EVALUATING THE ROLE MULTINATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES A CASE STUDY OF CHEVRON PLC PORT-HARCOURT RIVERS STATE

EVALUATING THE ROLE MULTINATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES A CASE STUDY OF CHEVRON PLC PORT-HARCOURT RIVERS STATE

CHAPTER ONE

INTRODUCTION

 

Background of the study

 

To enhance effectiveness and efficiency, companies have to create the cordial relationship with their host communities if business organization relies on society for existence it is only logical that the environment be cultivated and natured to ensure its continuity. It is only in this regards that the oriented of the modern business manager has been changed to reflect the increasing important interdependence between organizations and their communities. With these there is an increasing clamour that business should participate actively in the well being and welfare of the community, society and environment in which they operate and make their profits.

However, it is very obvious that the main motive of establishing any business is to private competitive goods and services to the consumer and society at large. This does not however mean that they have concluded their obligation to the people especially the host communities where the business is sited and operated. Although there is no law as what form of services the host community should benefit from the company. It is normally obliged to cafer for at least their host communities. This they do by aiding the development of infrastructures such as good road network where necessary and again through the provision of electricity to the local populace other forms of services that could be rendered to youth members of that community are of course the provision of gainful employment for school leavers

There are a lot of other services that the hole communities can gain from the business such as the provision of safety measures against pollution whether air, water or land.

On the other hand, the business also looks forward to the local populace for continuous patronage and also for ensuring he business of their support. Therefore the recognition of the business by the community is very important and there is the need to keep the good of the good of the society as a whole in mind while the company is the bedrock of social responsibility.

A BRIEF HISTORY OF CHEVRON NIGERIA PLC

Chevron was found in the year 1913 in the United States of America by Dr. David Rockefeller, it was formerly known as American overseas petroleum company Ltd. In 1963 when the established themselves at escravos River, it discovered oil at the koluama field, offshore Nigeria. In the same year it started drilling for oil deposits at Oka field in the present day Rivers state following the Nigeria indigenization decree of 1972 and 1978 which was designed to raise the level of Nigerian participation in business, chevron Plc divested 40 percent of its shareholdings to the Nigeria public while retaining 60 percent equity in chevron oil Nigeria Plc. Chevron is the third largest oil producer in Nigeria and one of its largest investors, spending more than N30 billion annually. The company operates under a joint venture arrangement with the Nigeria national petroleum Corporation and has assets on land swamp and near offshore concession covering approximately 2.2 million acres (8,900549km) in the Niger Delta region. In 1996, they built a states of the art 103,000 barrel storage terminal and loading facility at Onne in port-Harcourt River state. In the year 2010 chevron’s total daily production in Nigeria average 524,000 barrel of crude oil 206 million cubic feet of natural gas and 5,000 barrels of liquefied petroleum gas (LPG).

Chevron Nigeria Plc Onne-port-Harcourt has been participating in all aspects of petroleum including exploration, production, marketing, transportation and distribution Chevron Plc indulges in programmes which its purpose have been to promote academic excellence, training of indigenous workers, encouraging indigenous participation in the development of infrastructure and social amenities for the community and manpower development in Onne community in particular and port-Harcourt River state in general.

1.2     STATEMENT OF THE PROBLEM

Chevron Plc port-Harcourt encounters the problem of pipeline vandalization of the oil pipeline by the community another problem is he demonstrations being carried out by the community youths because of unemployment and this leads to serious riots which will have a negative effect to the company by hindering work performance for some weeks or even months as the case may e. this also may lead to the harassment of chevron plc staffs by the community youths.

On the other hand, the excessive government taxation levied on business actually end down the profit margin of Chevron Plc Port-Harcourt rivers states in order to take up their social responsibility. A turbulent environment is usually proned to risk, and it’s certainly should be planned for. The problem of kick back philosophy of Nigerian business rode chevron plc profit margine thus ignoring its social responsibilities.

1.3     PURPOSE OF THE STUDY

The purpose of the study are:

1        To evaluate the extent corporate organizations has contributed to the development of host community.

  1. To investigate the causes of non-challant attitude of multinational companies towards social responsibilities.
  2. To determine the extents of benefits host community has received through social responsibility.
  3. To determine the effects of social responsibility on the corporate image of an organization.

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