrel was in the way it was carried out. For instance, the CSR
Model presently operated by NPDC in Kokori and environs is accepted and there is
relative peace.
(8) Another finding of the study was that the greatest problem in the oil producing
communities was the type of CSR models that were operated by the oil companies. For
instance in Figure 4.3, it could be seen that majority of the study respondents (n=272;
80.5%) believed that the oil companies gave incentives to the Chiefs and opinion leaders
as against the minority who said there were regular consultations and that the oil
companies carried out development projects. Unfortunately most of the companies were
not proactive in their approaches to CSR because they only reacted to conflict situations.
For instance, in Kokori the NPDC operates a model where N600 million was kept aside
for the communities development every year there was relative peace and conflicts hardly
 arise since all the parties knew their responsibilities. Only three percent of this amount
was kept for all the traditional rulers in the area.

5.2 Conclusion

From the quantitative data analysed and the interviews reported, the study hereby concluded that
there does not exist a cordial relationship between the oil producing companies and the oil
producing communities in Delta State, Nigeria. The main reason for this was the gap that existed
between the strategies the oil producing companies thought the host communities preferred for
conflict management and what the communities actually preferred. Lack of consultations with
the host communities created a gap between their needs and projects carried out in the oil
producing communities. This seemed to have made the efforts of the oil companies not
appreciated. More importantly, most of the oil producing companies have not really done
enough to justify their operations in the host communities. Their failure to meet their
commitments even after signing documented agreements indicated that the oil companies were
not socially responsible. Where the companies executed CSR projects, they did so in response to
conflict situation, making their approach retroactive rather than proactive. More worrisome was
the fact that the Federal Government who are joint operators in these oil companies failed to
compel them to meet their Corporate Social Responsibility (CSR) obligations. The development
of acceptable models of CSR in all communities, as presently being carried out in Kokori, will
go a long way to reduce conflicts in these areas.

5.3 Recommendations

Findings from this study have clearly shown that well planned, executed and monitored
Corporate Social Responsibility (CSR) programmes are indispensable tools for conflict
management between oil producing companies and their host communities.

Based on the findings of this study the following recommendations are hereby made:

a. Oil producing companies operating in Delta State and other oil producing areas in
Nigeria should be proactive in finding out the needs of the people and acting before
situations degenerate to conflict.
They should not just assume that because a community is peaceful that they should not be
given attention. The outdated CSR model where a community is only attended to when
 conflicts arise should be discarded. There should be regular consultations and strategic
planning to identify areas of needs of the communities for CSR to be effective as a
conflict management strategy in the companies’ host communities. Oil producing
companies operating in Delta State and other oil producing areas in the country should
also stop patronizing few Chiefs and opinion Leaders. They should come out with CSR
models that are all embracing after proper consultations with all strata of the communities
where they operate. Such CSR models must have the confidence of the entire community
and must be reviewed on a regular basis, either quarterly or annually. There should be
adequate budgeting for such CSR projects identified and the amount to be spent must be
specified and known to all stakeholders. There should be an agreement between the oil
producing company and the community and the agreement must have a penalty clause, in
case the oil company fails to perform.
b. The oil producing companies should devise means like regular consultation and
participation in community activities to ensure cordial relationship with their host
communities. They should not use the divide and rule tactics where problems are
deliberately created within the leadership of the community. Such divide and rule
strategies do not last long and they cannot yield positive results for the oil companies.
The oil companies that have MOUs or GMOUs with the communities should always
endeavor to honour them. An organization that fails to honour such agreements cannot
be said to be a good corporate citizen. Where there is a need for signing of agreements,
there must be broad consultations to see that all parties are represented. If this is not done,
factions may spring up and it will result to the company dealing with multiple groups,
which can further lead to conflict.
c. The companies should try as much as possible to avoid intimidating their host
communities with the presence of heavy security personnel such as soldiers. It is more
beneficial to build and sustain goodwill and long lasting relationship with the people than
intimidating them and treating them as enemies. In situations where it is inevitable,
invitation of military forces should not go beyond protecting the companies’ facilities and
their staff where there are cases of security threats such as kidnapping and vandalisation
of equipment. Where there is a good relationship between the oil companies and their
host communities, local vigilante groups are enough to offer security services.
 d. The issue of unemployment should be seriously tackled. Finding from the study, Table
4.1, showed that 260 respondents, 76.9 percent were unemployed.
Apart from employment of community members, skill acquisition centres should be
established where members of the communities can be trained in different skills and they
should be given some grants to establish themselves after graduation from such centres.
The federal government should regulate the activities of the oil producing companies
through policy formulation. They should compel them to meet their obligations to their
host communities. The federal government on its part should intervene directly in the
development of the areas. Unfortunately, the 13 percent derivation fund is not well
utilized in some states. Those in public offices end up using the money to develop their
own areas, even if they are not oil producing areas.
e. Considering the fact that majority of the respondents and those interviewed in the three
communities were not quite satisfied with the CSR strategies adopted by the oil
companies, more concrete efforts should be made by the oil producing companies to
improve on their CSR or if possible, change their strategies to more acceptable ones. As
long as the communities are recipients of those CSR programmes, it would be
unreasonable to ignore their feelings. There is also the need for the government to plan
and carry out some enlightenment programmes for the communities so that they can
improve their relationship with the oil companies operating in their areas. The fact that a
community has oil does not mean that the oil companies must cater for all their needs.
They should also realize that the resources of the oil companies are limited and that they
are business ventures established to make profits for their investors.
f. Oil producing companies should from time to time assess how the host communities
where they operate perceive their CSR programmes in meeting with their needs.
Research into this will enable them to appraise themselves and see whether they are
doing well or not, and whether they are also accepted by the people or not. The oil
producing companies should have developmental capital projects as their focus because
these are more enduring. People can easily point out that these are what they have done
for the host communities. Things that are not tangible, such as monetary incentives to
community leaders, do not last long hence they should not be used in CSR programmes.

5.4 Contributions to Knowledge

The work has no doubt contributed substantially in expanding the frontiers of knowledge on the
importance of public relations, especially in the areas of community relations and Corporate
Social Responsibility (CSR) as conflict management strategies. The study extensively explored
the concept of Corporate Social Responsibility (CSR) in the oil sector, which is the main stay of
the Nigerian economy. The fact that the study used the mixed method research design, which
combined qualitative and quantitative methods makes it unique. It got the views of members of
the community through administered questionnaires and also conducted indepth interviews with
representatives of the communities and the oil companies. It afforded the researcher the
opportunity to compare views from the various parties and arrive at conclusions.

This study is also unique in the sense that it is arguably the only study that have been carried out
specifically in Beneku, Ekakpramre and Kokori communities in Delta State, Nigeria. Other
studies have been carried out generally in other oil producing areas in the Niger Delta region.
Some of the findings of the study will also no doubt contribute immensely to the literature on
Corporate Social Responsibility (CSR) and conflict management in the oil industry. One
interesting revelation of the study is the observed communication gap between the oil producing
companies and the oil producing communities. The oil producing companies claimed on the one
hand to have spent so much on CSR in these areas, while the communities on the other hand
insisted that not much had been done and that they were being exploited by the oil companies.
There is then a strong possibility that the middlemen appointed to represent the communities in
meeting with the oil companies may not be representing them well.

The study most importantly was able to discover a new model operated by the Nigeria Petroleum
Development Company (NPDC) in Kokori and its adjoining communities. In this model, a
yearly budget of N600 million was set aside for CSR projects in the communities hosting the oil
field in which the company operates. Only three percent of this is shared among the traditional
rulers and there is a penalty clause in the MOU, which compels the oil company to pay as at
when due. This model ensures that each community within the field gets at least one project a
year. This revelation presents a prototype that can be duplicated by other oil producing
companies to mitigate crisis in the oil producing communities.

5.5 Limitation of the Study

The major limitation of the study is that it was very difficult to get the officials of the oil
companies to speak to the researcher in the indepth interviews. For instance in Beneku, the
officials of AGIP refused to speak but had to direct the researcher to their Head Office in Port-
Harcourt. The Divisional Manager, Stakeholders Management and Community Development
Division of AGIP refused to pick his calls despite several attempts. The Community Liaison
Officer of NPDC in Kokori, also refused to pick his calls despite several attempts.

There was also the problem of getting respondents to fill the questionnaire. Most of them were
reluctant to fill them despite the letter of introduction from the researcher’sschool and the
informed consent form attached to the instrument. Some even demanded for money to fill the
questionnaire. Others could not be convinced about the purpose of the study. They believed it
was a government contract from which the researcher was making money. The terrain of the
selected communities was also a challenge. For instance the researchers car had to be ferried
over the river between Kwale town and Beneku. Getting to Kokori, Ekakpramre and Otu-Jeremi
where the pilot study was done required a journey of many kilometres by road. In Beneku for
instance, the researcher had to pay homage to the traditional ruler by providing drinks, kolanut
and money before he was attended to.

One of the methodological limitations of the study was the limited focus on three selected areas
of Delta state - Beneku, Ekakpramre and Kokori communities. The focus on these areas excluded
opinions and experiences of other oil producing communities of Delta state and the Niger Delta
region of the country, which may differ from those of the areas of the study’s focus. Also, the
limited survey sample of the study (345 respondents) could have limited the scope of the study’s
findings.

5.6 Suggestion for Further Studies

Other areas for further studies have been revealed by the findings of this study. One of such
areas is the role of the federal government in ensuring that Corporate Social Responsibility
(CSR) programmes are effectively carried out in the oil producing areas. Another area that can
be looked at is the role of the mass media in educating both the oil producing companies and
other companies operating in the country on the importance of Corporate Social Responsibility
(CSR). The relationship between the federal government and the oil producing companies and its
implication on the implementation of Corporate Social Responsibility (CSR) programmes is
another area suggested for further research.
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 APPENDIX A

INFORMED CONSENT

TITLE: Corporate Social Responsibility (CSR) as a Conflict Management Strategy In

Selected Oil Producing Communities In Delta State, Nigeria.

PURPOSE: The purpose of the study is to assess corporate social responsibility (CSR) as conflict
management strategy in selected oil producing communities in the Delta State of Nigeria.

PROCEDURE: Data will be collected through the use of questionnaire and interview guide
which will be administered by the researcher with the assistance of six research assistants over
the period of 10 weeks in three selected oil producing communities in Delta State. From each of
the communities, quarters will be randomly sampled. Face to face interviews will be conducted
for chairmen of the Community Development Committees (CDC) in each of the communities
and the Community Liaison Officer (CLO) of the oil producing companies in the area.

Consequences of participant’s decision to withdraw: Participants are free to exit or continue to

participate in the study. It is voluntary and subject to participants willingness to accept or reject
being interviewed or filling out the questionnaire. There is no penalty for withdrawing from
participation.

Conflict of interest: The researchers do not have any other interest except to gain knowledge.

Contact: Phone: 08033011657

E-Mail: ogbemib@yaoo.com; ogbemib@gmail.com

Name of research, signature and date

Ogbemi, Ogbiten Brickins

Supervisor: Professor Anjuwon J. Akinwande

Telephone: 08130569494

Name, Signature of Participant ………………………………………………………...

Name, Signature of Witness and Date …………………………………………………

 Appendix B

Fig. 5:The researcher (Middle) and two members of the Beneku Community Development
Committee (CDC)

Appendix C
Fig. 6:The researcher (standing) and the Chief Francis Indego Okwuagu, the Okpala-Uku
of Beneku Community in Ndokwa-East Local Government Area of Delta State
Appendix D

Fig. 8:The researcher (kneeling) paying homage to the Okpala-Uku of Beneku Community

Appendix E
Fig. 9:Ferry that conveys vehicles and people from Kwale town to Beneku Community
 Appendix F

Fig. 10: Scene from Beneku Community

Appendix G
Fig. 11: The researcher (left end) and members of the Ekakpamre Community
Development Committee (CDC) inside the renovated town hall.
Appendix H

Fig. 12:The researcher at Ekakpamre Community

Appendix I
Fig. 13:The researcher at Ekakpamre Community
 Appendix J

Fig. 14:The researcher at Ekakpamre Community

Appendix K
Fig. 15:The researcher (right) with Chief Emma Avworo the Iroro of Agbon Kingdom and
Secretary to the Agbon Traditional Council (kokori is under Agbon Kingdom)
Appendix L
Appendix M
Appendix N
Appendix O
Appendix P
Appendix Q
 Appendix R

INTERVIEW SCHEDULE FOR REPRESENTATIVES OF OIL PRODUCING

COMPANIES

1. What is the degree of cordiality between your company and the community where you
operate? B

2. Which are the specific CSR programmes that your company has carried out in your host
community?

3. How adequate are the CSR programmes of your company as conflict management strategy
between your company and your host community?

4. Of what Significance is CSR as a conflict management strategy between your company and
the host community?

5. How effective is CSR as a conflicts management strategy between your company and the
host community?

6. To what extent has CSR programmes promoted better relationship between your company
and the host community?
 Appendix S

INTERVIEW SCHEDULE FOR REPRESENTATIVES OF HOST COMMUNITIES

1. What is the degree of cordiality between the Oil Companies operating in your community
and the community?

2. What are the specific CSR programmes that have been done for your community by the oil
producing company operating in your area?

3. How adequate are the CSR programmes carried out by the oil companies operating in your
community?

4. Of what significance is Corporate Social Responsibility (CSR) as a conflict management

strategy in your community?

5. How effective is CSR as conflict management strategy in your community?

6. To what extent has CSR programmes of the oil companies operating in your area promoted
better relationship with your community?
 Appendix T

MEASURING INSTUMENT FOR CORPORATE SOCIAL RESPONSIBILITY AS A

CONFLICT MANAGEMENT STRATEGY IN OIL PROODUCING COMMUNITIES IN
DELTA STATE, NIGERIA.

Department of Mass Communication,

School of Post Graduate Studies,

Babcock University,

Ilisan-Remo,

Ogun State.

Dear respondent,

I am a post-graduate student of the above university carrying out a study titled: Relevance
of Corporate Social Responsibility (CSR) as a Conflict Management Strategy in Selected Oil
Producing Communities in Delta State, Nigeria.

I am humbly requesting that you provide answers to the following questions. Please be
free to answer the questions as they are strictly for academic purpose. To guarantee this, you are
not required to provide your name.

Thanks for your kind cooperation.

Ogbiten B. Ogbemi

(Researcher)
 QUESTIONNAIRE

INSTRUCTION: Please carefully go through the questions below and tick (√) in the box
provided against the question.

Section A: General Questions (Demographic)

1. Which of the following age brackets do you belong?

23 – 34 Years

35 – 44 Years

45 – 54 Years

55 – 64 Years

65 and above

2. What is your educational level?

SSC/WASC/GCE, A and O levels

Diplomas, OND, HND, HNC, others

(Specify)
First degree, B.Sc, B.A, B.Ed, others
(Specify)
Masters Degree/MPIL/M.Sc, M.A, MBA,
MPA, Others (specify)
Professional Qualifications, Ph.D, others
(specify)
Others, specify

3. Marital Status

Married
 Single

Divorced

Living together (not married)

Separated

Widowed

4. What is your gender?

Male

Female

5. What is your occupational status?

Government Employed

Private Sector Employee

Self Employed

Unemployed

6. If employed in any oil producing or servicing company, how long have you been in the
employment

Less than 2 years

3 years – 5 years

6 years – 8 years

9 years – 11 years
 11 years and above

Not applicable

7. Please indicate which of the following group you belong. (Multiple answers allowed.

Ownership of oil services company ( )

Employee ( )

Customer ( )

Contractors ( )

Supplier ( )

Community resident ( )

Community leader ( )
Government official ( )

Environmental officer ( )

Sanitation officer ( )

Safety officer ( )

Others, specify ( )

Section B: Degree of cordiality, of the Relationship between the oil companies and the oil
producing communities
8. How would you rate the relationship between the oil producing companies operating in your
area and your community.

a. Very cordial

b. Cordial
c. A bit cordial

d. Not cordial
Section C: please indicate your level of agreement or disagreement with how CSR
promotes cordiality among stakeholders and oil companies in your area.

Benefit of Oil Producing Firms’ CSR Very true True False Very false
programmes to the Host Communities
Scale
9. CSR protects oil producing firm’s
reputation in the host communities
10. CSR justifies host communities welfare
benefits over profits
11. CSR integrates stakeholders into oil
producing firms; strategies
12. CSR promotes harmony between oil
producing firms and host communities
13. CSR helps oil producing companies to
manage risks in business

Section D: Stakeholders Perception of CSR Programmes carried out by Oil Producing

Companied
Identification of Business of Corporate Very true True False Very false
Social Responsibility (CSR) provided
14. Legal services to support communities
15. Economic empowerment of members of the
communities
16. Education policies of children and youth
17. Healthcare facilities for members of the
communities
18. Welfare and support to the aged and poor
19. Environmental support programmes to
enhance living

20. Please list some CSR programmes you think the oil/producing company has provided for
your community.
a. ___________________________________________
b. ___________________________________________
 c. ___________________________________________
d. ___________________________________________
e. ___________________________________________

Section E: Adequacy of Firm’s CSR to Host Communities

21. Are the projects carried out by the oil producing companies in your community adequate?
a. Very adequate
b. Adequate
c. Partially adequate
d. Not adequate
22. What are the measures/activities applied by the oil producing company in your area to
manage conflict.
a. Regular consultation
b. Adequate information
c. Adequate compensation
d. By giving incentives to the chiefs and opinion leaders
e. By carrying out development
f. Any other (specify)

Section F: Significance of the Strategies of Oil Producing Companies in Managing

Conflicts

23. How would you rate the handling and management of crisis by the oil company that operate
in your area.
a. Very effective
b. Effective
c. Not effective
d. Not very effective
24. How significant is CSR as a strategy in managing conflict.
a. Very significant
b. Significant
c. Not very significant
d. Not significant
Section G: Effectiveness of CSR as a conflict Management Strategy.

Stakeholder rating of the level of social Very high High Low Very low
corporate responsibility
25. Oil producing forms invest in the growth
and all laws and regulation
26. Oil producing firms invest in the growth
and wellbeing of employees
27. Oil producing firms maximize value of
shareholders
28. Oil producing firms offer equal
opportunities for employment
29. Oil producing firms create value for the
local community in which it operates.
30. Oil producing firms enhance
environmental condition
31. Oil producing firms enhance peace and
reduce conflict violence

Section H: How CSR has Promoted Better Relationship

32. Rate the success of CSR in promoting better relationship between oil producing companies
and host communities
a. Very high
b. High
c. Low
d. Very low
33. What would you say are the causes of conflict between oil producing companies in your are
and community members?
a. Lack of compensation to the community
b. Neglect of the community by oil companies
c. Environmental degradation in the community
d. Exploration activities by oil companies
e. Lack of community participation in decision-making about issues that affect them
 f. Excessive pursuit of profit motive by oil firms
g. Any other, specify _______________________________________________
34. When were Corporate Social Responsibility (CSR) projects provided by the oil companies
operating in your area?
a. Before conflicts started
b. After the conflict broke
c. On request
d. Before request
e. All of the above
f. None of the above
35. What are the measures/activities applied by the oil producing company in your area to
manage conflict.
a. Regular consultations
b. Adequate information
c. Adequate compensation
d. By giving cash incentive to the chiefs an opinion leaders
e. By carrying out development projects
f. Any other, specify ___________________________________________
36. How would you rate the handling and management of crisis by the oil company that operate
in your area?
a. Very high
b. High
c. Low
d. Very low
37. What would you say are the constraints of oil producing companies at project execution
a. Giving projects to unqualified community members
b. Intra community clashes at site of projects
c. Demands that are impossible to fulfill.
d. Endless shift in needs of community
e. Others, specify ____________________________________________________

Thank you very much for sparing your time.