The Effect of Corporate Social Responsibility on the Performance and Growth of the Oil & Gas Industry in Nigeria a Case Study of Nigeria LNG Limited

52 Pages Posted: 10 Mar 2016

See all articles by Samuel Ajayi

Samuel Ajayi

Shell Nigeria LNG, Bonny Island.

Loveth Ovharhe

Nigerian LNG Limited

Date Written: March 9, 2016

Abstract

Corporate Social Responsibility (CSR) is a highly volatile and sensitive issue in Africa especially in the oil producing nations like Nigeria, where the deltaic region of the South East and South South part of the country have been involved in constant unrest with the multinational oil and gas corporations operating in these regions. Even though there are legislations and government decrees to enforce CSR compliance, these are violated with impunity and the government is at the mercy of these multinationals to provide employment and other economic benefits of their operations at the expense of the community wellbeing and safe and clean environment.

A caring and responsible organization recognizes that its economic activities have deeper impact on the people and environment in which it operates. Therefore necessary attention is given on the economic, social, and environmental & human rights impact of its activities on all stakeholders. Although Nigeria is described as a favorable business haven for investors in oil and gas, but the neglect of CSR by some companies operating in the oil rich Niger delta area has led the region to a volatile and hostile environment to operate safely and productively.

It is in recognition of this challenge that made the owners and management (Nigeria National Corporation Company (NNPC); Shell Petroleum Nigeria; Total and Agip) of Nigeria LNG Limited right at the onset put in place a robust and proactive CSR strategy that endears the company to its immediate community and Nigerians as a caring and socially responsible company.

This research examines how Nigeria LNG uses CSR as a key strategy in creating an enabling environment that fosters support from all her stake holders which has led to good performance and growth of the company. This paper tries to bring out CSR initiatives taken by NLNG in Nigeria that made her stands out as role model with regards to CSR in Nigeria.

An exploratory research design was chosen in order to develop a profound understanding of the research topic and to obtain in-depth data about the research objectives. All main elements of the research paper, comprising theory, findings and analysis were incorporated in a cohesive and expository manner and structured in order to address and evaluate the central research objectives and hypotheses appropriately.

Keywords: CSR, Corporate, Nigeria Oil & Gas industry; Niger Delta

JEL Classification: M14

Suggested Citation

Ajayi, Samuel and Ovharhe, Loveth, The Effect of Corporate Social Responsibility on the Performance and Growth of the Oil & Gas Industry in Nigeria a Case Study of Nigeria LNG Limited (March 9, 2016). Available at SSRN: https://ssrn.com/abstract=2745079 or http://dx.doi.org/10.2139/ssrn.2745079

Samuel Ajayi (Contact Author)

Shell Nigeria LNG, Bonny Island. ( email )

NLNG Ltd.
Bonny Island
Bonny, Rivers PC 503
Nigeria
+2348132933533 (Phone)

HOME PAGE: http://nlng.com

Loveth Ovharhe

Nigerian LNG Limited ( email )

Plant site Bonny Island
vis Port Harcourt
Bonny, Rivers 0234
Nigeria

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