Oil transnational corporations: corporate social responsibility and environmental sustainability

Corporate social responsibility (CSR) occupies the center stage of the debate on the operations of transnational corporations in the developing countries. The quest for profit maximization as the overriding value at the expense of corporate social responsibility puts some transnational corporations on a collision path with their Niger Delta host communities, who are demanding environmental sustainability. Militant groups have shut down flow stations and taken oil workers hostage. Unresponsiveness of oil firms to community demands for CSR is heightening the volatility of the Nigerian oil industry. The problem will intensify until oil firms initiate authentic CSR strategies to address the environmental havocs emanating from their operations. At the core of such strategies is recognizing the host communities as bona fide stakeholders and addressing their socioeconomic needs. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.