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Business Administration & Management Project Topics and Research Materials

EVALUATING THE ROLE MULTINATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES A CASE STUDY OF CHEVRON PLC PORTHARCOURT

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.

 

 

 

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.

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