This study evaluates the effectiveness of Corporate Social Responsibility (CSR) policies in promoting ethical business practices and contributing to sustainable development in the oil and gas industry. The research primarily utilizes secondary data from literature, reports, and websites of leading oil and gas companies, alongside United Nations initiatives in CSR. Six organizations were selected as case studies: Shell, ExxonMobil, TotalEnergies, Chevron, Nigeria LNG, and Niger Delta Power Holding Company Ltd. Among these, four are multinational corporations, while two are government-owned entities operating in the Niger Delta region of Nigeria.
The analysis focuses on evaluating the CSR and social investment programs implemented by these organizations and their impact on achieving sustainable development goals (SDGs) and fostering ethical business practices. The findings provide insights into the effectiveness of these initiatives in addressing social, environmental, and economic challenges in the region, highlighting areas of success as well as opportunities for improvement.
The research identified that each organization has specific areas of focus based on its competitive advantage, capabilities, and capacity to deliver. While some organizations demonstrated consistency in reporting their programs, milestones, and achievements, others had outdated information, making it difficult to assess their effectiveness and consistency in delivering CSR programs and implementing sustainability policies. The study underscores the importance of regular and transparent reporting to accurately measure the impact of CSR initiatives.
Table of Contents
- Abstract
- Background
- Research Question
- Understanding Corporate Social Responsibility
- Methodology
- Conclusion
- References
Objectives & Key Themes
This study aims to evaluate the effectiveness of Corporate Social Responsibility (CSR) policies in promoting ethical business practices and contributing to sustainable development specifically within Nigeria's oil and gas sector. The research investigates how these policies and programs address social, environmental, and economic challenges in the Niger Delta region.
- Assessment of CSR policies in Nigeria's oil and gas industry.
- Promotion of ethical business practices through CSR.
- Contribution of CSR to sustainable development goals (SDGs).
- Analysis of CSR programs of major oil and gas companies (Shell, ExxonMobil, TotalEnergies, Chevron, Nigeria LNG, Niger Delta Power Holding Company Ltd.).
- Examination of challenges and opportunities in aligning CSR with global sustainability standards in a local context.
- Importance of transparent and consistent reporting for CSR effectiveness.
Excerpt from the Book
UNDERSTANDING CORPORATE SOCIAL RESPONSIBILITY (CSR)
Through corporate social responsibility programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands. A socially responsible company is accountable to itself and its shareholders. CSR is commonly a strategy employed by large corporations. The more visible and successful a corporation is, the more responsibility it has to set standards of ethical behaviour for its peers, competition, and industry.
Types of CSR
Environmental responsibility: Corporate social responsibility is rooted in preserving the environment. A company can pursue environmental stewardship by reducing pollution and emissions in manufacturing, recycling materials, replenishing natural resources like trees, or creating product lines consistent with CSR.
Ethical responsibility: Corporate social responsibility includes acting fairly and ethically. Instances of ethical responsibility include fair treatment of all customers regardless of age, race, culture, or sexual orientation, favourable pay and benefits for employees, vendor use across demographics, full disclosures, and transparency for investors.
Philanthropic responsibility: CSR requires a company to contribute to society, whether a company donates profit to charities, enters transactions only with suppliers or vendors that align with the company philanthropically, supports employee philanthropic endeavours, or sponsors fundraising events.
Financial responsibility: A company might make plans to be more environmentally, ethically, and philanthropically focused, however, it must back these plans through financial investments in programs, donations, or product research including research and development for products that encourage sustainability, creating a diverse workforce, or implementing DEI, social awareness, or environmental initiatives.
Chapter Summaries
Abstract: This section outlines the study's objective to evaluate CSR policies in promoting ethical business practices and sustainable development in Nigeria's oil and gas sector, primarily using secondary data from six case study organizations.
Background: This chapter defines Corporate Social Responsibility and its increasing importance, especially in Nigeria's oil and gas sector, highlighting the industry's historical negative impacts and the growing need for CSR initiatives aligned with Sustainable Development Goals.
Research Question: The core research question is presented, focusing on evaluating the effectiveness of CSR policies in promoting ethical business practices and contributing to sustainable development in Nigeria's oil and gas sector.
Understanding Corporate Social Responsibility: This section provides a comprehensive overview of CSR, including its definition as a self-regulating business model and a detailed breakdown of its four key types: environmental, ethical, philanthropic, and financial responsibilities.
Methodology: The methodology details a desk research approach, utilizing secondary data from six major oil and gas companies operating in the Niger Delta region, outlining specific parameters used to measure the effectiveness of their CSR policies across various impact domains.
Conclusion: This chapter summarizes that while all companies contribute to sustainable development through CSR, there is a critical need for greater consistency and transparency in reporting their sustainability efforts to allow for accurate impact assessment.
Keywords
Corporate Social Responsibility (CSR), Nigeria, oil and gas sector, ethical business practices, sustainable development, Niger Delta, environmental responsibility, social investment, UN Sustainable Development Goals (SDGs), stakeholder engagement, transparency, policy effectiveness, community impact, compliance and governance.
Frequently Asked Questions
What is this study fundamentally about?
This study fundamentally evaluates the effectiveness of Corporate Social Responsibility (CSR) policies in promoting ethical business practices and contributing to sustainable development within Nigeria's oil and gas sector.
What are the central thematic areas?
The central thematic areas include CSR policies, ethical business practices, sustainable development, the Nigerian oil and gas industry, and the impact of corporate social investment programs on local communities and the environment.
What is the primary objective or research question?
The primary objective and research question is to evaluate the effectiveness of corporate social responsibility (CSR) policies in promoting ethical business practices and contributing to sustainable development in Nigeria's oil and gas sector.
Which scientific method is used?
The study primarily employs desk research, utilizing secondary data from literature, reports, and websites of leading oil and gas companies, along with United Nations initiatives on CSR.
What is covered in the main body?
The main body covers a detailed background on CSR in Nigeria's oil and gas sector, the research question, an in-depth understanding of CSR and its types, the methodology for assessing CSR effectiveness across various parameters, and an analysis of the CSR activities of six selected companies.
Which keywords characterize the work?
Key terms characterizing the work include Corporate Social Responsibility, Nigeria, oil and gas sector, ethical business practices, sustainable development, Niger Delta, and UN Sustainable Development Goals (SDGs).
What specific challenges do Nigerian oil and gas companies face in aligning CSR with global standards?
Nigerian oil and gas companies face challenges in aligning their CSR activities with global sustainability policies while also considering local contexts and factors such as PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) that heavily influence CSR design and implementation.
Which companies were chosen as case studies, and what was their contribution assessment?
Six organizations were selected as case studies: Shell, ExxonMobil, TotalEnergies, Chevron, Nigeria LNG, and Niger Delta Power Holding Company Ltd. Their contributions were assessed across domains like Community Impact, Environmental Impact, Economic Impact, Compliance and Governance, Employee Engagement, and Social Equity & Inclusion.
What are the core principles of ISO 26000 as discussed in the paper?
The core principles of ISO 26000, as discussed, are Accountability, Transparency, Ethical Behaviour, and Respect for Stakeholders' Interests, all emphasizing an organization's responsibility towards society, the economy, and the environment.
How does the study suggest addressing the issue of inconsistent CSR reporting?
The study recommends that the government consider providing incentives such as tax breaks, public recognition, or regulatory benefits to oil and gas companies to prioritize their CSR programs and ensure consistent, transparent reporting of sustainability efforts.
- Citation du texte
- Opeyemi Ipinnaiye (Auteur), 2024, The effectiveness of corporate social responsibility (CSR) policies in promoting ethical business practices and contributing to sustainable development in Nigeria’s oil and gas sector, Munich, GRIN Verlag, https://www.grin.com/document/1611552
