Title of Academic Research Paper (use capital letters):

CORPORATE SOCIAL RESPONSIBILITY (CSR) CARRIED OUT BY MULTINATIONAL OIL COMPANIES (MOCS) OPERATING IN THE NIGER DELTA REGION OF NIGERIA AND THE EFFECTS ON THE INFRASTRUCTURAL DEVELOPMENT OF THE AREA

By: Henry O.D University Of Birmingham, UK International, Development Department (IDD)

INTRODUCTION Corporate social responsibility (CSR) is a social obligation that ensures active compliance with the law; expected to be carried out by corporations in order to achieve sustainable development. This implies that, companies should be considerate in carrying out their operation by recognizing the plights of their host community, its people, the environment and adhering to stipulated national or international laws. As a prerequisite, beyond making profits companies must integrate social and environmental concerns as part of their strategies for business and survival. It is becoming clear globally; particularly in multinational corporations that CSR is a veritable tool that contributes to infrastructural development by complementing governments infrastructural development effort but not a substitute to governments developmental responsibility.

Previous studies (see Frynas (2005); Eweje (2007); Amao (2008)) show that CSR is a major tool that places a demand on MOCs to undertake community development projects in their host communities. Eweje (2007) concludes that business has an obligation to help in solving problems of public concern. In support of this claim, Idemudia (2006), cited in Amao (2008:89 -113), points out that: Regardless of whether one accepts or rejects CSR premise, the idea of CSR presupposes that business have obligations to society that go beyond profit-making to include helping to solve societal social and ecological problems In substantiating the above views, this paper will mention as a typical example the names of some Niger Delta communities and MOCs. The purpose of this paper is to determine to what extent corporate social responsibility (CSR) carried out by multinational oil companies (MOCs) operating in the Niger Delta region of Nigeria effects infrastructural development. This paper will begin by giving a brief situational background of the Niger Delta region of Nigeria. Also, the paper will identify the factors responsible for the volatile nature of the
2

Niger Delta by analysing the purported CSR programmes of MOCs in the region and the implications of the problems identified. This paper will argue that a tripartite synergy involving the government, MOCs and public interest (that is host communities and civil society organizations) as an effective approach toward CSR will lead to sustainable infrastructural development in the region.

The paper concludes that since the beginning of oil exploration in Nigeria up to now, no MOC has carried out any effective CSR in the Niger Delta because MOCs have failed to stop gas flaring. And the government is responsible for the human and environmental rights abuses in the region. However, as a contribution to knowledge the paper proffers solution to the problems, relevantly supported by the analysed works of research in this area.

BACKGROUND OF THE NIGER DELTA The Niger Delta region of Nigeria is the largest widespread wetland in Africa. It is made up of nine states. Over 80 per cent of the region is made up of states from the South-south geopolitical zone of Nigeria. Two-thirds of the Niger Delta states falls within the south-south geopolitical region of Nigeria while the remaining one-third one falls within the south-west and the remaining are located in the south-east geopolitical zone of the country. The region occupies an area slightly over 71,231 square kilometres. Some of the predominant ethnic nationalities of the Niger Delta, particularly the South-south are Ijaw (Izon), Ibibio, Isekeri, Urhobo, Efik, and Edo (Benin) among others. It has a population close to about 20 million people (Ite, 2004).

The Niger Delta is the oil-producing region of Nigeria. Over 90 per cent of Nigerias export earnings and over 70 per cent of the countrys revenues are from crude oil proceeds (Ite, 2004). As such, the region is host to several giant multinational oil companies like Royal Dutch/Shell Petroleum Development Company Nigeria Limited (SPDC Nig. Ltd), ExxonMobil Producing Nigeria Unlimited, Agip, Cheveron among others, who operate in joint venture with the Nigerian National Petroleum Corporation (NNPC). Over 90 per cent of crude oil from the region is explored mainly in Akwa-Ibom, Bayelsa, Delta and Rivers states, where the MOCs mostly operate.

However, the Niger Delta is irony- poverty in the midst of abundance of resources. A sight of the regions suburbs and/or oil producing communities (or host communities) will be a shock to many, as there is a total lack of development projects and infrastructure in the area. Niger Deltas most pressing needs are infrastructure such as power supplies, environmental risks and land dilapidation control, healthcare, communications, transport, buildings (schools,

housing, hospitals, potable water and bridges); and effective youth empowerment programmes. These are inherent tools to be considered for a viable CSR implementation.

Globally, there have been pressing demands on multinational organizations to perform corporate social responsibility initiatives particularly to meet the importunate needs of their host communities. Specifically, MOCs have been spearheading CSR in developing countries due to major international advocacies and pressure such as Kofi Annans Global Compact and Global Reporting Initiative established by the Coalition for Environmentally Responsible Economies (CERES). Due to developing countries government negligence, Niger Deltans expects MOCs to provide social and economic infrastructure assistance to communities where they operate (Amaewhule, 1997; Frynas, 2005) cited in Eweje (2007). The Niger Delata is an area where the scarce land in the region is depleted and polluted; sources of drinking water and fishery are contaminated; toxic gasses are flared into the atmosphere; no bridge or tar roads link towns and communities; hospitals and schools are rare and the general welfare/standard of living is very low.

However, it is conspicuous and inevitable to be attracted by the sight of niche towns and creeks modelled out by MOCs as camps, terminals, oilfields, cities and factory sites well garlanded which are stereotypical of their international offices abroad. Examples of these niche towns, but not exhaustive include; Nembe Creek, Kolo Creek, Odeama Creek, Ogbotobo, Benisede, Otumara, Kokori, QIT Eket, Twon Brass, Ogonu, Oguta among others.

PROBLEMS Approach to Sustainable Community Development Many of the MOCs operating in the Niger Delta have embraced sustainable community development as a major component of their CSR. Eweje (2001, 2006, 2007). Eweje (2007:218 -235) points out that: Various community and environmental initiatives may be seen as a response to the threat of stakeholder sanctions. Yet the cries of unethical and immoral behaviour from communities and nations have continued to grow louder in recent times In many cases, MOCs are required to undertake CSR in order to meet legal and contractual requirements set by government. Such requirements or laws could be statutory or either conventional or even a global memorandum of understanding (GMoU). However, evidence reveals that there is gap in the CSR and GMoU requirements agreed between the MOCs, the government and or the host communities. As a reprisal, the host community or some pressure groups most often referred to as militants resort to kidnapping of oil workers and acts of vandalism particularly on flow-station, terminals and pipeline installations. Sometimes, these pressure groups organised pickets at the corporate offices of MOCs. The contention often is the lack of basic infrastructure such as road, potable water, electricity, communication, schools, and hospitals among others.

Philanthropy and False Image Normally, most of the MOCs operating in the Niger Delta give monetary donations and aid to local organizations or groups (unions or associations). These donations are given out without been conscious of the impact they have on the skills or human development of the beneficiaries. This is usually done or experienced during festive periods or ceremonies. Initially, these donations were not part of what was signed or agreed as a GMoU. But when

annual reports are produced by MOCs, figures of these philanthropic gestures are been reflected for CSR usually under a title such as, Christmas bonus.

MOCs most often get involve in short term goal initiative which they believe is a CSR rather than identifying the most pressing needs of their host communities. According to Frynas (2007), SPDC provides its contract managers with development budget to only initiate a community project when a pipeline construction is on. After the construction of the pipeline, the community development project- an ostensible CSR for the area stops even if the project is yet to be completed as in most cases. However, the money budgeted is accounted for under CSR. This clearly shows the MOCs intention for the embarked project.

Also, in an attempt to improve companys public reputation irrespective of success, MOCs have showcased projects which are partially functional as completed and functional or sustained CSR programmes. A typical example of such a project in the Niger Delta is the Nembe-Bassambiri E-Learning Centre. SPDC Nig. Ltd claimed in its 2006 Sustainable Community Development (SCD) Project report that training for the Project Management Committee (PMC) for the E-learning centre was ongoing and that after the training, the project will successfully be handed over to the community via the trained PMC; but up to now, neither the project visionary/initiator is been acknowledged by SPDC Nig. Ltd nor the project is completed as earlier proposed. This undermines the MOCs importance for public reputation and its 2005 embraced SCD for CSR practice.

Government, Law and Policies The inhabitants of the Niger Delta are offended by the severe effects of oil extraction caused by MOCs. The government of Nigeria enjoys to the detriment of its citizens welfare, the

profits from oil and neglect the enforcement of existing environmental laws. Oil exploration and extraction activities by the MOCs result to oil spillage, pipeline explosions and gas flaring among others. Farms, potable water sources, fisheries and the environment within host communities are polluted and contaminated with chemical or gaseous emissions such as benzene, toluene, sulphur oxide, methane, carbon monoxide and nitrogen dioxide among others. Marine life, agriculture and fishery have become extremely difficult or impossible ventures for the Niger Deltans. In most cases, such as the case in Kolo Creek, flaring of gas has been on for over 40 years -burning 24 hours a day and 7-days a week, constituting to global warming. Land, which is limited in the delta is not feat for cultivation due to atmospheric and soil conditions resulting from pollution or contamination. As such, the entire economic source of peasants has been tempered with. The inhabitants of the region are left to their fate to determine their survival; as the government is not convicting the MOCs or ensuring that the consequences of their activities are enforced. A good reason of such a lackadaisical posture by the government may be because it is a culprit as it is in a joint venture via NNPC. Several timetables for ending flaring in Nigeria have been proposed, right from 1984, when flaring had been said to be illegal. MOCs operating in the Niger Delta have declared several times to stop flaring and came up with deadlines to end flares by 2005, but this is not achieved as it has become a mirage. The irony of this posture is MOCS would never attempt oil exploration in this manner in countries like the UK or the USA. Amao (2008: 89- 113) observes that while corporate social responsibility practice by MNCs is becoming well entrenched, this development cannot replace the need for effective host state regulation. In summary, in my view, CSR is the non negotiable antidote for activities of MOCs environmental problems like erosion, flooding, toxic waste, land degradation, destruction of ecosystem, fisheries depletion and sulphur oxide emissions. And the
8

government should frown at activities that constitute environmental, health and economic hazards by enforcing the consequence of breaking local and international environmental laws. Therefore, a responsive and proactive government will deliberately ensure that gas flares within its jurisdiction are properly harnessed for needful purposes such as liquefied and energy source to increase both its local and international income. Violations of Human Rights The government of the Federal Republic of Nigeria and the MOCs operating in the Niger Delta area are perceived as environmental leviathans by their host communities. The government and MOCs exercise of power and authority, particularly in relation to law interpretation and application or enforcement in the region, translates into subjugation of the ethnic minorities. As such, militant groups in the Niger Delta have the conviction that the police, soldiers and other security operatives are tools of oppression used either by the behemoth government or the MOCs. In support of this perception, Michael (2003) points out that oil violence in governable or nongovernable spaces is generated by the evil twins of authoritarian governmentality and petro-capitalism. Watts analysis on the other hand goes to answer the question- who is responsible for infrastructural development in the Niger Delta? Oil exploration activities in the Niger Delta absolutely negates governments mandate in Chapter II of the Nigerian 1999 Constitution (Article 20) which states that The state shall protect and improve the environment and safeguard the water, air and land, forest and wild life of Nigeria. Again, the same Constitution, Article 15 (3)(a) affirms the purpose of promoting national integration or unity; it is the duty of government to provide adequate infrastructural development. However, the Niger Delta has been a region where the business of both government and MOCs succeed in an atmosphere where fundamental human rights are not respected or even considered. This is partly because the Niger Deltans are predominantly ethnic minorities suppressed by leviathan actors and exploration activities.
9

Life expectancy in the region is 40 years due to environmental hazards and lack of infrastructure or basic needs. However, it is common to see infrastructural development and construction done in other parts of Nigeria, such as where bridges are built where there are no rivers, than in the Delta. Having highlighted some of the gabs in the legal responsibilities of the government, these are some of responses to these shortfalls. Human Right Activists/ Community Approach The Nigerian Constitution Sections 33 (1) and 34 (1) and; Articles 4, 16 and 24 of the African Charter on Human and Peoples Rights (Ratification and Enforcement) Act, Cap. A9, Vol.1 Laws of the Federation of Nigeria, 2004 persistently and inevitably includes the right to clean, poison-free, pollution-free and healthy environment (Constitution of the Federal Republic of Nigeria, 1999: African Charter on Human and Peoples Rights, 1990). Since the late 60s when oil exploration in Nigeria was merely a decade old, crusaders as Isaac Jasper Adaka Boro in early 1966 led a revolution against the government of Nigeria and declared the Niger Delta Republic, under the auspices of his formed Delta Volunteer Service (DVS). The DVS crusade was fighting for equal rights and inequality in order to gain freedom from oppression, which his people have suffered as second class citizens. The rationale for Boros revolution was specifically due to the regional humiliation his people are subjected to and the neglect of his region in ruins which he perceived that the head of military government of that particular period was an oppressor. Boros actions if critically analysed may be pronationhood but practically against dominance, marginalization and neglect. The presidential pardon granted to Boro and his joining of forces with the Federal troops in 1967 at the brink of the Nigerian Civil War attest to the assertion made earlier on his rationale to lead a revolution on February 23rd of 1966. Boros crusade awakened the Niger Deltans for action

10

against the exploiters and led to the creation of 12 states in Nigeria by 1967. The revolutionary spirit of Boro was manifest in the activist and civil approach that Kenule Beeson Saro Wiwa (also known as Ken Saro-Wiwa) later used to restore the human dignity and rights of Niger Deltans. Saro-Wiwa, an environmental activist, persevered in the pursuit for human rights basically on those that have a direct effect of health and the environment. In 1992, he formed the Movement for the Emancipation of the Ogoni People (MOSOP). MOSOPs main aim was to organize the Ogoni people of Rivers state and other oil producing communities in the Niger Delta against the nefarious capitalist oil drilling activities of MOCs which government benefits from. As such, MOSOP came up with the Ogoni Bill of Rights and also organised a successful peaceful march through four Ogoni Centres where almost 300,000 Ogonis participated. This march called for international attention to the Ogonis plight. Therefore, became a threat to both the repressive military government of the period and the MOCs (SPDC and Chevron) who were chiefly accused of instigating a conspiracy that led to his trial and death. Militants/Militia and Interest Group Approach In summary, in order to understand the reason that led to this approach, it would be worth reflecting on the verdict that led to the killing of Saro-Wiwa. He was accused of incitement relied upon as evidence on the schism between MOSOP and some Ogoni chiefs that resulted to the demise of four of the chiefs in 1994. As a result of the long-championed concerns about the devastation of the environment in Ogoni land and the quest for compensation for damages even after the conspiracy that led to Saro-Wiwas death, the entire Niger Delta region became conscious of the conspiracy against their fundamental human rights; each time a voice rise or is spoken, it is killed before it is heard. The government is perceived by the Deltans as an oppressor whose main aim is silencing the vocal opposition emanating from the Delta. Therefore, to coerce both the government and the MOCs, a better alternative to the
11

militant groups whose nomenclature is dominantly composed of vibrant and agile youths who object to the environmental degradation and lack of infrastructural development in the Delta is to tow the path of emancipation. This path of emancipation assumes a militia approach for a counter confrontation rather than dialogue with the government and MOCs. Most popular among these confrontational or social movement groups include Niger Delta Volunteer Force (NDVF), Ijaw Youth Council (IYC), Movement for the Emancipation of the Niger Delta (MEND) and Egbesu Boys of Africa (EBA) among others. However, the MEND an umbrella body with its obscure leadership structure claims union of all the militant or social movement groups. In recent years, tenacious individuals like Jonah Gbemere of Iwehereken Community, Delta State Nigeria, sued SPDC and NNPC for human rights violation and environmental degradation. The case was ruled in the plaintiffs favour but the dependants fail to carryout court orders. EVALUATION AND RECOMMENDATIONS Corporate social responsibility is a tool that causes effective infrastructural development if properly used or implemented. In the area where MOCs carry out oil exploration activities, like in the Niger Delta region of Nigeria, human right, dignity and the environment should be respected and considered as a priority. If this is taken into cognisant against the purely operational capitalist approach by MOCs, there will be peace in the region for sustainable oil business. The poorest parts of Nigeria are in the oil producing communities in the Niger Delta, therefore, government should rise to it responsibility and initiate as a priority infrastructural development plan strategy having a critical overview of resource control within the region. Proper enforcement of human right laws in Nigeria will lead to effective CSR initiative which will be a catalyst for infrastructural development in the Delta.

12

CONCLUSION This paper has shown clearly that effective CSR is the solution to the infrastructural development in the Niger Delta region of Nigeria. I argue that for CSR to be effective, MOCs operating in the region must respect, recognise and consider both human rights and the environment in their quest for oil profits. As an approach to this, the onus lies with the government of Nigeria to inevitable ensure that both statutory and conventional human right and environmental laws are properly enforced as these will drastically tame the emergence of any opposition for smooth exploration from the Delta. Finally I suggest that MOCs should consider immediate halting of gas flares, first as an effective CSR approach otherwise all their efforts for sustainable community development will be considered ineffective and passive.

13

REFERENCES Amao, O.O. (2008) Corporate social responsibility, multinational corporations and the law in Nigeria: Controlling multinationals in host states. Journal of African Law, 52 (1): 89 -113

Eweje, G. (2007) Multinational oil companies CSR initiatives in Nigeria: The scepticism of stakeholders in host communities. Managerial Law, 49 (5/6): 218 -235

Federal Republic of Nigeria. (1999) Constitution of the Federal Republic of Nigeria. Nigeria: International Centre for Nigerian Law.

Frynas, J.G. (2005) The false developmental promise of corporate social responsibility: evidence from multinational oil companies. International Affairs, 81 (3): 581 -598

Ite, U.E. (2004) Multinationals and corporate social responsibility in developing countries: A case study of Nigeria. Corporate Social Responsibility and Environmental Management, 11: 1 -11+

Ite, U.E. (2007) Partnering with the state for sustainable development: Shells experience in the Niger delta, Nigeria. Sustainable Development, 15: 216 -228

Laws of the Federation of Nigeria. (1990) African Charter on Human and Peoples Rights (Ratification and Enforcement) Act A9. Nigeria: International Centre for Nigerian Law.

Michael, W. (2003) Development and Governmentality. Singapore Journal of Tropical Geography, 24 (1): 6 -34

14