ABSTRACT

Multinational Corporation is now globally accepted business firms
which have adopted various cultures and take responsibility for her host
community socially. The appraisal of multinational corporation to the
contribution of community development became necessary to evaluate the
extend of exploration carried out by multinational corporations in
Nigeria. A review of related literature was carried out to give the
study. The required theoretical background, available statistics from
the natural population commission indicate that Eket community have an
estimate of one thousand six hundred and ten people (101,610) and the
sample size is made up of hundred respondents (100),the method employed
in collecting data was the questionnaire. (4) Four hypotheses were
formulated and tested for the study using simple percentage (%)
statistical method of data analysis, on the basis of the analyses some
findings were recorded as follows: It was discovered that the
multinational corporation rather abuse human right and pollute
environment instead of developing the host community. Following the
findings recorded some useful recommendation were proffered for the
resolution of the problems identified in the study. It suggested that in
order to make the people fell statistical; the firm has to provide much
to the needs they want. To also widen the scope of here social
responsibility to provide employment and hasten community development.
It is concluded that is the law of the land is not properly put into
use; Multinational Corporation will not contribute towards the
development of her host community.

CHAPTER I
INTRODUCTION

1.1 BACKGROUND OF THE STUDY:
Multinational Corporation is used by people both in the business and non
business sectors, to some people it means a Fairly big firm that has
about five or six branches in a state, while others see it as a big firm
that has branches in all the states or divisions of a country.
According to Prasad & Shetty, (1976) “Multinational corporations are
firms that operate effectively under different national sovereignties”.
They further stress that multinational corporations are such firms that
must cope with wide variations in economic conditions, different values
and cultural systems and wide geographical separation.
This definition, multinational corporations are large firms that operate
in different parts of the world, but most of the times have one
acclaimed headquarters, situated in a place it was first established.
There are various multinational corporations both in Nigeria and abroad.
However, For the purpose of this research works, the researcher is using
Exxonmobil oil producing Nigeria at Eket, Akwa-Ibom State. it is of
note to mention that multinational corporations operating in foreign
hands must respect the tunes and dictates of the host government or face
expropriation. By the nature of their operation, multinational
corporations must cope not only with more complex organizational
structure but with far more elaborate and sensitive
array of environment variables than domestic operations have these
corporations are seen as giants amongst economic entities and primarily
because of their size, economic power, efficiency, stability, dynamism,
flexibility and quite often a technological oligopoly. Elwood (1979),
said that the size and scope of multinational corporations within many
developing nations often bring about significant social changes that
disrupt or counteract social programmes and goals of host government.
Multinational corporations are known for their exploitative tendencies
in developing countries. There has been lots of accusation by concerned
African countries that these corporations are only out to suck dry the
natural and human resources of poor African countries without
correspondingly compensating them or showing appreciation in return.
Despite the fact that these corporations exploit these African countries
and realize huge profits from their business operations, it is
difficult for saying they satisfy the yearnings and aspiration of the
communities where they operate in terms of business social
responsibility.
Offlang (1980) asserts that, going by the concept of imperialism and
dependency as characterized by the exploitation of the developing
countries by the west and as manifested by the infiltration of western
capital into poor African countries, one can categorically say that the
contribution of these multinational corporations to the community
development is not encouraging. This is evidenced by public out-cry for
compensation by Communities where these corporation arc operating due to
the 1ct that these communities provide the needed raw materials for
that operation.
At times these communities after waiting patiently for these.
corporations to meet their social demands without any response, take the
law into their hands to show Their resentments. It is note to stress
that the oil producing communities are the ones which are supposed to
benefit more From Multinational Corporation involve in oil exploration
in such areas. Intact these oil exploration corporations should provide
lots of social amenities like pipe bore water, electricity, good roads,
recreational facilities and host of others to these communities. The
corporation social activities to these communities should extend to the
areas of employment, scholarship and other incentives.
In further expressing my view on the fact that the oil producing
communities should benefit more from oil exploration multinational
corporations that are operating in such of the pollution and other
hazards caused these communities due to oil drilling. These are cases,
which due to oil spillage a lot of aquatic animals die and the seawater
becomes bad and poisonous thereby causing untold hardship on such
communities.

1.2. STATEMENT OF THE PROBLEM
As a result of the hazards and exploitation of multinational
corporations on the communities in which they are operating, it is
important for them to show a serious concern in terms of being socially
responsible to these communities.
However, it is difficult for one to. Say that a particular corporation
has contributed adequately to the development of a particular
Community because development encompasses many things ranging from the
provision of infrastructural facilities, employment, scholarships and .a
lot more. Communities cry out of neglect, lack of appreciation and
insufficient compensation by corporations that are operating in their
areas.
The corporations on their pa refute- this claim by saying that they have
responded adequately to their social needs. The researcher also notice a
problem of disparity between the corporation and the community as to
who have fulfill his promise of providing social infrastructures and
economic benefit (or) whether the community is satisfied with what the
corporation has so far done to the community.
1.3. OBJECTIVE OF THE STUDY;
The main objective of the research work is to appraise the contributions
of Multinational Corporation towards community development.
The specific objectives of the study are:
a. To analyse the difference in opinion between the corporations and host Community.
b. To evaluate the level of social responsibility Carried out by Exxonmobil Oil Producing Nigeria.Plc in Eket.
c. To determine to what extend Exxonmobil have Contributed towards the development of Eket.
D To investigate what the corporation has actually done in the community in terms of infrastructural growth.
e. To examine the benefit of Exxonmobil to the people of Eket.
f. To highlight the problems caused to Eket community and environment due to the existence of Exxonmobil.
g. A suggestion that Exxonmobil should principally develop Eket as her host community.
1.4. SIGNIFICANT OF THE STUDY
The study focuses on the contribution of Multinational Corporation to
host community when properly articulated, it will be of tremendous
benefit to many interest groups Exxonmobil and the people of Eket are at
variance over the issue of the firms satisfying them infrastructural
and otherwise. The people feel the corporation has not adequately
compensated them and as such their yearnings and aspirations are yet to
be satisfied. The study would be useful to engender efficient and
effective human relation among stall ci the corporation and host
community, the study will help to discover the corporation and the
people because of the difference in their claims. This study will be
useful to erase the disparity, call for a compromise, and also counter
the possibility of frequent contribution between both parties.
However, the researcher is convinced that not only the people of Eket,
the government of the Federal Republic of Nigeria and staff of
Exxonmdbil but also the general leader would find this study valuable.
The research work will be beneficial to researchers and prospective
researchers in the area of the study. It will serve as a guide for
future researches.
1.5 SCOPE OF THE STUDY:
This research study is to assess the contribution of multinational
corporations to community development by Exxonmobil to the people of
Eket. It focuses attention on the provision of social amenities and
other forms of assistance the firm assisted the people with, the study
is limited to Eket Local Government Area of Akwa-Ibom State, and covers
the firms social responsibilities to the people.

1.6 RESEARCH QUESTIONS
To enable the study to achieve the stated objectives, the
Underlisted research questions were formulated.
1. Has Exxonmobil provided social amenities to the people of Eket?
2. What Economic benefit Exxonmobil has to the Eket community?
3. Does the multinational consult the people of Eket base on their
4. How can Multinational Corporation contribute toadward Us community development?
1.7 RESEARCH HYPOTHESIS
To enable the researcher to achieve the stated objective, four hypotheses were formulated arid they are as follows;
(HO) That Exxonmobil has not provided social amenities for the people of Eket. –
(HL) That Exxonmobil has provided social amenities for the people of Eket.
2. (HO) That Exxonmobil has not benefited the Eket community economically.
(HI) That Exxonmobil has benefited the Eket community economically.
3. (HO) That the multinational corporation does not consult the people
of Eket based on their needs. (HI) That the multinational corporations
consult the people of Eket based on their needs.
4. (HO) That multinational corporation has not contributed towards the development of their host community.
(HI) That multinational corporation has contributed towards the development o their host community.

1.8 LIMITATION OF THE STUDY
In the course of conducting the researcher came face to face with some
practical problems. One of the constraints was uncooperative attitude of
respondent as some respondent felt the question were made to expose the
community‟s backwardness in terms of social/economic development.
Certain information which ought to have appeared in this study were
denied the researcher by the personnel of department of the corporation.
Another constraint was the task of moving from one community to another
in order to administer the questionnaire, which was very strenuous due
to distance and transportation difficulties. It was also difficult to
elicit information from illiterate villages whom in most case resisted
interview.
The researcher did not find it easy to continue with the researcher work
due to the large work in class. A research work of this magnitude
requires quite a time for a meaningful work to be done.

1.9 DEFINITION TERMS
1. SPDC: Shell pipeline Development company
2. EIA: Environmental investigation Agency
3. MOSOP: Movement of the Survival of Ogoni people
4. MNE: Multi-National Enterprises
5. EPZ: Export Processing Zones
6. FDI: Foreign Direct Investment
7. R & D: Research and Development
8. CENDAL: Centre of the Development of Africa through law
9. PAT: Profit After tax
10. EKET: A local Government in Akwa-ibom state one of the resourcefully endowed regions of the state.
11. HETEROMORPHIC: It has to do with different in shapes, size, appearance or structures.
12. HOMEOMORPHIC: This is the mathematical relationship between geometric shapes.
13. MNC: Multinational corporations
11
14. POLYCENTRIC: it has to do wish purchasing multi domestic strategies that treat each country as a separation competitor .
15. GEOCENTRIC: it has to do wish making decision from a global perspective
16. NDA: Niger Delta Areas
17. MILITANTS: They are Ex-military men who come together to disturb the
operations of the country through their terrorist Activities

Talk to us right now: (+234)906-451-7926 (Call/WhatsApp)

Share a Comment