CSR and inequality in the Niger Delta (Nigeria)

Abstract

Purpose -The international awareness of corporate social responsibility (CSR) issues and the socio-political context of emerging countries are increasing the pressure on businesses, including multinational corporations, to take another look at their societal role. In a context of state failure (immature institutions), paying taxes can guarantee neither the peaceful management of company operations nor the sustainable development of local communities. Moreover, multinationals have experienced that making resources and opportunities available to local communities is not enough. The Niger Delta in Nigeria is, in this regard, a textbook case that demonstrates the challenge of achieving sustainable development in the context of acute inequalities. This paper seeks to address these issues.Design/methodology/approach -Drawing on fieldwork -quantitative and qualitative surveyscarried out in Nigeria for the past seven years, the paper builds on initiatives and approaches undertaken by Total, Agip and NPDC/Shell, consistent with their understanding of their role in society.Findings -Inequalities and imbalances (income, gender, inter-regional, sector-based) ferment frustrations and nurture insecurity and violence in the Niger Delta, therefore hindering sustainable development. As far as the relationship between oil companies and communities is concerned, the authors argue that oil multinationals have to foster an approach that targets the reduction of those exceptional inequalities for which they are partly responsible, as revealed with the ''double effect'' principle.Originality/value -Whereas CSR has been so far mainly studied as a management issue, this paper brings broader views and analyzes ethical, cultural and economic dynamics that underlie the acceptability of companies in their environment, in the specific context of the Niger Delta.

A Cross-Cultural and Feminist Perspective on CSR in Developing Countries: Uncovering Latent Power Dynamics

“…For example, power derived from being on the receiving end of CSR initiatives may foster inequalities between and within communities and therefore incite opposition and targeted violence (Renouard and Lado 2012;Rwabizambuga 2007), and it may also foster distrust of community elders (Idemudia 2007). Furthermore, feminist scholars have also questioned the very structures upon which the CSR strategies of MNCs are based.…”

A review of diversity management in Nigeria: Organizational and national perspective

“…In this, I refer to development projects organized by governments, through the local representatives, in collaboration with MNCs and other non-governmental agencies. As highlighted in the study of Renouard and Lado (2012) these projects are most often than not in the case of Nigeria, solely left for the MNCs operating within a community. Thereby, creating the debate as to what should be done by the government vs the MNCs operating within a community (Frynas, 2005;Renouard and Lado, 2012).…”

“…In spite of the community related projects, revenue allocations and taxes allocated to the state institutions, MNCs are perceived to magnify gender, income, regional and sector-based inequalities in the Niger Delta region of Nigeria (Renouard and Lado, 2012) as they pay staff higher than other corporations in the region. These arguments (Otusanya, 2011;Renouard and Lado, 2012;Rhuks, 2012) on the roles and influence of MNCs in the Nigerian context are comparable to the debates on MNCs in host countries. However, the positive qualities introduce their capability to act as development agencies in the Nigerian context.…”

“…These processes include other relevant social systems that exist as strategic processes for national development in the Nigerian society (Duke, 2010). They are equality and opportunities for all, employment and socio-economic processes, a stable political structure, and community development (National Planning Commission, 2007;Benjamin and David, 2012;Renouard and Lado, 2012;Tobey and Perera, 2012). Consequently, Diagram 1 highlights national development indicators in the Nigerian context.…”

“…Thereby, creating the debate as to what should be done by the government vs the MNCs operating within a community (Frynas, 2005;Renouard and Lado, 2012). In addition, other stakeholders who engage in these proactive roles in partnership with the government include NGOs and international agencies like the United Nations (Renouard and Lado, 2012).…”