The appraisal of multi-national corporation to the contribution of community development

Project Abstract

<p> Multinational Corporation is now globally accepted business firms<br>which have adopted various cultures and take responsibility for her host<br>community socially. The appraisal of multinational corporation to the<br>contribution of community development became necessary to evaluate the<br>extend of exploration carried out by multinational corporations in<br>Nigeria. A review of related literature was carried out to give the<br>study. The required theoretical background, available statistics from<br>the natural population commission indicate that Eket community have an<br>estimate of one thousand six hundred and ten people (101,610) and the<br>sample size is made up of hundred respondents (100),the method employed<br>in collecting data was the questionnaire. (4) Four hypotheses were<br>formulated and tested for the study using simple percentage (%)<br>statistical method of data analysis, on the basis of the analyses some<br>findings were recorded as follows It was discovered that the<br>multinational corporation rather abuse human right and pollute<br>environment instead of developing the host community. Following the<br>findings recorded some useful recommendation were proffered for the<br>resolution of the problems identified in the study. It suggested that in<br>order to make the people fell statistical; the firm has to provide much<br>to the needs they want. To also widen the scope of here social<br>responsibility to provide employment and hasten community development.<br>It is concluded that is the law of the land is not properly put into<br>use; Multinational Corporation will not contribute towards the<br>development of her host community. <br></p>

Project Overview

<p> </p><p>INTRODUCTION</p><p>1.1 BACKGROUND OF THE STUDY:<br>Multinational Corporation is used by people both in the business and non<br>business sectors, to some people it means a Fairly big firm that has<br>about five or six branches in a state, while others see it as a big firm<br>that has branches in all the states or divisions of a country.<br>According to Prasad &amp; Shetty, (1976) “Multinational corporations are<br>firms that operate effectively under different national sovereignties”.<br>They further stress that multinational corporations are such firms that<br>must cope with wide variations in economic conditions, different values<br>and cultural systems and wide geographical separation.<br>This definition, multinational corporations are large firms that operate<br>in different parts of the world, but most of the times have one<br>acclaimed headquarters, situated in a place it was first established.<br>There are various multinational corporations both in Nigeria and abroad.<br>However, For the purpose of this research works, the researcher is using<br>Exxonmobil oil producing Nigeria at Eket, Akwa-Ibom State. it is of<br>note to mention that multinational corporations operating in foreign<br>hands must respect the tunes and dictates of the host government or face<br>expropriation. By the nature of their operation, multinational<br>corporations must cope not only with more complex organizational<br>structure but with far more elaborate and sensitive<br>array of environment variables than domestic operations have these<br>corporations are seen as giants amongst economic entities and primarily<br>because of their size, economic power, efficiency, stability, dynamism,<br>flexibility and quite often a technological oligopoly. Elwood (1979),<br>said that the size and scope of multinational corporations within many<br>developing nations often bring about significant social changes that<br>disrupt or counteract social programmes and goals of host government.<br>Multinational corporations are known for their exploitative tendencies<br>in developing countries. There has been lots of accusation by concerned<br>African countries that these corporations are only out to suck dry the<br>natural and human resources of poor African countries without<br>correspondingly compensating them or showing appreciation in return.<br>Despite the fact that these corporations exploit these African countries<br>and realize huge profits from their business operations, it is<br>difficult for saying they satisfy the yearnings and aspiration of the<br>communities where they operate in terms of business social<br>responsibility.<br>Offlang (1980) asserts that, going by the concept of imperialism and<br>dependency as characterized by the exploitation of the developing<br>countries by the west and as manifested by the infiltration of western<br>capital into poor African countries, one can categorically say that the<br>contribution of these multinational corporations to the community<br>development is not encouraging. This is evidenced by public out-cry for<br>compensation by Communities where these corporation arc operating due to<br>the 1ct that these communities provide the needed raw materials for<br>that operation.<br>At times these communities after waiting patiently for these.<br>corporations to meet their social demands without any response, take the<br>law into their hands to show Their resentments. It is note to stress<br>that the oil producing communities are the ones which are supposed to<br>benefit more From Multinational Corporation involve in oil exploration<br>in such areas. Intact these oil exploration corporations should provide<br>lots of social amenities like pipe bore water, electricity, good roads,<br>recreational facilities and host of others to these communities. The<br>corporation social activities to these communities should extend to the<br>areas of employment, scholarship and other incentives.<br>In further expressing my view on the fact that the oil producing<br>communities should benefit more from oil exploration multinational<br>corporations that are operating in such of the pollution and other<br>hazards caused these communities due to oil drilling. These are cases,<br>which due to oil spillage a lot of aquatic animals die and the seawater<br>becomes bad and poisonous thereby causing untold hardship on such<br>communities.</p><p>1.2. STATEMENT OF THE PROBLEM<br>As a result of the hazards and exploitation of multinational<br>corporations on the communities in which they are operating, it is<br>important for them to show a serious concern in terms of being socially<br>responsible to these communities.<br>However, it is difficult for one to. Say that a particular corporation<br>has contributed adequately to the development of a particular<br>Community because development encompasses many things ranging from the<br>provision of infrastructural facilities, employment, scholarships and .a<br>lot more. Communities cry out of neglect, lack of appreciation and<br>insufficient compensation by corporations that are operating in their<br>areas.<br>The corporations on their pa refute- this claim by saying that they have<br>responded adequately to their social needs. The researcher also notice a<br>problem of disparity between the corporation and the community as to<br>who have fulfill his promise of providing social infrastructures and<br>economic benefit (or) whether the community is satisfied with what the<br>corporation has so far done to the community.<br>1.3. OBJECTIVE OF THE STUDY;<br>The main objective of the research work is to appraise the contributions<br>of Multinational Corporation towards community development.<br>The specific objectives of the study are:<br>a. To analyse the difference in opinion between the corporations and host Community.<br>b. To evaluate the level of social responsibility Carried out by Exxonmobil Oil Producing Nigeria.Plc in Eket.<br>c. To determine to what extend Exxonmobil have Contributed towards the development of Eket.<br>D To investigate what the corporation has actually done in the community in terms of infrastructural growth.<br>e. To examine the benefit of Exxonmobil to the people of Eket.<br>f. To highlight the problems caused to Eket community and environment due to the existence of Exxonmobil.<br>g. A suggestion that Exxonmobil should principally develop Eket as her host community.<br>1.4. SIGNIFICANT OF THE STUDY<br>The study focuses on the contribution of Multinational Corporation to<br>host community when properly articulated, it will be of tremendous<br>benefit to many interest groups Exxonmobil and the people of Eket are at<br>variance over the issue of the firms satisfying them infrastructural<br>and otherwise. The people feel the corporation has not adequately<br>compensated them and as such their yearnings and aspirations are yet to<br>be satisfied. The study would be useful to engender efficient and<br>effective human relation among stall ci the corporation and host<br>community, the study will help to discover the corporation and the<br>people because of the difference in their claims. This study will be<br>useful to erase the disparity, call for a compromise, and also counter<br>the possibility of frequent contribution between both parties.<br>However, the researcher is convinced that not only the people of Eket,<br>the government of the Federal Republic of Nigeria and staff of<br>Exxonmdbil but also the general leader would find this study valuable.<br>The research work will be beneficial to researchers and prospective<br>researchers in the area of the study. It will serve as a guide for<br>future researches.<br>1.5 SCOPE OF THE STUDY:<br>This research study is to assess the contribution of multinational<br>corporations to community development by Exxonmobil to the people of<br>Eket. It focuses attention on the provision of social amenities and<br>other forms of assistance the firm assisted the people with, the study<br>is limited to Eket Local Government Area of Akwa-Ibom State, and covers<br>the firms social responsibilities to the people.</p><p>1.6 RESEARCH QUESTIONS<br>To enable the study to achieve the stated objectives, the<br>Underlisted research questions were formulated.<br>1. Has Exxonmobil provided social amenities to the people of Eket?<br>2. What Economic benefit Exxonmobil has to the Eket community?<br>3. Does the multinational consult the people of Eket base on their<br>4. How can Multinational Corporation contribute toadward Us community development?<br>1.7 RESEARCH HYPOTHESIS<br>To enable the researcher to achieve the stated objective, four hypotheses were formulated arid they are as follows;<br>(HO) That Exxonmobil has not provided social amenities for the people of Eket. –<br>(HL) That Exxonmobil has provided social amenities for the people of Eket.<br>2. (HO) That Exxonmobil has not benefited the Eket community economically.<br>(HI) That Exxonmobil has benefited the Eket community economically.<br>3. (HO) That the multinational corporation does not consult the people<br>of Eket based on their needs. (HI) That the multinational corporations<br>consult the people of Eket based on their needs.<br>4. (HO) That multinational corporation has not contributed towards the development of their host community.<br>(HI) That multinational corporation has contributed towards the development o their host community.</p><p>1.8 LIMITATION OF THE STUDY<br>In the course of conducting the researcher came face to face with some<br>practical problems. One of the constraints was uncooperative attitude of<br>respondent as some respondent felt the question were made to expose the<br>community‟s backwardness in terms of social/economic development.<br>Certain information which ought to have appeared in this study were<br>denied the researcher by the personnel of department of the corporation.<br>Another constraint was the task of moving from one community to another<br>in order to administer the questionnaire, which was very strenuous due<br>to distance and transportation difficulties. It was also difficult to<br>elicit information from illiterate villages whom in most case resisted<br>interview.<br>The researcher did not find it easy to continue with the researcher work<br>due to the large work in class. A research work of this magnitude<br>requires quite a time for a meaningful work to be done.</p><p>1.9 DEFINITION TERMS<br>1. SPDC: Shell pipeline Development company<br>2. EIA: Environmental investigation Agency<br>3. MOSOP: Movement of the Survival of Ogoni people<br>4. MNE: Multi-National Enterprises<br>5. EPZ: Export Processing Zones<br>6. FDI: Foreign Direct Investment<br>7. R &amp; D: Research and Development<br>8. CENDAL: Centre of the Development of Africa through law<br>9. PAT: Profit After tax<br>10. EKET: A local Government in Akwa-ibom state one of the resourcefully endowed regions of the state.<br>11. HETEROMORPHIC: It has to do with different in shapes, size, appearance or structures.<br>12. HOMEOMORPHIC: This is the mathematical relationship between geometric shapes.<br>13. MNC: Multinational corporations<br>11<br>14. POLYCENTRIC: it has to do wish purchasing multi domestic strategies that treat each country as a separation competitor .<br>15. GEOCENTRIC: it has to do wish making decision from a global perspective<br>16. NDA: Niger Delta Areas<br>17. MILITANTS: They are Ex-military men who come together to disturb the<br>operations of the country through their terrorist Activities</p> <br><p></p>