CHAPTER ONE

1.1       BACKGROUND TO STUDY

Oil prospective began in Nigeria as Farback  as 1908 when a German company the Nigerian as Bitumen corporation started exploration in Araomi Area of the present Ondo State their preening effort however ended with out break of the first would war 1914 in 1937 oil prospective resumed in Nigeria shell (B.P) was awarded the sole right covering the whole territory of  Nigeria the activities were gain interrupted by the second world war but resumed in 1947 however it was not until 1958 that oil was discovered in commercial quantities at “Olobier mean port Harcourt (River State) after several years of search and an investment of our N30 million.

By 1961 other companies including chevron (Nigeria Ltd) had began exploration activities for oil in the on share and of shore area of Nigeria the exploration right which had formerly been granted to shell alone was now extended to the other companies in the line with the governments policy of increasing the pace of exploration in the  country.

 1.2     STATEMENT OF RESEARCH PROBLEM

The oil industry is a vital factor of the nation economy and it ahs been a source of blessing to the members of the communities where they operate.

The local communities and the oil companies are commonly involved in the issue of social responsibility perception to this issue by both parties differ a lot this is based on each groups preference motive values and aspiration which sometime result in conflict and misunderstanding.

In the area of operation of these oil companies the society see them as amerance  and constantly balanced for the ammonites that beset contemporary life specially in the area of land and water pollution.

Much the industry is very important to Nigeria economy the process of oil exploration carries with it several environment hazards whose effect cannot be ignored the environment impact of the oil industry results form those activities and processes necessary for it successful operation.

Like every other company the oil industry has as its primary motive maximization of profit the communities on the other hand are increasing looking to the oil companies to provides water and electricity awards of educational scholarships employment to their community members and to involved in other community developments projects like roads bridges and canals which the consider to be right.

Apart from the economic life that is directly destroy in the process of oil production there is also the problem of oil spillage unfortunately entirely on the in habitants of the communities where these companies operate.

As a result of the untold hardship being experienced by the communities some of the inhabitant by to pressure claims for unnecessary demand in some cases it has resulted in demonstration by these communities and disruption of the activities of the oil firms which in effect some times strains the relationship between the two parties.

The problem that need to be evaluated include hoe oil companies are responding to the expectation of the communities in which the operate these must be since desired on the parts of responsible executive to win the respects of the general public by utilizing their power well but the question the oil companies through their actions showing that they are concerned  and this strive to be socially responsible and are the they aware of their responsibility towards the society its on the height of   the about that the study will try to evaluate the social responsibility performance of the oil companies.             

1.3    OBJECTIVE OF THE STUDY

There are many types of social responsibilities accepted by oil companies this they do in term of polices and objective of their organization the objective of this study are.

a.   To have on insight into social responsibility of   oil companies in Delta State.

b.  To examine the companies compensation pattern s against the demand of the communities  in which operate 

c.   To examine the clams of the communities against companies

d.  To examine how  far these companies are able to meet the demands in the process of performing their social responsibility and the extent to which they are willing to go.

 1.4    HYPOTHESIS

The communities perception of the shall are chevron corporate performance will be determined by the living standard of the people for the purpose of this study the following hypothesis of interest

H0:    The operation of shall and chevron in the communities of it environment

does not encourage social responsibility on the part of the companies.   

H1:    The operation of shall and chevron in the communities of it environment

encourage social responsibility on the part of the companies.   

H0:    The operation of shell and chevron has no impact on the community on

its environment  

H1:    The operation of shell and chevron has an impact on the community in

its environment  

1.5    SIGNIFICANCE OF THE STUDY 

This study would help to determine the expected of the oil industrial in the communities where they operate as well as the local government and state levels and the study will also help to fill the gap and throw more light because no much literature has been written  on the social responsibility of the industrial.

1.6    SCOPE OF THE STUDY

The  scope of this study shall be limited to Delta  state which compresses of Ugborod (escanves)in Warri North Local Government and Warri and Omadino in Warri South.

Chevron Nig. Ltd and shell petroleum development  company (SPDC) will be chosen fro our case study this study is limited to the evaluation of the functions of the oil companies in social responsibility  performance and try to point ouy what further needs to be done regarding it

1.7     LIMITATION OF THE STUDY

There is no doubt that in carrying out a research of this magnitude there will be problem prominent among them is the inadequate secondary material such as company’s bulleting and journals.  Added to this is the non availability of desired textbook in the school library.

Furthermore the research was carried out at the time when academic work was at it peek  therefore movement to and from Warri Delta State where the companies are located was restricted

Other constraints are inadequate finance at the disposal of the researcher due to the economic situation in Nigeria today.  Also the communities were skeptical above the researcher  intention and  therefore become unco-operative this lead to non-completion and return of some of the questionnaires      

1.8     OPERATIONAL DEFINITIONS TERMS

1. Social living in a community of society or its organization sociable
2. Responsibility liable to be blamed for loss or failure for one’s action involving important duties.
3. Social responsibility the obligation of decision maker to take action which protect and improve the welfare of the society as a whole along with their own interest.
4. Pollution the process of polluting or the state  of being polluted.
5. Community people living in one place
6. Industry the making or production of thing in factories
7. Company a group of people working to ether for business or commercial purpose a business organization.
8. Environment nature condition.