Multinational Corporations and Social Responsibilities Discharge: Ethical Appraisal in Nigeria's Oil/Gas Communities

Abstract

This paper examined ethical perspectives and implications of corporate social responsibility (CSR) applications in the Niger Delta region of Nigeria. The region is the hub of oil/gas operations by multinational corporations. Multinational corporations (MNCs) are generally companies engaged in large scale production or marketing of products (goods) and services, with operations spread across nations. Besides statutory responsibilities in payment of required taxes, royalties, dividends and wages, these corporations fund development activities of their host communities through corporate social responsibility functions. Over the years, CSR activity has grown in size, perspectives, strategies and funding especially within host oil/gas communities. CSR application has also thrown up challenges in its implementation and effectiveness trailed by allegations of indefiniteness, corruption, subjectivity and illegality. For methodology, this work adopted the use of qualitative approaches drawing heavily from literature reviews of primary and secondary sources with noted empirical observations. Paper observed that the question of ethics and integrity which are key in any relationship is typically lacking amongst stakeholders involved in the discharge of CSR functions. The consequences have included company - community conflicts and crises, financial corruption, youth restiveness, asset vandalization, project failures and abandonments, all impacting negatively on community development and oil/gas operations. Going forward, paper proposes an articulated ethical approach that copiously entrench transparency and equity in business relations, financial and social accountability, respect for extant laws and agreements, stakeholdership inclusion and application of mutuality principles in CSR discharge processes by parties in relationship.