A Dream To Work In A Multinational Company Commerce Essay

A Dream To Work In A Multinational Company Commerce Essay it has always been a dream to work in a multinational company such as an oil and gas companies after my M.sc program in other to apply my skills learnt to the sector regarding business unethical practices and negligence of corporate social responsibility(CSR) by this companies in this sector. firstly it would be necessary to define CSR which is a situation where a company provides social benefit to the public which are required by law(Mc William and siegel 2001); while business ethics can be defined as† the study of business situation activities, decisions where issues of right and wrong are addressed † (Crane and Matten 2004;8) CSR is highly required all organizations to fill in the short coming of government and provide needs of a community. The aim and objective of this write up is to point out the unethical practices, negligence and ineffective deliverance of CSR by the MNCs focusing on oil companies in Africa to their host communities. Analysis Despite some positive influence of oil companies through CSR like increase in developmental funding in 2001 by $500m(Frynas 2005) previous studies has shown that there are still cases where CSR has not had effect on the required beneficiaries through ineffectiveness , negligence and unethical practices by the companies. This can be proven through various situations in Africa has discussed it the course of this report , it can be seen that most CSR embarked upon by the MNCs are due to public and global pressure such case is that of shell and Ogoni , when visited by observers it was seen that the lack social amenities like Roads and electricity e.t.c.( World Business Council for Sustainable development 2008) despite this protest oil producing regions have not yet benefited from the wealth and are still left in poverty. In a statement by president of movement of survival of Ogoni people (mitte 1995) he says that the communities where not getting enough required social and infrastructures development, he al so pointed out that the companies are taking from the communities and not putting back into it and left in total neglect. this shows a great cases of negligence of CSR to their host environment which they are benefiting from financially, there also citing of abandoned projects which are meant to serve as CSR to the community example is an hospital abandoned by shell in Okoroba village Bayelsa for many years bust was completed due to pressure(Fryans 2005) this suggest that they don’t have good management or department to ensure that project that have been embarked upon by them are not left alone, some previous events indicates that CSR was adopted not for the benefit of the communities but for that of the companies so has to have competitive advantages and get favors from government representatives, In a report ChevronTexaco made a partnership deal of $50million with Us Agency For International Development (USAID) and United Nations Development Program (UNDP) in Angola to coin cide with negotiations for it block O (Fryans 2005) another example is in Ughoton Nigeria (SPDC) built roads and also provided funds for schools and youth empowerment in the village but as soon as it well stop producing oil they also stopped their various projects (okunmadewa et al 2002,p 63) . it shows that it was not meant to benefit to society but the company because it made them look like a company that support development and if the negotiation did not fall through they might have withdrawn their partnership another case is of shell who grant development fund to it managers to put up projects in regions which it has activities so has to maintain peace between them and the communities once this activities are complete it development account is closed and the project are left alone which ever stage it has gotten too. evidence of non functioning project like that of shell which one-third of it project in Nigeria not running or are in operation(Nigeria and shell 2001) duo they are trying to help there is no sign if development due to the lack of smooth operations of this projects. lack of trained managers in CSR has made it difficult for most developmental plans see the light of day Frayans(2005) also confirmed this saying † major contract managers are not development specialist† and even if trained might be wrongly trained for instance British petroleum sent it managers to acquire skills on development in a business school instead of a development school Fraynas(2005) which would put them through all the stages of development , failure to have specialist and conduct investigation relating to what is required could make the aim of CSR not to be achieved e.g. in Angola BP donated condoms during a campaign for AIDS but without adequate investigation and consultation the aim of CSR was not met because the condoms where too small for African men (Fraynas 2005). There has also been cases relating to un ethical practices by the oil companies causing har m and increase level of poverty in the regions which they operate such as Niger Delta according to Eyina and Ukpo(2006) they state that † it will be correct to indicate that the greatest environmental problem with petroleum industry in Nigeria result from spillages†; In the early part of 2008 alone Nigeria recorded 418 spills(Vanguard Oct.29,2008) which affects the ecosystem and increases poverty due to the fact that most people in that region are farmers and fishermen. Further evidence of unethical practices can be seen in the technological method of production adopted by them which releases poisoned gas like CO2 and CO into the atmosphere(Aigbedion et al 2007) also Eyinla and Ukpo(2006) supported this by saying that the †soil ,rivers and creeks are now acidic†. which had influence the people indirectly because there drinking water and fishing occupation have been destroyed impact of oil exploitations has caused the soil not be good for planting and the wate r is contaminated with oil (Adepelum et al 2006).A report by Niger Delta Environmental Survey indicates that drilling activities in Niger delta has negative impact both † socio-economically and ecologically† (Nigeria Sunday Times 1998), Aigebedion(2005) also confirmed this that oil spillages has caused †ecological disturbance† .