ANALYSIS ON THE IMPACT OF SOCIAL RESPONSIBILITIES OF OIL COMPANIES IN THE HOST COMMUNITIES IN THE NIGER DELTA REGION OF NIGERIA: A CASE STUDY OF SHELL PETROLEUM DEVELOPMENT COMPANY

ABSTRACT

This contains the impact of social responsibilities of Oil Companies in the host communities of the Niger Delta region of Nigeria: A case study of shell petroleum Development Company. It is true that most corporate organizations especially multinational companies are not living up to expectation in solving the problems contributed in the region by their activities. Their oil exploration had causes pollution in the area, which has caused untold hardship to the people. Thus, the objective of the study was to explore how best to use the practice of public relations in solving these challenges. Both primary and secondary data were collected. Instrument used to collect primary data were personal interviews, questionnaires and observation. Secondary data were collected from textbooks, journals, magazines, newspaper and libraries. Questionnaires administration and interview methods were the principal methods used for collecting data. Descriptive research methods and survey technique were adopted by the researcher. The research findings of the project work reviewed that social responsibilities programmes are necessary. The findings also unyield that shell company earnies out its social responsibility programmes in its host community. The researcher recommended that the company should increase and expand its social responsibility programmes and government should help in the development of the communities in which most multinational companies exist.

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 Aidtoeducation plan under which they pledged to provide 900,000, 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 Nigerias 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 theenvironment 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 interdependent 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.

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.