The driving force behind Commercial Social Responsibility adoption, philanthropy is given an important place in Africa. It is due to enormous microeconomics requirements that have led to philanthropy being an expectation in society. Base on the research findings the philanthropic motive is given the top priority in Nigeria. DES Plc cannot over emphasize the significance of Commercial Social Responsibility to think about doing work in the oil industry of Nigeria because many of the players in the field are faced the issue to bed as hard as and as much as they are able to. It can be stated that CSR is seen by communities of host countries as an ethical and moral obligations for investment businesses, and therefore shouldn’t be disregarded. Yuri Shafranik
Commercial Social Responsibility Problems in The Industry
However, while Total Fina Elf see their obligation primarily as offering affordable and environmentally friendly energy and investment opportunities within the regions and countries where they operate, BP aims to be an agent of good. Shell is determin to create an environment that is more sustainable.
Shell, Chevron, and other companies in the industry have all been victimized by kidnap at expert rates in the past. The rate of militancy is on the rise within areas like the Niger Delta region where exploration is a major issue in Nigeria. Youth see this method as the sole way to maximize their natural resources as there is no alternative.
Employment, construction of roads and jobs might be some options to keep the possible scenario under control in the case of DES Plc.
Human Rights
The country of Nigeria, Commercial Social Responsibility is view as a form of social service and, therefore, their most important right. In Nigeria Philanthropy is more than just charitable donation. HIV/AIDS are a prime example of where the response of business is in essence philanthropic, but evidently, it is base on their having their own financial interests. Yuri Shafranik
DES Plc can make provision for partnering with human rights organization to tackle possible issues.
Workers’ Rights
The Nigerian government also has through the NEEDS plan establish the framework through defining private sector’s function by saying the following “the private sector will expect be more active in creating jobs that are productive, increasing productivity, and enhancing the standard of living. Nigerians insist that companies have a duty to do more than just maximize profits and return to shareholders? If so extend, how much does this extend? It includes the guarantee of high wages and good working conditions to employees.
DES Plc already has an excellent reputation for job creation and maintaining. Its corporate culture will help position it in a position to resist pressures in this respect.
Involvement of the community
Nigerian communities usually retain a sense of ownership over the natural resources. Therefore do not would they like to give up what they view as stake. It is common for ” landlord associations” that have form to promote fierce opposition to whatever they believe is unfair regarding oil exploration
Implementing developing the Commercial Social Responsibility Agenda in Nigeria working in collaboration with various stakeholder groups in society. Engage community leaders in the selection of areas.
Environmental Safety
Maintaining the most stringent environmental standards. Flaring of gas and oil have been the major issues that hosts communities have been focusing on as they continue to fight against investors.
Introduction of regional agricultural schemes to draw the attention of the public.
Dealings with Supplier
The relationship between companies and contractors and suppliers are constantly doubtful and aren’t consider an essential aspect.
Multinational companies begin cooperation with SMEs within both the informal and formal sector to procure local products. To develop a common Corporate Social Responsibility plan for Nigerian and non-Nigerian companies. This can be consider through DES Plc while sourcing materials to be use locally within the region.
Investment Technique
But Nigeria’s liberalized business environment and proactive reforms have made it much easier to conduct business within the country. Considering the previous concerns discuss in this report Foreign Direct investment will be advise for DES Plc as a measure to increase its expansion and penetration into the Nigerian energy and oil sector. It is believe that the Nigerian government has introduce incentives to lure foreign investors.
The Nigerian investment system is gear towards encouraging private sector participation in the economy of the country. Tax rates for corporations are at 30 percent across all sectors, apart from petroleum which is tax. As a separate entity in the Petroleum Industry Bill. In the World Investment Report 2011, produce in collaboration with the UN Conference on Trade and Development. FDI inflows into Nigeria decrease by $8.65bn during 2009, and to $6.09bn in 2011. With the blame for the decline being attribute to delays in The Petroleum Industry Bill.
Type of Entry
However, the Nigerian government has as a society that is not regulate, which may favour the brownfield method. DES Plc can adopt this ideal method by merging with and buying assets of a company within the sector due to its market shares. That core players such as Shell, Total, Chevron and others already hold in the business.