Analysis On The Impact Of Social Responsibilities Of Oil Companies In The Host Communities In The Niger Delta Region

INTRODUCTION
1.1. BACKGROUND OF THE STUDY
The impact of oil companies towards improved welfare
(social responsibility) for Nigerians as a whole and Niger Delta
in particular goes to the very beginning. In 1962, most of the
oil companies began oil exploration activities in the country.
They presented the federal government an Aid-to-education
plan under which they pledged to provide $900,000, over a
period of five years for the education of Nigerians in various
field. Since then, the oil companies have evolved a
comprehensive programme for supporting the development of
Nigeria’s different sectors namely education, health,
infrastructural development, employment generation among
others.
The concept of corporate social responsibilities as a new
concept in the business world is the ability of a corporation to
relate its operations and polices to the needs of the
environment and the work force to the benefit of the
organization and the host communities.
Corporate social responsibility involves management of
an organization, working and relating with host communities
and own labour force to ensure that the company is
responsible and responsive to corporate government. It
includes the participation of the company in such vital areas
as environmental protection, training of its work force and
welfare package and employment, provision of social amenities
within plant location, such as water, electricity, bridges, roads,
schools, scholarship programmes and youth development
programmes for the community and natural development.
Business and society are inter-dependent because
business cannot operate in a vacuum, it operates in the
society and contribute immensely to the hazards of the
environment from citizens and at same time provides
employment, security and other many values to the
community.
Thus, the concept of social responsibility of oil companies
is vital in the life of organized business operations.

1.2. STATEMENT OF THE PROBLEM
Presently, it is obvious that oil companies are not living
up to expectations of their duties in the host communities.
This contributed immensely to environmental degradation of
the region, the air, water and land pollution, destruction of
natural habitations and waste disposal system that are
harmful and destructive to the host community.
Lack of corporation to tackle the problem and reduce the
effects of drilling activities on the environment and raise the
standard of living of the people in the host communities
became a source of concern to the youth of the region.
Secondly, lack of infrastructures and social amenities in
the host communities of Niger Delta region by the federal
government and oil companies operating in the region. Thus,
the researcher is intended in finding out the cause of these
problems in the region.

1.3. OBJECTIVES OF THE STUDY
The research objectives include the following:
1. To assess if oil companies as part of their social
responsibilities can tackle varying ecological issues in the
host community.
2. To determine the extent to which oil companies have
contributed to the infrastructural development of the
host community. However, this should delve into health
care, portable water supply and education.
3. To evaluate the impact of the social responsiveness of the
company on the life of the people in the host community.
4. To ascertain the impacts of the activities of the oil
companies on their host environment.

1.4. RESEARCH QUESTIONS
The following research questions were formulated to
enable the researcher carry out the study:
1. How has the social responsibility of Shell Company
tackled varying ecological issues in the host
environment? (That is help in preserving the
environment.
2. How has shell Oil Company as part of its social
responsibilities to the host communities contributed in
the infrastructural development in the host community?
3. In their assertion that all the issues raise above are met,
how has it impacted on the life’s of the people?
4. How has Shell Oil Company through its activities made
an impact on individual in the host community?

1.5. FORMULATION OF HYPOTHESIS
The following hypothesis was formulated base on the
objectives and problems of this research.
Ho: Shell Company has been useful in providing some of the
amenities to the host communities.
Hi: Shell companies has not been useful in providing some of
the amenities to the host communities.
Ho: The multinational companies provide adequate
infrastructures and amenities in the region.
Hi: The multinational companies do not provide adequate
infrastructures and amenities in the region.

1.6. SIGNIFICANCE OF THE STUDY
The significance of the study lies in the fact that it would
add to the alliteration guiding the federal government of
Nigeria on how best social responsibilities of oil companies
could be used and investigated in the region in order to restore
progress, peace and security of life’s and property of the
communities they operate.
It will equally help the government make motivating
polices to encourage organizations in the region participate
and implement fully, the corporate social responsibilities
policies and goals in communities of operation.

1.7. SCOPE OF THE STUDY
The scope of the study focused on the role of corporate
social responsibilities of multinational companies in the host
communities. Specifically, the host communities expect the
companies to improve and raise the standard of living of the
people and also what the companies expect from the host
communities, especially what shell company is able to do in
this direction, to alleviate the impacts of oil exploration on the
people of the region.

1.8. LIMITATION OF THE STUDY
This research is limited to the impact of social
responsibilities of oil companies on the host communities in
the Niger Delta region of Nigeria. Though, there are many oil
companies in Nigeria, but this research only concentrates on
the social responsibilities of shell Petroleum Development
Company of Nigeria.
However, due to the constrain in getting funds, the
research work was fully financed by my sponsor and was
restricted from odds.
Furthermore, the problem of meeting the needed
population size and other offices as regards data collection
makes the research work base on questionnaires. The method
of data collection was centered on the distribution of
questionnaires and partly personal contracts or interview
when and where necessary.
Therefore, the researcher will continue to put together
the necessary and available materials and data in spite of the
difficulties involved in the actualization of this research.