A Conceptual Framework for Effective Corporate Social Responsibility for Companies in the Nigerian Extractive Industry

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A Conceptual Framework for Effective Corporate Social Responsibility for Companies in the Nigerian Extractive Industry A CONCEPTUAL FRAMEWORK FOR EFFECTIVE CORPORATE SOCIAL RESPONSIBILITY FOR COMPANIES IN THE NIGERIAN EXTRACTIVE INDUSTRY By AMODU, NOJEEM AKINJIDE MATRIC NO: 099061009 SCHOOL OF POSTGRADUATE STUDIES UNIVERSITY OF LAGOS JUNE, 2017 i A CONCEPTUAL FRAMEWORK FOR EFFECTIVE CORPORATE SOCIAL RESPONSIBILITY FOR COMPANIES IN THE NIGERIAN EXTRACTIVE INDUSTRY By AMODU, NOJEEM AKINJIDE LL.B (HONS) (LASU), LL.M (LAGOS), B.L MATRICULATION NUMBER: 099061009 A THESIS SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, UNIVERSITY OF LAGOS, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF DOCTOR OF PHILOSOPHY IN COMMERCIAL AND INDUSTRIAL LAW JUNE, 2017 ii SCHOOL OF POSTGRADUATE STUDIES UNIVERSITY OF LAGOS CERTIFICATION This is to certify that the thesis: A CONCEPTUAL FRAMEWORK FOR EFFECTIVE CORPORATE SOCIAL RESPONSIBILITY FOR COMPANIES IN THE NIGERIAN EXTRACTIVE INDUSTRY Submitted to the School of Postgraduate Studies, University of Lagos For the award of the degree of DOCTOR OF PHILOSOPHY (Ph.D.) is a record of the original research carried out By: AMODU, NOJEEM AKINJIDE In the Department of Commercial and Industrial Law _______________________ ______________________ ___________________ AUTHOR’S NAME SIGNATURE DATE _______________________ ______________________ ___________________ 1ST SUPERVISOR SIGNATURE DATE ______________________ ______________________ ___________________ 2ND SUPERVISOR SIGNATURE DATE _______________________ ______________________ ___________________ 1ST INTERNAL EXAMINER SIGNATURE DATE _______________________ ______________________ ___________________ 2ND INTERNAL EXAMINER SIGNATURE DATE _______________________ ______________________ ___________________ EXTERNAL EXAMINER SIGNATURE DATE _______________________ ______________________ ___________________ SPGS REPRESENTATIVE SIGNATURE DATE iii DEDICATION This is dedicated to my wife, ‘Debola Aminat for her patience and love, and to my children, Hikmah Olajumoke, Hiba Ayomiposi and Abdur-Rahman Odunayo Oluwamayomikun for the indescribable joy to my life. iv ACKNOWLEDGMENTS I am grateful to a number of people without whom this thesis would never have been completed. Truly deserving of my unreserved appreciation are my supervisors, Professor Joseph E.O. Abugu and Dr Adewale A. Olawoyin, SAN for their painstaking reviews despite tight schedules, invaluable criticisms and insightful comments. I thank Professor C.K. Agomo, Professor P.K. Fogam, Professor I.O. Bolodeoku, Professor A.O. Sanni, Professor A.O. Oyewunmi, Professor I.O. Smith, Professor ‘Dayo Amokaye, Dr Yemi Oke, Dr Dayo Ayoade, Dr Oluwatoyin Adejonwo-Osho, Dr Sope Williams-Elegbe, Dr Simon Akaayar and Mr Folarin Philips for their respective priceless guidance at different crucial moments. Special thanks must go to Professor Olanrewaju Fagbohun for the inspiration and moral support to undertake a doctoral research in the first place. For access to crucial materials and general counsel, I must acknowledge the individual contributions of Professor Janet Dine, Dr Sorcha MacLeod, Dr Olufemi Amao, Dr Rhuks Temitope Ako and Dr Ishanlosen Odiaua. I am also grateful to the following: Olaiwola Amodu, Mahmud Kazaure, Bolaji Owolabi, Mobolaji Olaide, Mike Akhigbe, Kayode Yakub, Kamar Ogunneye, Uduak Ndiokho, Ellias Ajadi, Moshood Rasaq, Tosin Adeolu, and Jerome Okoro for their support and constant reminder to complete this thesis. I wish to also thank the University of Lagos Muslim Alumni for the scholarship granted for the 2013/2014 academic session. Finally, but in no way the least, for the gift of life, health and sustenance, I express my immense gratitude to Almighty Allah and my parents, Mr and Mrs Fatai Owolabi Amodu. AMODU, Nojeem Akinjide June, 2017. v TABLE OF CONTENTS TITLE PAGE ............................................................................................................................ i CERTIFICATION ................................................................................................................. iii DEDICATION......................................................................................................................... iv ACKNOWLEDGMENTS ....................................................................................................... v TABLE OF CONTENTS ....................................................................................................... vi TABLE OF CASES................................................................................................................. xi TABLE OF STATUTES ....................................................................................................... xv LIST OF ABBREVIATIONS .............................................................................................. xix ABSTRACT .......................................................................................................................... xxii CHAPTER ONE ...................................................................................................................... 1 INTRODUCTION.................................................................................................................... 1 1.1 Background to the Study........................................................................................................... 1 1.2 Statement of the Problem.......................................................................................................... 3 1.3 Research Aim and Objectives ................................................................................................. 6 1.4 Operational Definition of Terms ............................................................................................ 7 1.5 Research Scope and Delimitation .......................................................................................... 9 1.6 Research Questions ................................................................................................................... 12 1.7 Theoretical Framework ........................................................................................................... 13 1.7.1 Shareholder Primacy Model .............................................................................. 13 1.7.2 Stakeholder Model ............................................................................................. 14 1.7.3 Economic Contractualism / Nexus of Contracts Theory ................................... 16 1.7.4 The Communitarian Theory ............................................................................... 18 1.7.5 The State Concession Theory ............................................................................ 19 1.8 Research Methodology ............................................................................................................. 20 vi CHAPTER TWO ................................................................................................................... 22 LITERATURE REVIEW ..................................................................................................... 22 2 Introduction.................................................................................................................................. 22 2.1 Literature on Emergence of CSR ........................................................................................ 24 2.1.1 Historical Perspectives from the United States of America ............................... 25 2.1.2 Historical Perspectives from the United Kingdom ............................................ 33 2.2 Literature on CSR Conception, Definitional Attempts and Debates .................... 36 2.2.1 The Berle/Dodd Debate ..................................................................................... 37 2.2.2 Definitional Approaches and Associated Problems ........................................... 39 2.2.3 Institutional Attempts to Define CSR ................................................................ 48 2.3 Literature on Nature and Reception of CSR within the Business Community 52 2.4 Literature on Interconnectedness of Corporate Governance and CSR ............... 56 2.5 Literature on CSR Conception in Nigeria ....................................................................... 61 2.5.1 Restrictive CSR Conception .............................................................................. 62 2.5.2 Government’s Regulatory Chill Syndrome with Large Companies .................. 66 2.6 Conclusion ..................................................................................................................................... 68 CHAPTER THREE ............................................................................................................... 71 THEORETICAL ANALYSIS OF COMPANIES AND THEIR CSR PRACTICES ...... 71 3 Introduction.................................................................................................................................. 71 3.1 Theorizing about CSR: Useless Waste of Time? ........................................................... 72 3.2 CSR and Theoretical Underpinnings of Companies .................................................... 74 3.3 Ideological Corporate Models ............................................................................................... 75 3.3.1 Shareholder Primacy Model .............................................................................. 76 3.3.2 Stakeholder Model ............................................................................................. 90 vii 3.4 The Legitimation Theories ....................................................................................................
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