CORPORATE SOCIAL RESPONSIBILITY OF PUBLIC RELATIONS IN MULTINATIONAL COMPANIES IN NIGERIA

ABSTRACT

This project work critically examines the corporate social responsibility of public relations in multinational companies in Nigeria: An Assessment and also the adoption of corporate public relations strategies by the oil companies has failed to reduces the incident by the oil companies in the Niger Delta, Nigeria. This project argues that the failure seek understanding and integrate community perceptions in corporate social responsibility policies and practice. The over-emphasis of affirmative duties to the detriment of negative injunction duties and absence of an enabling environment due to government failure are responsible for the observed problems.

The project concludes that unless these gaps are addressed, corporate social responsibility of public relations in multinational companies in Nigeria; An assessment, Nigeria oil companies is likely to continue to fail to achieve its full potentials.

However, corporate social responsibility of public relations in multinational companies in Nigeria and the Nigerian oil companies will be significantly improved if, and when, the needs and aspirations of the major stakeholders are addressed through a tri-sector partnership approach to development and conflict resolutions.

TABLE OF CONTENTS

Title Page

Certification

Dedication

Acknowledgement

List of Tables

Abstract

CHAPTER ONE

1.1    Background of the study

1.2    Statement of the problem

1.3    Purpose of the study

1.4    Research Question

1.5    Scope of the study

1.6    Significance of the study

1.7    Limitation of the research

1.8    Operational Definition of terms

CHAPTER TWO: LITERATURE REVIEW

2.1    Literature review

2.2    Relevant theories of the research

CHAPTER THREE: RESEARCH METHODOLOGY

3.1    Research Design

3.2    Population of the study

3.3    Sample/Sampling Technique

3.4    Method of Data Collection

3.5    Method of Data Analysis

CHAPTER FOUR: DATA ANALYSIS INTERPRETATION AND DISCUSSION

4.1    Data Analysis and Interpretation

4.2    Discussion

CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATIONS

5.1    Summary

5.2    Conclusion

5.3    Recommendations

        Reference

CHAPTER ONE

1.1   BACKGROUND OF THE STUDY

        Corporate social responsibility could be simply put as how companies manage their businesses, and the strategies adopted to effectively produce an overall positive and lasting change within the society or the business environment where they operate. Every business corporate in a typical social environment, and every business society analyst, government, non-governmental organizations (NGOs), local communities, unions, employees, workplace and environment.

        Ruggie (2002) maintains that “the corporate social responsibility is a scheme for showing good faith, social authority, and a pledge that goes further than the financial bottom line”.

        “Kotler (2005) shows that corporate social responsibility “is a promise to improve community well-being through flexible business practice and offering of corporate resources. Community well being is the way of the definitions that has to do with human conditions as well as factors of environmental concern.

        Furthermore, there has been a steady pressure on the business world to play an active role in socio-economic developments such as infrastructural developments, health, environmental, education, and climate issues, and even political discussions. This demands will continue to grow as companies grow and extend their areas of operations.

        According to Beesly (1978) “the common starting points liees in the awareness of a relative move from government to companies as the source of social development and the means to encourage specific items of social welfare”.

        There has also been a growing pressure for business around the world to take a leading role in finding solutions to tackle the world’s social economic problems especially where the government could not find lasting solutions to these problems.

        Corporate social responsibilities of public relations in multi-national companies in Nigeria in particular and Africa in general have come under severe and intense criticism. The corporate social responsibility in Nigeria focuses on areas such as labour migration, climate change, water, health and education, governance and accountability and even human right issues.

        The impact of these multinational companies especially shell petroleum development company of Nigeria (SPDC), Nigeria National Petroleum Corporation (NNPC), Nigeria Gas Company (NGC), were they operate is worthwhile reviewing. The question is, have they lived up to the expectations in performing or dealing with the issues mentioned above or will these issues conflict with the profit-oriented nature of their business.

        In modern day Nigeria, there is a changing relationship between multinational companies and communities where they operates. The impact of their operational activities on the environment of these communities has come under intense scrutiny.

        Corporate social responsibility of public relations of multinational companies in Nigeria. In all its shades is a fast growing concept with little attention paid to its linguistic under tone. It is not uncommon in the literature, and in practice for corporate social responsibilities discourses to be overly constructed along such moral ends as philanthropy (Carroll, 2004) and altruism (Lantos, 2001). Despite the needs for business to morally conducted. One of the primary concerns of corporate social responsibility debates is whether organizations pursue it for economic reasons or simply because doing so has intrinsic merit. Unfortunately there have been few or no empirical test in support of intrinsic merit, motives which corporate social responsibility of public relations in multinational companies in Nigeria practice susceptible.

1.2   STATEMENT OF THE PROBLEM

        Over the past ten years now, corporate social responsibility has blossomed as on idea, if not as a coherent practical program. Corporate social responsibility commands the attention of executives everywhere. If their public statements are to be believed and especially that of the managers of multinational companies.

        But what does it all amounts to really? The general public, oddly enough, are disappointed. They are starting to suspect that they have been conned, the civil society advocates of corporate social responsibility increasingly accuse firms of merely paying lip-service to the idea of good corporate citizenship. Firms are still mainly interested in making money, they note disapprovingly. Whatever the chief executive officer (CEO) may in the annual report when commercial interest and boarder social welfare collide, profit comes first.

        Corporate social responsibility was always intended to be more about how multinational companies conduct themselves in public relations to “stakeholders” (such as workers, consumers, the broader society in which firms operate and as it often argued, future generations) than about straight forward gifts to charity. Seen that way, donations, large or small are not the main thing.

        Many of these are expressly intended to help profits as well as do well. It is unclear whether this kind of corporate social responsibility quite counts. Some regard it as “Win-Win” and something to celebrate, others view it as a sham, the same old tainted profit motive masquerading as altruism. This study shall examine the corporate social responsibility of Nigeria companies in order to detect the exact motive of this practice.

1.4    RESEARCH QUESTIONS

        This research work shall be guided by the following research questions.

Does corporate social responsibility have any socio-economic and environmental impact of oil exploration on the community?

How does corporate social responsibility influence employee’s commitments?

Perceived contribution of government and oil companies to the development of the communities.

Impact of oil operations on the Niger Delta communities.

Does the practice of corporate social responsibilities impacts on the financial performance of an organization and relations with community’s perception of oil companies?

1.3    PURPOSE OF THE STUDY

        The main purpose or objective of the study is to examine the practice of corporate social responsibility of multinational companies in Nigeria with case study of Nigeria Gas Company while the specific purposes are;

To get insights about the corporate social responsibility practice on community development and its implications to both economic and environmental bottom lines.

To investigate the relationship between corporate social responsibility and financial performance.

To examine the impact of corporate social responsibility on the employee commitment.

To identify the social responsibilities of Nigeria Gas Company on the environment and whether they have been met.

To identify the developmental needs of the communities where the multinational oil companies especially Nigeria Gas Company operate and whether these needs have been met.

1.5   SCOPE OF THE STUDY

        The scope of this research would encompass the practice of corporate social responsibility and its impacts. The impacts of social services by corporation shall be examined in public relations to financial performance employee commitment, and community development. The study shall be focused on Nigeria Gas Company and the perceptions of its staffs and residents of its location in Odin Ekpan, Warri of Delta State shall be soughed for the purpose of this research work.

1.6   SIGNIFICANCE OF THE STUDY

        Corporate social responsibility is not a new issue. The social responsibility of any multinational companies was not widely considered to be a significance problem from Adam Smith’s time to the great depression. But since the 1930s and increasingly since the 1960s, social responsibility has become an important issues not only for multinational companies but in the theory and practice of law, politics and economics. There has been debate over the beneficiaries of social services of an organization: writers argue that corporate social responsibility in multinational companies is for community development while others opposed that it is a profit-making gimmicks.

        This study is significant in the following ways;

It would analyze the practice of corporate social responsibilities and try to discovers its real essence;

It would also help to explore the impact of corporate social responsibility on employee’s commitment if at all there is a relationship between the two concepts in reality.

It shall disentangle the relationship between social responsibility practice and the performance of firms.

It would examine the implications of corporate social responsibility there by enabling corporate managers appreciate its importance.

The study would also reveal the perceptions of the beneficiaries of the corporate social responsibility of company’s towards other companies.

1.8   LIMITATIONS OF THE RESEARCH

        Languages:

There are several local languages spoken in different parts of the Niger-Delta areas. Pidgin English, which is a local variant of English is spoken amongst the communities and well understood by many people in the areas concerned. There may be several cultural nuisances which may not be easily and sufficiently addressed by interpretations.

1.7   OPERATIONAL DEFINITION OF TERMS

Corporate: corporate is a business entity whose operations are recognized by the law. It is often regarded as a separate and independent entity and its vision and mission are profit making.

Social Responsibility: social responsibility can be viewed as a part of the social contract that is the responsibility of each entity whether it is state, government, corporation, organization or individual that they are contributing to society at large or on a smaller scale.

Employee Commitment: is the relative strength of an individual’s identification with an involvement in a particular organization.

Public Relations: is a management functions which tabulates public attitudes, defines the policies procedures and interest of an organization fall owed by executing a program of action to earn mutual understanding and acceptances.

Financial Performance: this is the measure of an organization’s effectiveness in terms of the returns of the company at the end of a financial period. It is often based on figures declared.