The Appraisal Of Multi-national Corporation To The Contribution Of Community Development. ( A Case Study Of Exxon Mobil Oil Company, Eket) Akwa-ibom State

ABSTRACT

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

 

Title page - - - - - - - - - i

Certification - - - - - - ii

Dedication - - - - - . - iii

Acknowledgement - - - - - iv

Abstract - - - - - - - - V

Table of content - - - - - - vi

CHAPTER ONE: INTRODUCTION 

1.1 Background of the study - - 1

1.2 Statement of the problem - - - 1

1.3 Objectives/purpose of the study - - - 4

1.4 Research question/hypothesis - - - - 4

1.5 Significance of the study - - - - - 5

1.6 Limitations of the study - 8

1.7 Definition of the terms - - - - - - 8

Chapter references 

 

CHAPTER TWO  

REVIEW OF LITERATURE 

2.1 Theoretical frame work for the study- - - - 11  

2.2. Historical background - - - 11

2.3 Current literature on theories postulated alone - - 14

Chapter references

 

CHAPTER THREE 

RESEARCH DESIGN AND METHODOLOGY 

3.1 Research design - - - - - 44

3.2 Sources of data - - - - - - - 44

3.2.1 Secondary sources - - - - -- - 44

3.3 The population of the study - - - - 45

3.4 Sample design and population of the sample size. - 45

3.5 Methods of data collection - - - - - 46

3.5.1 Questionnaire design, Distribution and collection of Responses- - - - - - - 46 

3.5.2 Secondary method of data collection - - - 46 

3.6 Methods of data Presentation and Analysis chapter references -

CHAPTER FOUR: DATA PRESENTATION AND Analysis 

4.1 Data presentation - - - - - - 48

4.1.2 Demographic characteristics - - 49

4.2 Presentation according to key research questions - 51 

4.3 Analysis based on research hypothesis - - - 54 Chapter References 

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS, AND CONCLUSION. 

5.1 Summary of Findings - - - - - - 57

5.2 Recommendations - - - - - - 57

5.3 Conclusions - - - - - - 57

References - - - 61

Appendix - - - - - - - - 63

Multinational Corporation is used by people both in the business and non business sectors, to some people it means a Fairly big firm that has about five or six branches in a state, while others see it as a big firm that has branches in all the states or divisions of a country. According to Prasad & Shetty, (1976)

“Multinational corporations are firms that operate effectively under different national sovereignties”. They further stress that multinational corporations are such firms that must cope with wide variations in economic conditions, different values and cultural systems and wide geographical separation.

This definition, multinational corporations are large firms that operate in different parts of the world, but most of the times have one acclaimed headquarters, situated in a place it was first established. There are various multinational corporations both in Nigeria and abroad.

However, For the purpose of this research works, the researcher is using Exxonmobil oil producing Nigeria at Eket, Akwa-Ibom State. it is of note to mention that multinational corporations operating in foreign hands must respect the tunes and dictates of the host government or face expropriation. By the nature of their operation, multinational corporations must cope not only with more complex organizational structure but with far more elaborate and sensitive

array of environment variables than domestic operations have these corporations are seen as giants amongst economic entities and primarily because of their size, economic power, efficiency, stability, dynamism, flexibility and quite often a technological oligopoly. Elwood (1979), said that the size and scope of multinational corporations within many developing nations often bring about significant social changes that disrupt or counteract social programmes and goals of host government.

Multinational corporations are known for their exploitative tendencies in developing countries. There has been lots of accusation by concerned African countries that these corporations are only out to suck dry the natural and human resources of poor African countries without correspondingly compensating them or showing appreciation in return. Despite the fact that these corporations exploit these African countries and realize huge profits from their business operations, it is difficult for saying they satisfy the yearnings and aspiration of the communities where they operate in terms of business social responsibility.

Offlang (1980) asserts that, going by the concept of imperialism and dependency as characterized by the exploitation of the developing countries by the west and as manifested by the infiltration of western capital into poor African countries,

one can categorically say that the contribution of these multinational corporations to the community development is not encouraging. This is evidenced by public out-cry for compensation by Communities where these corporation arc operating due to the 1ct that these communities provide the needed raw materials for that operation.

At times these communities after waiting patiently for these. corporations to meet their social demands without any response, take the law into their hands to show Their resentments. It is note to stress that the oil producing communities are the ones which are supposed to benefit more From Multinational Corporation involve in oil exploration in such areas. Intact these oil exploration corporations should provide lots of social amenities like pipe bore water, electricity, good roads, recreational facilities and host of others to these communities. The corporation social activities to these communities should extend to the areas of employment, scholarship and other incentives.

In further expressing my view on the fact that the oil producing communities should benefit more from oil exploration multinational corporations that are operating in such of the pollution and other hazards caused these communities due to oil drilling. These are cases, which due to oil spillage a lot of aquatic animals die and the seawater becomes bad and poisonous thereby causing untold hardship on such communities.