Investigating the Impact of Inefficiency in Corporate Social Responsibility: A Case Study of Shell, Nigeria

In this case study we will discuss about corporate social responsibility and below are the summaries point:- The research study focuses on investigating the impact of inefficiency in corporate social responsibility (CSR) using Shell, Nigeria as a case study. Shell, Nigeria launched various CSR initiatives to mitigate the negative effects of their upstream oil exploration activities on the Ogoni community in the Niger Delta Region. However, the improper execution of CSR campaigns by Shell had adverse consequences on the community, leading to the need for a comprehensive analysis of the project's failure.  

Running head: CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
Student’s Name
University Name
Author’s Note
Topic: Investigating the impact of inefficiency in corporate social
responsibility: A case study of Shell, Nigeria

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Abstract
This research study explores the importance of CSR and appropriate execution of CSR activities
in the light of the CSR initiatives undertaken by Shell, Nigeria for the people of the Ogoni
Community in the Niger Delta Region. The upstream oil exploration activities had economically,
socially and environmentally impacted the Ogoni people. Shell, Nigeria had launched various
initiatives in order to safeguard the community from these impacts and revitalise them. However,
sources reveal that the CSR campaigns were not properly executed and this had an adverse
impact on the community also. In the first chapter, the topic of research and the background of
CSR initiatives have been identified in depth. The research objectives, research hypotheses and
the research questions have also been developed in this chapter that will help in understanding
the direction in which the study will flow in the current research.
The main themes based on which the research will be conducted have been set in the literature
review section of this research study. Along with the identification of the importance of CSR
initiatives for MNCs, the literature review also discusses the need for social development in the
Niger delta region and also analyses how the corporate parties can contribute to their
development. In fact, CSR approaches undertaken by MNCs in the developing nations have a
deep delved social significance. In the African or the Asian countries, there is a mandatory
pressure up on the multinational companies to take up CSR as part of the projects they are
accomplishing.
This research study resorts to a survey based primary research method which involves
quantitative data analysis. The actual issues in the CSR project, the reason why it failed and what
was the involvement of the planning procedure in bringing about the detriment of the project can
be understood in the following chapters.

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Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................7
1.1 Introduction............................................................................................................................7
1.3 Research Aim and Objectives................................................................................................9
1.3.1 Aim of the Research........................................................................................................9
1.3.2 Research Objectives........................................................................................................9
1.4 Research Questions................................................................................................................9
1.5 Research Hypotheses.............................................................................................................9
1.6 Significance of the Research Study.....................................................................................10
1.7 Summary of Chapters...........................................................................................................10
1.7.1 Chapter 1: Introduction.................................................................................................10
1.7.2 Chapter 2: Literature Review........................................................................................11
1.7.3 Chapter 3: Research Methodology................................................................................11
1.7.4 Chapter 4: Results.........................................................................................................11
1.7.5 Chapter 5: Discussions..................................................................................................12
1.7.6 Chapter 6: Recommendations and Conclusions............................................................12
CHAPTER 2: LITERARTURE REVIEW....................................................................................13
2.1 CSR and governance in the Multinational Organisations....................................................13
2.2 The role of MNCs in developing countries..........................................................................15
2.3 Stringent operating rules for multinational Organisations...................................................17

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2.3.1 The relationship between CSR and FDI........................................................................18
2.4 CSR related activities in the developing Nations.................................................................23
Role of governments in overcoming CSR challenges............................................................25
Strategic Target of CSR activities..........................................................................................26
2.5 Application of the Stakeholder Theory of CSR activities and stakeholder management and
engagement in Nigeria...............................................................................................................28
2.7 Engagement of stakeholders in Nigeria...............................................................................32
2.8 Problems with Shell, Nigeria...............................................................................................33
2.8 Literature Gap......................................................................................................................35
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................36
3.1 Introduction..........................................................................................................................36
3.2 Research Philosophy............................................................................................................36
3.2.1 Justification for choosing Positivism............................................................................37
3.3 Research Approach..............................................................................................................37
3.3.1 Justification for choosing deductive approach..............................................................38
3.4 Research Design...................................................................................................................38
3.4.1 Justification for choosing Descriptive research design.................................................39
3.5 Research Strategy.................................................................................................................39
3.5.1 Justifications for choosing Survey strategy...................................................................39
3.6 Data Collection Process.......................................................................................................40

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3.6.1 Justifications for choosing Primary data collection process.........................................41
3.7 Data Analysis Process..........................................................................................................41
3.7.1 Justifications for choosing Quantitative data analysis process.....................................42
3.8 Ethical Considerations.........................................................................................................43
3.9 Research Limitations............................................................................................................44
3.10 Summary............................................................................................................................44
CHAPTER 4: RESULTS...............................................................................................................46
Question1: How long have you been working in this organisation?.........................................46
Question 2: What is your Gender?.............................................................................................47
Question 3: Which Age group do you belong?..........................................................................48
Question 4: How far do you agree thatCSR initiatives can influence the organisational
success?......................................................................................................................................49
Question 5: How far do you agree the Human Resource department should entirely take the
responsibility of initiating CSR activities?................................................................................51
Question 6: Please rank the following drivers of CSR as you feel appropriate for your
company.....................................................................................................................................52
Question 7: What strategy is followed by your organisation for implementation of CSR?......54
Question 8: Is there a process of evaluation of the impacts created by the CSR initiatives taken
up by the organisation?..............................................................................................................55
Question 9: How far do you feel that CSR initiative in the Niger Delta region have been
effective?....................................................................................................................................55

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Question 10: How far do you believe that the following options are the challenges before
CSR?..........................................................................................................................................56
Interpretation of the Research Data...........................................................................................57
Question 1...............................................................................................................................57
Question 2...............................................................................................................................57
Question 3...............................................................................................................................58
Question 4...............................................................................................................................58
Question 5...............................................................................................................................58
Question 6...............................................................................................................................59
Question 7...............................................................................................................................60
Question 8...............................................................................................................................61
Question 9...............................................................................................................................61
Question 10.............................................................................................................................62
CHAPTER 5: DISCUSSIONS......................................................................................................63
Nature of employees..................................................................................................................63
CSR role in driving organisational success................................................................................63
Role of human resource in launching CSR activities................................................................65
Major drivers of CSR.................................................................................................................65
CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS.................................................68
Reference List................................................................................................................................71

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CHAPTER 1: INTRODUCTION
1.1 Introduction
CSR can be defined as a self regulatory mechanism by means of which a company actively
monitors global trends, legal standards and environmental standards for compliance. The core
mission of the company is supported by CSR activities, which also helps in extending their
responsibility as well as commitments towards the secondary stakeholders as well as other
societal members.
Every business is primarily faceted to fulfilment of the needs of the stakeholders.
However, most transnational companies are taking responsibility towards fulfilment of the needs
of their secondary stakeholders by addressing the global issues, aimed at making the world a
better place. As identified by Uduji, Okolo-Obasi and Asongu (2018), Global organisations are
nowadays being called up on by their stakeholders as well as customers to address the most
demanding issues of the nations where they are operating, which include concerns regarding
monetary advancement as well as environment. While popular sentiments vary on how the
responsibilities are allotted over general population, the corporate stakeholders of the companies
are demanding that organisations should try to be more compassionate in tending to such issues
(Zalik 2015). The companies are working progressively with their partners for comprehending
their concerns on various social, ecological, financial as well as corporate administration issues
that are occasionally alluded to as corporate social obligations.
Corporate Social Responsibility is in fact a wide term that is implemented for
highlighting the efforts of the company in order to improve the society in some way. CSR efforts
can span from activities like donating money to the non-profit organisations to the

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implementation of environment friendly policy implementations in the organisation. CSR
activities are very important for the companies, employees as well as non-profits also. CSR is not
a mandatory policy for the organisations based in the United States. Rather, it is mandatory for
the companies who are operating in the African or Asian countries to carry out CSR activities.
However, as per Hennchen(2015), CSR are actually the additional initiatives that are being
undertaken voluntarily by the organisations for the local as well as global communities.
1.2 Background of the Research Study
CSR activities are taken up by the organisations voluntarily. However, there are several
ways in which the organisations can benefit from their CSR campaigns. Companies that make
contributions to various social causes are perceived to be more philanthropic compared to those
organisations where the CSR endeavours are non-existent. The public image of the organisations
rests at the mercy of the CSR activities undertaken by them. However, even if the companies
take up CSR activities seriously, they would not be able to get much out of these activities, if
nobody gets to know about their role. That is why CSR activities are always aligned with
extensive media coverage with local media outlets taking up voluntary initiatives to cover the
story of the CSR based activities of the organisation. However, in this context, it deserves
mention that if the corporation indulges itself in to any such activity that creates any adverse
impact up on the local society, the media will extensively cover that also. Media visibility, as
Adewole(2018), states, is such an important fact that can shed positive light up on the
organisation.
There are some selective disadvantages of taking up CSR activities also. Often the
companies out of the fear of incurring too much costs, leave the activities in the mid-way. The
companies at times prioritise their profit making endeavours more than the social endeavours.

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The business objectives of the company can also get hampered if the company is too much
engaged in the CSR activities. The budgetary limitations of the organisation are also one
important factor that hinders them from taking up CSR activities.
1.3 Research Aim and Objectives
1.3.1 Aim of the Research
The aim of this research is to investigate the impact of inefficiency in Corporate Social
Research, based on the case study of Shell, Nigeria.
1.3.2 Research Objectives
 To investigate the strategic concept of Corporate Social Responsibility
 To examine Shell Nigeria’s construction to CSR in the Niger Delta in Nigeria.
 To determine how Shell Nigeria can redirect her CSR initiatives within the Niger delta
region in Nigeria.
1.4 Research Questions
Question 1: Has corporate social responsibility contributed to growth and development of Niger
delta region of Nigeria?
Question 2: Is Corporate Social Responsibility a meaningful strategy for the growth and
development in an emerging economy?
Question 3:Is CSR policies and initiatives worth in Nigeria?
1.5 Research Hypotheses
HO: External organisational factors have no impact on CSR

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H1: External organisational factors have impact up on CSR
1.6 Significance of the Research Study
After setting up the oil rigs in the Niger Delta region, the normal lifestyle of the Ogoni
population who have their natural habitat in that region was hampered to a great extent. Firstly,
the ecosystem of the region was imbalanced to a great extent. On top of that the land and the
marine atmosphere were also hampered. In order to mitigate the impact up on the locality or the
ecosystem, the company promised to invest about $8 billion for relocating and revamping the
local habitat and $ 1 billion every year in the following period in order to clean up the Niger
Delta region. However, the project was stopped in the middle and only a small proportion of the
oil pollution was removed from the locality.
The significance of the research study lies in the fact that the final outcomes of this study will be
most appropriate for the conduction of the future studies in this concerned area of research. This
is very essential since more research in the domain of CSR activities undertaken by the oil
yielding companies in the Niger Delta region. As an outcome of the currently undertaken
research study, the governance gaps in the CSR campaigns will also be identified. This
knowledge can be used by the companies in the future also for undertaking of CSR activities.
1.7 Summary of Chapters
1.7.1 Chapter 1: Introduction
In the first chapter, the topic of research have been identified in depth. The background of
the study have been developed here which helps in understanding the importance of the CSR

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needed to be undertaken by the oil yielding corporations operating in the region. The research
objectives, research hypotheses and the research questions have also been developed in this
chapter that will help in understanding the direction in which the study will flow in the current
research.
1.7.2 Chapter 2: Literature Review
The main themes based on which the research will be conducted have been set in the
literature review section of this research study. Along with the identification of the importance of
CSR initiatives for MNCs, the literature review also discusses the need for social development in
the Niger delta region and also analyses how the corporate parties can contribute to their
development. In fact, CSR approaches undertaken by MNCs in the developing nations have a
deep delved social significance. In the African or the Asian countries, there is a mandatory
pressure up on the multinational companies to take up CSR as part of the projects they are
accomplishing.
1.7.3 Chapter 3: Research Methodology
To make a summary of the research methodologies and techniques used in this research
study, the researcher has resorted to a primary research method based on a survey research
strategy comprising of quantitative data analysis process. Apart from these, it based on
descriptive Research design and deductive research approach, along with a positive research
philosophy. These aspects are vital for collecting as well as analysing the relevant data and
information essential for the research work.
1.7.4 Chapter 4: Results

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In this section the outcomes of the case study based data collection have been specified.
The actual issues in the CSR project, the reason why it failed and what was the involvement of
the planning procedure in bringing about the detriment of the project can be understood also. The
inefficient association within the Shell Nigeria and the National Oil and Gas Corporation of the
country will also be explained in the same chapter.
1.7.5 Chapter 5: Discussions
In the Discussions chapter, the main emphasis have been laid up on analysing the factors
that have been considered by the organisation before taking up the CSR campaign. The
procedures like funding and planning for CSR campaign of Shell Nigeria have changed before
and after the Ogoni crisis in the Niger delta. Based on these findings, the researcher highlights in
this chapter, how the course of actions in the CSR campaign changed before and after the crisis
and the consequent impacts of those changes have been discussed and analysed also.
1.7.6 Chapter 6: Recommendations and Conclusions
This chapter is equally important like the initial chapter and might be called the backbone
of the research. Te principal findings and based up on that the conclusion that have been reached
up on, in each of the chapter have been revisited in brief in this chapter. Followed by that, a set
of recommendations have been provided in this chapter also. In the recommendations section,
the researcher aims at developing better framework for conducting the CSR campaign. Primary
policy changes that could have impacted the CSR campaign have been specified here also in
addition to suggestion of various ways in which the future CSR campaigns can be impacted for
gaining better outcomes.

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CHAPTER 2: LITERARTURE REVIEW
2.1 CSR and governance in the Multinational Organisations
The Governance of global activities of the multinational corporations is a critical issue
within social movement which has been a topic of heated as well as polarising policy as well as
debate in academic field. Specifically, the increasing demands for regulation of the MNCs has
earned momentum as well as mainstream credibility in context to the large environmental
disasters like the gas leak as well as explosion from Union Carbide killing at least two thousand
people in the year 1984 in Bhopal or the oil spill from the Alaskan coast, a major disaster that
took place in the oil rigs of Exxon Valdez in the year 1989 and lastly but not the least mentioned
should also be made of the Ogoni crisis accountable to Royal Dutch Shell in Nigeria in the year
1996 (Scheberle 2018). .
This led the Multinational Corporations to provide a mainstream focus on the CSR
movement and as an outcome their interactions with the civil society, International organisations
as well as the state has increased to much an extent. The enhancing brand profile of the MNCs is
entirely based upon recognition that the environmental risks are not a direct outcome of the
activities of the MNCs , parallely the state has been missing its regulatory authority vis-à-vis the
major MNCs, particularly in the developing regions of the world. Based on standard arguments
of researchers likeHackett(2016), it can be held that globalisation of economy that is accounting
out of integration of Markets and France national capital is intern resulting the erosion of the
potential of the nation states in addressing in the issues that concert the public adequately. In this
view researchers likeUduji,Okolo-Obasi and Asongu (2018), also make a critical comment that
the position of sovereignty as well as resulting Nation based economic policies are being ignore

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while the Nations constantly become unnatural and also dysfunctional as promoters in the global
economy.
The nation state basis of global governance is also fidgeting for adjustment and expansion under
the growing influence of these transnational corporations. In this context commerce college
likeUduji and Okolo‐Obasi(2017), define that in the structure of organisational government, the
nation states are losing their power to regulate the activities of prominent business personal in
their respective domain accounting to the global Impact of De-nationalisation as well as de-
territorialisation. On the contrary, are the researchers likeVisser and Tolhurst(2017), have
dismiss the above claim calling it sheer alarmism, are you giving that in spite of the fact that
balance between MNCs and the states has been drifting consecutively and constantly the states
are still in possession of principal powers helpful to restrain business activities and in fact other
critics likeEhie(2016), also raise the claim that the states poses capacity of adapting to the
changing economic conditions, very well also. Moreover, in the same context other resources
likeIdemudia(2018), argued that the conceptualisation of a global Corporation is nothing greater
than a myth. The same authors reflect that in the same way as Pax Britannica incorporated
positive International environment for foreign expansion of the British companies as well as
investors in the later part of the 19th century, American leadership following the Second World
War had also provided and equitable international environment for foreign expansion of
American capitalist firms as well as their shareholding and concerned Agencies also. It is
worthwhile, mentioning here, that researchers likeEgbon, Idemudia and Amaeshi(2018), have
commented after analysing the above two perspectives in Unison that MNC, however bread in
the different countries, are always dependent upon the home countries and the steps taken by the
government of the home countries

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A popular Review upholds that major change has actually taken place in the gaining of
advantageous position by the corporations that hold vis-à-vis States, developed by environment
of free market, dysfunctional ties of the welfare state, and durability policies of the state and the
network of the power structure within the interstate system. In the context to the above
discussionMcQueen(2015), has emphatically pointed out that one potential risk in this context is
that undifferentiated claims in globalisation of political rule of the corporations might not be able
to capture the essential complexities in current developments in context to the political role of
profit making corporations. The same author after analysing the various dimensions of power-
politics, has come on to convey that the actors of the MNCs and other influential business firms
hold a level of power which suggests the clean of a dearth of business influence on politics all
serial limits to search influence should be met scepticism.
2.2 The role of MNCs in developing countries
The debate regarding the role that MNC corporations and their governance play has emerged
again in the debate over CSR and has now been fuelled by expansion of these corporations in the
gradually developing countries. Contesting the role that MNCs play through their CSR initiatives
in the developing Nations is absolutely unfathomable if we do not revisit the discourse regarding
the role of transnational corporations in the developing countries. In spite of the fact that large
number of developing countries is increasingly incorporating FDI as a potential pathway of
economic development, a strong critical tradition always exists and rejects the fundamental
argument that growth in FDI as well as Association of the multinational corporations are
impactful for the social and economic development of the developing Nations.

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Average CSR expenditure of Shell
(Source: Adewole 2018)
On one hand the multinational corporations plays critical role as peddlers in FDI floors in the
developing Nations on the other hand their Association with the FDI claims have been defamed
owing to several tickets of malpractices including activities like misusing power and neglecting
the social as well as environmental impact of the operations in the developing Nations. that is
why, critics pertaining to the dependencies School as well as anti-globalisation movement,
likeAyoolaand Asaolu(2016), considered that the involvement of the multinational corporations
in the development process in developing countries is actually detrimental. The same researchers
acid tell this might lead to implement of social as well as environmental deterioration as well as
conflict between the local as well as cultural forces as also the new forces of global capitalistic
production.
Various scholars advocate the perspective of economic development, in general argument
and storm contrast to those favouring the dependency School also argue that the inclusion of the

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MNCs in the developing Nations by means of FDI will help in uplifting the local economy which
will in turn leads to enhancement of employment opportunities, transfer of Technology as well as
infrastructure development. The same researchers perceives CSR as a Gateway Of Business
making organisations to respond to social as well as environmental responsibilities and internal
forces that significant practice changes in business under way as an outcome of ample adoption
of Corporate Social Responsibility programs by more and more multinational organisations in
the developing Nations.
The real motives as well as the ultimate objective of regulation of the multinational
corporations in corporate social responsibility and related activities emphasizes on in the extent
to which corporate responsible behaviour can be promoted in context to social as well as
environmental impacts of the business activities of these corporate powerhouses.
2.3 Stringent operating rules for multinational Organisations
The principal point of CSR is based upon several considerations. Firstly, researchers like
Overall, Cornelius and Wallace (2018), who are in favour of global revolution of the activities of
MNCs, argue that the process of globalisation has definitely obfuscated the power of the state. In
the current economic order emphasised about freedom of national capital in context to ownership
relevancy of stakeholders, Management and involvement of others like shareholders, consumers
and suppliers. In the same context, researchers like Filatotchev and Stahl (2015), convey that,
MNCs have emerged to be the new agents of the age of globalisation comparably remaining
largely unrestrained of domestic regulations. There is ample empirical evidence that supports
assumption of higher level of power by the multinational corporations.

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In terms of legal jurisdictions, there are no compulsory CSR provisions; since the scope
of CSR in Nigeria is not concise. However, practical CSR implementations in Nigeria have
developed a expectation that companies would be addressing the sustainable development issues
in the country. They are expected to strive towards profitability, thereby maintaining a
sustainable and safe environment and thereby foster the economic development of the
specifically backward communities. In this regard, Overall, Cornelius and Wallace (2018),
informs that a bill was passed in the year 2008 in Nigeria, named A Bill for an Act to provide the
Establishment of Corporate Social Responsibility Commission.
2.3.1 The relationship between CSR and FDI
Firstly, statistics related to foreign direct investment show increment in the economic
activities adopted by large MNCs. In the space between the year 1981 and that of 1985, foreign
direct investment worth 50 Billion US Dollars has slowed on an average and by the year 1990
the value has reached and you rather crossed to 40 billion US dollars and the trend of sting rising
continuous in the year 2004 also with the value of 612 billion US dollars (Overall, Cornelius and
Wallace 2018). As an outcome of these, Uduji and Okolo-Obasi (2018), informed that SBI stock
in context to the world GDP has become double from 5% to almost 10% between the span from
the year 1980 to that of 1994. The real importance in context to Trans National organisations or
the MNCs in the fate of the world economy is further more than that is indicated by search
figures since the FDI accounts for about 25% of the overall investment in relation to
International production. Secondly more and more global level MNCs are emerging and as the
statistics show, their number has risen from 7000 in the year 1972 about 40000 in the year 1995.
Thirdly, the sheer size of operations in the MNCs beer testimony to the amplitude of their
financial power. An evidence can be provided in this context. The rate of annual sales of General

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Motors exceeds the gross domestic product of that of Norway, Israel as well as Finland. On top
of that, the 5 trillion US dollars’ worth annual sales that is early generated by the transnational
corporations' foreign affiliates is greater than the total financial volume in international trade
also. On top of that, that greatest 300 translational organisations account for about one third of
the productive assets in the whole world and the oil and natural gas corporation emphatically in
the list of this first 300 MNCs. Furthermore, actualization of the role played by the MNCs in
context to the world politics, manifests itself in a really practical level. For evidence, critics
likeAbdulai(2015), identify considerable ecological footprint of the multinational corporations
which ensures that they are consuming large quantities of resources like energy, raw materials,
water and intern producing ample amount of waste and encouraging Rapid environmental
transformation by means of extracting the resources. Fifthly, the legitimacy of the local activities
of the multinational corporations can be questioned of, also.
Investment for FDI in Nigeria

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(Source: Carol, Nnenna and Nnenna 2016)
The identification of the context of operations of the multinational corporations in the
developing Nations is developed on the claims that they faced hurdles uses of speaker in the
parts of sustaining the legitimacy of the business activities in this context where there are
institutional as well as legal gaps. Generally, critics likeHofferberth(2017), argues that the weak
Nation States might be ineffective to make the MNCs internalized the costs related to
environmental externalities that are related to their business activities. Moreover, researchers
likeCarol,Nnenna and Nnenna(2016), also claimed that provided to the rising power of the
transnational corporations in context to the increasingly weakening power of the states,
particularly in the developing Nations the letter will not be able to bring the MNCs to account
whatever be the effect of their business activities.
The specified regulator gas that is left because of failure of the traditional political institutions in
the developing Nation States hazard of the growth of population and invites stronger regulation
by the government of the MNCs which are operating in those developing Nations. As an
outcome, researchers likeEkhator(2016), persistently argue that this regulatory gap can be filled
by the Civil Society organisations by operating in the promising Arena of sub politics where the
social activist can promote the need of implementing efficient political regulation for such
delicate issues like social as well as environmental threats from the economic activities carried
out by the corporations. In this regards, critics likeIsah-Chikaji and Abdullahi(2017), provide an
example. In the year 1992, the high commission of Human Rights recognised that transnational
trading system has cultural, legal environmental and social dimensions which are affecting the
human rights. On one hand organisation has no legal obligation under the International Law to
comply by these standards and on the other hand these companies that violates the international

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laws have been found to be largely condemned by the society. That is why the same researchers
suggest the development of normative code of conduct that would be championed by the CSOs
of these organisations thus leading them to the right direction.
Researchers like Chiroma et al. (2017), advocate in favour of increased Regulation and on top of
that argue that the effect of voluntarism will be nominal unless the code of conduct is stringent as
well as binding. For example, critics like Imbun, Duarte and Smith (2015), reasonably argued
that although international law has its own limitations, it will be capable of supporting the new
regulatory opportunities that can improve Welfare of local people as well as communities who
are severely affected by the economic activities of the multinational organisations, particularly
the LDC and the emerging and economically developing Nations. Researchers like Imbun,
Duarte and Smith (2015), also argues in favour of traditionalist as well as state centred approach
towards corporate social responsibility and related activities.
Recurring demand is that in Nigeria, the operational companies like Shell, who have
communities outside their home countries, should not be operating below the authoritarian
standard set by their parent companies. The Nigerian Government also expects that they would
do research and investigations for analysing the needs of host communities. This can be analysed
to infer that Shell, Nigeria should investigate the needs of the Ogoni community which is
socially and economically impacted by the upstream activities of Shell, Nigeria in the Niger
River Delta.
The foregoing brings to the limelight, the need for CSR in Nigeria, vis-a-vis the CSR bill before
the Nigerian National Assembly. The Oil industry of Nigeria is the most active industry which is
accountable for 70% of national revenue. While the Nigerian state has a strong challenge of
abuses of rights by multinational corporations over the years, recent interventions by

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international advocacy groups and the unrelenting struggles of victims of the operations of these
oil companies are making them to be more socially responsible. This of course is still not within
the acceptable range. The environmental protection laws have been largely neglected as
government lacks the political will to enforce its own laws.
In the developing nations of Afro Asian domain, NGO communities generally support the public
policies which promote mandatory disclosure requirements as well as accuse the companies of
using corporate social responsibility as a gateway to avoid the regulations. For instance, the
NGO committee named Community of Friends of the Earth strongly criticised British American
tobacco for the same cause that is mentioned above. Public regulation can be viewed more as the
specific way to ensure compliance of the MNC is with the environmental standards of the
locality where they are operating in order to sustain as well as insured the future sustenance of
both their economic activities as well as that of a local community from where they are drawing
their resources. Moreover, researchers like Cohen (2017) and Nwagbara (2016), provide opinion
that the multinational corporations generally comply with minimum level of international
business standards as well as environmental laws and thus invite the fear of breaching the
statutory guidelines and thus inviting harsh penalties also.
Compliance is easy to control and there are legal methods of penalizing Misreporting as
well as violations that can account to far faster improvements in context to the CSR activities.
However, as informed by Michael et al. (2015), criticism of state based regulation provides for
lax attitude in regard to regulatory institutions, risks related to cooption and the suggestion that
regulation helps in preventing or inhibiting the propensity of the multinational corporations to
adopt beyond compliance practices. In addition McQueen (2015), also tends to undermine the
fact that the developing Nations will be facing the challenges related to the regulatory

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enforcements. For evidence empirical research works have highlighted the weakness present in
the regulatory framework of the oil industry of Nigeria and also shed light on the dearth of
enforcement capabilities. This cast serious doubts regarding effectiveness of more stringent
regulation for the multinational corporations working in the country. On top of that, enhanced
regulations had often proved to be counterproductive, and have also been linked with higher
transaction costs coupled with the regulatory failures of 1970s (Idemudia 2017).
Besides the government issues, the discourse related to Corporate Social Responsibility in
developing Nations has emphasized up on several important issues that specifically implies two
local contacts and needs to be addressed by the CSR agenda of the multinational corporations.
These in corporate environmental protection enhancing stakeholder relations with communities,
government as well as civil society and at large community development.
2.4 CSR related activities in the developing Nations
Corporate Social responsibilities undertaken by multinational companies in the developing
Nations are difficult to assess according to Uduji and Okolo-Obasi (2018), because of several
shortcomings which are inherent in the existing analysis of association between corporate social
responsibility and its development in the developing Nations. The basis, on which CSR is
evaluated, remains contested and relies upon who is measuring and for whom the measurement
is being done. In addition to that in spite of the fact that there are some similarities in the
developing Nations, landscape of CSR activities varies from one place to another.

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Key Drivers of CSR in Nigeria
(Source: Egbon, Idemudia and Amaeshi 2018)
Variations in the condition of the CSR practices have been highlighted attributed to the
critical role that local governments play neither preventing or helping in the CSR activities. In
this context, researchers like Uduji, Okolo-Obasi and Asongu (2019), have opined that CSR
activities are also impacted by historical factors as well as cultural relationships. For evidence,
aspects related to emergence civil society as in the Republic of South Africa following the
apartheid, and the critical role played by the charts in countries like as Brazil in context to
promoting the CSR activities and the need for taking of CSR activities. In analysis, it can be
stated that political pressure up on the organisations for reducing injustices like exploitation of
local labour force, usurpation of resources, actually compels the MNCs (mainly American and
European companies) Other researchers like Okoro (2017), have also developed the argument
that the social and the economic environment where the corporation operate and the development

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priorities which they consider can create high level of influence upon the CSR practices that are
undertaken by the MNCs. It can be analysed that it is the pressure of the stakeholder groups and
the customers that motivates them to generate value towards the society. For evidence,
researchers like Nwagbara and Kamara (2015), argue that CSR activities in Nigeria is effectively
pointed at addressing the social and the economic development challenges in the nations which
includes poverty alleviation infrastructure development, better education facilities as well as
promotion of Health Care facilities.
Role of governments in overcoming CSR challenges
CSR can also be perceived as a way of overcoming the challenges that governments face.
One medium to plug the governance gaps that is created by constant succession of corrupted
countries host or weak governments that constantly feel to provide proper social services to
housing, Healthcare share my location, road, electricity and so on. In this context, researchers
likeIdemudia(2017), put forward in opinion that the organisations enter the citizenship Arena
where Government and administration has not be able to provide proper citizenship rights in
relation to improving the working condition in the sweet shops which is a very much prevalent
problem in the countries of African or Asian economics, ensuring that the employees get proper
living wage, financing the education of poor or labourer children. Search CSR activities are
applicable to those Areas where the legislation is not appropriate to address those limitations.
However, in sharp contrast, researchers likeIdemudia and Osayande(2016), provide that
corporate social responsibility by translational organisations is actually an inadequate response to
fulfil the governance gap and that more proactive involvement of such organisations are required
in order to move the local governance towards their accountability and inclusiveness, wherever
necessary.

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Other than the above mentioned factors, the issue related to perceived complicity regarding
governments as well as companies, also exists. Researchers likeGilberthorpe and Hilson(2016),
perceive the issue of perceived complicity as an alternative to the government which can be
frequently advocated as a way to fill up gap in the governance that might arise with acceleration
of liberal economic globalisation
Again, critics like Shamir(2017), argue that this can be seen as a part of more general political
shift in order to move towards new governance where the hostilities would be increasingly
seeking to share their responsibilities and also develop new ways of operation either as an
outcome of overload or with the motivation that they are not able to have the Monopoly of
offering the solutions for the problems in the society.
Strategic Target of CSR activities
CSR has been perceived byOsemeke, Adegbite and Adegbite(2016), to be given by the
necessity to access the market. This idea is primarily based on a perception that the marketing
strategy of turning 4 billion poor people of the world into target customers is actually the earth
that drives CSR activities of the MNCs. Many companies also see CSR as an opportunity of
accessing the markets of the developing countries and use the resources from there like raw
materials and human resources for conducting their operations in the developed part of the
world. For evidence, researchers likeOkoro(2017), depicts the competitive advantage in the
foreign markets as one of the factors that drives CSR also. The CSR drive of Royal Dutch Shell
in the Ogoni region of the Niger delta can be perceived to be an activity that was launched, given
by the same scheme, to some extent.

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In many instances CSR activities has also been given by the violence against corruption as well
as negative impact caused upon the local community by the economic activities of the
multinational companies working in foreign environment and the international pressure covering
upon them because of such activities. In the Niger Delta environmental threats that Royal Dutch
Shell had been inviting because of their reckless activities in the local oil rigs could have invited
the attention of UNESCO World Health Organisation features of the United Nation has been
working towards eradication of poverty and negative environmental impacts in the Nigeria.
Researchers likeAmoako(2016), have also argued that in Africa the civil society as well as the
institutions that govern the society are weak to such an extent that without external support like
financial aid and technological Association they are not able to try corporate social responsibility
and related campaigns in local communities. open, this is why the governmental Agencies are
forced to go into collaboration with the translational organisations as they feel that in exchange
of the local resources, the companies would be able to bring in FDI which will help in elevation
of the poverty standards in the local communities. However, in the context of the scam that
Royal Dutch Shell conducted in context to CSR activities in the Niger delta, the government was
well aware of the progress of the CSR campaign that she’ll promised to conduct sings the
funding and regulation of the campaign has been done hand in hand with a government agency
as well as the CSR campaigners from Shell. Researchers likeZalik(2015), also argues that civil
society organisations of international level are heavily involved in the countries in Africa for the
reasons stated above and have been constantly playing a strong role along with the local NGOs
in driving the CSR practices. Primary idea is that criticism in relation to CSR practices in the
developing Nation includes the allegations like green washing as well as claim has been there
that the gap between the corporate rhetoric as well as practice have never been fulfilled (Zalik

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2015). In addition to that, the same critics’ have pointed out that the corporate contributions to
the causes of social issues have also been dismal particularly when the charitable donations by
the corporate organisations pitched against their economic profits. This is whyNwagbara(2016),
asserted that overall record of social activities provides the scope to comment that CSR activities
that has been undertaken in the developing Nations have always been an even, contradictory as
well as restricted to some particular sectors only.
2.5 Application of the Stakeholder Theory of CSR activities and stakeholder management
and engagement in Nigeria
Instead of starting with a business and looking out into the world to see what ethical
obligations are there, stakeholder theory starts in the world. It lists and describes those
individuals and groups who will be affected by (or affect) the company’s actions and asks,
“What are their legitimate claims on the business?” “What rights do they have with respect to the
company’s actions?” and “What kind of responsibilities and obligations can they justifiably
impose on a particular business?” In a single sentence, stakeholder theory affirms that those
whose lives are touched by a corporation hold a right and obligation to participate in directing it.
In Nigeria there has been constant practice from ocean of the corporate social responsibilities,
predominantly in the all sector of the country. However researchers like Okoye, Amaefule and
Onyekpere (2016), pointed out that CSR has been largely implemented as a business strategy
recently, where as other researchers like Erdiaw-Kwasie (2018), have went on to clean that
deception might be the most probable consequence of such CSR initiatives also.
The corporate social responsibility policies as well as activities are in a state of constant
evolution The evidence of the CSR program of Royal Dutch Shell in Nigeria can be provided.

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The CSR program of Royal Dutch Shell underwent evolution from programs involving
assistance towards the small scale communities in the 1972 programs like comment development
in the 1990 and finally they went on to development of Sustainable communities in 2004. This is
how they acknowledge the local communities where they are operating as essential secondary
stakeholders also. However, failure of Corporate strategies which are the major drivers of CSR
activities as pointed out by some researchers in the previous line, can cause severe impact about
the community in context to which the CSR campaign have been undertaken. Example of the
same organisation can be taken to substantiate the fact. The community development budget that
Royal Dutch Shell had initially decided was of a modest valuation of 30000 US dollars in 1990s
(Idemudia 2017). The company was did not aim to undertake serious changes for the community
but rather help to mitigate the environmental impact that would be caused towards the local
community as an impact of their operations. However, when this organisational policies failed,
the Ogoni prices of curd and this lead to further communal clashes followed by Hostage taking
and kidnapping. As a compensatory mechanism, the organisation had to arouse the CSR budget
by 1000% in the year 1999. This dramatic funding for CSR investment was actually an attempt
by the organisation to response to the enhancing pressure from the community in order to
improve the impacts of their community development assistance program.

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Figure: Issues related to dispute regarding oil facilities
(Source: Idemudia 2018)
The local community of the region are the policies to that Royal Dutch Shell initiatives would be
bringing about an absolute changeover. However, when your expectations was significantly
mismatched, communal crisis begin to take shape. However, many critics like Uduji and Okolo-
Obasi(2018), argue that CSR policies of Royal Dutch Shell effectively and exercise in the public
relations and will be having only some marginal impacts on community development.
There are some factors that makes the CSR activities undertaken in Nigeria different from that in
other places. The business environment of the country helps in presenting several challenges to
the multiple Oil Corporations that conduct operations in the country. Various issues like
ethnicity, political governance pressure, economic governance pressure, pressure of poor social
governance poses serious and significant challenges for the organisations to conduct the
economic activities as well as launch the CSR practices in the country. Corporate Social
Responsibility in the oil sector is stronger since the organisations that work here are always

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under the scrutiny of the public and are frequently making headlines in the local newspapers.
However, researchers likeOkoro(2017), convey that conflicts in the country and in the oil
producing regions of the country like the Niger Delta make the CSR practices very difficult and
also can find the positive impacts of the CSR initiatives. CSR is infected very useful Framework
that helps in exploring the stakeholder relationship with the corporate heads and I also a means
through which the organisations frame their attitude, relationship as well as the strategies with
the stakeholders. Researchers likeIdemudia(2017), confirm that in Nigeria various local
stakeholder groups are needed to be taken seriously by the oil in the organisations who enforces
collaboration show various forms of relationships. These groups rise as agents like salient
stakeholders related to the oil industry and the organisations owe to them for various factors.
Firstly one important fact is that oil exploitation has various significant in negative
environmental as well as social impacts upon the local people as well as the local environment.
Secondly oil yielding operations India multi-million Dollar transactions and such transactions are
taking place in your region which are subjected to abjections as well as pervasive poverty.
Search factors constantly put the companies under the limelight of local as well as International
scrutiny. As an outcome of this year has been mounting criticism against the performance of the
oil industry for taking an insignificant part in social as well as environment and development and
accounting to deterioration of the same in the oil producing parts of Nigeria.
Researchers likeGilberthorpe and Hilson(2016),have also noticed that the alliance of the all
companies with the local stakeholders helps in giving the companies a competitive edge in the
oil yielding sector and utilise the Limited opportunities that are present in the industry for
gaining competitive advancement in terms of product as well as price differentiation. With the
help of the local communities, the organisations are able to establish the oil rigs and gain labour

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for the Rig at cheaper rates. Consequently stakeholder engagement have been taken up to a
central level by such companies and this kind of strategic business thinking is implemented by
many organisations like Royal Dutch Shell as well as BP in Nigeria. However, researchers
likeOsemeke, Adegbite and Adegbite(2016), argue that the significance of engagement of the
stakeholders rests on the demand for companies to obtain for the licence for continuing Oil
exploration on the lands of the local community and the imperative to sustain legitimacy, sustain
long term beneficial relationship alongside reducing the costs of operation.
2.7 Engagement of stakeholders in Nigeria
The presence of the multinational corporations have in common feature in the economic
landscape in Nigeria. In the current day five important all companies including the shell group,
TexacoExxonMobil, Ajip as well as TotalFinaElf are operating in the Niger Delta region. The
crisis of their CSR programs, CSR policies of shell as well as practices in particular,. Towards
the fact that such activities are essentially driven by the need to obtain licences for operating
Android the constant pressure of the ever enhancing community confidence which cause major
delay in the activities of Oil exploration and increase the associated costs. The target of obtaining
licence to conduct operations in that region originates from the earlier undertaken debates on
corporate social responsibility and the role of the MNCs as social institutions. This idea is drawn
from the so-called iron law of responsibility, the capacity of the local stakeholders of
undermining the corporate activities in case if the organisation do not make rational use of the
powers. In this context Carroll’s pyramid of CSR model can also be highlighted with the notion
of internal as well as external stakeholders to the organisation. Why the company given the
licence to operate in the particular region from the local government there also need to gain the
social licence of operating in that region from the local stakeholders like for instance the local

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communities. As highlighted byOkoro(2017), the challenge that the MNCs has to face because
of such CSR strategy is related to defining the relationship that they have with the stakeholders
and demanding to the rapidly changing demands of the local stakeholders they have tied up with.
The inefficiency to meet the first changing demands of such stakeholders is one primary reason
why the CSR strategy of Royal Dutch Shell in the Niger Delta failed miserably and they had to
sum up their CSR funding by multiple times in order to mitigate the negative impact that they
had to incur. Hence, deriving from the above instance and inspired from the findings
ofAmoako(2016), it can be inferred that CSR should be developed for long term as well as
should I am at emphasising mutual respect, sustained commitment along with benefit and trust.
Many researchers have also added that is Nigeria, all the CSR relate to sum investment in social
infrastructure, it can also be perceived as a social vehicle for development. In this context, Shell
Petroleum Development Company makes an assumption that social investment that they made
towards the local community in the Niger Delta has paid of highly and has also been accountable
to diminish local community conflict. However, reports provided by many researchers
likeZalik(2015), andNwagbara(2016), discover that over 70% of the projects that have been
funded by Royal Dutch Shell has been absolutely dysfunctional and unsustainable or they have
not been able to address the cold needs of the community properly. As such debates call up for a
suggestion that there is a need for systematically conducted research to look up at the role played
by the stakeholders in context of negotiating for the CSR practices and examine how stakeholder
engagement can help in the maximization of the contribution by the MNCs in the way of
developing the position of the local communities to the CSR policies as well as practices.
2.8 Problems with Shell, Nigeria

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There have been issues caused by the oil production in Nigeria prior to the case with the
Ogoni population also. Owing to the low political profile of Shell in Nigeria, the company have
been held blemish for half a century. About the time of 1970s, the oil extracted by Shell from the
Niger delta had been “Nigerianised” which implies that the local governments wanted larger
rates of concession. The share of oil for Shell in the country had been 55% which is at least 45%
more than the next highest oil concession in the country. Gradually, the local governments in
Nigeria became more corrupted and started to accumulate larger proportion of wealth. The
project that needed immediate outcome from the end of the political leaders like provision of
clean water, paved roads, greater electricity connectivity and so on were delayed mostly. As an
outcome, in spite of being the seventh largest producer of oil in the world, the poverty level of
the country started to rise and it rose to about 70% in the Niger delta region that had been
accountable for majority of the oil dug in the region. Hence, the discontent of the local people
with the oil industry began to rise and this in turn forced the government to enhance the revenue
that have been 1.5% in the areas concerned with drilling to about 3%. However, in spite of
paying revenue at the same rate, the organisation had to face ample issues in the region. The
political leaders usurped the wealth that was accumulated as an outcome of then enhanced
revenue rate for their own accomplishments. As a natural outcome of the course of operations,
the benefits of the CSR funding did not reach the local community. The people of the Ogoni and
the Etche tribe showed protest by sabotaging the facilities of Shell in the Niger delta along with
piercing of the pipelines because of which the oil flow in the pipelines also depreciated. Since
the project in Nigeria had been a joint venture of the Shell with the National Oil Corporation of
the country. A protestant group started an aligned movement giving an ultimatum for Shell to
heavily compensate for the losses to the local community or leave this business sector. This

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prompted the company to act immediately and they were forced enhance the budget for the CSR
activities of developing the local life standards of 30000 Ogoni people. The CSR budget was
enhanced by 1000%. However, since the local governmental agency was also involved in the
project, the local police was involved to march the Ogoni people off their claims. At first, as
reported by Okoye,Amaefule and Onyekpere(2016), the demanders were attempted to be bribed
and after that the when they disagreed, the government charged them of conspiracy and accused
them of obstructing in the operations of the development of the country. Many people of the
community were hanged and brutally tortured also. The entire colony was in a state of genocide
and guerrilla war.
2.8 Literature Gap
The literature review conducted above helps in identification of the issues that Shell and
the other corporations face in the way of conducting business in the Niger delta. On top of that,
the local communities are always creating hostilities in the area. The majority of literature
highlights these issues, whereas in none of the empirical works, a detailed way out have been
provided regarding how the issue can have a permanent solution and smooth operations can be
ensured. The CSR strategies that are being undertaken by transnational companies have been
discussed in detail. However, how the organisations can successfully conduct business in that are
avoiding the issues, needs to be analysed in detail, which is lacking here. These are the areas
where further research needs to be undertaken.

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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research Methodology can be described as a process that can be used for the process of
collecting research data that can contribute towards making appropriate business decisions.
Methodology utilises publication research and surveys for collection and analysis of data in this
research study. This Research Methodology presents and discusses the research techniques
which are essential for carrying out the research work. It is essential to analyse the collected
information as well. As pointed out by Patten and Newhart (2017), research methodology
comprise of a set of techniques which is used to identify, select, process and analyse data and
information for any given topic of research.
The primary aim of this research is to investigate the impact of inefficiency in Corporate
Social Research, based on the case study of Shell, Nigeria.
In this research study, primary research method has been applied to collect data as well as
analyse them to investigate the inefficiency in execution of the CSR programs of Shell Nigeria
undertaken for local area development in the Niger Delta. In addition, secondary data collection
method would be used to shape the implications of the different factors that can be found in the
study.
3.2 Research Philosophy
Positivism, pragmatism and Interpretivism are the three research philosophies upon
which researches are carried out. As states by Neuman (2013), Positivism makes sure that the
scientific approaches are implemented while carrying out the research. As positivism uses
scientific approach, it enables the researcher to be assured with the validity and accuracy of the

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collected data and information. While, interpretivism enables the researcher to perceive the
opinions of different researchers in context to the same study, and support his own findings by
referring to the pre-existing research (Mackey and Gass 2015). Pragmatism philosophy is the
blend of the positivism and interpretivism philosophy.
3.2.1 Justification for choosing Positivism
Positivism philosophy has been chosen for the purpose of this study as it allows the
researcher to make use of scientific approaches which ensures the validity and accuracy of the
collected data and information (Taylor, Bodgan and DeVault 2015). The scientific approach of
positivism philosophy would allow the researcher to investigate the failure of the CSR campaign
of Shell Nigeria undertaken for local area development in the Niger Delta. By applying scientific
approach to the study, the inefficiency to execute the CSR programs of Royal Dutch Shell,
Nigeria would be easily analysed. The use of numbers and figures to compare the present CSR of
the company and what it should be, would definitely help the researcher come out with a better
analysis and subsequently an accurate conclusion.
3.3 Research Approach
Inductive and deductive approach are commonly used to carry out research work. In
inductive approach, researchers generally formulate new theories and perspective based on the
collected data which he observes and analyses. This makes the researcher shift his attention from
the proposed research aims and objective and form new concepts (Lewis 2015). However, it
involves a chance where the researcher might form an incorrect theory on the basis of his
observation which are not proven. While, in case of deductive research approach, the research

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gets the liberty to deduce the already researched material which are already proven and widely
accepted (Vaioleti 2016).
3.3.1 Justification for choosing deductive approach
Deductive approach has been chosen by the researcher so that the pre-existing researches
can be made use of. The researcher can refer to the already established and proven data which is
far more convincing and accurate (Silverman 2016). Here, the researcher can use the approach to
look for the pre-existing information on the inefficiency in execution of the CSR programs in a
company. In addition, the researcher collects data and information from various other research
work, collects the relevant facts and figures and then deduce an inference out of it. The
researcher does not form his own theories and ideologies in any matter in this type of research
approach. Therefore, there is no chance where there can be inaccuracy as to the analysis of the
findings pertaining to the research on the inefficiency in execution of the CSR programs in a
company.
3.4 Research Design
The descriptive, explanatory and exploratory research design are mostly used in context
to carrying out research. As held by Flick (2015), explanatory design explains the phenomenon
are required to conduct the research. In this type of research design, the researcher could explain
with justification, the factors present in the research that includes all the relevant data and
information. While, exploratory design enables the researcher to explore the issues and research
gaps that might be present in the research, thereby finding out a justification for such research
gaps (Panneerdelvam 2014). Descriptive research being the blend of the other two designs, it
both explores and explains the research gaps present in the research topic.

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3.4.1 Justification for choosing Descriptive research design
Descriptive research design has been chosen for the purpose this paper. Descriptive
design helps the researcher to explore the research issues and gaps and then ensures that the
researcher explains it thoroughly with justification (Smith 2015). Descriptive research design
would enable the researcher to explore the general inefficiency that a company may have in its
CSR program and then would help the researcher to compare and contrast the present
inefficiency that Royal Dutch Shell has in its CSR program pertaining to its local area
development in the Niger Delta.
3.5 Research Strategy
Case study, Survey, Action Research and Interview are the three most commonly used
research strategy that is widely used for research work. Action research strategy focuses on the
scope to predict the future events of the phenomenon or factors present in the research work.
While case study research strategy allows researcher to refer to real cases and experiences of
individuals for the purpose of Data and information collection (Bauer 2014). On the other hand
interview resource strategy enables the researcher to have a face to face conversation with the
interviewees and participants to collect relevant information for the purpose of the study. On the
contrary, in case of Survey research strategy, the researcher gathers information from a large
group or population which is necessary for the purpose of the study (Fowler Jr 2013).
3.5.1 Justifications for choosing Survey strategy
The purpose of using survey method is to question the participants specifically on the
research topic and getting a neutral response in return. It is a form of primary data collection
method, which can comprise of both qualitative as well as quantitative studies. By the help of the

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survey method, the researcher can analyse the outcome of the inefficiency in execution of the
CSR programs in Royal Dutch Shell, Nigeria. A survey study would be conducted among the
population or target group who are affected by the inefficiency pertaining to the CSR program of
the company. The two major purposes of using survey method are to describe the characteristics
all aspects of the target population as well as for testing the hypotheses which was proposed
regarding the target population. Survey method has been chosen as it can be conducted faster and
in a cheaper way as compared to interview sampling or questionnaire method, along with the fact
that it is easier to analyse the data collected through survey method. By serving the target
population which is the people who have been affected by the failure of the CSR campaign of
Shell Nigeria, the reasons behind such failure can be easily found out and analysed.
3.6 Data Collection Process
Primary and secondary data collection process is the major techniques which are used to
collect the relevant data and information for a research work. As put forwarded by Gale et al.
(2013), primary data collection process enables the researcher to collect the most recent, raw and
unfiltered data from the participants or target population selected for the study. In this process
the researcher either collects the relevant information from the participants personally or gives
them the scoop to convey their views and opinions through questionnaires or written feedbacks,
which is in compliance with the aims and objectives of the particular research in question. in
case of primary research the researcher gathers data, which has not been collected before. While,
secondary data collection process enables the researcher to gather information from secondary
sources, which are not firsthand information. In case of secondary research the research of
gathers the data which already exists and has been produced by other researchers or scholars.

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Secondary sources comprises of books, journal articles, seminar papers, peer reviewed articles,
government websites, official websites of organisations, et cetera (Reynolds et al. 2014)
3.6.1 Justifications for choosing Primary data collection process
Primary data collection process has been chosen for the purpose of this study as it would
enable the researcher to conduct a survey by which the opinions and perspectives of the target
population of participants would be gathered and analyse in context to understanding the failure
of CSR program of Shell Nigeria. The data collected would certainly be relevant and unfiltered
for the researcher as he is involved in the process of collecting the data from the primary source,
which are the participants. However it is a lengthy procedure, yet the data and information
collected through this process would be sufficient for the specific need of the researcher;
inefficiency of CSR program of Shell Nigeria in this case.
3.7 Data Analysis Process
Qualitative and quantitative data analysis process is the widely used methods of analysing
the collected data and information for the purpose of a research work. Through qualitative data
analysis process, the researcher can ensure that the quality of the information collected enhances
the value of importance of the research work. This data analysis process makes sure that the data
collected from a target group is analysed by identifying a common pattern or common factor
among the participants whose response would then be critically analysed to achieve the already
proposed aims and objectives of the research. (Novikov and Novikov 2013). Qualitative data
analysis comprises of non numeric data such as feedbacks of participants, interview transcripts,
audio and video recording, images, notes and textual documents.

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On the other hand, quantitative data analysis allows the researcher to critically analyse
the figures and statistical data collected from primary as well as secondary sources and then
helps to find a rationale out of such numerical data (Walliman 2017). However such numerical
data is later on converted to relevant information by applying analytical and rational thinking.
Quantitative data analysis is majorly used to either support or reject certain hypotheses that have
been formulated at an earliest stage of the research (Clemence, Doise and Lorenzi-Cioldi 2014).
3.7.1 Justifications for choosing Quantitative data analysis process
Quantitative data analysis process has been chosen for this study as it involves the
investigation and measurement of the failure of CSR program of Shell Nigeria which would for
sure involve certain numerical data, statistical data, graphs and charts. These numerical data
needs to be critically analysed and interpreted to understand the failure of the CSR campaign of
the company which was undertaken for the local area development in the Niger Delta. The
interpretation of the raw numbers and then turning them into meaningful data by applying
analytical thinking would help the researcher come out with the reasons of inefficiency in the
execution of the CSR program in this company. In addition the findings of the literature review
conducted and presented in Chapter 2 of the paper is required to be referred, to showcase the
perspective of other researchers and scholars pertaining to the failure of CSR programs of
companies in general.
For the purpose of this study, several charts and graphs has been used to analyse and
justify the outcomes of the inefficiency in execution of the CSR program of a company. The
charts and graphs would help the researcher establish his findings pertaining to the research topic
and thereby justifying the hypotheses.

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3.8 Ethical Considerations
The researcher has complied with the standard ethical considerations that are necessary for
conducting research work in depth. The following ethical considerations have been complied
with:
1. The research participants have not been forced to participate in the survey and they have
not been subjected to any form of manipulation or harm. Voluntary participation of the
participants has been ensured. They have been informed about the purpose of the survey
so that they could understand the consequence of their participation and therefore give
unbiased response to the study. The participants have been given the choice of
withdrawing their participation at any point they wished. The anonymity of the
respondent has been ensured as well (Quinlan et al. 2019).
2. The data and information collected in course of primary research method as well as in the
literature review is accurate and reliable to the best of the knowledge of the researcher.
Therefore the accuracy reliability and validity of the information can be assured by the
researcher (Cacciattolo 2015).
3. The collected data and information has been protected and safeguarded from being
manipulated in any form under the statutory regulation of the country. The researcher has
tried to present the data in the form in which it was collected, devoid of any adulteration
or manipulation.
4. The collected data and information has been strictly used for the purpose of this research
work and for no other purpose (Connelly 2014).

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5. Lastly the researcher has acknowledged the information that has been gathered from the
work of other researchers and scholars that has been used in this study in accordance with
the Harvard referencing system.
3.9 Research Limitations
The researcher has come across certain obstacles while collecting and analysing the data
for the purpose of this study. The researcher has faced the difficulty of gathering literature
review of previous studies in this research topic as there were an availability of sufficient data
and information. For this regard the researcher opted for a survey method of Data Collection
which consumed a lengthy period of time. This is the other limitation that the researcher has
faced. There was time constraint for this study which might have affected the research work to a
certain extent. Limited funding and financial resources has also been an issue for the researcher
had to come across several websites which were either subscription-based or secured. Lastly, it
can be admitted that the lack of extensive experience in this field of conducting research works
and writing academic papers of such large scale may have compromised the quality of analysis,
which the researcher humbly accepts.
3.10 Summary
Therefore, to make a summary of the research methodologies and techniques used in this
research study, the researcher has resorted to a primary research method based on a survey
research strategy comprising of quantitative data analysis process. Apart from these, it based on
descriptive Research design and deductive research approach, along with a positive research
philosophy. These aspects are vital for collecting as well as analysing the relevant data and
information essential for the research work.

47CORPORATE SOCIAL RESPONSIBILITY

48CORPORATE SOCIAL RESPONSIBILITY
CHAPTER 4: RESULTS
This chapter provides the data findings for this research study. The research findings for
this chapter have been accumulated by means of developing a survey with the employees of the
Shell, Nigeria. In the first place, the raw data collected against the closed ended questions will be
presented in a meaningful format. In the next stage, the statistical data have been collected by
means of numbers, figures as well as percentages to get a clearer picture through amalgamation
of the individually collected responses. During the time of interpretation of the collected data, the
information gathered from the data findings have been explained in the paragraph formats.
Moreover, when data findings have been analysed in the following section, the previous
empirical findings have been linked with that of the empirical research work. The analysis of the
qualitative data have been conducted by means of tables and figures. The survey have been
conducted among 50 respondents who are the employees of Shell, Nigeria.
Question1: How long have you been working in this organisation?
 6 months to 1 year
 2 years to 3 years
 4 years to 5 years
 More than 5 years
Options No of Responses Percentage Total Respondents
6 months to 1 year 11 22% 50
2 years to 3 years 19 38% 50
4 years to 5 years 14 28% 50
More than 5 years 6 12% 50

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Question 2: What is your Gender?
 Male
 Female
 Others
Options No of Responses Percentage Total Respondents
Male 42 84% 50
Female 6 12% 50
Others 2 4% 50
Table 2: Gender of the Employees
(Source: Developed by the Researcher)

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Male Female Others
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Percentage
Percentage
Figure 2: Gender of the Employees
(Source: Developed by the Researcher)
Question 3: Which Age group do you belong?
 18 to 25 years
 25 to 35 years
 35 to 45 years
 Above 45 years
Options No of Responses Percentage Total Respondents
18 to 25 years 36 72% 50
25 to 35 years 8 16% 50
35 to 45 years 5 10% 50
Above 45 years 1 2% 50
Table 3: Age of the target population

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(Source: Developed by the Researcher)
18 to 25 years 25 to 35 years 35 to 45 years Above 45 years
0%
10%
20%
30%
40%
50%
60%
70%
80%
Percentage
Percentage
Figure 3: Age of the target population
(Source: Developed by the Researcher)
Question 4: How far do you agree thatCSR initiatives can influence the organisational
success?
 Agree
 Strongly Agree
 Neutral
 Disagree
 Strongly Disagree
Options No of Responses Percentage Total Respondents
Agree 19 38% 50

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Strongly Agree 18 36% 50
Neutral 2 4% 50
Disagree 6 12% 50
Strongly Disagree 5 10% 50
Table 4: Agreement over the impact of CSR initiatives on organisational success
(Source: Developed by the Researcher)
Agree Strongly Agree Neutral Disagree Strongly Disagree
0%
5%
10%
15%
20%
25%
30%
35%
40%
Percentage
Percentage
Figure 4: Agreement over the impact of CSR initiatives on organisational success
(Source: Developed by the Researcher)
Question 5: How far do you agree the Human Resource department should entirely take
the responsibility of initiating CSR activities?
 Agree

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 Strongly Agree
 Neutral
 Disagree
 Strongly Disagree
Options No of Responses Percentage Total Respondents
Agree 21 42% 50
Strongly Agree 17 34% 50
Neutral 2 4% 50
Disagree 6 12% 50
Strongly Disagree 4 8% 50
Table 5: Agreement over role of HRM in CSR
(Source: Developed by the Researcher)
Agree Strongly Agree Neutral Disagree Strongly Disagree
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Percentage
Percentage

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Figure 5: Agreement over role of HRM in CSR
(Source: Developed by the Researcher)
Question 6: Please rank the following drivers of CSR as you feel appropriate for your
company.
 Increase in profits
 Image Building
 Vision and philosophy of the Company/Organisation
 Legal Compliance
 Rising International Standards
 Increasing environmental awareness
 Community Pressure
Options No of Responses Percentage Total Respondents
Increase in profits 2 4% 50
Image Building 14 28% 50
Vision and philosophy
of the
Company/Organisation
3 6% 50
Legal Compliance 12 24% 50
Rising International
Standards
3 6% 50
Increasing
environmental
8 16% 50

55CORPORATE SOCIAL RESPONSIBILITY
awareness
Community Pressure 8 16% 50
Table 6: Agreement over major drivers of CSR
(Source: Developed by the Researcher)
Increase in profits
Image Building
Vision and philosophy of the Company/Organisation
Legal Compliance
Rising International Standards
Increasing environmental awareness
Community Pressure
0%
5%
10%
15%
20%
25%
30%
Percenatage
Percenatage
Figure 6: Agreement over major drivers of CSR
(Source: Developed by the Researcher)
Question 7: What strategy is followed by your organisation for implementation of CSR?
 Separate Department
 Foundation Trust

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Options No of Responses Percentage Total Respondents
Separate
Department
6 12% 50
Foundation Trust 44 88% 50
Table 7: Agreement over mode of operations in CSR
(Source: Developed by the Researcher)
Question 8: Is there a process of evaluation of the impacts created by the CSR initiatives
taken up by the organisation?
 Certainly
 Not sure
Options No of Responses Percentage Total Respondents
Certainly 8 16% 50
Not sure 42 84% 50
Table 8: Agreement over evaluation of CSR Campaigns
(Source: Developed by the Researcher)
Question 9: How far do you feel that CSR initiative in the Niger Delta region have been
effective?
 Successful

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 Highly Successful
 Not Sure
Options No of Responses Percentage Total Respondents
Successful 8 16% 50
Highly
Successful
5 10% 50
Not Sure 37 74% 50
Table 9: Agreement over effectiveness of CSR
(Source: Developed by the Researcher)
Question 10: How far do you believe that the following options are the challenges before
CSR?
 Poor Revenue Structure
 Inadequate knowledge about external Market
 Change in Market environment
 Market Competition
Options No of Responses Percentage Total Respondents
Poor Revenue
Structure
5 10% 50
Inadequate
knowledge about
4 8% 50

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external Market
Change in
Market
environment
19 38% 50
Market Competition 20 40% 50
Interpretation of the Research Data
Question 1
In the first question, the respondents were required to specify the tenure for which they were
having the organisation. The response is provided by the sample population shows that majority
of the employees involved in on field and technical department of the organisation as well as an
executive position of various departments in Nigerian area have been serving for the maximum
tenure. Most of the employees in the organisation serving for 2 to 3 years at least and a slightly
lesser proportion of employees have been working for 4 to 5 years. Further less proportion of
employees have been employed for 6 months to 1 year. However, the executive workers who
were included in the interview have been serving in the organisation for more than 5 years.
Hence, it can be implied that none of the current employees have the experience of following the
issues regarding CSR that Shell, Nigeria have been facing since the 1970s. only, the executive
level employees are having basic concepts regarding the issues that the organisation face in the
context of implementing their CSR initiatives since they are the major driving force behind
implementation of CSR activities of the organisation. However, the employees who have been

59CORPORATE SOCIAL RESPONSIBILITY
serving for at least over 1 year, are accustomed with the recent uprising of the Ogoni community
and rampant harassment that they had to face because of protesting.
Question 2
The next question required the employees to specify the gender. The responses to this question
shows that 94% of the sample population were male. In fact, as researchers like……….. convey
that in the Niger Delta felt most of the work that is done by organisations like a shell or BP are
related to oil rigging and oil ending from the large rigs in the river Niger. Most of the on-field
employees are male, other than very few engineers associated with the project who are female.
Question 3
The third question required the employees to specify their age group. The reflection of the
employees in the context of this question shows that most of the employees working for Shell,
Nigeria have been between the age of 18 to 25 years and this specifies that about 70% of the
employees of Royal Dutch Shell in the Niger delta aged under 25 years. Age group that has the
second highest employees to it is between 25 35 years and 20% of the employees pertains to this
age group.
Question 4
The 4th question was very important from a strategic point of view. this question required the
employees to reflect the agreement over the fact that CSR initiatives by Royal Dutch Shell in the
Niger Delta has been able to influence the organisational success or not. It is interesting to note
that 38% of the respondents is agreed to respect and another 36% strongly disagreed over the fact

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that the organisation has been able to get success over their CSR initiatives. Only 12% of the
employees replied that they agreed that the CSR initiatives have been able to help the
organisation to gain some success.
Question 5
The fifth question required personal opinion of the employees. The researcher asked the
employees whether they agree or not to the fact that the initiative to successfully launched the
CSR activities should be taken entirely the Human Resource Department of the organisation or
not. In context to this question majority of the employees is are agreed or strongly agreed to the
statement that the HR department should take a positive and in fact the entire responsibility of
launching the CSR initiatives. In combination 62% of the total employees either agreed or
strongly agreed to the fact that the HR department of the organisation should be taken on the
responsibility for arrangement of the CSR activities and this can definitely implied that the
organisation and employees perceive that the work force of the HR department in shall have
substantial to arrange for the same circumference and Organisation has been conducting. It can
also implied that the employees perceive that the HR department should take better role in
conducting the CSR initiatives.
Question 6
The sixth question is the most critical context where the employees needed to provide their
opinion. They were asked to select from a series of options anyone that the perceived to be the
major driver of CSR for Royal Dutch Shell in Nigeria. Interesting responses in context to this
question have been recorded by the researcher. Firstly it should be mentioned that increase in
profit has not been a major motive of CSR campaigns for the organisation in Nigeria as only 2%

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of the sample population think that this could have been the motive behind the launch of CSR
campaigns. Rather, about 26% of the employees in the organisation personality development of
brand image is one major factor that it has been a determining force behind the launching of the
CSR campaign of the organisation. moreover, in the literature review section of the research
study also many researchers likeOkoyeAmaefule and Onyekpere(2016), have specified that all
that is not mandatory for organisations working in the US to undertake CSR campaigns
seriously, but in the working domains like the Asian of the African countries, the trans National
Organisation faces mandate in terms of launching CSR initiatives. This is because, the same
researchers say that sees organisation derive benefit of using the local resources like a skilled
labour resolve the natural raw materials, the developing communities of the local area also
expect that the organisation will share part of the benefit that they gained. This is why, in many
African countries there is legal compliance of conducting CSR activities and 22% of the
employees think that it is because of this legal compliance that the organisation has taken out the
CSR activities in the Niger Delta region where they have been operating since 30 years.
Moreover, 18% of the target respondents feel that the organisation has taken up CSR initiatives
because of enhancing environmental awareness. another me direction, that is 20% of the
respondents feel that pressure from local community can be another reason that might have
forced to them to take up CSR initiatives.
Question 7
This question required the employees to infer the strategy that they think that still have been
taking app for implementing the CSR initiatives in the Niger Delta region. In context to this
question, about 96% of the employees perceive that CSR activities have been implemented
through Foundation trust and direct involvement of the organisational employees in the CSR

62CORPORATE SOCIAL RESPONSIBILITY
activities have been very less. It is evident that the information regarding the CSR activities
regularly convert to the Employees by means of the HR department of the organisation since the
CSR project that production has taken up for the local communities in the Niger Delta region
conference a large economic, social as well as environmental impact change. Only a minor
segment of the employees compressing about 4% of the target population perceived that there is
separate Department that looks over the CSR activities. In spite of the fact that the favour against
the second opinion is very less, it cannot be absolutely ignored since there can be a team for
watching over the implementation of the CSR activities because the company has a big budget
involved into the project and asNwagbara(2016), conveys, there is a strategic initiative in most of
the cases where the organisations launch big CSR project in foreign countries.
Question 8
This question needed the employees to reflect whether they felt that the organisation has adopted
proper evaluation Strategies for assessing the impact of the CSR initiatives that has been
undertaken by Royal Dutch Shell in the Niger Delta region. Although, it is the responsibility of
the HR department to launch the CSR initiatives the employees who were surveyed, why mostly
not sure about a property valuation process that the company had implemented in order to
analyse the impact created by the CSR activities they had taken up. On the contrary only 10% of
the employees where certain about the fact that the company had been evaluating the CSR
outcomes.
Question 9
This question required the employees to provide personal information regarding the CSR
campaign launched by the organisation. They needed to provide an opinion regarding the impact

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that the thought was created through the CSR initiatives that was taken up by the company in the
Niger Delta region. They were asked to assess the effectiveness of the CSR initiative. In this
context the needed to say whether the thought the CSR campaign was successful, highly
successful or if they were not sure about their position regarding providing opinion about this
question, they could state that also. Only 16% of the employees thought that the CSR initiatives
of Royal Dutch Shell in the Niger Delta has been successful and even a minor 6% thought that
the initiatives had been highly successful. However, majority of 78% employees were not sure
about the fact that the CSR initiative had been successful or not.
Question 10
In the last question the employees needed to reflect what the thought about the primary
challenges that Royal Dutch Shell has been facing in their way of implementing CSR strategies.
Based on market survey the closed ended options that were provided to the Employees were the
revenue structure, change in market environment, market competition as well as inadequate
knowledge about the external market. 24% of the employees thought that original structure was
the main challenge for the company. Again, 12% of the employees thought that the organisation
and leaders of the executive managers were not having enough knowledge regarding the external
market. On the contrary 56% of the employees, that is the majority of them thought that change
in the market environment what's the factor that became a major challenge in the way of
implementing CSR strategies. Again 28% of the respondents also thought that market
competition could also be a major factor in the parts of implementing the CSR initiatives.

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CHAPTER 5: DISCUSSIONS
Nature of employees
This Organisation had mostly employed workers who were agent under 25 years.This implied
that the Organisational Management structure of the company was small and equitably small had
been the HR management structure of the organisation. In Nigeria, the company has been
operating under third party payroll also and because of which a large segment of on field
employees have been working under the execution of smaller number of supervisors. This can be
considered as a major hindrance towards implementation of effective strategies. Again, this can
be also a hindrance towards implementation of successful CSR initiatives also. The reason is that
the number of heads accountable to manage the CSR initiatives properly would be less. It is
commendable that the HR managers are primarily responsible for undertaking the initiatives
related to CSR. However lack of managerial employees also implies that the HR what force is
already incapable to manage the last work force and on top of that managing the CSR activities
would be here an extended burden for the company.
CSR role in driving organisational success
As analysed by researchers in the empirical study, the needs of the local communities in the
developing countries like Nigeria are very high. In comparison to that the funding as well as
planning for CSR initiatives fall short to meet the demands. This is where, the responses of the
employees of an organisation also come into context. As it has been analysed from the response
is provided by the employees from a majority of them are not agreeing over the fact that the CSR
initiatives has been able to drive success for the company. A competitive analysis between the

65CORPORATE SOCIAL RESPONSIBILITY
findings in the literature review and the primary quantitative survey shows that the organisation
admitted to meet the demands of the local communities for compensate the economic and social
losses they had undergone because of the economic activities they carried out in the region. The
company actually has no role in initiating the revolt done by the Ogoni people in the Niger Delta
region. The government has constantly deprived name of any form of social improvement and
that is why their expectation in the context of CSR initiative grew constantly. When they realised
that CSR campaign of Royal Dutch Shell has been launched in their region for their overall
betterment, they be and to claim all the lagging improvement the thought we should receive from
the government or any other helping agency. That is why, when the initial CSR funding of the
organisation was not able to meet their demands, they started to Revolt and put the barriers in the
way of operations of Royal Dutch Shell in the Niger delta. That is why in spite of providing
ample funding and deliverance of social responsibilities, they were not able to derive any benefit.
In this context, the opinion ofIdemudia(2017), can be highlighted here. The researchers provide
that when the transmission and Organisation launch any CSR activity in foreign domain, they
have any strategic perspective in their mind. Drawing from the ideas communicated in the
literature review section as well as from the findings of the primary study, it can be commented
that Royal Dutch Shell had an eye on increasing Grand frame as well as occupy new market in
the developing Nations by means of conducting CSR for the local communities. Their perception
was that by enhancing the brand loyalty for the company, they put out state the market
competition that they were facing constantly from other important organisations like
ExxonMobil or BP. We had also hoped that a combination of CSR walk along with providing a
competitive concession rate to the locals over oil and natural gas, they could go ahead of the
highly competitive market competition. However, as of the annual reports of 2004, it shows that

66CORPORATE SOCIAL RESPONSIBILITY
even after enhancing the CSR budget by 1000% the company was not able to satisfy the growing
and ever changing demands of the local communities. In the literature review section also,
Scholars have pointed out the fact that in spite of investing ample capital in funding for the
development of local communities, Royal Dutch Shell has not been able to Cater to the needs of
the local Ogoni community.
Role of human resource in launching CSR activities
In Nigeria , in the company has been operating mainly and third party payroll because of which
to the organisation rest Framework with which they have been operating is reasonably small.
This is why the organisation was also forced to launch their CSR campaigns through Foundation
trust and as an outcome of which they did not have much direct control over the outcomes of the
corporate social responsibility and related activities that were being conducted on the Niger
Delta region. Primary research also shows that most of the employees of the organisation are also
of the view that the HR department should have taken a more crucial role in handling the CSR
activities in the Niger Delta region since major funding was associated with the project. The
company has taken up civil initiatives to reduce the environmental pollution because of their
economic activities in religion as well as work towards social development. However, as
reported byGilberthorpe and Hilson(2016), and also reflected byIdemudia and Osayande(2016),
in the literature review section, most of the schemes of Royal Dutch Shell for social
improvement in the Niger delta have been implemented over theoretical planning only. There is
no surety of the fact that even 50% of the projects that have been launched by the organisation
saw any real outcome.
Major drivers of CSR

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The analysis conducted in the literature review section, prove that there are several important
factors that can act as a major driver of CSR for the oil yielding companies particularly operating
in the developing countries like Nigeria. The smaller organisations are generally given by the
need to increase their profit margin. On the contrary, the literature review reviews that image
building is the primary concern for the large organisations like Exxon Mobil for BP or Royal
Dutch Shell. Generally, when is organisations operate in USA, they do not show any urge to
undertake complementary CSR activities. In sharp contrast, when these companies are
conducting their business activities in African countries or any other local region of developing
countries, they are driven by the legal framework of the land and complementarily implement
CSR initiatives. That is why it is difficult to comment that the organisation has been driven by its
vision and philosophy to launch the CSR activities and most probably it has been some strategic
any that had driven the CSR activities of Royal Dutch Shell in Niger delta in Nigeria. Hence,
legal compliance is another major driving factor also. the legal framework of the United Nation
as well as local governments emphasize that the companies should undertake some social
activities other than pain corporate taxes and compensation rate in delivering solutions for the
needs of crude oil in the land. The primary research shows that the rising International standards
of CSR and not a major factor in driving the activities in this region. This is because the needs of
the local community that resides here are very basic. compared to economic development needed
in other parts of the world, these people like basic facilities like proper housing, proper sanitation
and access to prepare drinking water and so on. Hence International standards and comparison
with such standards are never a major driving force for the organisation.
Another important factor driving scene sir in this region can be the increasing need to address the
environmental crisis. Few cases of oil spill and the constant oil rigging in this region has caused

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a major threat to the environment because of which the local atmosphere has started to become
polluted. This is why various eco-friendly initiatives had been taken by the organisation. Lastly,
as emphasised in the literature review section and also highlighted by the employees in the
primary survey, pressure from local communities is major factor that led the organisation to
undertake CSR as a major project. However in spite of undertaking large proportion of CSR
activities, lack of proper evaluation had been a major factor why the project failed in the Niger
delta. As an outcome of the failure of this project, the brand famous in the market like Asia and
Europe suffered a solid negative feedback. On top of that the other organisations like
ExxonMobil or BP receive the competitive edge in the foreign markets also intern affecting the
share price for Royal Dutch Shell in the American and the foreign market.

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CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS
In the first chapter, the topic of research have been identified in depth. The background of the
study have been developed here which helps in understanding the importance of the CSR needed
to be undertaken by the oil yielding corporations operating in the region. The research objectives,
research hypotheses and the research questions have also been developed in this chapter that will
help in understanding the direction in which the study will flow in the current research.
The main themes based on which the research will be conducted have been set in the literature
review section of this research study. Firstly, the empirical study conducted in the literature
review section highlights the importance of CSR for the transnational organisations that are
operative in the Niger Delta region. In the same context, another critical issue that have been
analysed in this study is the critical role that is played by the MNCs in lieu of developing
nationals and the backward communities that are being affected as an outcome of the economic
activities undertaken by the companies in the concerned region. After analysing the role of the
MNCs, in the next part of the literature review, the need for undertaking a strict regulatory
approach towards the role that the MNCs play have been highlighted. In the forthcoming section
of the study, the researcher aims at understanding the CSR related activities that actually needs to
be undertaken by the MNCs who are operating in the developing nations. In this context, it can
be specified that the transnational organisations operating in the Pan American network do not
need to take up CSR activities compulsorily. However, in the African or the Asian countries,
there is a mandatory pressure up on the multinational companies to take up CSR as part of the
projects they are accomplishing. In the further sections, the policy of stakeholder management

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have been analysed in detail so that the basic flaws of the CSR project and the reason why the
organisation failed to incorporate the primary stakeholders of this project can be understood.
To make a summary of the research methodologies and techniques used in this research
study, the researcher has resorted to a primary research method based on a survey research
strategy comprising of quantitative data analysis process. Apart from these, it based on
descriptive Research design and deductive research approach, along with a positive research
philosophy. These aspects are vital for collecting as well as analysing the relevant data and
information essential for the research work.
In the results section the outcomes of the case study based data collection have been specified.
The actual issues in the CSR project, the reason why it failed and what was the involvement of
the planning procedure in bringing about the detriment of the project can be understood also. The
inefficient association within the Shell Nigeria and the National Oil and Gas Corporation of the
country will also be explained in the same chapter.
In the Discussions chapter, the main emphasis have been laid up on analysing the factors that
have been considered by the organisation before taking up the CSR campaign. The procedures
like funding and planning for CSR campaign of Shell Nigeria have changed before and after the
Ogoni crisis in the Niger delta. Based on these findings, the researcher highlights in this chapter,
how the course of actions in the CSR campaign changed before and after the crisis and the
consequent impacts of those changes have been discussed and analysed also.
The last chapter is equally important like the initial chapter and might be called the backbone of
the research. Te principal findings and based up on that the conclusion that have been reached up
on, in each of the chapter have been revisited in brief in this chapter. Followed by that, a set of

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recommendations have been provided in this chapter also. In the recommendations section, the
researcher aims at developing better framework for conducting the CSR campaign. Primary
policy changes that could have impacted the CSR campaign have been specified here also in
addition to suggestion of various ways in which the future CSR campaigns can be impacted for
gaining better outcomes.
To ensure your CSR program isn’t just an afterthought, it can be emphasised that the importance
of making sure that giving back is at the foundation of the company’s culture and core values. By
coming from a place of sincerity that is true to the company’s beliefs, a CSR program will
become an extension of the company’s intentions.
It is suggestible that the “Virtuous Circle of Success” (VCS), which focuses on creating a
culture that inspires and motivates people to reach their full potential, while also being a part of
its greater purpose, can be followed by the company in its CSR activities also. Through the VCS,
the researcher believes that when each employee is passionate about making a difference in the
lives of the people the company touches, everyone will succeed. Simply put, the researcher
wants to make a difference equally in the lives of its employees, customers and the communities
it serves.

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