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CORPORATE SOCIAL RESPONSIBILITIES OF SHELL PETROLEUM DEVELOPMENT COMPANY (SPDC) AND NIGERIA AGIP OIL COMPANY (NOAC) FOR SUSTAINABLE COMMUNITY DEVELOPMENT IN RIVERS STATE.

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Abstract

This study examined the Corporate Social Responsibilities (CSRs) of Shell Petroleum Development Company (SPDC) and Nigeria Agip Oil Company (NAOC) for Sustainable Community Development in Rivers State. Five research questions and three null hypotheses were posed for the study. The research design adopted was the survey design. The population of the study comprised of the Community Development Committee (CDC), Shell and Agip Community Liaison Officers (CLOs) who were the indigenes of the oil communities. The populationalso include staff of the Corporate Community Relation Department of SPDC and NAOC. The total sampled size was 731 respondents representing 35% of the targeted population. The instruments used for data collection were questionnaire, focus group discussion and interview. The research questions were analyzed using percentages and mean statistic. T test was utilized in testing the hypotheses at 0.05 level of significance. The result of the study revealed that Shell CSR was not well known by the host communities, while Agip have CSR for sustainable development of their host communities. Shell and Agip through CSR contributed positively in resolving conflicts in their host communities. Shell through CSR could not contribute much too socio-economic development of the host communities while Agip through CSR contributed to socio-economic development of their host communities. The companies (Shell and Agip) through CSR could not mitigate the environment of their host communities. Based on the findings the following recommendations were made: Oil companies should recognize their responsibilities, the host communities’ expectations and develop partnership as preferred model for their community development activities for peaceful co-existence. The oil bearing communities should try as much as possible to be a good host to these oil multinational companies by providing a safe and conflict free environment for them. The government should provide an enabling environment for sustainable development through CSR principles and practices and also leading by examples.