Concerning the driving factors for Corporate Social Responsibility adoption, philanthropy has become an important place in Africa. It is due to massive socio-economic demands that have led to philanthropy becoming an expectation in society. Based on the research findings the philanthropic motive has been the most important motive in Nigeria.
DES Plc cannot overemphasize the significance of CSR in its decision to do deals in the petroleum industry of Nigeria. Because many of the players in the field have been forced to deal on the table as much and as much as they are able to. But it could be stated that Corporate Social Responsibility is seen by communities of host countries as ethical and morally responsible for companies investing in them and must not question.
CSR Concerns in the Industry
Although Mobile along with Total Fina Elf sees their obligation primarily as providing environmentally friendly and affordable fuel. As well as investments in the regions and countries where they operate. BP aims to be an advocate for good. Shell will work to create an environment that is more sustainable. Yuri Shafranik
Shell, Chevron, and other companies in the industry have been victims of kidnapping at expert rates in the past. The rate of militancy is on the rise throughout this region. 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 are no other options.
The provision of employment, the construction of roads, and employment could be one of the options to keep the possible situation under control to DES Plc.
Constitutional rights
For Nigeria, Corporate Social Responsibility is viewed as a way of giving back to society. As such, is their highest right. In Nigeria Philanthropy is more than giving to charity. HIV/AIDS is a prime example of where the response of business is mostly philanthropic. However evidently, it is based on their business’ own interests. Yuri Shafranik
DES Plc can make provision to collaborate with human rights organizations to tackle the potential problems.
Employees’ Rights
The Nigerian government also has through the NEEDS strategies. Nigerian National Planning Commission 2004, set the stage in which the public sector’s responsibility. By saying the following “the private sector is expected to take a more active role in creating jobs that are productive. As well as enhancing productivity and improving the standard of living.
Do Nigerians believe that businesses are accountable to do more than just maximize profits and return to shareholders? If so extend, how much does it go? It could include the payment of decent wages and work terms for workers. DES Plc already has an excellent reputation for job creation and maintaining. Its corporate culture will protect it to be able to withstand pressure in this respect.
Contribution of the community
Nigerian communities typically keep a certain level of ownership over their natural resources and therefore do not will be willing to let go of what they view as a stake. They have ” landlord associations” that have been formed to promote an adamant opposition to anything they see as unfairness in the exploration of oil.
Implementing developing the CSR program in Nigeria as a team with other social actors. Engage the community leaders in the selection of areas.
Environmental Security
Maintaining the most stringent environmental standards. Flaring of gas and oil are the main issues that host communities highlight as they continue to fight against investors.
Introduction of regional agricultural schemes to attract the population.
Dealings with Supplier
The relationship between companies and contractors and suppliers is constantly doubtful and isn’t considered an important issue. Multinational corporations establish cooperation with SMEs within both the formal and informal sectors to supply local goods. To create a jointly responsible corporate (Corporate Social Responsibility) plan for Nigerian and non-Nigerian companies. This can be considered through DES Plc while sourcing materials to be used locally in the region.
SPECULATION METHOD
Nigeria’s liberalized business environment and proactive reforms make it easier for businesses to conduct business in the country. Due to the concerns discussed in this report, Foreign Direct investment will advise by DES Plc. As a measure to increase its expansion and penetration into the Nigerian energy and oil sector. In the past, the Nigerian government has set up incentives to draw foreign investors. Nigeria’s investment policy is designed to encourage private sector participation in the nation’s economy.
Corporate tax rates are 30 percent across all sectors. Except for petroleum which is taxed in a separate manner in the Petroleum Industry Bill. Based on the World Investment Report 2011, produced in collaboration with the UN Conference on Trade and Development. FDI inflows into Nigeria decrease between $8.65bn during 2009, and $6.09bn in 2011. It also bears the blame to put on the delay of legislation on the Petroleum Industry Bill.
Kind of Entry
However, the Nigerian government is an unregulated system, which could favor the brownfield method. DES Plc can adopt this appropriate method of merging and buying assets of a company in the field due to its market shares that core players such as Shell, Total, Chevron, etc., already enjoy in the business.