EVALUATING THE ROLE MULTINATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES A CASE STUDY OF CHEVRON PLC PORT-HARCOURT RIVERS STATE

By

UDEH CHIBUIKE ANTHONY

Presented To

Department of Business Administration and Management

ABSTRACT

This research work to investigate and evaluate the role of multinational companies and their social responsibilities in port-Harcourt rivers state with special emphasis on (chevron Nigeria Plc). It expresses the need for multinational companies to assist the communities on which they operate and run their business. It also reviews the background of the study including a brief history of chevron Nigeria Plc, the sample size of 370 was randomly selected and use out of the total population 500 workers and based on these 370 questionnaires was distributed to ascertain the social responsibilities of chevron plc to their host community. The basic impediment to the companies objectives are discovered to be the problem of pressure groups affecting the corporation improper financial management, riot by indigenes of the host community and vandalization of the company's property. Similarly, the community experience some problems as a result of the company's operations, these includes business hazards on environment such as air, lend, water pollution and consumerism. The findings revealed that business social responsibilities creates cordial relationship between Chevron Plc and its host community which helps in raising the standard of living of the people of the community. It is recommended that the company should give employment to the indigenes and scholarships to their children, the company should establish centers where training programmes should be carried act for training their staffs to increase efficiency and success of Chevron Plc. If is also recommended that the host communities should not in turn make the company their enemies rather they should reason together for mutual growth.

TABLE OF CONTENTS

Title

Approval

Dedication

Acknowledgment

Table of content

Abstract

CHAPTER 1

Introduction

1.1 Background of the study

1.2 Statement of the problem

1.3 Purpose of the study

1.4 Significance of the study

1.5 Research Question

1.6 Scope of the study

1.7 Definition of Term

CHAPTER 3

Methodology

3.1 Design of the study

3.2 Area of the study

3.3 Population of the study

3.4 Sample of the study

3.5 Instrument for data collection

3.6 Validation of the instrument

3.7 Distribution and Receival of Instrument

3.8 Method of data analysis

CHAPTER 4

4.1 Data presentation and Analysis

CHAPTER 5

Summary, Conclusion and Recommendation.

5.1 Summary finding

5.2 Conclusion

5.3 Recommendation

5.4 Limitations of the study

5.5 Suggestions for further Research

References

Appendices

Questionnaire

CHAPTER ONE

INTRODUCTION

Background of the study

To enhance effectiveness and efficiency, companies have to create the cordial relationship with their host communities if business organization relies on society for existence it is only logical that the environment be cultivated and natured to ensure its continuity. It is only in this regards that the oriented of the modern business manager has been changed to reflect the increasing important interdependence between organizations and their communities. With these there is an increasing clamour that business should participate actively in the well being and welfare of the community, society and environment in which they operate and make their profits.

However, it is very obvious that the main motive of establishing any business is to private competitive goods and services to the consumer and society at large. This does not however mean that they have concluded their obligation to the people especially the host communities where the business is sited and operated. Although there is no law as what form of services the host community should benefit from the company. It is normally obliged to cafer for at least their host communities. This they do by aiding the development of infrastructures such as good road network where necessary and again through the provision of electricity to the local populace other forms of services that could be rendered to youth members of that community are of course the provision of gainful employment for school leavers

There are a lot of other services that the hole communities can gain from the business such as the provision of safety measures against pollution whether air, water or land.

On the other hand, the business also looks forward to the local populace for continuous patronage and also for ensuring he business of their support. Therefore the recognition of the business by the community is very important and there is the need to keep the good of the good of the society as a whole in mind while the company is the bedrock of social responsibility.

A BRIEF HISTORY OF CHEVRON NIGERIA PLC

Chevron was found in the year 1913 in the United States of America by Dr. David Rockefeller, it was formerly known as American overseas petroleum company Ltd. In 1963 when the established themselves at escravos River, it discovered oil at the koluama field, offshore Nigeria. In the same year it started drilling for oil deposits at Oka field in the present day Rivers state following the Nigeria indigenization decree of 1972 and 1978 which was designed to raise the level of Nigerian participation in business, chevron Plc divested 40 percent of its shareholdings to the Nigeria public while retaining 60 percent equity in chevron oil Nigeria Plc. Chevron is the third largest oil producer in Nigeria and one of its largest investors, spending more than N30 billion annually. The company operates under a joint venture arrangement with the Nigeria national petroleum Corporation and has assets on land swamp and near offshore concession covering approximately 2.2 million acres (8,900549km) in the Niger Delta region. In 1996, they built a states of the art 103,000 barrel storage terminal and loading facility at Onne in port-Harcourt River state. In the year 2010 chevron's total daily production in Nigeria average 524,000 barrel of crude oil 206 million cubic feet of natural gas and 5,000 barrels of liquefied petroleum gas (LPG).

Chevron Nigeria Plc Onne-port-Harcourt has been participating in all aspects of petroleum including exploration, production, marketing, transportation and distribution Chevron Plc indulges in programmes which its purpose have been to promote academic excellence, training of indigenous workers, encouraging indigenous participation in the development of infrastructure and social amenities for the community and manpower development in Onne community in particular and port-Harcourt River state in general.

1.2 STATEMENT OF THE PROBLEM

Chevron Plc port-Harcourt encounters the problem of pipeline vandalization of the oil pipeline by the community another problem is he demonstrations being carried out by the community youths because of unemployment and this leads to serious riots which will have a negative effect to the company by hindering work performance for some weeks or even months as the case may e. this also may lead to the harassment of chevron plc staffs by the community youths.

On the other hand, the excessive government taxation levied on business actually end down the profit margin of Chevron Plc Port-Harcourt rivers states in order to take up their social responsibility. A turbulent environment is usually proned to risk, and it's certainly should be planned for. The problem of kick back philosophy of Nigerian business rode chevron plc profit margine thus ignoring its social responsibilities.

1.3 PURPOSE OF THE STUDY

The purpose of the study are:

1 To evaluate the extent corporate organizations has contributed to the development of host community.

2. To investigate the causes of non-challant attitude of multinational companies towards social responsibilities.

3. To determine the extents of benefits host community has received through social responsibility.

4. To determine the effects of social responsibility on the corporate image of an organization.

1.4 SIGNIFICANT OF THE STUDY

Over the years it has been very difficult for many multinational companies to exercise their full social responsibilities to their host communities which have made the communities to keep on giving some problems to the companies. It is with this view that the importance of this project cannot be over emphasized.

1. This study will enable the management and staff of Chevron Plc Port-Harcourt rivers state and other organization to know the proper procedure of assisting their host communities.

2. To the student. This study will expose the student to the functions performed by multinational firms their problems and possible situations.

3 To the society: This study will help the members of the society to know that multinational companies have contributed greatly to the rapid development and economic growth of the communities.

1.5 RESEARCH QUESTIONS

1 To what extent does corporate organizations contribute to he development of host community?

2. What are the causes of non-challant attitude of multi-nationals towards social responsibility?

3. To what extent has host communities benefited through social responsibility.

4 What are the effect of social responsibility on the corporate image of an organization.

1.6 SCOPE OF THE STUDY

The scope of the research work is limited to the establishment Chevron Plc Port-Harcourt River states. This study will be carried out with in the geographical boundaries of Onne community in port-Harcourt River states of Nigeria.

1 The attitude of the workers in matters that affects them directly are to be covered.

2. The relationship between the management and staff of Chevron plc port-Harcourt is to be treated.

3. Extensive discussion on how Chevron plc port-Harcourt management would imbibe discipline in the workers in order to form a stale organization would be looked into.

1.7 DEFINITION OF TERMS

i) Multinational Company: According to (Eni 2005:26) a Multinational Company is an organization doing business in tow or more countries, according to Lawal (1993:285). A multination company can be defined as an enterprise which the manages interact globally by coordinating, and interchanging Technology, production sales and distribution among subsidiaries and with the parent company.

ii) Business: Nnadozie and Nwana (1995:2) defined business as all profit directed economic activities that are organized and directed towards providing goods and services to mankind.

iii) Social Responsibility: Luttans and Hodget (1976:185) defined it as the obligation of businessmen to pursue those policies, to make those decisions, or follow those line of actions which are desirable in terms of objectives and values of our society.

iv) Community: A community can be defined as all the people who live in a particular area or country etc. when talked about as a group.

v) Organization: David Hampton (1977:54) defined on organization as a systematic arrangement of people and technology to accomplish some purpose.