The Role of MNEs in Community Development Initiatives in Developing Countries

Abstract

Multinational enterprises (MNEs) have long had a reputation of not doing enough for their host communities in developing countries. This study critically examines the role of MNEs in community development initiatives in developing countries, using the Nigeria oil industry and the South African mining industry as case study. Specifically, the study assessed the usefulness of MNE-supported community development projects as a means of demonstrating corporate social responsibility. The findings suggest that expectations for community development projects are greater in developing countries. This study introduced new information on MNEs'local development programs that were drawn from interviews with MNEs'managers, government officials, and local communities.