In recent years, multinational companies operating in developing countries have come under increased pressure to engage in community development as stakeholders and as a consequence the activities of these companies have been subjected to greater public scrutiny. The multinational companies have responded by ensuring that global corporate social responsibility strategies are incorporated into their larger global business strategies.Based on a case study of the multinational oil companies operating in Nigeria, this paper examines the role of multinational companies in community development in developing countries. An assessment was carried out of the problems faced by multinational oil companies when they attempt to achieve community development through corporate governance and corporate social responsibility. A major result of this analysis was that the multinational company and key particpants in the community failed to collaborate and consult on the proposed community development and on the delivery of agreed decisions. Arguably, this communication failure is largely responsible for most of the crises between multinational companies and communities and has affected the way the local communities perceive the multinational companies and corporate social responsibility. This paper identifies that the failure to involve the beneficiaries of corporate social responsibility by the oil and gas companies is the limiting factor to the achievement of community development and suggests a wider participation of members of the community in community engagement in other to implement and manage change as a solution to an effective CSR implementation.
Nkechinyere Edith Dinkpa, Robert Gordon University, UK
Alex Russell, Robert Gordon University, UK
Stream: O – Economic Development, Technological Change, and Growth
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