Multinational Corporations (MNCs) have overtime been involved in community development process of their host communities. How CSR and its attendant MoU which the oil MNCs entered into with the host communities should be defined and implemented has been a contentious debate among scholars and development practitioners. In Niger Delta region of Nigeria, the failure of the government to meet the development needs of the communities has made them to depend largely on the oil MNCs to fill the development gap. Total E and P Nigeria Ltd is one of the major Oil MNCs in the Niger Delta with major operations in Akwa Ibom and Rivers States. The company is said to have entered into MoU with its host communities. The question is, how has the company contributed to the development of these communities through its CSR/MOU policies?
Consequently, this study was guided by four research questions and four null hypotheses. The study is anchored on two CSR theories: the theory of participatory development and the Stakeholders Theory by Freeman. The research design adopted was mixed methods research which entails quantitative and qualitative methods involving survey and archival as well as utilizing Questionnaire, In-depth-Interview, Focus Group Discussion (FDG) and Observation were used as instruments for data collection. The study revealed that there is no variation in the strategies of Total E and P Ltd in community development in its host communities in Akwa Ibom and Rivers States; that the company adopts the strategy of entering MoU with the host communities, mobilization of local resources such as the use of local skills and contractors, that the rate of the involvement of the local people in the CD process is low, that the company has been able to fill the infrastructural gap in the host communities through the provision of electricity, health care, educational facilities and scholarships, and supply of portable water.
Table of Contents
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Research Questions
1.4 Objective of the Study
1.5 Research Hypotheses
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Clarifications of Terms
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Literature
2.1.1 Community Development
2.2 An Overview of Oil Multinational Corporations and Community Development in the Niger Delta
2.3 Contemporary Literature
2.3.1 The Millennium Development Goals (MDGs)
2.3.2 Memorandum of Understanding (MoU)
2.4 Review of Community Development Policies by Total
2.4.1 Total’s Operations in Nigeria
2.4.2 Total’s Mission Statement and Commitment to Host Communities
2.4.3 Total’s Approach to Community Stakeholder Management
2.4.4 Total’s Community Relations Activities in Host Communities
2.4.5 Total’s Community Engagement Activities: The Metamorphosis
2.4.6 Total Corporate Social Responsibility (CSR) Policy
2.4.7 Total Corporate Social Responsibility (CSR) Profile
2.4.8 Summary of Total’s Activities in Nigeria Based on the Archival Enquiry
2.5 Empirical Literature
2.6 Theoretical Framework
2.6.1 Stakeholders Theory
2.6.1.1 Rationale and Principles of Participatory Approach
2.6.1.2 Basic participatory tools
2.6.1.3 Development of Niger Delta Communities using Participatory Theory
2.6.2 Participatory Development Theory
2.7 Summary of Literature Review
CHAPTER THREE: METHODOLOGY
3.1 Research Design
3.2 Research Area
3.3 Population of the Study
3.4 Sample Size and Sampling Technique
3.5 Instrument for Data Collection
3.6 Validity and Reliability of Instrument
3.7 Administration of Instrument
3.8 Method of Data Analysis
3.9 Limitations of the Study
3.10 Ethical Issues
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Data Presentation and Analysis
4.2 Test of Hypotheses
4.3 Discussion of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
5.4 Contribution to Knowledge
5.5 Suggestion for Further Research
Research Objectives and Themes
This thesis aims to critically evaluate the efficacy of community development strategies implemented by Total E and P Nigeria Ltd in the Niger Delta region. It examines the extent to which these corporate initiatives, primarily executed through Memorandums of Understanding (MoUs), effectively address local socio-economic challenges, promote sustainability, and foster genuine stakeholder participation rather than mere corporate compliance.
- Corporate Social Responsibility (CSR) policies and their impact on community development.
- The effectiveness and implementation of Memorandums of Understanding (MoUs) between MNCs and host communities.
- The role of stakeholder engagement and participatory development models in resource-rich regions.
- The interplay between governmental policy, oil industry activities, and local infrastructural and economic needs.
- Challenges to sustainable development, including environmental degradation, corruption, and youth unrest.
Excerpt from the Book
2.4.3 Total’s Approach to Community Stakeholder Management
According to Total’s archives studied, Total classifies host communities as those whose lands the company has oil mining license and active Oil and Gas exploration and mining activities (Total, 2007a; Total, 2011a). To corroborate this method of classifying stakeholders, it was also found in archive materials that in terms of mapping for effective stakeholder management (as in Carroll, 1989) Total, groups communities based on the company’s license registrations for specific geographic areas - for example, the OML85 communities, OPL35 communities and many others, were phrase used in the archive documents studied (Total, 2011a; Total, 2013). These codenamed communities are where Total has its upstream onshore activities.
Apart from the upstream host communities, there are the pipeline communities; and in its offshore/Deepwater activities, Total has coastline communities as well (Total, 2011a). Total classifies its coastline communities based on the names of the affected local government areas. In practice, despite the different classifications, Total considers the upstream onshore host communities as its main stakeholders whereas the pipeline and coastline communities are considered secondary stakeholders. As observed theoretically, it can be established that Total classifies its host communities based on primary and secondary host communities (Carroll and Buchholtz, 2009).
Summary of Chapters
CHAPTER ONE: INTRODUCTION: This chapter establishes the research problem regarding the impact of Multinational Corporations' activities on Niger Delta communities, outlining research questions, objectives, and the study's scope.
CHAPTER TWO: REVIEW OF RELATED LITERATURE: This section provides a theoretical foundation by reviewing concepts such as Community Development, CSR, sustainable development, and participatory theory, while also analyzing the specific context of the Nigerian oil industry.
CHAPTER THREE: METHODOLOGY: This chapter details the mixed-methods research design, including survey data collection and qualitative analysis, used to investigate Total E and P's community relations and development efforts.
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS: This chapter presents the empirical results, including mean ratings and hypothesis testing, to evaluate the effectiveness of Total's community development strategies and the level of local participation.
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS: This final chapter summarizes key findings, draws conclusions regarding the sustainability of Total's initiatives, and proposes policy recommendations to improve community-corporate relations.
Keywords
Multinational Corporations, Community Development, Corporate Social Responsibility, Niger Delta, Memorandum of Understanding, Stakeholder Management, Sustainable Development, Oil and Gas, Host Communities, Participatory Development, Local Content, Stakeholder Theory, Community Participation, Environmental Management, Infrastructure Projects.
Frequently Asked Questions
What is the core focus of this research?
This research focuses on the impact of community development strategies and Corporate Social Responsibility (CSR) policies implemented by Total E and P Nigeria Ltd in host communities within the Niger Delta between 2009 and 2019.
Which theoretical frameworks are used in this study?
The study is primarily anchored on two theoretical frameworks: the Stakeholders Theory, popularized by Freeman, and the Participatory Development Theory, which emphasizes involving local populations in development initiatives.
What is the primary research goal?
The primary objective is to evaluate Total's capacity as a multinational corporation to generate sustainable development initiatives and to identify whether their policies truly benefit the host communities in Akwa Ibom and Rivers States.
How is the data collected for this study?
The research employs a mixed-methods approach, combining quantitative survey data with qualitative insights from in-depth interviews, Focus Group Discussions (FGDs), and an extensive review of company archives and official reports.
What are the main thematic areas covered in the analysis?
The analysis covers the strategies of Total E and P regarding community development, the socio-economic impacts of their projects, the level of community involvement in decision-making, and the challenges faced during the implementation of these CSR initiatives.
What characterizes the findings regarding Total's CSR performance?
The study finds that while Total has completed various projects, the communities often rate the overall impact and level of involvement as low, citing issues with sustainability, lack of transparency, and the use of the MoU as a tool for corporate interests rather than community development.
How does the research define the "Mediante Stakeholders"?
The author identifies "Mediante Stakeholders" as a unique group positioned in the overlap between internal and external stakeholders, characterized by their high level of access to confidential information and their ability to bridge the divide between company operations and community life.
What does the study conclude about the Memorandum of Understanding (MoU)?
The research concludes that while MoUs serve as a framework for managing relations, they are often manipulated by corporations as defensive, non-binding documents that prioritize corporate legal protection over genuine, sustainable development for the host communities.
- Quote paper
- Kenneth Ebong (Author), 2021, Multinational Corporations and Community Development. A Study of Total E and P Nigeria Ltd in the Niger Delta (2009-2019), Munich, GRIN Verlag, https://www.grin.com/document/1149118
