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

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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