The Social Corporate Responsibility of International Oil Companies in Nigeria and the Global Compact of the UN

Nigeria’s economy is highly dependent on oil found in the Niger delta area of the country.

Photo: Daily Telegraph

Photo: Daily Telegraph

The social corporate responsibility of international oil companies faces a different political and economic environment both nationally and at the level of producing communities where there facilities are located.  The NNPC (Nigeria National Petroleum Corporation) operates mainly through joint venture contract. The greatest joint partners of NNPC remains. The Anglo Dutch conglomerate, Chevron, Texaco and Nigeria liquefied Natural Gas ( a subsidiary of NNPC). Unfortunately, the influx of oil companies and the heightening of their operations in Niger Delta are not matched with an agenda for the development of Nigeria in general and Niger Delta in particular. The oil companies claim to have executed several projects in the host communities as part of their corporate social responsibility. The claims include: the construction of hospitals, roads and schools, provision of potable water, electricity and programmes among others. However, the host communities in Niger Delta seem not to have acknowledged these acclaimed community development projects by the oil companies as they continue in their hostile disposition to the companies. The relationship of cordiality which existed between oil communities and oil companies in the good days have given away hostility and violence thereby causing the form of pipelines vandalism, kidnapping, shutting down of oil companies and seizure of oil installation.

Coming to the aspect of corporate social responsibility. If an organization does not recognize itself as a corporate citizen, who has obligation and responsibilities towards its host communities, it can never recognize the need for community. Some of the things which social corporate responsibility of international oil companies in Nigeria should do:

 

  • They should bring a concept whereby organization should consider the interest of the societies by taking responsibility for the impact of their activities on customers, suppliers, employers to improve the quality of life of local community and society at large.
  • The government should support and develop initiatives to nurture budding entrepreneurs and boost enterprise. And help in supporting education that will help to bring new horizons into the lives of young people.
  • Also providing assistance to a range of artistic activities and bringing communities together and encourage efforts to safeguard the environment, improving the quality of life, training , counseling and granting allowance for the welfare of the employees.

 

Some of the concrete data’s of the Global Compact of the UN on the social corporate responsibility of oil companies in Nigeria.

The United Nations Global Compact is a United Nations initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation.

The UN Global Compact is a principle-based framework for businesses, stating ten principles in the areas of human rights, labour, the environment and anti-corruption. Under the Global Compact, companies are brought together with UN agencies, labour groups and civil society. Cities can join the Global Compact through the Cities Programme.

The most significant development in this area has been the United Nations’ “Global Compact,” initiated by United Nations Secretary-General Kofi Annan to harness the energy and influence of multinational corporations in promoting human rights and avoiding conflict: “Announced by United Nations Secretary-General Kofi Annan at the World Economic Forum in Davos, Switzerland, in January 1999, and formally launched at United Nations Headquarters in July 2000, the Compact calls on companies to embrace nine universal principles in the areas of human rights, labour standards and the environment. It brings companies together with United Nations organizations, international labour organizations, NGOs and other parties to foster partnerships and to build a more inclusive and equitable global marketplace.

It aims, in the words of Secretary-General Kofi Annan, to contribute to the emergence of “shared values and principles, which give a human face to the global market”, as stated at the UN Global Compact Brochure.

 

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Ireh Kingsley

My name is Ireh Kingsley Chike from Agwu Local Government Area, Enugu State, Nigeria. I am the third born of my parent, fair in completion, currently based in Anambra State were I do some of my studies and articles for my organzation.

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