Contemporary Multinational Enterprise research

Multinational corporations are required to meet the social needs of the locals in places where they do business. Exxon Mobil has not been left out of this discussion. There have been conflicting studies on the effect of corporate social responsibility initiatives implemented by oil companies in the Niger Delta regions on oil-producing populations. This study examined Exxon Mobil's success in terms of environmental repudiation within the NDR, assessed the performance of gas and oil firms in terms of corporate social responsibility, and investigated numerous environmental laws and regulations that link oil and gas firms in the NDR. Additionally, the paper provided various recommendations that could be adopted by Exxon Mobil in order to address the social needs of the locals.
The Exxon Mobil comprises of a special division which overseas chemical and oil spillage. For instance, if oil spillage is reported to the company, the firm’s employees visit the scene with an aim of containing the spread of crude oil to other areas (Ibok & Mboho 2011). Joint investigation visit is then conducted to ascertain whether the oil spillage is a result of sabotage or equipment failure. Additionally, the team assesses the impact the oil spillage has to the environment (Ayuba 2012). The joint investigation visit team comprises the DPR officials, representatives of Nigeria Police Force, community representatives, as well as, the company’s staff. The Exxon Mobil carries out an environmental impact assessment with an aim of managing the adverse consequences of its operations on the environment and people (Enuoh & Eneh 2015). The company is equally involved in restoration activities with an aim of restoring the quality of the local land after degradation. According to Federal Environmental Protection Agency (FEPA), all lands impacted by chemical or oil must be rehabilitated so as to repossess their resilient capacity (Ayuba 2012). Local communities living within the NDR has been complaining about the increasing cases of harmful impacts of gas flaring (Abubakri, Ogodo & Adedowole 2009). The company has also become under intense pressure by the international community to minimize the harmful effects of gas flaring. To lessen these pressures, Exxon Mobil has initiated several projects aimed at getting rid of gas flaring. These projects include LNG ventures and the NLNG (Nigeria Liquefied Natural Gas) that sells gas to international market (Abubakri et al. 2009). The company has been spending a significant portion of its revenue on gas gathering projects. Moreover, the company’s specialized system for managing waste is incorporated into HSE management system with an aim of minimizing the effect of its operations on the immediate environment by managing the waste products according to rules and regulations adopted by the Nigerian government (Ayuba 2012). The company also converts organic wastes into manures that are later used in remediating polluted lands.
The Exxon Mobil acknowledges the significance of conserving rare species of plants and animals. The company is increasingly looking out for partnership with other interested partners with an aim of making a positive contribution towards the restoration and conservation of the environment (Ibok & Mboho 2011). The Exxon Mobil is partnering with the Nigerian Conversation Foundation as well as state and local government. The company has also formed environmental conservation clubs aimed at promoting environmental education and awareness (Ayuba 2012). The activities of the clubs include essay writing competition, debates, lectures, talk shops, as well as, environmental awareness.
Various initiatives undertaken by Exxon Mobil geared towards enhancing the living standards of the local people include granting micro-credit schemes to local farmers in the Niger Delta region, proving health services, provision of equipment, scholarship, and education (Ayuba 2012). The company has also provided employment opportunities to youth from oil bearing communities. Over the last few years, Exxon Mobil has carried out a broad range of CRS initiatives from supporting civil society and professional groups, upgrading health and education facilities in the Niger Delta region, protecting and remediating the environment (Ayuba 2012), providing electricity and clean water to the local communities, and constructing road networks. Additionally, Exxon Mobil has provided scholarship scheme programs, build dormitories, science laboratories, and school buildings (Ibok & Mboho 2011). These projects have greatly benefited the oil bearing communities by improving their social and economic lives (Garriga & Mele 2004). However, despite adopting a broad range of CRS measures within the Niger Delta region, Exxon Mobil has been unable to develop posit relationship with host communities. Local communities feel that the company is implementing CSR projects for selfish motives as opposed to addressing their increasing social and economic needs (Ayuba 2012). For instance, oil bearing communities feel that oil companies are constructing road for their workers to drive because a significant number of the local communities do not own cars (Tolulope 2004). Additionally, many locals are of the opinion that many of the CSR projects that Exxon Mobil claims to have adopted were done many years ago when the firm was still called Mobil Producing Nigeria Unlimited (Ayuba 2012). According to local communities, no new CSR projects have been initiated by the company under the name “Exxon Mobil”. Moreover, youths also belief that their requests for employment are thrown to dustbin or trash can instead of being considered (Tolulope 2004).
Some critics have disagreed with the Exxon Mobil environmental friendly posture. In particular, critics argue that Exxon Mobil is not accountable to the locals. Additionally, there is reduced communication between the company and members of the local community (Ibok & Mboho 2011). Exxon Mobil has also inadequate social development programs and its compensation to the local communities is also not adequate. The company is getting huge revenues from gas and oil, yet its initiatives aimed at enhancing quality of life in the host communities is wanting and questionable (Evuleocha 2005). The local communities have been claiming that they are obtaining few benefits from Exxon Mobil.
Exxon Mobil has been heavily criticized for destroying the environment surrounding the Niger Delta region. Critics have accused the company of implementing dissimilar standards in Nigeria divergent to its standards and practices in other areas of the globe (Enuoh & Eneh 2015). Exxon Mobil deposits the wastes from its operations in a large trench. This practice has been accused of leading to loss of natural land. The earth is poisoned when the waste are exposed to the surface of the land during the rainy season (Ayuba 2012). Exxon Mobil has been cheating that it is providing electricity, roads, potable water, as well as, cottage clinics for the host communities from its revenues (Mbat Ibok & Daniel 2014). Much of the company’s profit is taken abroad instead of addressing the increasing needs of the local community.
Exxon Mobil has not performed well in terms of corporate social responsibility as well as environmental restoration. The local communities living within the NDRare faced with numerous problems such as lack of drinkable water and concerns of shore protection (Enuoh, & Eneh 2015). The occupations of the local communities such as farming and fishing have been greatly disrupted due to petroleum activities conducted by Exxon Mobil. The degraded land is generating poor yield while the fishes have been destroyed by oil spill. The local community where Exxon Mobil is operating is lacking good hospitals, electricity, as well as, road networks. During oil spillage, the company has done little to compensate the victims or do more to remediate the environment. The interventionist agency is not doing enough work as mandated and the law regulated the oil industry in Nigeria are not adhered to or enforced by the government. Exxon Mobil and the Nigerian government have formed an alliance in deploying violence against the local communities who protest against environmental degradation that has been caused by petroleum activities within the Niger Delta region. Both Exxon Mobil and the Nigerian government have failed to ensure that the living standards of the oil bearing communities are significantly improved as well as enhancing environmental quality.
The negative consequences of petroleum activities conducted by Exxon Mobil and other oil companies within the NDR include water and air pollution and agricultural land degradation. Specifically, the petroleum activities have destroyed fishing, streams, and agricultural lands. The Nigerian government has been heavily criticized for not controlling and monitoring the extent of oil spills within the Niger Delta regions and other parts of Nigeria. The existing environmental laws are hardily implemented by the government that demands quick oil spill response from oil companies operating within the Niger Delta region. Additionally, the Nigerian government has been accused of providing little protection for the rights of oil bearing communities living in the Niger Delta region. African Charter on Human and People’s Rights as well as International Convention on Economic, social, and Cultural Rights require that all government, including the Nigerian to protect, and respect the right to a healthy environment and right to health championed by the oil bearing communities in Niger Delta region. The Nigerian government has also failed in addressing the increasing needs of the oil bearing communities and enforced laws aimed at protecting environmental degradation. Both Exxon Mobil and the Nigerian government are earned large amount of revenue from oil yet they are doing little to enhance the living standards of the local communities living within the Niger Delta region. Additionally, Petroleum activities at NDRhave been accused of causing respiratory diseases, resulting to neurological and kidney diseases.
In spite of the fact that the actions of the Nigerian government of sending its police and military forces to suppress oil bearing communities amount to gross violation of their human rights, Nigeria is not part of the of the International Labor Convention and as such, it cannot be held responsible for the perpetuating violence against the local communities living in the Niger Delta. Consequently, the oil bearing communities have no clear avenue for seeking redress for atrocities meted to them by their own government. The option left for the indigenous people living in NDRis to create an a local oil company, permissible under laws enacted by the Nigerian company and use financial resources emanating from the company to address their social and economic needs. Additionally, the local communities can make use of revenue obtained from their indigenous to clean up or remediate the environment. Starting an indigenous company will be challenging, including administrative challenges, risks associated with running an oil company as well as financial costs.
This paper recommends numerous measures for both Exxon Mobil and Nigerian government should adopt in order to protect the natural environment and enhance the quality of life of local communities within the Niger Delta region.
The Nigerian government should enact serious and effective environmental laws and enforce them in order to minimize the increasing incidence of environmental degradation witnessed in the Niger Delta region.
The Nigerian government should force the oil companies to compensate those affected by oil spillage and gas flaring. The state should ensure that oil companies strictly adhere to anti-pollution laws and adopt healthy environmental practices.
Both the oil companies and the Nigerian government must develop infrastructure within the NDRin order to enhance the quality of life of oil bearing communities.
The available anti-pollution laws should be reviewed and amended so that they can be effective in addressing the environmental challenges faced by oil bearing communities within the Niger Delta region.
In order to demonstrate their commitment to safeguarding and protecting environmental degradation, oil companies operating within the Niger Delta should strictly adhere to global environmental standards.
Oil companies should be ethical and stop their tactics of deceiving the local communities or members of the public that they are doing more to assist improve the quality of life of oil bearing communities.
The Nigerian government should increase the funding of the agencies tasked with the responsibilities of monitoring the oil industry within the NDRsuch as FEPA and DPR in order to effectively equip with tools and equipments needed in monitoring petroleum activities and assessing environmental degradation in the region. Funding these agencies will stop them from relying on oil companies for logistics and conduct their activities independently without being influenced by oil companies.
The Nigerian should immediately stop sending its military forces to suppress the rightful demands advanced by oil bearing communities in the Niger Delta region. Sending military forces will make the youths from the local communities to embark on armed struggle in order to protect themselves from extra-judicial killing promoted by the Nigerian government.
The Nigerian government should force oil companies operating within the NDRto employees many Nigerians, especially graduates who are increasingly jobless. The citizens should be given good position within the oil companies as opposed to being reduced to mere manual workers or field assistants.
The Nigerian government should move with speed and build gas and oil refineries within the NDRin order to address the increasing needs of oil bearing communities to discourage the vandalization of gas and oil pipelines.
The Nigerian government should force oil companies operating within the NDRto quickly sign a Memorandum of Understanding (MOU) with local communities aimed at addressing the increasing employment and development needs of the people in the region.
The Nigerian government should cease from forming alliances with oil companies within the NDRin order to economically exploit the oil bearing communities
The Nigerian government should review the license of all oil companies operating within the NDRand revoke the license of companies that do not adhere to the environmental laws enacted by the government.
When designing CSR programs, Exxon Mobil should take into consideration the needs and interests of both parties for mutual benefits. By doing this, Exxon Mobil will obtain maximum returns from its CSR projects. Moreover, this will minimize conflict between the company and the oil bearing communities. The host communities should be actively involved in the planning process of CRS project in order to achieve its projects. Without involving the local communities, the benefits of CSR projects may not be realized.
The Nigerian government should provide support to Exxon Mobil and other oil companies operating within the NDRin their quest to enhance the living standards of the oil bearing communities. Most oil companies initiating CSR projects are not fully backed by the government. As such, the state should encourage and support social development programs spearheaded by multinational oil companies.
The Nigerian government should enforce heavy penalties as opposed to light penalties for multinational oil firms operating within the Niger Delta that would have been found to have violated the international legal standards as well as the environmental laws enacted by the government.
The Nigeria government should allow oil bearing companies to create and develop their own indigenous oil company in order to address their needs and enhancing their living standards. The oil company will assist the local people to develop their land and preserve their own environment as opposed to relying on oil companies and the Nigerian government to protect their environment. Resources from the oil company can assist the oil bearing communities to build schools, hospitals, healthcare institutions, send their children to school and reduce the level of unemployment in the region.





References
Abubakri, O.R., Ogodo, G., & Adedowole, F.I. (2014). Public relations, corporate social responsibility and oil communities in Niger Delta region, Nigeria. New Media and Mass Communication, 26,35-41.
Afinotan, L.A., & Ojakorotu, V. (2009). The Niger Delta crisis: Issues, challenges and prospect. African Journal of Political Science and International Relations, 3(5), 191-198.
Ajibade, L.T., & Awomuti, A.A.(2009). Petroleum exploitation or human exploitation? A overview of Niger Delta oil producing communities in Nigeria,” An International Multi-Disciplinary Journal, 3(1), 111-124.
Akpan, P.U. (2014). Oil exploration and security challenges in the Niger-Delta region: A case of Akwan Ibom State, Nigeria,” IOSR Journal of Research & Method in Education, 4(2), 41-48.
Ako, R.T., Obokoh, L.O., & Okonmah, P. (2009). Forging peaceful relationships between oil-companies and host-communities in Nigeria’s Delta region. Journal of Enterprising Communities, 3(2), 205-216.
Amao, O.O. (2008). Corporate social responsibility, Multinational Corporation and the law in Nigeria: Controlling multinationals in host states. Journal of African Law, 54(1), 89-113.

Andrews, O.T. (2015).The Nigeria State, Oil multinational and the environmental: A case study of Shell Petroleum Development Company (SPDC),” Journal of Public Administration and Policy Research vol. 7, no.2, pp. 24-28.
Asuquo, A.I. (2012).Environmental friendly policies and their financial effects on corporate performance of selected oil and gas companies in NDRof Nigeria. American International Journal of Contemporary Research, 2(1), 168-173.
Ayuba, A.K. (2012). Environmental impacts of oil exploration and exploitation in the Niger Delta of Nigeria,” Global Journal of Science Frontier Research, 12(3), 19-28.
Enuoh, R., & Inyang, B.J. (2014). Effective Management of Corporate Social Responsibility(CSR) for desired outcome: A Niger Delta Issue. International Journal of Business Administration, 5(4), 32-38.
Enuoh, R., & Eneh, S. (2015). Corporate social responsibility in the NDRof Nigeria,” Journal of Management and Sustainability, 5(3), 74-84.
Evuleocha, S.U. (2005). Managing indigenous relations: Corporate social responsibility in a new age of activism. Corporate Communication, 10(4), 328-340
Eweje, G2006, “The role of MNEs in community development initiative in developing countries: Corporate social responsibility at work in Nigeria and Southern Africa,” Business and Society, vol. 45, no.2, pp. 93-129.
Eweje, G2007, “Multinational oil companies CSR initiatives in Nigeria: The skepticism of stakeholders in host Communities,” Managerial Law, vol. 49, no.5/6, pp. 218-235.
Fox, T, Ward, H, & Howard, B2002, Public sector roles in strengthening corporate social responsibility: A baseline study, World Bank, Washington, DC.
Freeman, R2004, “The stakeholder approach revisited,” Zeitschrift fur Wirtschafts- und Unternehmensethik, Vol. 5, no. 3, pp. 220-241.
Frynas, J G2005, “The false developmental promise of corporate social responsibility: Evidence multinational oil companies,” International Affairs, vol. 81, no. 3, pp. 581-598.
Garriga, E, & Mele, D2004, “Corporate social responsibility theories: mapping the territory,” Journal of Business Ethics, vol. 52, pp. 51-71.
Hohen, C2007, “Corporate social responsibility: An institutional perspective,” Academy of Management Journal, vol. 31, pp. 854-872.

Ibok, EE, & Mboho, KS2011, “Corporate social responsibility towards host communities in Nigeria: Focus on ExxonMobil in Akwa Ibom State,” Journal of Sociology, Psychology and Anthropology in Practice, vol. 3, no.3, pp. 110-119.

Ibok, EE, & Mboho, KS2011, “Corporate social responsibility towards host communities in Nigeria: Focus on ExxonMobil in Akwa Ibom State. Journal of Sociology, Psychology and Anthropology in Practice, vol. 3, no. 1, 110-119.
Idemudia, U, & Ite, UE2006, “Corporate-community relations in Nigeria’s oil industry,” Corporate Social Responsibility and Environment Management, vol.13, pp. 194-206.
Idemudia, U2007, “Community perceptions and expectations: Reinventing the wheels of corporate social responsibility practices in the Nigeria oil industry,” Business and Society Review, vol. 112, no.3, pp. 369-405.
Inyang, BJ2013, “Defining the role engagement of small and medium-sized enterprises (SMEs) in corporate social responsibility (CSR),” International Business Research, vol.6, no.5, pp. 123-132.
Ite, UE2004, “Multinationals and corporate social responsibility in developing countries: A case study of Nigeria,” Corporate Social Responsibility and Environment Management, vol. 11, no. 1-11.

Konne, BR2014, “Inadequate monitoring and enforcement in the Nigeria oil industry: The case of shell and Ogoniland, “Cornell International Law Journal, vol. 47, pp. 181-204.
Mbat, D, Ibok, E, & Daniel, E2013, “ExxonMobil and corporate social responsibility in Akwa Ibom State, Nigeria: Past and present,” Public Policy and Administration Research, vol.3, no. 3, pp.21-28.
Ndubuisi, AL, & Asia, IO2007, “Environmental Pollution in Oil Producing Areas of the Niger Delta Basin, Nigeria: Empirical Assessment of Trends and People’s Perception,” Environmental Research Journal, vol.1, no.1-4, pp. 18-26
Nitta, KA, Holley, MJ, & Wrobel, SL2010, “A phenomenological study of rural school consolidation,” Journal of Research in Rural Education, vol.25, no. 2, pp. 1-9.
Nwesom, C2011, Conflict in Niger Delta, more than a local affair, A special report form US Institute for Peace. Washington, DC.
Raji, AOY, & Abejide, TS2014, “Compliance with oil & Gas regulations in the Niger Delta Region, Nigeria C. 1960s-2000: An assessment,” Arabian Journal of Business and Management Review, vol. 3, no.8, pp. 35-47.
Tolulope, AO2004, “Oil Exploration and Environmental Degradation: the Nigerian
Experience,” International Information Archives, vol.2, pp. 387-393.
Tuodolo, F2009, “Corporate social responsibility: Between civil society and oil industry in the developing World,” An International E-Journal for Critical Geographies, vol.8, no.3, pp. 530-541
Ojo, GU2012, “Community perception and oil companies corporate social responsibility initiative in the Niger Delta,” Studies in Sociology of Science, vol. 3, no. 4, pp. 11-21.

Orlitzky, M2007, “Corporate social performance and firm’s risk: A meta-analysis review,” Business and Society, Vol.40, no. 4, pp. 369-396.
Oteh, CO, & Eze, RC2012, “Vandalization of oil pipeline in the NDRof Nigeria and poverty: An overview,” Studies of Sociology of Science, vol. 3, no. 2, pp. 13-21.