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THE EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY ON THE PERFORMANCE OF OIL MULTINATIONAL CORPORATION

ABSTRACT
The purpose of this research work is to highlight the effects of corporate social responsibility on
the performance of Shell Petroleum Development Company. The study was motivated by none
responsiveness of corporate bodies to their social responsibility as requested by their host
communities. The objectives of the study include: to examine the effect of social responsibility on
the productivity of Shell Petroleum Development Company, to ascertain the effect of social
responsibility on the innovation and learning of Shell Petroleum Development Company, to
examine the effect of social responsibility on the efficiency of Shell Petroleum Development
Company and to ascertain the effect of social responsibility on the profitability of Shell Petroleum
Development Company. This study was carried out in Shell Petroleum Development Company in
both River and Delta state. The study population size is 463 out of which a sample size of 210 was
selected using Taro Yamane’s formula at 5% error tolerance and 95% level of confidence.
Instrument used for data collection was primarily questionnaire and interview. The total number
of 210 copies of questionnaire was distributed while 190 copies were returned. Cross-sectional
survey research design was adopted for the study. The four hypotheses were tested using Chi-
Square statistical tool. The findings indicate that social responsibility significantly affect
productivity of Shell Petroleum Development Company, social responsibility significantly affect
innovation and learning of Shell Petroleum Development Company, social responsibility
significantly affect efficiency of Shell Petroleum Development Company and social responsibility
significantly affect profitability of Shell Development Company. The study concluded that
organization that imbibe a good corporate social responsibility culture will reduce unrest of the
host communities and in turn increase the organization’s performance. The study recommended
that Shell Petroleum Development Company can improve its performance by providing
employment, infrastructural projects and effective waste control for members of communities of
their operation.

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