TABLE
OF CONTENT
CHAPTER
ONE
1.1 BACKGROUND TO THE STUDY
1.2 STATEMENT OF THE RESEARCH
PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 SIGNIFICANCE OF STUDY
1.5 RESEARCH QUESTIONS
1.6 RESEARCH HYPOTHESIS
1.7 CONCEPTUAL AND OPERATIONAL
DEFINITION OF TERMS
1.8 ASSUMPTION OF THE STUDY
1.9 LIMITATIONS OF THE STUDY
REFERENCES
CHAPTER
TWO
LITERATURE
REVIEW
2.1 SOURCES
OF LITERATURE
2.2 REVIEW OF RELEVANT LITERATURE
2.3 THEORETICAL FRAMEWORK
2.3.1
OPINION
REVIEW
2.3.2 COMMUNICATION
TOOLS/TECHNIQUES OF SPDC’S COMMUNITY
RELATIONS PROGRAMMES
2.3.3 SPDC’S COMMUNITY
RELATIONS POLICY STATEMENT
2.3.4
SPDC’S
PUBLIC AFFAIRS OPERATING PHILOSOPHY
2.3.5 SOME COMMUNITY RELATIONS
PROJECTS PURPORTEDLY CARRIED OUT BY SPDC
CHAPTER
THREE
METHODOLOGY
3.1 RESEARCH DESIGN
3.2 AREA OF STUDY
3.3 POPULATION OF THE STUDY
3.4 RESEARCH SAMPLE AND SAMPLING TECHNIQUES
3.5 INSTRUMENT
USED FOR DATA COLLECTION:
3.6 VALIDITY OF AN INSTRUMENT:
3.7 METHOD OF DATA ANALYSIS
REFERENCES
CHAPTER
FOUR
PRESENTATION
AND ANALYSIS OF DATA
4.1 DATA PRESENTATION AND ANALYSIS
4.2 BIODATA INFORMATION
REFERENCE
CHAPTER
FIVE
SUMMARY, CONCLUSION,
RECOMMENDATIONS AND SUGGESTIONS FOR FURTHER STUDY
5.1 SUMMARY
5.2 CONCLUSION
5.2 RECOMMENDATIONS
5.4 SUGGESTIONS FOR FURTHER
RESEARCH
BIBLIOGRAPHY
APPENDIX
CHAPTER ONE
1.2 BACKGROUND TO THE STUDY
The world is constantly becoming sophisticated,
complex and dynamic. Public relations as a Profession have continued to play
tremendous revolutionary roles in changing the face of the earth. As the human
society becomes more challenging and complex, people become more enlightened
and aware of their fundamental human rights. This has led to series of crisis
and face off among business organizations and their host community.
There is no doubt that most of the activities of
these organizations constitute a nuisance to the host inhabitants and put their
health at great risk. The paramount objective of every business organization is
profit maximization. This would not be
achieved without serene business environment.
The concept of community relations is fundamental
for effective public relations practice in every organization. The survival of
any organization is contingent upon the measure of cordiality and continued
acceptance it enjoys in its business premises. A company whose policies do not
reflect the desires and aspirations of its host inhabitants is seriously
inviting reprisal attack from the community. It is only through good community
relations programme that company can improve the quality of life of the host
inhabitants.
Community relations entail creating and sustaining
environmental friendly programmes and actions of mutual benefit to both the
organization and its host community. In business parlance, the transaction of
these needs and expectations is regarded as “Corporate Philanthropy” (Nweke,
2001:20).
Corporate social responsibility is a business
philosophy which is of the view that organizations in the pursuance of their
profit motive ought to be responsive to the needs of the society by meaningful
contributing to the socio-economic development of that society.
Organizations that are socially responsible are
always rewarded with favourable serene business environment. Thos that are
insensitive and don’t live up to expectation are faced with reprisal action.
The favourable business atmosphere will make the responsive organizations to
flourish, whereas the insensitive ones are distracted by the hostile attitude
exhibited by the host community. Their prosperity and progress are stifled.
Good community relations ensure a well planned and
sustained corporate identity which inversely plays a paramount role in shaping
the corporate image of an organization.
In Nigeria
today, community relations is growing very fast and more interest is being
taken by organizations and corporate bodies in this aspect of public relations.
This is so because of some important factors (Osuji, 1999:951-99).
Today Nigeria’s economic survival is
dependant on petroleum. Since the exploration and exploitation of crude oil
which give the country major percentage of its income are carried on in rural
communities with its attendant numerous risks, it becomes imperative that
public relation practitioners in those organizations should give more attention
to community relations.
Secondly, the oil installation and gas flaring that
are located in these communities make the people vulnerable. It becomes
important that adequate measures should be taken to reduce the risk of this
vulnerability. The surest way is by designing and executing a good community
relations strategy.
Thirdly, the constant leadership tussles, conflicts
and youthful violent outburst among youths and community leaders could have
carryover effect resulting to misdirected aggression against oil companies.
Maintaining good rapport with these groups through excellent channel of
communication which invariably must be a concomitant of effective community
relations strategy.
This study therefore, will look into the concept of
community relations and the role if has played on the corporate image of Shell
Petroleum Development Company of Nigeria (SPDC).
1.2
STATEMENT OF THE RESEARCH PROBLEM
People like Bittner (1989) argue
that in a bid to ensure good community relations, organizations expend
shareholders money, cut down workers salaries, waste precious time which should
be used for other profitable things. He calls it “a fundamentally subversive
doctrine which offers insoluble practical problems”.
While Nweke (2001:220) is of the view that
compliance and non compliance with the idea of corporate philanthropy determine
the measure of goodwill, cordiality and continued acceptance an organization enjoys
in its business premises.
The problem of this study is to ascertain the role
Shell’s Community Relations has played on their corporate image. The reasons
behind the negative or positive public perception, about SPDC.
As well as whether this is a result of its
compliance or non compliance to the business philosophy of corporate philosophy
and the positive or negative attitude of the management and staff members
towards the money expended on community relations.
Moreso, it will examine the extent to which these
perceptions and attitude are capable of affective the success or failure of the
organization.
1.3 OBJECTIVES
OF THE STUDY
The central goal of this study is to
find out the role community relations has played on the corporate image of
Shell Petroleum Company of Nigeria (SPDC); with the aim of evaluating their
corporate philosophy, its benefits and peoples attitude towards SPDC. This
would be achieved through the following objectives:
i.
Assessing the
community relations programmes of SPDC.
ii.
Finding out
people’s opinion and attitude toward SPDC as a corporate entity.
iii.
Probing into the
reasons for such perception about SPDC.
iv.
Assessing the
programmes of SPDC for enhancing the
lives of its host community members in order to forestall crisis.
v.
Making
recommendations based on the research findings for effective community
relations programmes /projects for SPDC.
1.5 SIGNIFICANCE OF STUDY
This
study is not only significant but absolutely essential, because it will help
students or practitioners of public relations in diverse organizations to
understand the usefulness of good community relations in the life of every
organization.
Since public perception is very crucial in every
organization, the study will help SPDC in understanding people’s feelings
towards its community relations practice. Other organizations will see the
findings useful as they will help them in ensuring good community relations in
their host areas. The study will help in furtherance of knowledge in the areas
of community relations and the emergent business ethnics of corporate social
responsibility.
1.5 RESEARCH
QUESTIONS
The following research questions will be
answered through the study:
1. In what ways have SPDC maintained good relationship
with its teaming publics and host community?
2. How do people, the stakeholders and staff, perceive
there sources expended in ensuring good community relationship?
3. What are the expectations of the community members
from SPDC in their community relations effort?
4. What role have community relations played on the
corporate image of SPDC?
1.6 RESEARCH
HYPOTHESIS
H1 SPDC maintained good relationship with its
teaming publics and host community.
H0 SPDC did not maintain good relationship with
its teaming publics and host community.
H2 The people, the stakeholders and staff did
not perceive the resources expended in ensuring good community relationship.
H3 Community relations played a role on the
corporate image of SPDC.
H0 Community relations do not play a role on
the corporate image of SPDC.
H4 Community members expectation from SPDC in
their community relations effort.
H0 Community members do not have expectation
from SPDC in their community effort.
1.8
CONCEPTUAL AND OPERATIONAL DEFINITION OF TERMS
To clarify meaning, it is
pertinent to present and explain some terms used in the study to the level that
will facilitate understanding of the inherent ideas. The terms include the
following:
CONCEPTUAL DEFINITION OF TERMS
Community
Relations: It is a public
relations activity that tends to create and sustain environmental friendly
programmes and actions of mutual benefits to both the organizations and its
host community. It fosters and nurtures good neighbourliness in a reciprocal
interest of both parties.
Corporate Identity:
This means and also includes the totality of what an organization stands to its
public and host community, how it does that, its communication process and
environment. It serves as the forerunner to corporate image, it hits the soil
for corporate image to grow without problem. This is seen by the physical
manifestation of good deeds the organization does.
Corporate Image:
This is the public perception of the organization. This sums up the impressions
formed about an organization based on its corporate identity and general
relationship with its public. It goes with mental perception.
Corporate Social
Responsibility: This is a business philosophy which is of the view that
organizations in the pursuance of their profit motive ought to be responsive to
the needs of the society, socially and economically.
SPDC: It is an
acronym for Shell Petroleum Development Company of Nigeria.
OPERATIONAL
DEFINITION OF TERMS
Crisis: Is any
occurrence described as a turning point, for better or for worse with both
negative and positive effects.
Host Community:
This is a group of peoples residing in an environment where an organization operates.
Publics: These
are various groups of people who may directly or indirectly be affected by the
activities of an organization. They include the shareholders, employees, host
community inhabitants and contractors.
1.8 ASSUMPTION
OF THE STUDY
Let’s assume that Shell Petroleum
Development Company of Nigeria Limited is the pioneer and the largest
hydrocarbon exploration and production company in the country. Originally known
as Shell D’ARCY, SPDC commenced geological survey in 1937 and subsequently was
granted an exploration license precisely on the 4th of November, 1938. (2008
SPDC Immunization Campaign P.5)
After drilling several
unsuccessful wells, Shell Nigeria in 1956 discovered the first commercial oil
field in the country at Oloibiri, River
State (Now Bayelsa
State). Later, Shell
entered into a joint venture with British Petroleum resulting in a joint
venture operation known as Shell - B.P.
In 1979, B.P’s share of
participation in Shell’s operations was nationalized leaving the NNPC/Shell Upstream
joint ventures with an 80:20% split. Today, SPDC operated on behalf of a joint
venture with NNPC, Shell, EIF and Agip in accordance with the Joint Operating
Agreement (JOA) and within the legal and fiscal framework of the Memorandum of
Understanding (MOU) agreement with the Federal Government of Nigeria.
(SPDC Briefing Note, 2008, p.45).
Shell Nigeria operations concentrated
mostly in the Niger Delta region of Nigeria and the adjoining shallow
offshore, where they operate in an oil mining lease areas of about 31,000
square kilometers.
The operational divisions of Shell Nigeria are:
The Eastern Division with Port Harcourt as the Headquarters,
Bonny in River State and Forcados in Delta State
are its export terminals with its corporate office at Lagos State.
Ninety-five percent of their workforces are Nigerians.
With the
discovering of more oil wells in the country, the company has continued to
increase its oil product capacity from 6,000 barrels of crude oil pre day in
1958, when the first cargo was exported, to millions of barrels per day now.
Today, Nigeria is one
of the highest oil producing nations in the world. In 2001, the joint ventures
accounts for some 39 percent of Nigeria’s
oil production and about 55 percent of the rations hydrocarbon reserve base.
SPDC has over
6,000 kilometers of pipelines and flowline 87 flow stations, eight gas plants
and more than 1000 producing wells. The Joint Venture involves the Nigerian
National Petroleum Corporation (NNPC) which holds 55 percent, Shell 30 percent,
TOTALFINAELF 10 percent and Agip 5 percent. The funding is in proportion to
their shareholdings (People and the Environment SPDC Annual Report 2008).
1.9 LIMITATIONS OF THE STUDY
This study is
only limited to Shell Petroleum Development Company of Nigeria. The
researcher will not go into organizations as it will be cumbersome. The result
from the study are intended to be generalized.
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