Strategic Responses to Social Demands: Some Lessons for Marginal OilField Operators in Niger-Delta Region

摘要

Corporate social responsibility has become a business imperative as organization deliberately andstrategically include public interest on corporate decision in an attempt to satisfy the demand of sustainabledevelopment. Balancing short term sight and long term perspective against triple bottom requirementsin the face of rapidly changing social environment presents uncharted challenges and opportunities forbusinesses. For marginal oil field operators located in the Niger Delta, the region is characterized by poverty,underdevelopment and violent conflicts. The study investigated the strategies adopted by marginal oil fieldoperators in the region to achieve competitive advantage and success. Combining several methodologicalframework through literature review and multiple firm level case study to examine the various strategiesthat marginal oil field operators in Niger Delta region adopts in their efforts to becoming social responsiblecorporate entity. Data gathering is through internet and review of existing literature. The study establishedthat marginal field operators may apply different strategies in responses to social demands in their operatingenvironment. It is observed that the dynamic response or interactive strategy have produced beneficial resultby sustaining peace in their operating environment in the long run compared to reactive or adaptive strategywhich might gain temporary benefits in the short run. The significance of the study is that it would benefitinvestors in marginal oil field development as it would provide an understanding of the challenges in thebusiness environment and the different strategic responses needed to handle these challenges. The studyrecommends that investors in oil and gas business assess their operating environment carefully in order todevelop strategies that would result in a cost effective way of managing business and bring about harmoniousrelationship between the host communities and the oil company.