Exxonmobil and Community Development: an Evaluation of its Corporate Social Responsibilities to Host Communities in Akwa Ibom State

Abstract

Multinational oil companies are expected to be socially responsible to their workers, communities and other stakeholders through their social activities, even at the expense of their immediate profit. In line with the above, ExxonMobil has claimed to have invested millions of dollars in community development projects within the host communities since her inception. The host communities on the hand claimed that the company has reneged on its corporate social responsibilities to them. The main objective of this work is to assess ExxonMobil efforts in discharging its corporate social responsibilities (CSR) in oil producing communities of Akwa Ibom State in Nigeria. To achieve the objective of the study, survey and descriptive research design were adopted. Data were drawn from both primary and secondary sources. Accordingly, stakeholder theory of CSR was used as theoretical framework. The major finding of the study revealed among others that ExxonMobil h ad not significantly engaged in health care and skill acquisition programme in its host communities in Akwa Ibom State due to poor implementation of corporate social laws as well as the complicity of the Community Liaison Officers (CLOs) and the Exxon Mobil officials in the implementation of corporate social projects and programmes within the host communities. Based on the findings, the study recommended among others that the government should put a legal framework on ground that will make Corporate Social Responsibility mandatory as against the practice currently in vogue where Corporate Social Responsibility is discretionary. This will make the oil and other multinational companies operating in Nigeria to take CSR as a serious business rather than what is obtainable