Corporate Social Responsibility Strategy of Oil Producing Companies and the Development Challenges of Ibeno L.G.A

Abstract

This study examines the relationship between the Corporate Social Responsibility (CSR) practices of oil-producing companies and the development challenges faced by host communities in Ibeno Local Government Area, Akwa Ibom State. The objectives were to determine the CSR strategies adopted by these companies, identify the development challenges in the region, assess the effectiveness of these strategies, and evaluate the performance of the companies in addressing these challenges. Community Development Theory provided the theoretical framework for this survey-based quantitative research, which utilized questionnaires and employed multistage and stratified random sampling techniques. The sample size was 400 respondents. Findings indicate a strong alignment (r = 0.86) between the CSR initiatives of oil companies and the development needs of host communities. A significant portion of respondents (39.8%) perceive a positive impact of CSR on community development. The study concludes that CSR practices of oil companies significantly address the development challenges in Ibeno L.G.A. Recommendations include government enforcement of CSR best practices and prioritizing the mitigation of negative impacts by oil companies to foster harmonious relationships with host communities.