How oil companies prioritise CSR interventions in areas of limited statehood Shell's corporate social responsibility in the Niger Delta host communities

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How Oil Companies Prioritise CSR Interventions in Areas of Limited Statehood

Shell‘s Corporate Social Responsibility in the Niger Delta Host Communities

Master‘s Thesis Political Science Track in Public Policy and Governance Research Project: Corporate Responsibility and Authority in Global Governance

June 2018

Vincent Reich [11788127] Supervisor: Luc Fransen Second Reader: Robin Pistorius

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1. Introduction

Corporate Social Responsibility (CSR) has become a prevalent practice in business strategy (Steurer, 2009, p. 53). The term CSR has different definitions and meanings for different contexts, as will be discussed in due course in this paper. However, for the purposes of this paper, the term encapsulates the work that is done by Shell to initiate and better sustain its policy development goals in areas such as infrastructure development, environment-related issues, education, and health work in the local communities within which it operates in the Niger Delta Region of Nigeria (ND) (Visser, 2009, p. 482). CSR is also associated with the rise of a governance approach in policy making where private sector influence is sought and encouraged by the government – this is the case in the ND, where Royal Dutch Shell has been actively extracting crude oil. The company has ramped up policy ideation for host communities affected by oil extraction (Samy, Halabi, & Bampton, 2011, p. 256). The importance of oil and gas procurement for the country can hardly be overstated, as 80% of the country‘s revenue comes from this sector (Federal Government of Nigeria, 2016, p. 68). Nigeria is also a big player in global oil production and is one of the biggest oil producing nations in the world (Federal Government of Nigeria, 2016, p. 72). However, the ND‘s resource wealth has not translated into prosperity for a vast majority of its population. The area struggles with civil unrest, which usually targets oil production, thus causing huge revenue losses for international oil companies (IOCs) and the government (Osaghae, 2015, p. 38). Issues of pollution and environmental degradation resulting from oil spills also plague host communities, thereby disrupting IOC operations more often than not (Ayodeji & Okwechime, 2016, p. 57). Since public services and infrastructure are not adequately provided by the government, a determination of which appropriate CSR interventions to implement becomes a highly contested and conflicted issue (Idemudia & Ite, 2006, p. 204), thus frustrating the ideation process and hindering implementation of beneficial community projects that could have been addressed by prompt CSR interventions (Idemudia & Ite, 2006, p. 196). Further delays are caused by lack of clarity about the role of the government regarding the development projects that fall within its remit to implement, as opposed to what should fall within the CSR remit of the IOCs (Idemudia & Ite, 2006, p. 196).

CSR research often focuses on factors that motivate companies to participate in CSR. Most commonly, however, this is done from the perspective of what occurs in industrialised nations rather than what occurs in developing and emerging nations (Visser, 2009, p. 488). There is also literature that addresses CSR from the context of developing countries in terms of

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2 ―limited statehood‖ (Thauer, 2014, Visser, 2009, Börzel & Risse, 2010). This literature, however, represents a minority of the research. Limited statehood accurately describes the situation in the ND, where the state does not have full authority over its territory but rather seeks assistance from non-state actors to implement policy (Börzel & Risse, 2010). Various authors have also looked at CSR in the ND but the focus has mainly been on CSR impact and research that is of a rather descriptive nature (Ite, 2004; Uzoagu, 2015). This paper, however, will focus more closely on the process through which CSR is ideated, and how companies decide which CSR interventions to undertake and implement.

This study will further attempt to shed light on an issue lacking in current theory, namely, that of the prioritisation of CSR decisions of IOCs in the ND. The study is also unique with regard to the manner in which it lays out the complex dynamics that are at play in the context of limited statehood. This phenomenon (of limited statehood) and its location in a developing country in Africa plays a large role for the understanding of the entire process.

The research question for this paper will therefore be:

How do companies prioritise the CSR interventions they invest in and undertake in the context of limited statehood?

The study will use a Rational Choice Theory approach to explain CSR prioritisation. CSR theory specific to areas of limited statehood will therefore be used as a basis for my formulation. Thauer‘s 2014 literature on the topic will be used for orientation. Thauer does an assessment of managerial decisions and incentives that form CSR choices and draws up four ―drivers‖ or influencing factors (Thauer, 2014, p. 3,4). These drivers do not, however, fully explain CSR in the extractive industries. For one, because his theory does not sufficiently take the ramifications of the environment that a company is operating in into account. Secondly, because Thauer does not take into consideration the implications that arise if a company‘s production is inextricably tied to geographical locality, as is the case with a company operating in the extractive industry. It will therefore be argued that maintaining an operational work environment is the highest maxim of a company in the extractive industry. Also, it will be shown that the influence of central management is overstated by Thauer, whose theory does not take into account companies which operate in a subsidiary company model, which increases the influence of external factors (such as the government) in company CSR decision making and influences the choices management has to make. These factors outside of company management will be referred to here as ―external drivers‖. Lastly, the roles of other

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3 external drivers, such as NGOs, will be valorised in terms of their effects on brand reputation, as will be the influence of host communities in terms of maintaining an operational work environment.

This paper is divided into three parts. The first section will discuss the theoretical framework. It will address the literature available on CSR and attempt to demarcate the concept of CSR that is best suitable for the context of limited statehood and the ND. A discussion about Rational Choice Theory will then take place in an attempt to answer what prioritisation means for a company in the extractive industry, and Thauer‘s four internal drivers will be adapted to the context of this research. In the next chapter, the methodological approach chosen for this paper will be reflected upon, as the approach has certain implications for the research process. A discussion of reliability, validity and ethics of research will also take place along with a discussion of the societal and theoretical relevance that the study hopes to shed light upon.

The third and final chapter will be a presentation of the empirical findings of both interviews conducted with experts on CSR of IOCs in the ND and documents on the issue. The drivers that were adapted in the theoretical framework will drive the presentation and analysis. A discussion and analysis of these findings along with implications for further research will also be done and rounded off with concluding remarks.

2. Theoretical Framework

In order to adequately investigate the research question, the term CSR must be demarcated for the specific context of the ND and the context of limited statehood. Prioritisation for a company will mean the choice of a specific CSR project. This choice will indicate a "preference", as it is understood by Rational Choice Theory, whereby a company makes a decision based on the anticipated consequence of a choice. These anticipated consequences are created by factors called "drivers".

Christian Thauer's CSR theory (Thauer, 2014) will serve as orientation, because it outlines "internal" or business-side drivers facing a company. However, it will become apparent that Thauer's theory cannot adequately explain phenomena pertinent to the context of extractive industries. The theoretical novelty generated in this paper is that Thauer's internal drivers will be adapted to better fit a situation in which a company's productivity and profit are tied to a geographical locality. Furthermore, Thauer‘s framework will be supplemented by broader

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4 CSR theory to include external influences on management decision making. These factors will be entitled ―External Drivers‖.

2.1. Corporate Social Responsibility in the Context of the Niger Delta

Corporate Social Responsibility (CSR) has been defined in different ways and the definitions have been adapted to different contexts. A basic definition is that business attempts to provide ―social betterment‖ (Jackson & Apostolakou, 2010, p. 372). This is a broad definition in the sense that ―social betterment‖ can entail a host of activities. Other definitions are also interesting, such as the EU Commission‘s 2001 definition, which moves the emphasis to the ―voluntary nature‖ of CSR commitments‖ (Jackson & Apostolakou, 2010, p. 373). These understandings may, however, not be appropriate for this context. The voluntary nature of CSR has, for instance, been called into question and some authors argue that CSR is motivated by reasons of self-interest (as is the case here) – even though CSR may not necessarily be directly related to profit (Crane & Matten, 2005, p. 41).

Firstly, however, a more fitting and context-appropriate definition of CSR will be presented. The definitions that have been referred to so far are not necessarily appropriate for the context of the ND, as they employ a Western understanding of the term. A more suitable understanding of CSR for this research is achieved when the focus is specified beyond these approaches; CSR must be adapted to the context of limited statehood. Thus, the following definition is descriptive of CSR in a developing country, but for all intents and purposes applies to and can also be used for the context of limited statehood:

CSR are ―[…] the formal and informal ways in which business makes a contribution to improving the governance, social, ethical, labour and environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religious, historical and cultural contexts‖ (Visser, 2009, p. 474).

CSR policies therefore go further and affect what in the Western sense of CSR is understood as falling under the remit of the welfare state and is expected ordinarily to be performed by government(s). Even more pertinent to the context of the Niger Delta is an understanding of CSR as follows:

"[CSR in the Niger Delta is any action by a company] that is specifically aimed at addressing the socio-economic development challenges of the country, including poverty alleviation, health-care provision, infrastructure development, [and] education‖ […] ―It may also address issues of environmental sustainability‖ (Visser, 2009, p. 482).

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5 This definition is specifically tailored to the context of the ND and bears similarity with the first definition. The second definition has been chosen to demarcate the different policy issues that are relevant for this research. Companies will be able to make their choices as to which projects to implement in these areas in the context of the ND.

2.2. Rational Choice Theory and Preference

As a basis to understand decision making in the CSR process, Rational Choice Theory (RCT) will be employed to help explain the motivation of Shell to produce certain actions and outcomes. Milton Friedman postulated this approach. Friedman explains behavioural choices by accentuating the importance that incentives have in decision making (Kitzmueller, 2010, p. 13).

Incentives are taken into account when choices are made, but these can also be negative incentives; for instance, in terms of avoiding costly consequences of an action (Kroneberg & Kalter, 2012, p. 76). Rational choice therefore considers the ―costs and benefits‖ of an action and its available alternatives (Kroneberg & Kalter, 2012, p. 74). According to the RCT approach, an actor then forms ―expectations about the consequences‖ (Kroneberg & Kalter, 2012, p. 76). In other words, an actor makes projections about what each choice will bring. Upon this information, the actor will then ―choose the alternative that best satisfies‖ them (Kroneberg & Kalter, 2012, p. 76).

Criticism of the rational choice approach is, however, plentiful. Most significantly, RCT assumes rationality of the actors involved and infers utility-maximisation as the underlying motivation (Grüne-Yanoff et al., 2014, p. 325). This may be problematic, as normative preferences of actors may be difficult to establish (Kroneberg & Kalter, 2012, p. 183). Issue can therefore be taken with the assumed motivations that a researcher has inferred unto an actor. The theory is therefore afoot an interpretative approach, by which a researcher works backwards from the observed empirical data and hazards a guess (Kroneberg & Kalter, 2012, p. 81). It is therefore beneficial to widen core assumptions and to keep an open mind as auxiliary assumptions must at least be considered too (Kroneberg & Kalter, 2012, p. 74).

Another potential issue with RCT is that the researcher may neglect other factors that have played a role in the process of determining an actor‘s preference (Griggs, 2007, p. 178). Opaque processes inside which actors make decisions must therefore be carefully considered.

RCT establishes that individuals are instrumental actors and work to ensure the furthering of their own ends (Griggs, 2007, p. 174). This individual or micro-perspective is extrapolated

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6 unto a larger organisation which pursues a course of action with the maxim of utility-maximisation (Griggs, 2007, p. 174). These actors in a policy sense or in the context of CSR are confronted with different feasible policy options. The choice ultimately taken then allows for the observer to infer preference (Griggs, 2007, p. 177).

It must also be said that a critique of RCT is not the intent of this paper. This paper assumes that IOCs strive towards maximising profit in line with the RCT approach. However, the author concedes that while acting for reasons of utility-maximisation, a company may not have complete information upon which to base a choice, (though they strive to ameliorate these information deficiencies through CSR, as will be argued in this paper in due course). Therefore, the concession to ―bounded rationality‖ is made, as Thauer intends it (Thauer, 2014, p. 13). However, RCT explains prioritisation well and also appreciates that negative consequences inform choices made by an actor, which is the case for IOCs, and this will be argued in the paper. Therefore, the RCT approach must be favoured.

Lastly, a rational actor is capable of determining preferences. They must be capable of ―rank-ordering‖ their choices and establishing a ―hierarchy of wants‖. This also presupposes that the choices an actor has are comparable (Griggs, 2007, p. 174). CSR interventions that are analysed must therefore all represent such comparable and viable choices in order for a true preference to be expressed. As will be explained in sections 2.6 and 2.7, external drivers influence the decisions made by an IOC. It will be argued that the company will always avoid the most negative consequences, in line with the RCT approach.

2.3 Territories of Limited Statehood and CSR

The context of ―limited statehood‖ is helpful in understanding the context of CSR in the Niger Delta. ―The essence of statehood‖, as Börzel and Risse write in their 2010 paper, ―is the ability of the state to enforce collectively binding decisions‖. This is done ―ultimately through coercive means, via [the state‘s] monopoly over the means of violence‖ (Börzel & Risse 2010, p. 118). This idea, despite being drawn from a Weberian (and Eurocentric) point of origin, nevertheless provides good insights into CSR in the ND because it critically questions this outlook.

Limited statehood refers ―to parts of the territory or policy areas in which the central government lacks the capacity to implement decisions and/or its monopoly over the means of violence is challenged" (Risse 2015, p. 2). The concept of limited statehood therefore does not indicate an all-round lack of a functioning government, but rather addresses the fact that

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7 inside of state territory, there are areas where a lack of government is the case (Risse 2015, p. 2). This is why CSR fills the gap of policy issues that might traditionally be considered within the remit of the welfare state (Risse, 2015, p. 4). These areas are therefore potentially unstable and can be affected by disturbances such as social conflict and environmental hazards (Lund-Thomsen, 2004, p. 106).

Christian Thauer, an expert on CSR in areas of limited statehood, sees CSR as a management tool for companies. The resource of CSR, though presenting a cost for the company in terms of implementation, brings certain positive aspects for the company operating in an area of low work standards and low government involvement. It will be assumed that such circumstances are akin to those of an area of limited statehood, as is assumed in Thauer's work (Thauer, 2014, p. 29).

CSR means that management has ―internal drivers‖ that justify expending costs of CSR (Thauer, 2014, p. 13). A cost-benefit analysis is therefore performed by a company, in order to establish if CSR is in the interest of utility-maximisation; consequences of CSR choices are projected onto a CSR choice. By choosing which CSR project to invest in, a company expresses preference(s) and thus prioritises. This paper will assume that managing CSR interventions is akin to expressing a preference. There is an onus on a company to prioritise which CSR interventions are to be implemented.

2.4. Thauer's Internal Drivers

Thauer argues that in areas of limited statehood, uncertainty and instability are often present in the work environment of a company. The work environment may face disturbances, which in turn may infringe upon production if a company has investments in such areas of limited statehood or wishes to make an investment there (Thauer, 2014, p. 21). The environment of limited statehood may therefore make investing an uncertainty and potentially costly. In order to protect their return on investment, the company therefore participates in CSR work – with the intent of stabilising or bettering the work environment (Thauer, 2014, p. 21). In light of this, Thauer finds four motives that promote participation in CSR. These "drivers" will now be discussed.

1) The Human Resource Dilemma

The human resource dilemma explains that a company hires specialist workers or trains its workers at a high cost (Thauer, 2014, p. 23). High turnover of the staff, due to negative characteristics of the environments in which the employees may work, can present potential

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8 high costs. The specialist employees therefore represent an investment by the company. Amongst others, issues such as social conflict may also represent a potential danger to this investment or at least impair output (Thauer, 2014, p. 23). A company may be forced to re-hire because of the ramifications of such a situation.

There is also a risk of having employees quit. Because of the high investment in their staff, the workers have considerable bargaining power to demand a better environment and improved working standards, putting pressure on a company as well (Thauer, 2014, p. 24). This employee-related driver is therefore an incentive for companies to partake in "health, social, and labour-related corporate social responsibility" (Thauer, 2014, p. 25). The driver is, in the first instance, understood to be valid only for the direct employees of a company (Thauer, 2014, p. 25).

2) The Technological Specialisation Dilemma

This assumes that a high "level of technological advancement of a firm" brings with it considerable costs (Thauer, 2014, p. 25). "Technologically complex products often require a considerable amount of resources". Therefore, the "central management allocates resources to start up production" (Thauer, 2014, p. 25). An organisation therefore makes "intra-organizational asset-specific investments" (Thauer, 2014, p. 26) to the area of low work standards. These investments bring with them an expected standard of output. If this output is not met, Thauer argues, a company has the opportunity to move the production site to another location (Thauer, 2014, p. 26). This aspect will be critically discussed in the following sections.

Lastly, it is to be mentioned that both the human resource and technological specialisation dilemma drivers bear risk to opportunism. The specialist employees and highly technological investments imply that specialist staff may have more knowledge and information about these issues than does the management. As the management wishes to offer ―only the bare minimum in services‖ to employees, the latter can push to extract the ―maximum in services‖ (Thauer, 2014, p. 25). This means that there is an ―information asymmetry‖ between management and employees, disfavouring the former. This problem can potentially be curbed by gaining more control and insight via CSR and setting strict standards to production (Thauer, 2014, p. 25 & 27).

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9 3) The Foreign Direct Investment Dilemma

This driver, similarly to the second, deals with central management that is located in a foreign country. Thauer argues that central management wishes to be more certain about the consequences of the investments that they are to make in an area of limited statehood. Different from the former driver, however, is that the country where central management is seated has higher regulatory standards (Thauer, 2014, p. 29). This "trans-border element" means a potential diffusion of standards to the country of limited statehood.

4) The Brand Reputation Dilemma

Similarly, the image and reputation of a company‘s brand name is important. Companies may also aspire to offer ―product differentiation‖ as a marketing tool by creating an impression for their consumers that they are actively seeking to better the environment or lives of stakeholders affected by production (Thauer, 2014, p. 31). This entails a company trying to market itself as an attractive organisation for the consumer. It does so by going against short-term cost cutting incentives and bettering standards for affected people – even beyond the direct employees (Thauer, 2014, p. 32). It thereby can aspire to invest and build a brand name that suggests a certain quality in the entire production chain to the end consumer. This can boost the company‘s reputation (Thauer, 2014, p. 33).

2.5. Limitations of Thauer's Internal Drivers

Thauer makes a compelling case for his internal drivers. He deems his approach to be "widely applicable", across "highly diverse contexts" (Thauer, 2014, p. 34). However, his theory does have limits in terms of scope and applicability, as will become apparent. This paper will attempt to address these limitations.

2.6. Making Thauer's Approach more Applicable for the Extractive Industries: Establishing Preference

Thauer‘s first internal driver argues that CSR in terms of health, social, and labour-related issues predominantly apply to direct employees of a company. However, this paper argues that in an attempt to pre-empt social conflicts in the work-environment, it may make it impossible to distinguish if CSR is done directly for the employees, or for the wider public. This means that the community is a factor that constitutes the work environment and that benefiting the host community is essential in keeping the work environment operational in areas of limited statehood.

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10 Thauer's approach is also limited in the sense that it falls short when the industry is heavily tied to geographical locality. This is the case for companies that are active in the extractive industries. In this class of case, company profit and production are incumbent upon being locally present and extracting resources such as crude oils. For the second driver, the technological specialisation dilemma, Thauer assumes that a company can move locality if the output is not satisfactory:1

"In this case, if management is dissatisfied with the output of production, it can reallocate resources swiftly" (Thauer, 2014, p. 26).

Thauer claims that if in fact investments are small enough, then the commitment to a certain locality is non-existent (Thauer, 2014, p. 26). This is, of course, not the case if profit and production cannot be moved, as a resource may only be present or accessible at a given location. The stakes are therefore considerably higher in such a context.

As alluded to in the previous paragraph, the ties to a certain locality also imply that a distinction for this context must be made in terms of how much a locality is worth (in terms of investment) and what the cost would be of not being able to continue work there. Thauer does, however, distinguish between a company endeavouring to secure a "return on investment" and profit maximisation (Thauer, 2014, p. 26). However, this distinction does not go far enough. If locality is not only essential for the return on investment and for guaranteed profit maximisation, but also for profitability to be maintained as a whole, then the value of a locality becomes far more vital. As utility-maximisation dictates a company's preference, the choice with the biggest negative consequence to this maxim is therefore to be avoided by all means. A shut-down of production is therefore the costliest of consequences in relation to this maxim.

Therefore, this paper will work on the following assumption when extractive industries are to be considered: If production is inextricably linked to access to an operational working environment, then maintaining access to and the operationality of the aforementioned environment becomes the highest value for an operation.

1_{Thauer does address somewhat. Thauer explains that investments made that cannot be transfered to another}

„transaction― will increase the value of the said transaction (Thauer , 2014, p. 17). This means that investments made into a given locality will raise the stakes these transactions (Thauer , 2014, p. 17). However, this does not sufficiently highlight the prerequisite nature that locality has in the extractive industries for the operationality of a company.

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11 The next most important issue for a company would then still follow the maxim of utility-maximisation and the need to protect the return on investment. These would dictate that to improve profitability in the best possible way, a company will attempt to keep costs down. For CSR, this may mean shirking or limiting some of its responsibilities on CSR implementation in order to reduce operational costs, amongst others. This therefore establishes the secondary motive that will dictate a company's CSR preference.

Thauer's first two internal drivers therefore represent a threat to the here-established highest preference. The fourth driver can, at the most, have an impact on profit and will therefore be understood as a weaker driver than the others.

2.7. Decentralised Management and External Factors

Authors of CSR in the context of limited statehood have cautioned that a purely business-oriented understanding of CSR can lead to ―misreading‖ of the general situation (Lund-Thomsen, 2004, p. 107). This may be the case, since business-oriented CSR is primarily concerned with a company‘s performance, as is the case in Thauer's literature. Political issues may therefore be neglected as they go beyond the context of company management (Thauer, 2014, p. 107). Thauer's third internal driver follows in this vein, as it assumes that a centralised management has a strong and direct influence on policy in a foreign country of production. Even if this is the case, this notion may be overstated because of the narrow focus on management. The direct influence could be mitigated by external factors that are not considered in Thauer's approach. If an external actor has influence on company policy or the centralised influence is mitigated by an external actor's involvement, then this managerial effect may become lessened. Moreover, Thauer assumes that an abroad operation is in a direct hierarchical line under the central management. Different management issues or issues of a company forming a subsidiary company to be operational in a foreign context are not considered. Moreover, a company might be structured in the joint venture model. In these cases, the relationship between the two management structures might have changed from a traditional context. Also, in a foreign context, other outside actors may be present. Therefore, outside factors and actors, as well as the foreign context must be assessed in terms of the relationship between the central management and the on-site management. This paper will therefore look beyond Thauer's assumptions and test these relationships.

Even if a central management has substantial influence from abroad and diffusion of standards does occur, then Thauer's view may still be too narrow. Certain standards may be adopted for direct employees of a company, but the narrow company-oriented view may

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12 overstate the impact these standards can have on the foreign work environment and environment (in terms of nature). This is perhaps an important aspect to regard when keeping in mind the importance of staying operational in an extractive industry environment.

2.8. External Factors: Valorisation of NGOs in Brand Reputation

Further factors are potentially disregarded by Thauer's approach, such as social and environmental factors. These factors, as well as ―local histories of inequality in terms of access to wealth and political influence‖ (Lund-Thomsen 2004, p. 107), can for instance also play a part, but be amiss when focusing solely on management-oriented literature, as is alleged by critiques of management-orientated literature.

Let us therefore look more closely upon social and non-governmental actors that may become important in understanding CSR.

―In the absence of strong governmental controls over the social, ethical, and environmental performance of companies in developing countries, activism by stakeholder groups has become another critical driver for CSR‖ (Visser, 2009, p. 487).

Accordingly, activities such as naming and shaming, which are performed by NGOs on behalf of communities in the ND, (as specifically referenced here by Visser), are testament to a strong position of other non-state actors (Börzel & Risse, 2010, p. 123). These actors therefore urge cooperation by imposing their external norms on the CSR process (Börzel & Risse, 2010, p. 124).

This is interesting with regard to Thauer's fourth internal driver, where he assumes that solely business-side factors are influential (Thauer, 2014, p. 33). He focuses on the "consumer" as the standard bearer in terms of determining brand reputation (Thauer, 2014, p. 33). This marketing tool is strictly seen from a management stance which implies that public regard is mainly informed by a company's investment marketing. This is again an effect that can be mitigated by other actor involvement, such as the role of NGOs that do ―naming and shaming‖ practices, which can influence public perception and thereby impose external agendas and policies unto the work environment (Börzel & Risse, 2010, p. 123,124). Thus, these external actors may influence the management of CSR rather than only the company itself. NGOs as an external driver must therefore at least be considered when thinking about reputation and the like.

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13 The external drivers outlined will therefore influence the range of choices a company can make. It will also be argued that the company will always avoid the most negative projected consequences in line with the RCT approach.

3. Methodological Approach

In this thesis, an inductive and qualitative approach will be adopted. The approach starts with observations and theories that are formulated towards the end of the research process using an empirical analysis in which the researcher considers different possibilities that could explain a phenomenon, while simultaneously delving deeper into the subject. Rather than testing the validity of an existing explanation, an inductive approach is therefore based on intermediate evaluations of the findings that could give an indication of what will happen in the next stage of data gathering (Bryman, 2012, p. 380). The inductive approach corresponds to the aim of this thesis, which is to contribute to the understanding of how CSR choices are made. Accordingly, the approach allows for in-depth evidence gathering and leaves room for unforeseen explanations and outcomes that can identify underlying patterns of a phenomenon (Bryman, 2012, p. 402).

The primary mode of data analysis will be interviewing. Interviews are to be supplemented with data analysis of documents written by the actors involved in the ND CSR process, as well as with academic studies and news reports conducted on Shell's work or CSR in the ND. The inductive approach is often associated with small N case studies. This approach will start by examining available empirical data to enable that the researcher obtains a preliminary understanding of the factors that determine the prioritisation of CSR by Shell.

By investigating available data, the inductive approach will thus enable a fuller understanding of the different factors and philosophies that govern Shell‘s CSR prioritisation, rather than testing a preconceived hypothesis. The approach is especially suitable, as the process of CSR ideation and implementation is a complex one with multiple factors playing a role.2 This makes it difficult to pre-suppose a theory before having gathered empirical data. Furthermore, qualitative methods are generally seen as suitable to analyse research questions that have to do with understanding processes (Bryman, 2012, p. 402).

2

Kiikpoye K. Aaron explains the complexity in the introduction of their 2011 paper, in which various non-state actors, government, oil companies and joint venture situations as well as conflict are mentioned as part of the context of CSR in the Niger Delta and operating environment for IOCs (Aaron, 2011, p. 780).

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14 3.1. Case selection

The research design is a single case study approach (N=1). The approach means that N will be generalizable to a wider population (Bryman, 2012, p. 418). The CSR activity of Shell Nigeria in the Niger Delta will serve as the focus of this paper (N). The company is the biggest internal oil company in Nigeria and owns the largest oil reserves in the country (ND Master Plan 2016, p. 72, Ite, 2007, p. 220). It however still remains representative of all IOCs active in Nigeria, because of the shared similarity of the operating environment, and in terms of the actors that are involved in the CSR processes and business environment (Ibp, USA, 2009, p. 73, Ite 2007, p. 220). 3

In acknowledgement of the fact that Shell is the highest revenue earner for Nigeria, and may therefore command more influence over other IOCs, it will be used as a case study for typical CSR interventions executed by IOCs in the Niger Delta Region. In this regard, it will be presumed that the actor settings and contexts remain comparable to other IOCs. This can also have importance for other companies carrying out CSR policy in the context of limited statehood. The population for this paper therefore will be the IOCs with comparable conditions operating in areas of limited statehood.

3.2. Elements of Study

The unit of analysis for this paper will be the organisation ―Shell‖. Shell encapsulates Royal Dutch Shell and SPDC (Shell Petroleum Development Company of Nigeria Limited), which is the joint venture (JV) Shell operates in Nigeria with the government owned Nigerian National Petroleum Company of Nigeria (NNPC which owns 55% of the JV), AGIP Oil Company of Nigeria Limited which owns 10% of the JV, Total Fina Elf (with 5% of the JV) (Ibp, USA, 2009, p. 73). Shell‘s operations in the ND constitute an example of a company operating in a limited statehood context. The unit of analysis is therefore part of the wider population.

Accordingly, the observations taken in this thesis are process-oriented and will lead to causal insights into the issues of CSR in the context of limited statehood and in the context of extractive industries. Along with descriptive information about what factors determine the CSR process, prioritisation will give an insight into what is of highest importance to a company operating in the aforementioned environment.

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15 3.3. Data & Method

The primary mode of data analysis is ‗interviewing‘. It will be supplemented with data analysis of documents written by the actors involved in the CSR process, as well as academic literature and media reports. Such actors include NGOs, government institutions and representatives and oil companies (Aaron, 2011, p. 780). The inductive approach is often associated with small N case studies. This approach will start by examining available empirical data to enable the researcher obtain a clear understanding of the factors that determine(d) the prioritisation of CSR by Shell.

By investigating available data, the inductive approach will thus enable a fuller understanding of the different factors and philosophies that govern Shell‘s CSR prioritisation, rather than testing a preconceived hypothesis, (as the deductive approach requires). The approach is especially suitable, as the process of CSR ideation and implementation is a complex one, with multiple actors involved. This makes it difficult to pre-suppose theory before having gathered empirical data. Furthermore, qualitative methods are generally seen as suitable to analyse research questions that have to do with understanding processes (Bryman, 2012, p. 402).

Semi-structured interviews will be the most fitting method to gather data here, as this will help the respondents answer questions more freely. This approach will also allow the researcher the opportunity to ask secondary questions of interest or where further clarification is needed, while keeping the general interview concise. In addition, hypothetical questions may be used to determine if the respondent feels there is a preference in terms of decision making or process. Finally, some pointed questions will also be asked when a specific elaboration is desired.

The interviews will be approximately 45 minutes long and the audible material will be captured and used to create verbatim transcripts. Each respondent will be interviewed separately, face-to-face or via Skype (online telecommunication software). In cases where an individual will not be available or declines a face-to-face interview, questions and answers may be conducted via email.

Current and former Shell staff familiar with knowledge of the issues at hand will be interviewed as they will be able to give authoritative insights into the decision making process behind the ideation of CSR policy. Where relevant, the information provided by former staff may be used to validate information obtained from current Shell staff.

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16 Six interviews were conducted. One with a current Shell employee and three were done with former Shell employees, one of whom wished to remain anonymous. Two interviews were done with experts on the issue, working with NGOs active in the Niger Delta.

The set of questions asked varied, depending on respondent characteristics. This approach was adopted because each respondent may have a different degree of access to and knowledge of process formulation, and a different function and perspective or bias in relation to the entire CSR process. As a result of the background information gathered by studying academic literature on the issue of Shell‘s CSR in the Niger Delta, different profiles will be assumed for the respondents that are interviewed. Each respondent‘s position on Shell‘s CSR policies will also be taken into consideration during the interview in particularly with regard to the individual or organisation‘s (the respondent‘s) assumed position or perspective on an issue. Some of the respondents are affiliated with organisations that may also have a specific view on an issue. This can for instance be inferred from viewing organisation publications on the issue. The three respondent profiles established are: 1) Staff of an NGO, 2) Current Shell Staff and 3) Former Shell Staff. These three profiles are to be kept in mind during discussion of credibility and in terms of the level of insight they each have into the CSR prioritisation process that Shell conducts.

After the interviews were conducted, manual coding took place. The most important and pertinent parts of interviews and also documents gathered were tabulated into categories. This coding was done in an issue-based manner. Information from the interviews that are thematically connected will form a category. This process is explicitly an inductive one, as it is informed by the knowledge gathered during the interviews. Empirical data gathered will inform the theory in a dialectical fashion in line with the grounded theory approach (Cresswell, 2009, p. 184). The following codes have been developed from the internal and external drivers discussed during the theoretical framework and will also guide the empirical analysis.

1) Maintaining An Operational Environment

With distinction to Thauer's driver is the relevance to geographical locality and its implied meaning to company preference. Empirical information that is gathered in terms of the

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17 company wishing to create a stable environment as the highest factor in prioritisation is therefore relevant. This will encompass all company efforts to stay operational.

2) Cost Cutting

Achieving return on investment and profit-maximisation by keeping the environment as stable as possible are relevant secondary motives for prioritisation and are to be included in this category. This includes instances of the company trying to gain more control and information about its employees, technology, and the work environment, to alleviate information asymmetries to make production more effective and gain more control over the production chain.

The category will also pertain to information related to the Human Resource and Technological Specialisation Dilemmas in the context of Shell‘s operations in the Niger Delta. Preventing employee turnover and keeping technology protected is also a part of this category.

3) External Driver: Host Communities

This category will specify the behaviour of the communities in terms of their importance and relevance in contributing to stability and peace in keeping the working environment operational. This is understood in terms of conflict, discord or cooperation that a host community may exhibit towards Shell operations.

4) External Driver: Government Influence

This category will address information about the influence of Shell‘s Central Management in The Hague and Shell in Nigeria. Included in this are signs of the influence of external drivers on the management process of SPDC in light of the joint venture model and the particularities of operating in the context of the ND.

5) External Driver: NGOs

This category encompasses information that pertains to the involvement of NGOs as an external driver in terms of influencing decisions by affecting brand reputation.

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18 3.4. Sampling

The typical case sampling was employed, with Shell as the unit of analysis. This approach has limitations, as the quality of this type of sampling is dependent on accurately demarcating whether the given case is in fact a typical case (Bryman, 2012, p. 419). This is ensured by a literature analysis of IOCs in the ND which, in fact, does show that the process Shell goes through is comparable to those of other IOCs operating in the Niger Delta, as has already been shown in terms of operating in a JV structure (Ite 2007, p. 220).

Snowball sampling was then used to find respondents. This approach falls under purposive sampling. This type of sampling dictates that the sample is chosen strategically, with relevance to the research question. Therefore, current and former Shell employees were approached for an interview. Also, as preliminary research highlighted the role of NGOs in the CSR process, NGO staff were asked for interviews and information about Shell‘s CSR process.

Finding respondents who were willing to be interviewed proved to be difficult. As it became clear that the respondents more likely to be found would have knowledge of the issues and certain connections to other experts, the snowball sampling approach proved especially suitable. Snowball sampling however brings with it problems of generalizability, as it is unclear how representative the samples are; however, this approach is feasible and preferred because probability sampling is not possible in the context of this research (Bryman, 2012, p. 406). Transparency is a potential issue for this approach because it is hard for the reader to follow under what circumstances new respondents were suggested. Moreover, some respondents chose to remain anonymous, which further infringes transparency. Yet, from an ethical point of view, their anonymity could not be compromised; besides, a guarantee of anonymity does not necessarily impair outcomes for research, as suggested in Section 3.6 below.

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19 3.5. Operationalization

In order to answer the research question, several assumptions are made. The questions will be answered by researching Shell‘s CSR intervention in the Niger Delta.

Research Question: How do companies prioritise the CSR interventions they invest in and

undertake in the context of limited statehood?

CSR will be understood as a limited resource and in terms of RCT. In this regard, CSR projects are selectively implemented and managed in the context of limited statehood. This indicates that a ―prioritisation‖ takes place in the decision-making process, the implication being that not every CSR intervention can be implemented. The decisions made by a company will therefore be the dependent variable, while the potential consequences of CSR decisions and the consequences of the CSR process or pressures from CSR drivers will be the independent variables. CSR interventions refer to separate CSR interventions that are to be implemented in the Niger Delta host communities where Shell extracts crude oil. They can fall under the policy issues of health, the environment, education and infrastructure. The research will, however, not focus on individual implementations, but rather seeks to establish the maxims that drive prioritisation as a whole.

As discussed in the theoretical section, ―prioritisation‖ is understood synonymously with preference in this context, and the CSR interventions performed will represent a preference the Company makes. Two methodological approaches will be used to make preference more measurable. The first is known as the direct strategy. It seeks to measure the expectations and ―perceived‖ costs and benefits which the respondent can themselves report (Kroneberg & Kalter, 2012, p. 76).

The second strategy or the indirect strategy refrains from measuring expectations and preferences, but rather ―builds bridge assumptions‖ by entering an actor into a group according to their observable attributes. This means that assumptions can be made according to a theoretical underpinning based in theory (Kroneberg & Kalter, 2012, p. 77). As indicated in the theoretical section, the assumption made about Shell as an organisation is that it is driven by RCT motives that include keeping work environment operational as the highest maxim, and securing a return on their investment, as well as cutting costs. In order for the assumption of RCT-based decision making of an IOC to remain falsifiable, it must be shown

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20 that a company‘s preferences are driven by RCT, even though an external driver may have influenced the choices on hand. Document analysis and interviews will be used to shed light on both strategies as well.

As the issues of CSR interventions are highly contested, the different perspectives of the respondents involved will be explored and juxtaposed through the interviews.

3.6. Reliability and Validity

In relation to the interview of Shell operatives, the author does acknowledge potential issues in terms of validity due to potential bias and conflicts of interest by the respondent and potential influence of Shell. Therefore, data triangulation will be used to increase validity. The research will therefore also employ reports given by NGOs and government agencies – because, as independent organisations, they track and monitor IOC activity in the oil industry in an attempt to curb conflicts and problems surrounding oil mining in the Niger Delta (Müller, 2010, p. 6).

The semi-structured format of the questions will have some standardisation to allow for a certain amount of reliability in the research to be tested. Interviews will take place with experts from different NGOs to supplement Shell interviews in an attempt to establish the veracity of an account given in an interview or in a document and in order to gauge the respondent‘s credibility. Data analysis will be conducted not only on the data gathered but also by way of analysing academic literature that has been published on the matter, including publications by some of the concerned actors for purposes of data triangulation, and to further create and establish the credibility of the respondents.

In line with the Rational Choice Theory approach, Shell's choices will be used to infer its company preferences. As discussed in the theoretical framework, this can be problematic because RCT works from the basis of the empirical evidence at face value to understand preference. Allowing the respondent to explain the choices made themselves can shed light on what preference and utility-maximisation means for the company. Establishing credibility of said respondents can also further increase the internal validity of preference and prioritisation.

Issues of validity and reliability occur when employing RCT. The first RCT measuring strategy allows subjective reporting on perceived costs and benefits by the

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21 respondents. This means the analysis may suffer under the subjectivity of the respondent as it does not focus on measuring expectations and preferences. The second strategy can help mitigate this issue because it relies on assumptions made about an actor on the basis of social science theories. The assumptions made by the researcher are therefore potentially problematic. This has to be kept in mind and the theory chosen to underpin the claims made must be made clear in a transparent fashion.

Keeping the questions semi-structured will also ensure that potential bias on the side of the researcher, which could colour the information gained during the interview, will be minimised. The researcher will also ask to record the interviews in order to increase reliability of the transcripts. Transcripts will leave out filler words, the greetings and the good byes of an interview for reasons of convenience. Words that are unclear can be replaced, but this will be marked by square brackets, as will be comments made by the research, which attempt to clarify a respondent‘s words.

During the data analysis process, the researcher will discuss the process of forming the categories and profiles, in an attempt to establish transparency.

Though a complex matter, the generalisation of the results beyond the immediate study may not be straight forward because the actors and their dynamics studied here are somewhat unique. However, external validity is possible in the context of CSR interventions in cases of limited statehood, and where CSR is performed by an IOC. Information about the prioritisation of CSR should then become applicable to other cases.

3.7. Societal & Theoretical Relevance

The societal relevance is of international importance. Shell is a ‗highly-salient issue‘ in Europe, especially as the company is based in the Netherlands. But its importance and activities also have worldwide impact. Furthermore, customers pay attention to the production chain on a global basis. This means that CSR work done in Nigeria is of interest to a global public. The answers gained by this research may shed light into an understanding of CSR activities and why OICs give such high priority, focus, investment and resource deployment to CSR.

As stated, the relevance of CSR interventions in developing countries cannot be overstated. CSR has a very impactful effect on the people and is central in shaping the

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22 economic, political and social landscapes in these countries. For Nigeria the implications are also of importance, as the host communities are sometimes in conflict with IOCs and could create an understanding of the complex relationships between host communities and IOCs. The study will also have implications for public policy and perhaps for sustainability issues regarding host communities and international companies which, it is suggested, will highlight the paper‘s theoretical novelty.

The study employs CSR theory of Thauer (Thauer, 2014) on limited statehood. Thauer's four internal drivers of CSR are adapted to fit the situation of a company operating in an extractive industry. But the initial theory is too narrow and does not sufficiently explain CSR decision making in the ND. The study will argue that an IOC operating in an area of limited statehood has the highest priority of maintaining a conducive and favourable work environment.

Furthermore, it will be shown that Thauer's suggestion that central management from abroad is pivotal in company decisions in an area of limited statehood is overstated in relation to the supposed significance of the role it plays in CSR decision making. This is as a result of the joint venture structure that governs Shell‘s operations in Nigeria. Lastly, the role that NGOs play in CSR decision making and their importance to brand reputation will be valorised, as will be the host community‘s role in terms of keeping the work environment operational and thereby, influencing CSR decisions.

The latter three aspects are categorised as "external drivers" and will be proven as necessary in understanding CSR decisions, especially as Thauer's focus on internal or business-side factors is seemingly narrow.

3.8. Ethical Considerations

The issue of Shell involvement in the Niger Delta generates enormous controversy and is perhaps a topic to be handled with sensitivity. The respondents of the interviews are presented with the option to speak anonymously. The purpose and approach regarding the data methods will be explained to the respondent before the interview takes place in order to ensure voluntary participation. Semi-structured questions will be favoured, and the researcher will avoid leading questions in order to gain the respondent‘s authentic answer.

Permission will be asked for recording the interviews for reasons of transcription. The respondents then have the opportunity to decline the interview or to decline being recorded.

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23 Some participants opted to remain anonymous in light of the sensitivity of the topic. This will be respected, even though it may mean depleted transparency in certain circumstances.

4. Implications of Limited Statehood for Business and CSR

This chapter will attempt to map out the nature of the environment in which CSR is conducted and what implications this has for the CSR process as a whole in the ND.

As a start, the ND region will be profiled. Oil production in Nigeria is centred in the ND. The area is home to about 40 different ethnic groups and a multitude of different languages and dialects (Federal Government of Nigeria, 2016, p. 53). Typically, the area is stricken by poverty and it‘s approximately 31 Million inhabitants overwhelmingly live in poor conditions - even by the country‘s standards (Aaron, 2011, p. 782). This then stands in strong contrast to the region‘s oil exports that drive the national economy and account for 70% of government revenue (Nigeria Country Commercial Guide, 2016). Over five decades of oil production have sadly not given prosperity to the area, though the earnings of oil production exceeded US$600 billion in 2009 (Aaron, 2011, p. 780) 2009). The area is 80% inaccessible by road and the communities deal with poor health, educational, and energy infrastructure as well. Again, these standards are poor even compared to the national average (Aaron, 2011, p. 783). Moreover, high environmental degradation is an issue that the communities have to deal with. Land and water are affected, which is particularly devastating for the people that largely depend on fishing and agriculture for sustenance (Oka, 2017, p. 164). As a result ―the cumulative effect of oil production, proliferation of a sense of relative deprivation‖ (Idemudia & Ite, 2006, p. 199) has contributed to situation of volatility with outbreaks of violence between communities and IOCs being commonplace (Amabipi, 2016, p. 65), with IOC staff or technology and machinery often being targeted (Paraskova, 2018; Owolabi, 2017).

At face value the government in Nigeria is a three tier government wherein the federal body is the strongest, with state and local levels also represented (Federal Government of Nigeria, 2016, p. 52). However, as perhaps foreshadowed by the lack of accessibility by road and infrastructural deficits, the local areas are often equally isolated from their democratic representation. Therefore, the traditional hierarchical norms of ND communities are, de facto, lacking of tangible governance structures. These communities are often led by the ―elders‖; persons who are ―more advanced in age often taking higher status than the young and being seen as community leaders, who make decisions regarding important activities at the community level‖ (Federal Government of Nigeria, 2016, p. 52).

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24 As discussed in the theoretical section, government in the Western or State-Centric school of thought is not particularly relevant for the day-to-day activities of such isolated communities. Government is - whether unable or disinterested – not capable of reaching and affecting these areas and peoples sufficiently (Idemudia & Ite, 2006, p. 202). This limited contact to government institutions is not total, as will be shown in the next sections. In either case, this context dramatically changes the rules of engagement for IOCs operating in these areas in terms of business and of CSR. Limited statehood means that an IOC must deal with the traditional community structures in order to have access to crude oil and create a conducive work environment. Therefore, it quickly becomes apparent that communities are a factor in the CSR process: A community may be dismayed and deny an IOC access to an area, though the company may legally have access to the area (Keates, 2015). This is the case because of the aforementioned lack of government involvement (Nextier, 2017, p. 1).

Lack of government involvement has also led to militants and the like being in control in of

certain ND areas (Aaron, 2011, p. 780) – the state therefore has an issue with enforcing its hierarchical monopoly of violence. IOCs have therefore been involved in recruiting private security, supplying the police and the military with weapons and incentives to protect their operations in order to provide an operational work environment and to protect its operations and personnel from an unhappy host community (Manby, 2000, p.7). For protection, IOCs have gone as far as to be involved with militias that may have the actual monopoly of violence in a given locality in the ND, and potentially contributing further to an uncertain environment (Manby, 2000, p. 7).

4.1. Pressure to Fill State Void with CSR

Legal ownership of oil resources is settled contractually between the Federal/State governments and the IOCs (Idemudia & Ite, 2006, p. 197). This infringes upon the right of the communities to stake a claim to the prosperity generated by their resources, especially as government services are lacking. In lieu of government absence, IOCs have become the only perceived beneficiaries of these resources in the eyes of host communities (Idemudia & Ite, 2006, p. 202). Accordingly, there is hefty pressure upon IOCs to deliver wealth and prosperity to the communities through CSR, and the approval of company operations depends on meeting CSR expectations (Idemudia, 2010, p. 837).

―So, that puts a fairly different context to [CSR]. That you know, people may have an assumption - [which] you can argue is right or wrong - that these oil companies operating

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25 where they are represent government to these citizens […] - because, you know, perception is

reality‖ (Personal Communication P6).

―Perception is reality‖ – though the citizens of the ND do not have a solid foundation to stake their claims to the wealth generated by their land to IOCs, this seemingly does shape the understanding of the people and dictates their expectations. Therefore, an irreconcilable disconnect between what is supplied for the community and what is expected (Idemudia & Ite, 2006, p. 202), which is exasperated by the fact that though CSR has brought development, IOCs have oftentimes ―failed to deliver on their promises‖ (Aaron, 2011, p. 785). This puts into context the volatility of the environment in terms of the absence of state authority and its enforcement, thus exacerbating the feeling of disenfranchisement and frustration of the communities with both IOCs and government. This situation of volatility and pressure is important in understanding the CSR context in Nigeria.

4.2. A Cursory Look at CSR Prioritisation

Surprisingly, the government is however somewhat present in terms of the business-side of IOC involvement. Beyond the contractual situation outlined, the Nigeria Government facilitates the IOCs operations in Nigeria under a joint venture model. This means that the government and the IOC are linked in terms of financial motives (Idemudia & Ite, 2006, p.197). This is interesting for analysis sake, as is also the fact that some government institutions tasked with development, such as the Niger Delta Development Commission formally involve IOCs in development processes (Nigeria Extraxtive Industries Transparency Initiative, 2013, p. 7; Ite, 2006, p. 221).

As has been outlined in the previous sections, the communities lack involvement in the oil contracting or decision-making process with the IOCs. As other external stakeholders grew more relevant and important for business, the consideration and involvement of communities in some of the decision-making became somewhat improved. ―However, the reality remains that the host communities are still predominantly relegated to the background in decision making processes within the oil industry‖ (Idemudia & Ite, 2006, p.197). NGO‘s have played a strong part in forcing the issue of giving a strong role to, and empowering, communities. This will be addressed more closely in a later section. However, as one respondent working for an NGO stated:

―When they discovered the importance of these stakeholders [the communities], Amnesty International and other NGOs to this process […] [they] decided that they should be part of

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26 the ―Needs Assessment‘, in other words they should all get together with the communities to determine the projects that were viable for that community […]‖(Personal Communication, P6).

This indicates that, though a formal opportunity to profit from their resources still leaves much to be desired, the CSR process has come to allow for community participation. CSR is therefore the way a community can partake in some level of prosperity created by resources extracted in their areas (though informally). A respondent working for Shell had confirmed that a needs assessment is performed with the host communities and an agreement is reached in form of a ―Global Memorandum of Understanding (GMOUs)‖ (Personal Communication, P2). In this process, the respondent posited that NGOs worked alongside the community and Shell, in order to ascertain which CSR intervention would be the most suitable (Personal Communication, P2). This suggests that prioritisation is largely an issue of a community determining, and in effect making, the CSR decisions.

However, it is believed that there is large discontentment with the Shell CSR process, and the work done by the Company has in large measure neither lived up to expectations nor integrated the host communities sufficiently (Idemudia & Ite, 2006, p. 200). A respondent working for an NGO outlined his discontent with Shell‘s CSR process and the involvement of communities in the needs-assessment process as follows:

‖So Shell, in their own wisdom, just sit in their offices and then think of what to do for the communities. They do not really come down to the communities to meet with the people and ask the people what they want. So they [cannot] have meaningful impact on the community (Personal Communication P4). The respondent went on to state that the process through which Shell does its CSR prioritisation is highly ―intransparent‖ (Personal Communication P4).

This is a critical statement which alleges that Shell is disconnected from the demands of the people. The statement somewhat undermines the seemingly straight forward assertion that Shell prioritises CSR by performing needs-assessment. If this is to be believed, it would appear that the needs-assessment is likely flawed or is not being done adequately, and that community discontent is still high with CSR (Uzoagu, 2015, p. 221). Furthermore, in line with the criticism of NGOs and researchers: after the ideation process, the implementation of projects is often lacking once this initial phase of CSR has concluded and promises have been made to a community (Uzoagu, 2015, 2015, p. 221).

How oil companies prioritise CSR interventions in areas of limited statehood Shell's corporate social responsibility in the Niger Delta host communities

Contents

1. Introduction

2. Theoretical Framework

3. Methodological Approach

4. Implications of Limited Statehood for Business and CSR