Corporate Social Responsibility (CSR) is a business approach for tackling the social and environmental impact of companies’ activities and is deployed by the International Oil Companies (IOCs) as a form of social permit to gain and retain acceptability by its host communities. The rate of consumption of finished product has intensified the pressure on the world’s natural resources and environment which has further resulted in increased emissions of greenhouse gases and indiscriminate exploitation of natural resources at the expense of the host communities where these resources are located and their future generation. This has resulted to diverse social and environmental problems, such as deforestation, destruction of the flora and fauna, pollution of the biosphere, diseases and social difference and volatility. CSR comes in to commit businesses and companies to act morally and contribute to economic development, improve the quality of life of all stakeholders in an attempt to lessen the devastation to the physical environment. However, academics have argued that CSR interventions by international oil companies are not in-depth, deeply entrenched and not always sustained. This article examined the impact CSR of IOCs on its host communities, the CSR initiatives of IOCs was identified as well as its impacts on the host communities in the Niger Delta Region. This article revealed that CSR by IOCs have not positively impacted the host communities in the Niger Delta region, and identified the factors that militate against a positive impact of CSR on host communities in Nigeria. It also identified the measures that can be taken by IOCs to ensure a positive impact of CSR on host communities. Lack of a legal framework that specifically makes provision for CSR in Nigeria is clearly the major reason for the negative impact of CSR. This article proposes the establishment of a legal framework that will legitimize and effectively implement CSR in general as it will be a sure way of overcoming the challenges to effective implementation of CSR in Nigeria.
Keywords: Corporate Social Responsibility, Oil and Gas, Host Communities