Journal of MMIJ (Jul 2022)
The Effects of CSR in Resource-rich, Developing Countries (2)
Abstract
The Federal Republic of Nigeria (herein after referred to as “Nigeria”) is the largest oil producing country in Africa and 13th in the world. However, community development is delayed especially in the Niger Delta where oil is produced. In this situation, many CSR community development projects of multi-national oil development companies (herein after referred to as “companies”) are implemented there. Frynas (2005) suggested that if the government’s community development (herein after referred to as “development”) is insufficient, people turn to companies for such development. It also suggested that, in general, CSR doesn’t succeed in its role, but if CSR were successful, this might ease the pressure on the government to undertake a development role. Sakata (2020) studied this by interviewing people in Nigeria, however, the sample size was not large enough and more study was required. In this study, Nigerian people in a sufficient sample size were interviewed to determine the ratio of people’s expectations of development by companies and government inside and outside of the Niger Delta, and the reasons for people’s expectations for each, in order to examine the factors of people’s high expectation for companies in the Niger Delta and occurrence of pressure reduction on the government. The study indicates that people’s expectation of development by companies is higher in the Niger Delta than in other areas, and that the most common reason for expectation of development by companies is “demand of compensation for using land and oil and causing environmental pollution in Nigeria by companies”, rather than “reliance on companies’ ability and resignation over the government’s inability to provide development”, which suggests that the factors of high expectation for the companies in the Niger Delta are the insufficient government’s development and the people’s idea that the companies should compensate to the communities and people who are suffered from the oil development in the Niger Delta. In addition, the study indicates that most people recognize that the government has a responsibility for development even though they expect development by companies, which suggests that the reduction in the pressure on the government is limited.
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