Oil Multinational Companies as Money Makers and Peace Makers: Lessons from Nigeria

Abstract

Purpose

The purpose of this chapter is to critically examine the extent to which oil multinational corporations (MNCs) can be both money makers and peace makers in the Niger Delta area of Nigeria, and to consider its implication for the role of business in conflict mitigation in resource-rich African countries.

Design/methodology/approach

The chapter presents a theoretical analysis based on secondary data and empirical research.

Findings

There is now an emerging consensus that business can be peace makers and money makers in developing countries as part of their social responsibility. However, the tendency to explore business-conflict linkage largely from a business perspective and to see conflict as an “incidence” that business has to respond to, as opposed to a “dynamic process” that is a function of the breakdown of stakeholder relationship, limits our understanding of the relationship between business and conflict. Focusing on the Niger Delta in Nigeria, it is argued that the contradictory tension inherent in the peace making efforts of oil MNCs and the nature of their core business activities (i.e., oil extraction) limits the incentives and undermines the capacity of oil MNCs to be peace makers.

Originality/value

The chapter contributes a critical perspective to the literature on business and conflict informed by nearly two decades of empirical research undertaken by the author in Africa. It analyzes how contextual factors in resource-rich African countries, previously neglected in the literature, influence both the willingness and ability of business to contribute to peace. It concludes by discussing the theoretical and practical implications for the role of business in conflict zones.

Citation

Idemudia, U. (2014), "Oil Multinational Companies as Money Makers and Peace Makers: Lessons from Nigeria", Corporate Social Responsibility and Sustainability: Emerging Trends in Developing Economies (Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 191-213. https://doi.org/10.1108/S2043-905920140000008011