Making Everyone Count: A Sustainable Stakeholder Value Creation Model for International Oil Corporations (IOCs) in the Niger Delta

Region of Nigeria

Raimi Lasisi (Ph.D)

Department of Sociology and Anthropology,

Federal University of Otuoke, Bayelsa State, Nigeria

Email: lazizi3001@gmail.com Phone: 07039133303

Abstract

The implication of ineffective social value creation models has both short and long term effects on the business of International Oil Corporations (IOCs) globally. Within the Niger Delta region of Nigeria, the manner with which IOCs create value is becoming important in understanding social investment behaviour. Yet very little research have been done in this regard. This study examines organizational effectiveness and how to make everyone count in sustainable value creation for stakeholders by IOCs focusing on Shell Petroleum Development Company (SPDC) of Nigeria. Essentially, the aim of the study is to provide a logical model to enable IOCs deliver sustainable value to stakeholders while maintaining long-term business viability. Therefore, relying on the case study approach and grounded theory methods which focuses on using axial and selective codes from interviews to arrive at models, the study reveals that previous attempts at stakeholder value creation by IOCs are narrow, reactive and unsustainable. This is attributed to insufficient interaction between the companies and community members which also leads to weak integration of community perspective into IOCs’ social investment strategy in the region. This challenge of insufficient interaction and integration creates the necessary condition for social risks to business and society. This leads to the suggestion of a new interaction and integration model that act as enablers of trust in IOCs by communities. As the organization genuinely integrates community perspectives into its activities, this is likely to translate into some level of transparency and accountability. However, this can only be sustained with timely delivery of social investment obligations on the part of the company.

Key Words: Sustainable stakeholder value creation, social risks, international oil corporations, SPDC, Niger Delta region