Exploring the Impact of Strategic Proactivity on Perceived Corporate Social Responsibility in Nigeria's Petroleum Industry: A Structural Equation Modeling Approach

By Ibe, Chidi M.; Min, Wang Z. et al. | Asian Social Science, February 2015 | Go to article overview

Exploring the Impact of Strategic Proactivity on Perceived Corporate Social Responsibility in Nigeria's Petroleum Industry: A Structural Equation Modeling Approach


Ibe, Chidi M., Min, Wang Z., Ling, Kwek C., Yii, D. S. K., Asian Social Science


Abstract

In the past few years, there has been a gradual re-orientation taking place in the relationship between business and society in the Nigerian petroleum industry. The re-emergence of democracy has led to an increased awareness about the role of oil companies in their host-communities. Oil companies are aware of this, and have devoted increased effort towards contributing to their host-communities. Despite the fact that, of recent, these oil companies are contributing more than ever, there is an increase in the conflict between these companies and the stakeholders in their host-communities. This is threatening their sustainability. This problem highlights a gap in theory and practice of CSR. In recent times, there have been calls for shift of scholarly focus towards a performance based CSR theory and practice. This paper empirically tested this performance based perspective by exploring the interactive process that leads to CSR outcomes. This was done through a quantitative research study. 623 members of Eket and Ibeno youth councils took part in a survey from which 591 valid samples were generated. A structural equation modelling (SEM) statistical technique was employed. The results showed a positive relationship between strategic proactivity and perceived CSR, with perceived economic value dimension demonstrating partial mediating impact on the relationship.

Keywords: corporate social responsibility, strategic proactivity, perceived CSR, perceived value, sustainable development, structural equation modeling, and attribution theory

1. Introduction

The discovery of petroleum in the Niger-Delta region of Nigeria in 1956 led to the influx of multi-national oil companies into Nigeria. This signalled an era of economic growth in the country due to high foreign direct investments (FDI). By the 1970s, the production and export of oil products had become the major source of national income for Nigeria (Davis, 2009). As a result, the Nigerian government placed high value on the sustenance of the operations of oil companies.

The 1970s to 1990s was characterized by strings of military coup d'états that saw oil companies operating under military leadership for many years. Within this period, the host-communities of these oil companies experienced a sporadic degradation of their social, economic and environmental wellbeing (Babatunde, 2012). The most impactful was the destruction of the aquatic ecology that the stakeholders in the community, who were prevalently fishermen and farmers, relied on. As a result, the members of the host-communities of oil companies saw them as being exploitative (Omotola, 2006). This led to protests that were initially peaceful, but became radicalized as these oil companies increasingly showed insensitivity under the protection of military governments (Omotola, 2006). This was the root of the rise of social activism in the Niger-Delta region of Nigeria. This was described as having developed from the shared experience and aspirations that stemmed from the deprivation of social good by the activities of oil companies (Jike, 2004).

However, in 1999, democratic leadership was restored in Nigeria. The Nigerian government, under civil leadership, demanded for more social responsibility from the oil companies. The oil companies responded by showing more sensitivity to their host-communities through embarking on diverse corporate social responsibility (CSR) initiatives (Aghalino & Eyinla, 2009; Ibok & Mboho, 2011). They have embedded the principles of sustainable development in their policy frameworks, and have contributed billions of dollars to the development of their host-communities, while creating responsive organizations to deal with negative occurrences from their production activities (Aghalino & Eyinla, 2009). Inspite of these efforts, the stakeholders in their host-communities still embark on protests, riots, militancy and sabotage, which threatens the sustainable development of both the oil companies and the societies within which they operate (Omotola, 2006). …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Exploring the Impact of Strategic Proactivity on Perceived Corporate Social Responsibility in Nigeria's Petroleum Industry: A Structural Equation Modeling Approach
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.