CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Building local community relationships can be the most important communication activity undertaken by an organisation, yet it is often overlooked. It is a priority goal to develop a solid, ongoing and reliable community relations programme. It starts when an organisation becomes aware of its role in contributing to community welfare. It aims at bridging the communication gap between an organisation and its community.
In addressing this situation, Njoku (2000) sees community relations as a sphere of public relations which includes enlisting the cooperation and support of civic authorities and local citizens of the area in which the organisation is located. It is predicated on the recognition of the relationship between business and society and the conscious planning of corporate actions taking this into account.
Yet, Community Relations does not end when the company succeeds in fulfilling its obligations. It starts when the organisation becomes aware of its role in contributing to community welfare (Ezirim, 2001). Community Relations is a public relations function that aims at establishing and sustaining cordial relationship between an organization and its host communities. It is the act of engaging in goodwill building through good deeds. An example is the provision of essential amenities for communities. It refers to the various methods companies use to establish and maintain a mutually beneficial relationship with the communities in which they operate. The underlying principle of community relations is that when a company accepts its civic responsibility and takes an active interest in the well-being of its community, then it gains a number of long-term benefits in terms of community support, loyalty, and goodwill. Desatnik (2000) has noted that “Community involvement builds public image and employee morale, and fosters a sense of teamwork that is essential in long-term success” (Cincinnati Business Journal 2000).
A comprehensive, ongoing community relations programme can help virtually any organisation to achieve visibility as a good community citizen. Organisations are recognised as good community citizens when they support programmes that improve the quality of life in their community, including crime prevention, employment, environmental programmes, clean-up and beautification, recycling, and restoration. Some other examples of ongoing programmes might include scholarship awards, urban renewal projects, sponsorship of performing arts programmes, as well as social and educational programmes, children’s activities, support to community organizations, and construction projects (Gale Encyclopedia of small business 2011). On a more limited scale, small businesses might achieve community visibility and engender goodwill by sponsoring local sports teams or other events. Support may be financial gifts or take the form of employee participation.
Good community relations programmes offer small businesses a wide variety of benefits. For instance, they give employees a reason to be proud of the company, which increases loyalty and may help to reduce labour and production costs.
Furthermore, a company with happy employees and a good reputation in the community is likely to attract highly qualified new employees. A small company might also generate new business through the contacts and leads it generates in its community relations activities. Such contacts might also make it easier for the company to obtain financing for expansion, find promising new locations, or gain favourable treatment in terms of taxes, ordinances, or utilities. Good community relations can also be beneficial in times of crisis, such as a fire or a plant closing, by rallying the community around the affected business.
The way and manner, in which an organisation and its activities are seen, noticed or perceived by members of her host community is central to the growth and peaceful operations of the organisation. Their impressions, understanding and feelings about the activities of the organization are key. Responsible corporate organizations strive to create a positive impression of themselves so as to enhance the perception of their host communities about their operations.
- Types of Community Relations Programmes
According to Soderberg in his book, Public Relations for the Entrepreneur and the Growing Business 1986, small businesses can become involved in their communities in a number of ways. Some recommended routes toward increasing community involvement include: taking an active interest in community problems; sponsoring youth activities; participating in local government; joining business and service groups; purchasing materials and supplies from local companies; encouraging community education and culture; making offices or other facilities available to community organizations; supporting local charity drives; and taking part in civic activities.
Soderberg (1986) discusses a number of specific programmes designed to increase a small business’ visibility and prestige within a community. For example, the company might volunteer to develop a civic programme, like a charity drive or auction. In addition, the small business owner, or a company representative, can give talks before the local chamber of commerce or civic association. The company can also invite community groups to tour its plant or offices, or can make its facilities available to such groups for meetings or events.
Alternatively, the company could prepare an informational videotape about its products, services, employment policies, and overall mission and make these resources available to the community. Informational brochures and newsletters might also be distributed to civic and government leaders. Another way to improve community relations might be to beautify the company’s surroundings with a fountain, sculpture, or garden, so that it becomes a local landmark. Whichever types of community relations programmes are used, it is important to keep the media informed about the company’s activities.
Soderberg (1986, p. 243), stresses that for a business, community relations should involve more than just an annual contribution to the “United Way’’. Instead, the small business owner should become personally involved in the effort, and should encourage employees to participate as well.
A company’s employees should try to represent it well in all their interactions—from practicing good manners on the road while driving company vehicles, to treating customers and even visiting sales people with courtesy. In order to motivate employees to be good company representatives, small business owners should take whatever steps that are needed to boost morale. These might include maintaining an open-door policy, setting up a complaint box, or recognizing employees who are helping the community.
The practice of Corporate Social Responsibility (CSR), which refers to a business practice that involves participating in initiatives that benefit society, is very fundamental.
1.1.2 Nigeria’s Niger Delta
The Niger Delta refers to coastal areas (states) of southern Nigeria, covered by the delta of the River Niger, comprising of major linguistic groups, described in terms of Ijaw, Yoruba, Edo, Igbo, Ekid, Ibeno, Oro, Ibibio, Efik, Ogoni, Urhobo, Itsekiri, Ika Igbo etc. The region is blessed with abundant mineral resources, especially crude oil, which sustains over 90% of Nigeria’s economy.
The Niger Delta is home to more than 10 million people. It is usually equated with the oil-producing areas of Nigeria. It is made up of nine states. They are: Abia, Imo, Edo, Delta, Rivers, Bayelsa, Cross River, Akwa Ibom and Ondo.
One of the major seemingly intractable problems facing Nigeria is the continued abject poverty of citizens that live in the oil-producing region, the Niger Delta. Nigeria’s estimated natural gas reserve is about 176 trillion cubic feet, making the country a top ten naturally endowed gas producer in the world. Nigeria has earned about $30 billion dollars a year from oil in the last four years. However, it is estimated that only 1 percent of Nigeria’s population enjoy up to 80 percent of Nigeria’s oil industry revenues, through their political links and industrial dominance.
The juxtaposition between record level earnings in oil revenue in the last few years for Nigeria and the continued massive environmental degradation and abject poverty of individuals and families in the oil producing areas is a major source of concern to people of the oil producing areas and their international supporters.
The violence in the Niger Delta region despite draconian military operations, prior to the Federal Government’s Amnesty programme was another cause for concern. At the core of the restiveness and violence in the Niger Delta, was the role of major oil producing companies and their responsibilities to their host communities. This bone of contention between indigenes and oil companies is even stronger than a possible confrontation between indigenes and the local, state and national governments. For the people of the oil producing areas in Nigeria, the oil company is the government they can see and experience. The oil companies are not only the major employers of labour, but the fulcrum of community and social activities. Stark differences between the standard of living of oil company workers and the local population will always remain a sore point in oil company/local population relations.
The Niger Delta region, which produces most of Nigeria’s crude oil was for several years, a site for major confrontations between the people and government forces, resulting in extra-judicial executions, arbitrary detentions, and draconian restrictions on the rights to freedom of expression, association and assembly. It was clear, at this time, that the Government whose lifelime was being threatened by these conflicts had taken sides with the multinational companies against its citizens.
Although, the Federal Government’s Amnesty programme for militants in the region brought significant relaxation in the unprecedented violent confrontations that militancy inflicted on the economy, threats to oil facilities and explorations in the oil producing communities of the Niger Delta region remain unchecked. Unfortunately, youths in the region at some point, chose to take their destinies in their hands, and got involved in militancy and taking of hostages, murders, kidnapping and other acts of terrorism..
Multinational oil companies have operated in the Niger Delta region of Nigeria since 1956. Nigeria is a major producer of crude oil, the sixth largest in the world. The country is a prominent member of the Organization of Petroleum Exporting Countries (OPEC). By virtue of Nigeria’s position in the global market, the country sits conspicuously alongside other major producers like Saudi Arabia, Venezuela and Libya, among others, to dictate the tune and trend of world oil production and utilization. Nigeria today, holds the position of President of OPEC under Mrs. Diezani Allison Madueke. The country also held the same position in the past under Dr. Rilwanu Lukman. That is to say, that as at today, Nigeria presides and dictates the affairs of the rest of the oil producing nations in the cartel. With about 2.2 million barrels being produced per day, Nigeria is Africa’s biggest oil producer
Chevron in her Corporate Social Responsibility (CSR) publication produced in February, 2008 by the Communications, Policy, Government and Public Affairs Unit entitled: Global Memorandum of Understanding; a Strategic Partnership for development claims an economic, environmental and social performance where it describes how it strives to live up to its social responsibility. Despite these claims on the part of Chevron, there appears to be a deep-seated disdain and disenchantment by people of the Niger Delta over her Corporate Social Responsibility approach, despite the introduction of the Global Memorandum of Understanding as a Corporate Social Responsibility response.
1.1.3 Global Memorandum of Understanding (GMoU)
In 2003, the violent ethnic conflicts in the Western Niger Delta region led Chevron Nigeria Ltd (CNL) to evacuate six swamp facilities and stop operations in the area. These crises were as a result of hostilities between some Chevron Nigeria Limited host communities and non-host communities. The other communities considered the host communities as being privileged because of the development projects and cash compensations from CNL. At some point, the non-host communities attacked the host communities and destroyed some of the CNL-funded community projects.
Lack of transparency and accountability by community leaders and representatives led to suspicions by the people, intensifying conflict within the communities and with CNL. Worse still, the projects were not sustainable, being neither community-owned nor community-driven, as CNL used drove the community development processes, by determining the needs of the communities and implementing projects that would meet the perceived needs.