Forging peaceful relationships between oil‐companies and host‐communities in Nigeria's Delta region

Abstract

PurposeThe purpose of this paper is to determine the level of corporate social responsibility (CSR) that is expected of oil‐multinationals by the host‐communities in which they operate in Nigeria's oil‐rich Delta region. It also suggests how the aggressive opposition of the host‐community to the oil exploration activities of oil companies may be curbed.Design/methodology/approachThe method is purely review of extant literatures and deductive arguments that will give insights to how conflict situations arising from denial of rights can be resolved through CSR and stakeholder's perspective.FindingsThe paper concludes that the major determinant of success of most companies in the world rest in the performance of their CSR to the host‐community, stakeholders and the society in general.Practical implicationsThe oil‐companies operating in the Niger Delta region have to re‐assess their CSR objectives towards improving their delivery to the intended beneficiaries otherwise the pervasive violent conflicts in the region will persist with adverse consequences on the corporate image, reduced profits of the oil‐companies and high cost of the product due to disruptions in production.Originality/valueThe paper usefully points out that the Niger Delta region that hosts Nigeria's oil upstream sector has been enmeshed in violent conflicts essentially due to the adverse socio‐environmental effects the industry has on their communities. The companies however assert that they operate as responsible corporate entities and as such their operations and activities benefits their host‐communities rather than induce violent conflicts.