The Theory and Practice of Corporate Citizenship in Nigeria: A Petroleum Industry Beneficiary Analysis

With the aid of ethnographic data obtained in Nigeria's oil and gas region (the Niger Delta), and relevant secondary data, this article makes a case for a beneficiary-centred approach to corporate citizenship analysis, and thus urges a shift from the dominant corporatist approach. Two interrelated questions are examined: how do ordinary people who share their socio-ecologic and cultural neighbourhoods with petroleum operators encounter corporate citizenship, and what do such encounters say about corporate citizenship philosophy and practice in the Nigerian petroleum industry? The article is not an anti-theory of corporate citizenship or of the broader sustainable development debate

Financial literacy training in the small, medium and microenterprises sector : effect on business growth in the Eastern Cape, South Africa

The centrality of financial literacy to business performance is increasingly becoming established in the literature, with several studies attributing business failures, especially in the small, medium and microenterprises (SMME) sector, to the failure of entrepreneurs to acquire needed levels of formal financial training. This emphasis represents a paradigm shift: small business failures were conventionally blamed on lack of access to capital, infrastructural deficits, lack of markets for SMME goods and services, regulatory constraints, and crime. In South Africa, and elsewhere in the developing world, this new orthodoxy has spurned new policy interventions aimed at improving the financial literacy levels in the SMME sector. Such is the drive to entrench formal literacy provisioning in the SMME sector that some microcredit providers now bundle financial management training into their SMME loan packages. However, there is a dearth of empirical studies that demonstrate, in any conclusive way, the effect of financial literacy training on small business growth and sustainability. The question, therefore, about whether formal financial literacy training actually leads to significant improvements in turnover levels and growth appears to be answered more as advocacy rather than on the basis of empirical evidence. It is against the backdrop of these arguments that the thesis adopted a quasi experimental design to study the business performance of a sample of SMME entrepreneurs who had received financial literacy training (the “treatment group”) at least two years before the study’s commencement and those who had had no financial literacy training at all (the “control group”). The objective was to determine whether any differences in business growth could be attributed to exposure to formal financial management training or the lack thereof. A survey was conducted with 40 respondents from each of the two groups (n = 80). The survey was triangulated with in-depth interviews of a randomly selected sample 10 of SMME operators from each of the two groups. The interviews sought to uncover the entrepreneurs’ narratives regarding the sources and salience of financial literacy in the sector. The study was conducted among SMME operators in Port Elizabeth, East London and Mthatha – the Eastern Cape’s major centres of commerce and industry. Data estimation was conducted using the Difference In Difference (DID) estimation model to determine whether financial literacy training has had any effect on the turnover of training recipients’ businesses (the treatment group) over that of non-training recipients (the control group). Also, the DID coefficient was used as a growth rate indicator to determine whether growth has occurred in training recipients’ businesses over non-training recipients businesses as a result of having received financial literacy training. The Propensity Score Matching (PSM) was used to estimate the average treatment effect (ATE) and the average treatment effect on the treated (ATET). Quantile DID correlations with covariates were also run to reveal the relationship between turnover (a growth variable) and the covariates as possible influencers of firm performance. The key findings of the study were that based on the specific financial variables tested, some basic financial management knowledge existed among members of the two groups of SMME operators, but there was very minimal application of the knowledge in the day-to-day running of the business. Operators utilise both formal financial literacy training and informal knowledge sources in the operation of their businesses. The study also found that in comparison, the difference in turnover between the treatment and control group at follow-up period was significant at a P value of 0.000. This gave rise to an overall DID P value of 0.000 in the estimation. However, the significance was in favour of control group businesses as the business of respondents in the “control group” (with no financial literacy training) performed better than that of respondents in the “treatment group” (who had received financial literacy training). Finally, the study found that financial literacy training had no effect on the growth of businesses in the short term as the growth rate of turnover of the treatment group was lower than that of the control group and the difference between the two rates was significant at a P value of 0.025. Also, compared to itself, the change in turnover levels of the treatment group was not significant in the pre- and post-training periods as revealed by the PSM ATET estimation result. Minimal changes in turnover of the treatment group was not significant at a P value of 0.124. The study concludes from these findings that while financial literacy remains a salient factor in business, scholarship about the real significance of financial literacy training on small business performance in the short term stands on a relatively shaky empirical foundation, especially when viewed against the background that many SMME entrepreneurs also rely on informal knowledge sources to make everyday business decisions. The study thus highlights the imperative of ensuring that knowledge-related interventions in the SMME sector draws on both formal and informal sources of knowledge

The Grameen Bank model of microcredit and its relevance for South Africa

Among the reasons for financial exclusion is the fact that the poor, being largely illiterate and unemployed, are traditionally perceived as ‘bad credit risks’. This is the dominant perception of the poor in the formal credit markets – a perception that also exists in the microcredit sector. In other words, while information asymmetry is a recognized problem in lender-borrower relationships, lenders consider the problem particularly severe when they contemplate doing business with the poor. A contrasting paradigm, such as the one adopted by Grameen Bank of Bangladesh, views the poor as possessing economic potentials that have not been tapped – that is, as ‘good credit risks’. Grameen Bank’s microcredit features appear to have successfully mitigated the problems of information asymmetry and, to a large extent, made it possible for the poor to access microenterprise credit. Using the Grameen Bank model as a benchmark, this study examined the lending features of private sector microlenders in South Africa and those of KhulaStart (credit) scheme. The aim was to identify how the lending features affect microenterprise credit access. Primary data were obtained through interviews, while relevant secondary data were also used in the study. A key finding of the study was that while the Khulastart scheme was, like Grameencredit, targeted at the poor, the method of its delivery appeared diluted or unduly influenced by the conventional (private sector) paradigm that pre-classifies people as ‘good’ or ‘bad’ credit risks. As a result, the scheme was not robust enough to support microenterprise credit access. This has consequences for job-creation and poverty reduction. Based on the findings, the study maintains that a realistic broadening of microenterprise credit access will not occur unless there is a fundamental paradigm shift in microcredit practices, and unless measures designed to mitigate information asymmetries are sensitive to the historical, economic and sociocultural realities of the South African poor

The Impact of Knowledge Management on Product Innovation of Manufacturing Firms in Nigeria

This study investigated the impact of knowledge Management on Product Innovation of Manufacturing firms in Nigeria. A sample size of 95 was determined from a population of 125 employees selected from 5 manufacturing firms in Port Harcourt. 70 copies of the questionnaire were appropriately filled and data was analyzed using Standard Multiple Regression with the aid of SPSS version 21. The findings showed that all the dimensions of Knowledge Management influenced Product Innovation of the firms. However, it was revealed that knowledge acquisition has the most impact on product innovation. It was therefore recommended that management of these firms should take practical steps to acquire the right blend of knowledge workers so as to enhance efficiency of their production through innovativeness. Likewise, the recruitment process of potential employees should be based on competence and credibility of the candidates. Keywords: Knowledge Management, Product Innovation, Knowledge Acquisition, Knowledge Conversion, Knowledge Application

Between the 'sectional' and the 'national' : oil, grassroots discontent and civic discourse in Nigeria

This thesis examines the social character of petroleum-related grassroots struggles in Nigeria’s oil-producing region. It does this against the background of the dominant scholarly narratives that portray the struggles as: a) a disguised pursuit of an ethnic/sectional agenda, b) a 'minority rights' project, and c) a minority province’s protest against 'selective' environmental 'victimisation' by the majority ethnic nationalities. While the dominant scholarly analyses of the struggles are based on the activities of the better known activist organisations operating in the oil region, this thesis focuses primarily on the everyday 'grammar' of discontent and lived worlds of ordinary people vis-à-vis upstream petroleum operations and petroleum resource utilisation. The aim has been to gain an understanding of the forces driving community struggles in the oil region and their wider societal significance. Examined alongside the narratives of ordinary people are the legal/institutional framework for upstream petroleum operations and the operational practices of the oil-producing companies. Using primary data obtained through ethnography, focus group discussions, in-depth interviews and visual sociology, as well as relevant secondary data, the researcher constructs a discourse matrix, showing how grassroots narratives in selected oilproducing communities intersect with contemporary civic discourses in the wider Nigerian context. The thesis highlights the theoretical and policy difficulties that arise when the social basis of petroleum-related grassroots struggles and ordinary people’s narratives are explained using an essentialist idiom. It reveals, above all, the conditions under which so-called 'locale-specific' struggles in a multi-ethnic, oil-rich African country can become a campaign for the emancipation of ordinary people in the wider society. This research extends the existing knowledge on citizen mobilisation, extractive capitalism, transnational corporate behaviour, and Nigeria’s contemporary development predicament. It sheds light on some of the processes through which ordinary people are forcing upon the state a change agenda that could drive the country along a more socially sensitive development and democratisation trajectory

When Foreign Interventions in Domestic Economy Leads to Exploitation: A Case Study of Oil Production in Nigeria’s Niger Delta

This paper examines the logic of environmental racism (and its ethnic variant) and places it against some of the main issues in the Niger Delta resistance. Relying on primary ethnographic data obtained in the Niger Delta in 2003 as well as on a close examination of the framework for oil exploitation in Nigeria, and some (recent) actions of the Nigerian government, the paper argues that while environmental ‘recklessness’, poor social remediation, and other ‘excesses’ have been undeniable concomitants of oil production in the Niger Delta, environmental racism provides only a tangential explanation for these problems, if at all. Environmental racism arguments neglect the underlying issue of a dysfunctional state-dictated framework for oil operations, whose devastating impact is felt not just in the Niger Delta, but across the broader Nigerian social fabric, as well as by the state and the multinational oil companies. The paper revisits John Rawls’ concept of ‘background institutions’ in explaining the environmental and social consequences of oil exploration and the Niger Delta crisis

When Foreign Interventions in Domestic Economy Leads to Exploitation: A Case Study of Oil Production in Nigeria’s Niger Delta

This paper examines the logic of environmental racism (and its ethnic variant) and places it against some of the main issues in the Niger Delta resistance. Relying on primary ethnographic data obtained in the Niger Delta in 2003 as well as on a close examination of the framework for oil exploitation in Nigeria, and some (recent) actions of the Nigerian government, the paper argues that while environmental ‘recklessness’, poor social remediation, and other ‘excesses’ have been undeniable concomitants of oil production in the Niger Delta, environmental racism provides only a tangential explanation for these problems, if at all. Environmental racism arguments neglect the underlying issue of a dysfunctional state-dictated framework for oil operations, whose devastating impact is felt not just in the Niger Delta, but across the broader Nigerian social fabric, as well as by the state and the multinational oil companies. The paper revisits John Rawls’ concept of ‘background institutions’ in explaining the environmental and social consequences of oil exploration and the Niger Delta crisis

Corporate social responsibility as a drive to community development and poverty reduction: A stakeholder approach to development in Zimbabwe

Background: The emergence of a ‘Southern’ discourse of corporate social responsibility (CSR) highlight the crucial issues of poverty reduction, infrastructure development and the broader questions of social provisioning and community development.   Aim: This study builds on existing knowledge to reveal how CSR has become a drive or aid in the community development discourse and poverty reduction mechanisms. This was done through the analysis of major CSR projects by Zimplats mining company.   Setting: The study was carried out in Mhondoro-Ngezi, Zimbabwe, which is in a rural setting.   Method: The study employed a triangulated design, with data collected using a mini-survey, focus groups and in-depth interviews.   Results: The key findings are that the fundamental roles of CSR have been to link it to addressing under-development and poverty reduction issues in developing countries.   Conclusion: Through distributional CSR activities, the mining company was able to address the health, educational, employment and water needs of the local people