The Effects of CSR in Resource-rich, Developing Countries

Since multi-national oil development companies (herein after referred to as “companies”) employ significant CSR in the Federal Republic of Nigeria (herein after referred to as “Nigeria”), CSR in Nigeria is examined in this study. CSR has changed from only pursuing a “corporate objective”, which aims...

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Main Author: Shokichi SAKATA
Format: Article
Language:English
Published: The Mining and Materials Processing Institute of Japan 2020-12-01
Series:Journal of MMIJ
Subjects:
Online Access:https://www.jstage.jst.go.jp/article/journalofmmij/136/12/136_159/_pdf/-char/en
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author Shokichi SAKATA
author_facet Shokichi SAKATA
author_sort Shokichi SAKATA
collection DOAJ
description Since multi-national oil development companies (herein after referred to as “companies”) employ significant CSR in the Federal Republic of Nigeria (herein after referred to as “Nigeria”), CSR in Nigeria is examined in this study. CSR has changed from only pursuing a “corporate objective”, which aims to achieve companies' stable operations, to emphasizing a “development objective” through which the “corporate objective” could still be achieved. However, it has been suggested that the “development objective” oriented CSR has not always been effective because companies had a tendency to emphasize the “corporate objective”, and the “development objective” was often incompatible with the “corporate objective”. Also, it has been suggested that government failure in its community development increased the people's expectation of companies to provide community development and that community development by CSR might ease the pressure on the government to undertake a developmental role. This study examines these points and the results are as follows. Since some CSR cases were found to have achieved both the “development objective” and the “corporate objective” simultaneously, it is possible that these objectives can be achieved in concert. Many of the people who expected community development by companies responded that companies had a responsibility to pay compensation for oil extraction from the Niger Delta/Nigeria, some responded that companies had social responsibility, and a few responded that companies may have been able to provide effective community development for their CSR. Furthermore, it has been inferred that companies were expected to pay compensation even though they payed taxes to the government, because the government provided only limited community development using these tax receipts. Thus, it appears that, expectation of compensation for oil extraction by companies and their social responsibility, as well as limited community development by the government, are the major factors that could increase the people's expectation of companies to provide community development and ease the pressure on the government.
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spelling doaj.art-7e9548aac0de4e37a59ef9f72697a4752023-08-10T09:31:09ZengThe Mining and Materials Processing Institute of JapanJournal of MMIJ1881-61181884-04502020-12-011361215917210.2473/journalofmmij.136.159journalofmmijThe Effects of CSR in Resource-rich, Developing CountriesShokichi SAKATA0Faculty of Engineering, Hokkaido UniversitySince multi-national oil development companies (herein after referred to as “companies”) employ significant CSR in the Federal Republic of Nigeria (herein after referred to as “Nigeria”), CSR in Nigeria is examined in this study. CSR has changed from only pursuing a “corporate objective”, which aims to achieve companies' stable operations, to emphasizing a “development objective” through which the “corporate objective” could still be achieved. However, it has been suggested that the “development objective” oriented CSR has not always been effective because companies had a tendency to emphasize the “corporate objective”, and the “development objective” was often incompatible with the “corporate objective”. Also, it has been suggested that government failure in its community development increased the people's expectation of companies to provide community development and that community development by CSR might ease the pressure on the government to undertake a developmental role. This study examines these points and the results are as follows. Since some CSR cases were found to have achieved both the “development objective” and the “corporate objective” simultaneously, it is possible that these objectives can be achieved in concert. Many of the people who expected community development by companies responded that companies had a responsibility to pay compensation for oil extraction from the Niger Delta/Nigeria, some responded that companies had social responsibility, and a few responded that companies may have been able to provide effective community development for their CSR. Furthermore, it has been inferred that companies were expected to pay compensation even though they payed taxes to the government, because the government provided only limited community development using these tax receipts. Thus, it appears that, expectation of compensation for oil extraction by companies and their social responsibility, as well as limited community development by the government, are the major factors that could increase the people's expectation of companies to provide community development and ease the pressure on the government.https://www.jstage.jst.go.jp/article/journalofmmij/136/12/136_159/_pdf/-char/encsroil development companiesafricanigeriadevelopment objectivecorporate objective
spellingShingle Shokichi SAKATA
The Effects of CSR in Resource-rich, Developing Countries
Journal of MMIJ
csr
oil development companies
africa
nigeria
development objective
corporate objective
title The Effects of CSR in Resource-rich, Developing Countries
title_full The Effects of CSR in Resource-rich, Developing Countries
title_fullStr The Effects of CSR in Resource-rich, Developing Countries
title_full_unstemmed The Effects of CSR in Resource-rich, Developing Countries
title_short The Effects of CSR in Resource-rich, Developing Countries
title_sort effects of csr in resource rich developing countries
topic csr
oil development companies
africa
nigeria
development objective
corporate objective
url https://www.jstage.jst.go.jp/article/journalofmmij/136/12/136_159/_pdf/-char/en
work_keys_str_mv AT shokichisakata theeffectsofcsrinresourcerichdevelopingcountries
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