Impact of Corporate Social Irresponsibility on the Corporate Image and Reputation of Multinational Oil Corporations in Nigeria

Abstract

Purpose – This chapter examines how irresponsible corporate activities (environmental pollution, human rights abuses, tax evasion, corruption and contract scandals) of some multinational oil companies in the Niger Delta influence stakeholders’ perception of their image/reputation in Nigeria.

Methodology – The objective of this chapter is accomplished through the review of literature on the activities of multinational oil corporations in the Niger Delta, supported by qualitative interviews and analysis of archival materials.

Findings – Three important findings emerged from this study. First, the participants were fully aware of the irresponsible behaviours of oil corporations in the Niger Delta, and some oil corporations were involved in these illicit acts. Second, the analysis of archival materials supports the participants' views with reference to the identities of the corporations involved in these criminal acts. Third, the absence of a strong corporate governance system in Nigeria makes it possible for the officials of oil corporations to tactically circumvent the law by involving in a maze of sophisticated corrupt acts.

Research/practical implications – The implication for the academics and practitioners is evident when a corporation implements corporate social responsibility dutifully; it generates positive impact on its corporate reputation rating. Conversely, when a corporation engages in irresponsible corporate misbehaviours, it attracts negative consequences on its reputation.

Originality – The originality of this chapter lies in the fact that it is the first empirical study to examine the impact of corporate social irresponsibility on the image/reputation of multinational oil corporations in Nigeria.

Citation

Amujo, O.C., Adeyinka Laninhun, B., Otubanjo, O. and Olufunmilayo Ajala, V. (2012), "Impact of Corporate Social Irresponsibility on the Corporate Image and Reputation of Multinational Oil Corporations in Nigeria", Tench, R., Sun, W. and Jones, B. (Ed.) Corporate Social Irresponsibility: A Challenging Concept (Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 263-293. https://doi.org/10.1108/S2043-9059(2012)0000004020