CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

The impact of oil companies towards improved welfare

(social responsibility) for Nigerians as a whole and Niger Delta

in particular goes to the very beginning. In 1962 most of the

oil companies began oil exploration activities in the country.

They presented the federal government an Aid-to-education

plan under which they pledged to provide $900000 over a

period of five years for the education of Nigerians in various

field. Since then the oil companies have evolved a

comprehensive programme for supporting the development of

Nigeria’s different sectors namely education health

infrastructural development employment generation among

others.

The concept of corporate social responsibilities as a new

concept in the business world is the ability of a corporation to

relate its operations and polices to the needs of the

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environment and the work force to the benefit of the

organization and the host communities.

Corporate social responsibility involves management of

an organization working and relating with host communities

and own labour force to ensure that the company is

responsible and responsive to corporate government. It

includes the participation of the company in such vital areas

as environmental protection training of its work force and

welfare package and employment provision of social amenities

within plant location such as water electricity bridges roads

schools scholarship programmes and youth development

programmes for the community and natural development.

Business and society are inter-dependent because

business cannot operate in a vacuum it operates in the

society and contribute immensely to the hazards of the

environment from citizens and at same time provides

employment security and other many values to the

community.

Thus the concept of social responsibility of oil companies

is vital in the life of organized business operations.

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1.2. STATEMENT OF THE PROBLEM

Presently it is obvious that oil companies are not living

up to expectations of their duties in the host communities.

This contributed immensely to environmental degradation of

the region the air water and land pollution destruction of

natural habitations and waste disposal system that are

harmful and destructive to the host community.

Lack of corporation to tackle the problem and reduce the

effects of drilling activities on the environment and raise the

standard of living of the people in the host communities

became a source of concern to the youth of the region.

Secondly lack of infrastructures and social amenities in

the host communities of Niger Delta region by the federal

government and oil companies operating in the region. Thus

the researcher is intended in finding out the cause of these

problems in the region.

1.3. OBJECTIVES OF THE STUDY

The research objectives include the following:

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1. To assess if oil companies as part of their social

responsibilities can tackle varying ecological issues in the

host community.

2. To determine the extent to which oil companies have

contributed to the infrastructural development of the

host community. However this should delve into health

care portable water supply and education.

3. To evaluate the impact of the social responsiveness of the

company on the life of the people in the host community.

4. To ascertain the impacts of the activities of the oil

companies on their host environment.

1.4. RESEARCH QUESTIONS

The following research questions were formulated to

enable the researcher carry out the study:

1. How has the social responsibility of Shell Company

tackled varying ecological issues in the host

environment? (That is help in preserving the

environment.

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2. How has shell Oil Company as part of its social

responsibilities to the host communities contributed in

the infrastructural development in the host community?

3. In their assertion that all the issues raise above are met

how has it impacted on the life’s of the people?

4. How has Shell Oil Company through its activities made

an impact on individual in the host community?

1.5. FORMULATION OF HYPOTHESIS

The following hypothesis was formulated base on the

objectives and problems of this research.

Ho: Shell Company has been useful in providing some of the

amenities to the host communities.

Hi: Shell companies has not been useful in providing some of

the amenities to the host communities.

Ho: The multinational companies provide adequate

infrastructures and amenities in the region.

Hi: The multinational companies do not provide adequate

infrastructures and amenities in the region.

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1.6. SIGNIFICANCE OF THE STUDY

The significance of the study lies in the fact that it would

add to the alliteration guiding the federal government of

Nigeria on how best social responsibilities of oil companies

could be used and investigated in the region in order to restore

progress peace and security of life’s and property of the

communities they operate.

It will equally help the government make motivating

polices to encourage organizations in the region participate

and implement fully the corporate social responsibilities

policies and goals in communities of operation.

1.7. SCOPE OF THE STUDY

The scope of the study focused on the role of corporate

social responsibilities of multinational companies in the host

communities. Specifically the host communities expect the

companies to improve and raise the standard of living of the

people and also what the companies expect from the host

communities especially what shell company is able to do in

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this direction to alleviate the impacts of oil exploration on the

people of the region.

1.8. LIMITATION OF THE STUDY

This research is limited to the impact of social

responsibilities of oil companies on the host communities in

the Niger Delta region of Nigeria. Though there are many oil

companies in Nigeria but this research only concentrates on

the social responsibilities of shell Petroleum Development

Company of Nigeria.

However due to the constrain in getting funds the

research work was fully financed by my sponsor and was

restricted from odds.

Furthermore the problem of meeting the needed

population size and other offices as regards data collection

makes the research work base on questionnaires. The method

of data collection was centered on the distribution of

questionnaires and partly personal contracts or interview

when and where necessary.

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Therefore the researcher will continue to put together

the necessary and available materials and data in spite of the

difficulties involved in the actualization of this research.

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REFERENCES

Kolter P. (2005): Marketing Management (12

th

edition) New

Jersey: Pearson Prentice Hall Inc.

Kotler P and Armstrong G. (2008): Principles of Marketing

(12

th

Edition). London: Prentice Hall Inc.

Obeta C. (2007): Corporate Environmental Responsibility: The

Place of Multinational oil Companies in the Niger Delta in

Nwosu and Soola edited communication. In Global ICTs

and Ecosystem Perspectives Insights from Nigeria

Enugu: Precision Publishers Limited.

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