IMPACT OF CORPORATE SOCIAL RESPONSIBILITY OF MULTINATIONAL OIL COMPANIES ON SOCIO-ECONOMIC DEVELOPMENT IN ETHIOPE WEST, DELTA STATE

Abstract

This study investigated the impact of corporate social responsibility of Multinational Oil Companies (MNOCs) on socio-economic development in Delta State. The main objective of the study was to determine whether MNOCs adequately implement their social responsibility in Delta State and its impact on socio-economic development in the state. Corporate social responsibility was dimensioned into environmental, social and economic responsibilities. Four Null hypotheses were stated, and survey research design was used. The study was conducted in Ethiope West L.G.A in Delta State Nigeria being one of the oil exploration and operations bases. A multistage stratified disproportionate random sampling technique was used to constitute the samples for the study (Gbigbi, 2018). In stage 1, Idjerhe (Jesse clan) and Oghara designated the two oil exploration districts in Ethiope West L.G.A. Two communities each were purposively chosen from each district in stage 2. The communities were: Ovade, Oghareki, Boboroku and Atiwor. In stage 3, from each community, 100 adults of age 20 and above were randomly selected giving a total of 400 respondents and was analyzed using a set of methods starting with Ordinary Least Squares (OLS) analysis, the pre-estimation analyses were unit root test, multicollinearity test and cointegration test. The main analysis was done using multiple regression analysis. 400 copies of a structured questionnaire were purposively distributed within four communities in Idjerhe and Oghara clans. The reliability of the questionnaire was determined using Cronbach’s Alpha Reliability test which gave (64.5%) for Socio-economic development; (73%) for Environmental responsibility; (69.6%) for social responsibility and (90.6%) for Economic responsibility. Results confirm the impact of CSR of MNOCs on social-economic development. Also, findings revealed a a significant positive relationship between environmental responsibility; social responsibility; and economic responsibility on socio-economic development of the communities studied. The study concluded that when MNOCs get involved in corporate social responsibility (CSR), tendency is that communities will benefit immensely, reduction of health hazard and it will equally assist in poverty alleviation. The study recommended that CSR policies and practices should be more regulated and the need for development of a legal framework CSR in Nigeria.