The oil and gas industry is one of the largest industries in the world. International Energy Agency estimates that in the next 25 five years, an overall $3 trillion global worth of investment is likely to be made in this industry. Astonishingly, this large investment accounts for only 6% or lesser of the expected revenues during the next 25 years from this industry (McPherson and MacSearraigh 2007). The gross oil and gas sales revenue are estimated to be $1.5 trillion per year. Moreover, since the oil and gas commodities are sold multifold within a supply chain, the volume of worldwide oil and gas trade is even much bigger. Due to the large volume of oil and gas revenues, this industry is often directly linked to the economic and social wellbeing of nations. For a foreign business operating within oil and gas industry in overseas market to bolster its relationships with its stakeholders to sustain its growth and profitability, it is crucial that its activities are perceived to instigate economic and social wellbeing for the nation.
The global demand for oil and gas continues to increase due to the rising income level and population in most of the developing countries. Due to the rising demand of oil and gas commodity, the control over oil and gas resources can be a concrete source of enrichment and driver for development. However, the very reason that makes oil and gas business such a high value industry also makes it prone to controversies, bad governance, corruption and driver of conflict. Many oil and gas rich countries including Nigeria, Indonesia, Sudan, Liberia, and Bolivia among many others are salient examples of this contention. The matter of controlling these valuable natural resources and the right over the revenues generated from them is the cause of varying conflicts. It is reflected through the fact that throughout the 20th century and most of the 21st century, most of the developing nations of the world rich in oil and gas were marred by high level of political instability as well as high level of poverty and underdevelopment (Karl, 1997; Ross, 2001; Eifert et alet al. 2002). By being at the helm of affairs, foreign oil and gas companies operating in these regions are often viewed as part of the problem.
Table of Contents
1. Introduction
2. Societal Perception of Foreign Oil and Gas Companies
2.1 Corruption
2.2 Lack of Social Responsibility
2.3 Background of the Niger Delta in Context of Oil and Gas Company
2.4 Organizational Reasons for Corporate Social Responsibility
2.5 Profit Maximization and CSR
2.6 Perception of Corporate Social Responsibility Activities
2.7 Understanding the Challenges
2.7.1 Globalization
2.7.2 Resource Curse
2.7.3 Micro Level
2.8 Key Questions in Managing Oil and Gas Projects
2.9 Socio-Economic Impacts of Oil Production as Conflicts in Niger Delta
3. Summary of the Literature Review
4. Research Methodology
4.1 Research Philosophy
4.2 Evaluation of Using Qualitative and Quantitative Research
4.3 Data Collection
4.3.1 Structured Interviews
4.4 Population of the Study
4.5 Sampling Techniques
4.6 Research Instrument
4.7 Administration of Instrument
4.8 Scoring of the Instrument
4.9 Procedure for Data Analysis
5. Findings
6. Discussion
7. Conclusion
Research Objectives and Themes
The primary objective of this research is to evaluate the societal perception of Shell in Nigeria, specifically regarding its corporate social responsibility (CSR) initiatives. The study aims to identify how foreign oil and gas operations are viewed by both internal stakeholders (employees) and external members of the general public, particularly within the conflict-prone Niger Delta region, to determine if these perceptions align with corporate agendas.
- The impact of CSR on the societal perception of multinational oil and gas firms.
- The link between corporate profit maximization strategies and social/environmental consequences.
- Evaluation of stakeholder grievances in the Niger Delta regarding pollution, human rights, and transparency.
- Comparative analysis of perspectives held by employees versus the general public.
- Assessment of the effectiveness of government regulatory bodies in the oil sector.
Excerpt from the Book
Background of the Niger Delta in Context of Oil and Gas Company
The brutality of Shell in Nigeria is another irresponsibility case which is discussed to a great extent. Shell is the main functioning oil and gas multinational in this country. The company has been stained with extremely bad allegations in terms of pollution and human rights violation. One of the most severe accusations was that it flared the natural gas at its operations’ areas. Experts assert that Shell has flared as much as 76% of all gas extracted in Nigeria (in US, flaring accounts for only 0.6% while in UK it accounts of 4.6% of the total extracted gas). This notorious act emitted thick fumes of black smoke, toxic chemicals, dangerous pollutants, intense heat, and a tainted odour which can be smelled from far distances, contributes in acid rain to a great degree (Clark et alet al. 1999).
Furthermore, in Nigeria, incidents of oil spills and leakages in pipelines at oil and gas extraction sites have been reported. It is reported that due to the old and worn out pipelines, there are as much as three significant oil spills in Niger Delta every month during recent years. Referring to the oil spills, in the year 1998, there was a pipeline explosion which took about 700 lives in Niger Delta.
Chapter Summaries
Introduction: This chapter contextualizes the global oil and gas industry, highlighting the massive investments involved and the resulting social and political tensions in developing nations like Nigeria.
Societal Perception of Foreign Oil and Gas Companies: This section explores the theoretical and practical dimensions of CSR, focusing on corruption, the resource curse, and the specific historical and environmental challenges faced by the Niger Delta.
Summary of the Literature Review: This chapter synthesizes the previously discussed macro-level factors and industry-specific issues to establish a clear gap between corporate goals and societal needs.
Research Methodology: This chapter outlines the study's interpretivist philosophy, justifying the use of structured interviews as the primary tool to gather qualitative and quantitative data from employees and the public.
Findings: This chapter presents the raw data gathered from the structured interviews, categorizing responses based on respondent demographics and specific questions related to CSR and company operations.
Discussion: This section provides a detailed analysis of the gathered data, offering statistical insights into how employees and the public perceive Shell's commitments and operational ethics.
Conclusion: This final chapter synthesizes the key findings, confirming that the public perception of Shell in Nigeria is predominantly negative, while employees generally maintain more neutral or unaware stances.
Keywords
Corporate Social Responsibility, CSR, Shell, Nigeria, Niger Delta, Oil and Gas Industry, Societal Perception, Resource Curse, Environmental Degradation, Stakeholder Management, Profit Maximization, Human Rights, Transparency.
Frequently Asked Questions
What is the core focus of this research?
This research evaluates the societal perception of Shell, a foreign oil and gas multinational, in Nigeria, focusing on how its corporate social responsibility practices are viewed by employees and the general public.
What are the primary thematic areas investigated in the study?
The study covers corporate governance, the impact of oil extraction on the Niger Delta's ecosystem, the efficacy of CSR policies, political instability, and the role of transparency in building stakeholder trust.
What is the ultimate research objective?
The objective is to determine if Shell’s CSR practices create a positive social image, and to identify the extent to which grievances held by communities in the Niger Delta are shared by the wider Nigerian society.
Which scientific methodology was employed?
The study adopts an interpretivist research philosophy and utilizes a survey-based approach, specifically employing structured interviews to collect primary data from employees and members of the public.
What does the main body of the work address?
The main body examines existing literature on CSR, the specific background of the Niger Delta, the theoretical conflicts between profit maximization and social obligations, and the detailed analysis of survey responses.
Which keywords characterize this research?
Key terms include Corporate Social Responsibility, Oil and Gas Industry, Niger Delta, Resource Curse, Stakeholder Perception, and Environmental Degradation.
How does the author apply Machiavellian theory to modern corporations?
The author uses Machiavelli's principles to argue that modern corporations, much like princes, must secure the goodwill of their 'subjects' (stakeholders and communities) to ensure their own long-term survival and continued operations.
What is the specific finding regarding the 'Resource Curse' in Nigeria?
The findings indicate that a significant majority of the surveyed public members agree with the notion of the 'resource curse,' feeling that the presence of natural resources has negatively impacted the economic and social well-being of their nation.
- Arbeit zitieren
- Kalekye Ndungu (Autor:in), 2011, Societal perception of foreign businesses in Nigeria., München, GRIN Verlag, https://www.grin.com/document/267045
