Corporate social responsibility strategy and its impact on the socio-economic development of the Niger Delta region: a case study of the Shell petroleum development company of Nigeria limited

The increasing drive by corporations to incorporate Corporate Social Responsibilities (CSR)
policy has highlighted the multifaceted face of the concept and the significant role it plays in
society. Large international businesses are often required to handle social issues such as
unemployment, poverty, environmental pollution etc., in some of the regions in which they
operate. Such is the case with the multinational oil companies that operates in the Niger-Delta
region of Nigeria, who are often confronted with significant social and environmental challenges
that have continued to impact business sustainability and growth.
Over the years, stakeholders including the governments, multinational oil companies, NGOs, civil
society organisations, and other development actors, have tried to find solutions to the problems
of the Niger Delta. However, most of their efforts have proved abortive. CSR is a policy that was
designed to enable businesses to make positive contributions in society especially within the
communities in which they operate. Evidence has suggested that by adopting and implementing
CSR policy and approaches, businesses not only mitigate challenges in society; they also enhance
development.
The study evaluates the effectiveness of the CSR strategy adopted by multinational oil companies
in the Niger Delta with particular reference to the Shell Petroleum Development Company of
Nigeria Limited, and how its CSR policies and initiatives have impacted the development of the
region. The research followed a mixed-method approach using a Case Study strategy. Qualitative
data was collected from eight management staff of SPDC and seven external stakeholders
through structured and unstructured interviews that were then organised and analysed using
NVIVO 11 statistical software and thematic analysis. 400 questionnaires were distributed across
three States of the region including Rivers, Bayelsa and Delta, 351 people responded. The
resulting data were analysed using the Statistical Package for Social Sciences (SPSS) software.
The study developed five frameworks; the Conceptual framework, the Hypothesis and Outcomes
Variables framework, the Global Compact Social Responsibility (GCSR) model, a framework
linking SPDC‘s approaches to CSR, and a Community-oriented CSR framework that linked
community-oriented CSR policies and practices with sustainable socio-economic development
that businesses can adopt to enhance operational ethics and practices. This study shows that
corporations have a role to play in society; however, governments have bigger roles to play in
society. By bridging the gaps in society, corporations are able to ease some of the pressures in
society and on governments. Consequently, if the government plays its role by enhancing the
development of its citizens, developing an infrastructure base across the country, addressing the
security challenges in the country and by developing a corporate governance framework that
would effectively regulate, manage and monitor the activities of oil companies in Nigeria,
sustainable, transformational changes will occur in the Niger Delta region and across the country.