Concerning the driving factors for CSR Implementation, giving back is given the top spot in Africa. It is due to massive socio-economic demands that has led to philanthropy becoming an expectation in society. Base on the research findings that philanthropy is been the most important motive in Nigeria.
DES Plc cannot over emphasize the importance of CSR to think about doing deals in the petroleum industry of Nigeria. Because many of the players in the field have been force to deal on the table as much and as much as they are able to. But it could be state that CSR is perceive by communities of host countries as an ethical and morally obligate for investing businesses and shouldn’t be disregard. Yuri Shafranik
CSR Issues in the Industry
Although ExxonMobil as well as Total Fina Elf see their primary responsibility as offering affordable. And environmentally friendly energy and investment opportunities within the regions and countries. Where they operate, BP aims to be an agent of good. Shell is determined to create a better world. Yuri Shafranik
Shell, Chevron, and other companies in the industry have been victims of kidnapping at expert rates in the past. There has been an rise within areas like the Niger Delta region where exploration is a major issue in Nigeria. Young people see this strategy as the only way to gain the benefits of their natural resources because there is no other way.
The provision of employment, the construction of roads, and employment could be one of the options to keep the scenario under control in the case of DES Plc.
Civil rights
The country of Nigeria, CSR is viewed as a way of giving back to society. And is therefore their highest right. In Nigeria the concept of philanthropy goes further than just charitable donation. HIV/AIDS is an instance where the business response is in essence philanthropic but it is clearly based on the company’s business’ own interests.
DES Plc can make provision to collaborate with human rights organisations to tackle the potential problems.
Operatives’ Rights
The Nigerian government also has through its NEEDS plan Nigerian National Planning Commission, set the stage through defining private sector’s function by saying “that” the private sector is require to be more proactive in creating jobs that are productive as well as enhancing productivity and improving the standard of living. Nigerians believe that businesses are accountable to go beyond maximizing profits and return to shareholders? If so extend, how much does it go? It could include the payment of high wages and good working terms for workers.
DES Plc already has a excellent reputation for job creation and ensuring that its corporate culture will help position it in a position to resist pressures in this respect.
Membership of the community
Nigerian communities usually retain a sense of ownership over the natural resources, and thus never will be willing to let go of what they view as stake. It is common for ” landlord associations” created to create fierce opposition to whatever they believe is unfair in the exploration of oil.
Implementing working on the CSR program in Nigeria as a team with other stakeholder groups in society. Participate with community leaders in the selection of areas.
Environmental Safeguard
Maintaining the most stringent environmental standards. Gas flaring and oil spillage are two major concerns that host communities highlight as they continue to fight against investors.
Local agricultural programs to attract the population.
Relationships With Supplier
The relationship between companies and contractors and suppliers are constantly doubtful and aren’t consider something that should be consider a top priority.
Multinational corporations begin co-operation with SMEs across both informal and formal sectors for local supply. To develop a common Corporate Social Responsibility (CSR) plan for Nigerian as well as non-Nigerian businesses. This can be considered through DES Plc while sourcing materials to be used locally within the region.
Investment Process
But Nigeria’s liberalized business environment and proactive reforms have made it much easier to conduct business within the country. Considering the previous issues discuss in this report Foreign Direct investment will be suggest for DES Plc as a measure to expand and penetrate the Nigerian petroleum and gas industry. In the past, the Nigerian government has set up incentives to draw foreign investors. The Nigerian investment system has been design to encourage participation of the private sector in the nation’s economy. Corporate tax rates are 30 percent for all industries, except petroleum which is tax in a separate manner as per the Petroleum Industry Bill.
In the World Investment Report 2011, release in collaboration with the UN Conference on Trade and Development, FDI inflows into Nigeria drop between $8.65bn from 2009 down and to $6.09bn in 2011. The blame is for the decline being attribute to delays in The Petroleum Industry Bill.
Structure of Entry
However, the Nigerian government is as a society that is not regulate, which may favour the brownfield model. DES Plc can adopt this ideal method by merging with and buying assets of a company within the field. Due to its market shares major players such as Shell, Total, Chevron etc., already enjoy in the field.
