Managerial Law

Purpose – The purpose of this paper is to critically examine the multinational oil companies' (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the scepticism of stakeholders in the producing communities about the long-term effect and the beneficiaries of the oil companies' CSR/community development initiatives.

Design/methodology/approach – This paper employs a qualitative methodology, drawing on semi-structured interviews conducted in Nigeria and London. The field work was carried out in Nigeria (Abuja, Lagos and Port-Harcourt) and in London, UK. Visits were made to the head offices of the MOCs; Ministry of Petroleum and the Nigeria National Petroleum Commission; and the office of The Movement for the Survival of the Ogoni People in the Niger Delta. In London, Shell International Office was visited.

Findings – The study found that expectations of host communities in the Niger Delta for CSR/community development initiatives are greater. The communities above all want social development projects that provide hope of a stable and prosperous future. The companies, on the other hand, have embraced development initiatives primarily in order to demonstrate that they are socially responsible.

Practical implications – If the host communities do not feel that the CSR projects will create a sustainable economic development, they will keep agitating for change and create an hostile environment for multinational enterprises (MNEs).

Originality/value – This research adds to the literature on MNEs' CSR initiatives in developing countries and rationale for demands for social projects by host communities. It concludes that business has an obligation to help in solving problems of public concern.