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Exxon-Mobil and Corporate Social Responsibility in Akwa Ibom State, Nigeria: Past and Present

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Exxon-Mobil and Corporate Social Responsibility in Akwa Ibom State, Nigeria: Past and Present Public Policy and Administration Research www.iiste.org ISSN 2224-5731(Paper) ISSN 2225-0972(Online) Vol.3, No.3, 2013 Exxon-Mobil and Corporate Social Responsibility in Akwa Ibom State, Nigeria: Past and Present Professor David Mbat Department of Banking and Finance,University of Calabar, Calabar, Cross River State Dr. Enefiok Ibok Department of Public Administration, Akwa Ibom State University, Obio Akpa Campus, Oruk Anam, Akwa Ibom State Dr. Ekong Daniel Faculty of Social & Management Sciences, Akwa Ibom State University, P.M.B. 1167, Uyo, Akwa Ibom State, Obio Akpa Campus [email protected] A bs trac t The main aim of this study was to assess the up to date role of Exxonmobil in the development of host State, Akwa Ibom State, Nigeria. As the company’s policy is that of being a good corporate citizen, it has identified, supported and operated a planned and sustainable programme of community development in the State. Through quantitative facts, the study has revealed that in the past (Mobil) has made great contributions in the area of physical infrastructure namely; road construction, water, electricity, health facilities etc. However, following the merger between Exxon and Mobil now Exxonmobil, the company’s policy shifted from physical infrastructure to capacity building and economic empowerment. This is evident in various training and support programmes embarked upon by the company. The study has further revealed that there will always be a difference between State/Community expectations and what Exxonmobil can provide. Based on this, the work has recommended that Exxonmobil should keep on discussing ways to close such gap. Moreso, Exxonmobil should balance infrastructural provision with capacity building. One should not be made to suffer. Keywords: Exxon-Mobil, Nigeria, Akwa Ibom State, Corporate responsibility 1. Introduction Social responsibility is an issue that most organizations feel committed to. The concept reflects the things a company should for the community within which it operates, which often times go beyond meeting its obligatory requirements. In more than three decades of operation in Nigeria, Mobil Producing Nigeria, operator of the NNPC/MPN Joint Venture has consistently demonstrated a high level of social responsibility through various community assistance programmes undertaken by the company. This range from road construction to provision of potable water and electricity, upgrading of educational and health facilities, environmental protection activities, sundry support to professions and civil society groups and recently, capacity building initiative (Mobil Community News, 2005). With the merger of Mobil and Exxon now known as Exxonmobil, one would expect more in their corporate social responsibility. This work intends to appraise Exxonmobil activities both past and present in Akwa Ibom State. 2. The Study Loc ati on The study was conducted in Akwa Ibom State. Akwa Ibom State is one of the thirty-six States in Federal Republic of Nigeria. It was created on 23rd September, 1987. There are 31 Local Government Areas including Uyo the State Capital. The State is strategically located at the Southeastern corner of Nigeria between latitudes 4o301 and 5o 331 North and longitudes 7o 301 and 8o 251East (see Fig.1). It is sandwiched between Abia and Rivers States to the West, Cross River State to the East, Abia State to the North and Atlantic Ocean to the South (Daniel, 2012). 3. Conceptual Meaning There is no clear-cut definition of what Corporate Social Responsibility (CSR) comprises. Every company has different CSR objectives though the main motive is the same. The term corporate social responsibility came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholders, meaning those on whom an organisation’s activities have impacted. It was used to describe corporate entity beyond the shareholders as a result of an influential book by Edward Freeman, (1984). 21 Public Policy and Administration Research www.iiste.org ISSN 2224-5731(Paper) ISSN 2225-0972(Online) Vol.3, No.3, 2013 Fig. 1: The Location of Akwa Ibom State on the map of Nigeria Wood (1991) opines that Corporate Social Responsibility also called corporate conscience, corporate citizenship, social performance or substantial responsible business/responsible business is a form of corporate self-regulation integrated into a business model. It functions as built-in-self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standard and international norms. He observes further that Corporate Social Responsibility (CSR) is a process with the aim to embrace responsibility for the company’s action and encourage a positive impact through its activities in the environment, consumers, employees, communities, stakeholders and other members of the public sphere who may also be considered as stakeholders. Corporate Social Responsibility is seen as a continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community. It is one of the newest management strategies where companies try to create a positive impact on the society while doing business, (Corporate Social Responsibility http/www.mallenbaker.net/csr/definition Retrieved 28th Sept. 2012). Social responsibility is a duty every individual or organisation has to perform so as to maintain a balance between the economy and the ecosystem which could imply sustaining the equilibrium between the two. It pertains not only to business organisations but also to everyone whose any action impacts on the environment. This responsibility can be positive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advanced social goals, (http://inni/pacinst.org/inni/corporatesocialresponsibility/ standard definition retrieved 28th Sept. 2012). In a general sense Komblum and Julian, (1980) observed that when most people in a society agree that a condition exists which threatens the quality of their lives and their most cherished values, and also agree that something should be done to remedy this condition, that condition is defined by sociologist as a social problem. In other words, the society’s members have reached a broad consensus that a condition that affects some members of the population is a problem for the entire society, not just for those who are directly affected. This condition therefore requires social policy to address this social problem. Hill (1997) sees social policy as activities which influence welfare. According to him, whilst non-state bodies may be described as having ‘policies’ a generic expression ‘social policy’ is primarily used to define the role of 22 Public Policy and Administration Research www.iiste.org ISSN 2224-5731(Paper) ISSN 2225-0972(Online) Vol.3, No.3, 2013 the state in relation to welfare of its citizens. In the light of these, it is observed that provision of social services is not only governmental but also involves non-governmental organisations. This work is to examine the role of corporate bodies in social welfare administration with particular reference to Exxonmobil in Akwa Ibom State. 4. Historical Development of Mobil Now Exxonmobil in Akwa Ibom State Mobil Producing Nigeria Unlimited (MPNU) is the second largest oil producer in Nigeria. It started business in the country in 1955 as Mobil Exploration Nigeria Incorporated (MENI) in December, 1961. After unsuccessful e xp loration efforts in the former western and northern regions, MENI was granted two offshore oil prospecting licenses (OPLs) in the then South Eastern State. In early 1964, MENI made its first discovery. The prospecting licenses were converted to four oil mining licenses in 1968 and by the end of that year a total of 50 exploratory wells and its appraisal wells had been drilled. In June 16, 1969, Mobil Producing Nigeria was incorporated to take over and continue the business of MENI. MPN began production of crude oil in February 15, 1970 in the offshore areas of South Eastern State, now Akwa Ibom State with a profit ratio of 40 (Mobil) to 60 (Federal Government). In February 1985, after 15 years of production, MPN hit the One Million Barrel mark. In April 1991, MPN struck another landmark when, along with its Joint Venture Partner, the NNPC, signed loan agreements for about 900 million US dollars with international lenders to develop and produce its Oso field condensate, reserves estimated at about 500 million barrels, (EMN, 2006 and MPN, 2010). December 1999, witnessed the merger between Exxon and Mobil Corporations. This brought together three major companies in Nigeria, Esso Exploration and Production Nigeria Limited (EEPNL), Mobil Oil Nigeria Plc (MON) and Mobil Producing Nigeria Unlimited (MPNU).The three companies have notable history, proven experience and strong records of contributions to Nigeria’s development. EEPNL and MPN are the upstream subsidiary companies of Exxonmobil in Nigeria. Exxonmobil Corporation (Exxonmobil) is the world’s premier petroleum and petrochemical company, operating to the highest standards of financial and technical excellence, business ethics, safety; health and environmental awareness. Exxonmobil has over 84,000 employees and a presence in some 200 countries and territories, (MPN, 2010). The company’s overall contribution towards the country’s economic and social development has followed closely in the wake of its production growth. It was the recognition of this contribution that it won, together with its parent and sister companies – Mobil Oil Corporation and Mobil Oil Nigeria Plc, the 1985 Honour Award of the Nigeria chamber of commerce. MPN was also the first corporate citizen to win the honour award of the society of Occupational Health Physicians of Nigerian (SOHPON) etc., (Akpabio, 1990 and EMN, 2006). 5. The Role of Exxonmobil in the Development of Akwa Ibom State: The Past and Present Exxonmobil public relations activities are derived from the philosophy of its parent company, Mobil Oil Corporation, and its contributions to the welfare of the host communities.
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