THE ROLE OF COMMUNITY RELATION TO THE CORPORATE IMAGE

THE ROLE OF COMMUNITY RELATION TO THE CORPORATE IMAGE

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

The world is always growing more advanced, intricate, and dynamic. The profession of public relations has persisted in playing major revolutionary roles in reshaping the planet. People are becoming more informed and conscious of their basic human rights as human civilization grows more difficult and complex. This has brought forth a number of crises and conflicts between business entities and the local community.

There is no question that the majority of these organizations’ activities are quite disruptive to the local population and pose a serious threat to their health. Profit maximization is the main goal of every commercial entity. Without a calm business environment, this could not be accomplished.

Any organization’s effective public relations strategy must start with the idea of community relations.

Any organization’s ability to endure depends on the level of courtesy and ongoing acceptance it receives in its workplace. A corporation that has policies that do not take into account the needs and goals of the people it is hosting runs the real risk of facing backlash from the neighborhood. Only a strong community relations program will enable a corporation to raise the standard of living in the host community.

Community relations entail developing and maintaining eco-friendly programs and initiatives that benefit both the organization and the community in which it operates. The exchange of these requirements and expectations is known as “Corporate Philanthropy” in the business world (Nweke, 2001:20).

A business theory known as “corporate social responsibility” holds that companies should, in the pursuit of their profit motive

to effectively contribute to the socioeconomic growth of the society in order to be responsive to its requirements.

Socially responsible businesses are consistently rewarded with a favorable, tranquil work environment. Retaliation is meted out to those who are insensitive and fall short of expectations. The responsive businesses will thrive in the welcoming business environment, while the insensitive businesses will be sidetracked by the antagonistic attitude displayed by the host community. Their growth and prosperity are restrained.

A well-planned and sustained corporate identity is ensured by good community ties, which in turn significantly influences how a business is seen by its customers.

Community interactions are expanding quickly in Nigeria today, and organizations and corporate bodies are becoming more interested in public relations in this area. This is due to a few crucial elements (Osuji, 1999:951-99). Petroleum now plays a critical part in Nigeria’s economic survival. Since the country’s primary source of wealth comes from the exploration and production of crude oil, which is done in rural areas with several hazards attached, it is crucial that public relations professionals in those firms pay closer attention to community relations.

Second, the residents in these villages are exposed due to the presence of oil installations and gas flaring. It is crucial that appropriate steps be taken to lessen the danger of this vulnerability. Developing and putting into action a successful community relations strategy is the safest approach.

Thirdly, the ongoing disputes over leadership and the occasional violent eruption among young people and local authorities may have spillover effects that lead to unwarranted violence against oil firms. maintaining positive relationships with these groups through effective channels of communication, which is inextricably linked to successful community relations strategies.

Thus, this study will examine the idea of community relations and the impact it has had on Shell Petroleum Development Company of Nigeria’s corporate image (SPDC).

1.2    STATEMENT OF THE RESEARCH PROBLEM 

Individuals like Bittner (1989) contend that corporations spend shareholders’ money, reduce worker compensation, and lose valuable time that could be employed for more profitable endeavors in an effort to ensure good community relations. It is “a fundamentally disruptive theory that offers intractable practical issues,” he claims.

Nweke (2001:220) disagrees, contending that an organization’s level of goodwill, cordialness, and ongoing acceptability in its workplace depends on whether or not it adheres to the concept of corporate philanthropy.

The goal of this study is to determine how community relations at Shell have affected their brand. the causes of the public’s favorable or unfavorable impression of SPDC.

Additionally, whether this results from its adherence or non-adherence to the Business philosophy of corporate philosophy and the management’s and employees’ attitudes about the budget allocated for community relations.

It will also look at how much these attitudes and perceptions can influence whether an organization succeeds or fails.

1.3   OBJECTIVES OF THE STUDY

The main objective of this study is to determine the impact that community relations have had on Shell Petroleum Company of Nigeria’s (SPDC) corporate image in order to assess their corporate philosophy, its advantages, and the public’s perception of SPDC. The following goals might help to achieve this:

i. Examining the SPDC’s community relations initiatives.
ii. Learning what people think and feel about SPDC as a corporate entity.
iii. Looking at the causes of this notion of SPDC.
iv. Evaluating SPDC’s programs to improve the quality of life in its host community in order to head off crises.
v. Providing suggestions for SPDC’s community relations projects and programs based on the research’s findings.

1.4    SIGNIFICANCE OF STUDY

This study is not only significant but also extremely necessary since it will aid future public relations practitioners or students in understanding the value of positive community relations in the operations of all kinds of organizations.

Every organization recognizes the importance of public perception, therefore the study will assist SPDC in better comprehending how the public feels about its community relations efforts. The findings will be helpful to other organizations since they will aid them in maintaining positive community connections in the locations where they operate. The study will contribute to the advancement of knowledge in the fields of interpersonal relationships and the developing corporate social responsibility.

1.5   RESEARCH QUESTIONS

With the project, the following research queries will receive an answer:

1. How has SPDC maintained a positive rapport with the host community and its teaming publics?
2. How do stakeholders and staff members view the resources used to ensure positive community relations?
3. What do local residents anticipate from SPDC in terms of their community relations efforts?
4. How have community interactions impacted SPDC’s business image?

1.6   RESEARCH HYPOTHESIS

H1    SPDC maintained good relationship with its teaming publics and host community.

H0    SPDC did not maintain good relationship with its teaming publics and host community.

H2    The people, the stakeholders and staff did not perceive the resources expended in ensuring good community relationship.

H3    Community relations played a role on the corporate image of SPDC.

H0    Community relations do not play a role on the corporate image of SPDC.

H4    Community members expectation from SPDC in their community relations effort.

H0    Community members do not have expectation from SPDC in their community effort.

1.7  CONCEPTUAL AND OPERATIONAL DEFINITION OF TERMS

It is important to provide and define some terminology used in the study at a level that will make it easier for people to understand the underlying concepts in order to clarify their significance. The following are some of the terms:

DEFINITION OF TERMS

Community relations is a public relations strategy that aims to develop and maintain environmentally friendly initiatives and programs that benefit both the company and the community in which it operates. In the mutual interest of both parties, it promotes and maintains good neighborliness.

Corporate identity refers to the entirety of what an organization represents to the general public and its host community, as well as how it does so, its communication strategy, and its physical surroundings. It cultivates the ground for corporate image to grow without issue. This is demonstrated by the organization’s good deeds’ outward appearance.
Corporate image: This is how the general public sees the company. This encapsulates the perceptions about an organization based on its brand and general interaction with the public. It relates to perception in the mind.

Corporate social responsibility is a corporate theory that holds that while pursuing their profit motive, corporations should be sensitive to the social and economic concerns of society.

Shell Petroleum Development Corporation of Nigeria is referred to as SPDC.

OPERATING TERMS DEFINITION
Any event that is characterized as a crisis is a turning point that can have both positive and negative repercussions.
Community Host: Here is

1.8   ASSUMPTION OF THE STUDY 

Let’s say that the first and biggest hydrocarbon exploration and production business in the nation is Shell Petroleum Development Company of Nigeria Limited. Once known as Shell D’ARCY, SPDC began conducting geological surveys in 1937 and was subsequently issued an exploration license on November 4th, 1938. (P.5 from the 2008 SPDC Immunization Campaign)

At Oloibiri, River State, Shell Nigeria discovered the nation’s first commercial oil field in 1956 after drilling a number of unsuccessful wells (Now Bayelsa State). Subsequently, Shell and British Petroleum formed a joint venture that gave rise to the operation known as Shell-B.P.

After B.P.’s stake in Shell’s operations was nationalized in 1979, the joint ventures between NNPC and Shell Upstream were split 80:20. Currently, SPDC worked for  a joint venture with the Federal Government of Nigeria, NNPC, Shell, EIF, and Agip in compliance with the Joint Operating Agreement (JOA) and within the legal and financial parameters of the MOU agreement.

2008 SPDC Briefing Memorandum, page 45.

Shell Nigeria’s operations are mostly concentrated in the shallow offshore waters adjacent to the Niger Delta region of Nigeria, where they have oil mining leases covering an area of around 31,000 square kilometers.

Shell Nigeria’s operational divisions include:

The Eastern Division has its corporate office in Lagos State and its export terminals at Bonny in River State and Forcados in Delta State. Port Harcourt serves as the division’s headquarters. Their workforces are made up of 95% Nigerians.

The finding of additional oil wells in since 1958, when the first shipment was exported, the nation and the corporation have steadily increased their capacity to produce oil, going from 6,000 barrels of crude oil per day to millions of barrels per day now.

Nigeria is currently one of the countries that produces the most oil worldwide. Over 39 percent of Nigeria’s oil production and about 55 percent of the country’s hydrocarbon reserve base were accounted for through joint ventures in 2001.

More than 1000 producing wells, 87 flow stations, eight gas plants, and more than 6,000 kilometers of pipelines and flowlines are owned by SPDC. The Nigerian National Petroleum Corporation (NNPC), which owns 55% of the joint venture, is joined by Shell (30%), TOTALFINAELF (10%), Agip (5%), and TOTALFINAELF (10%). Their shareholdings are reflected in the funding (2008 Annual Report of the SPDC on People and the Environment).

1.9   LIMITATIONS OF THE STUDY

Just Shell Petroleum Development Company of Nigeria is the subject of this investigation. The researcher won’t enter groups because it would be difficult. The study’s findings are meant to be broadly applicable.