Stakeholder Theory

The objective of this study is to determine, from accounting perspective, the environmental consequences of the operations of oil and gas companies in the Niger-Delta region of Nigeria. The study was motivated by the curiosity to explain what goes on in the Niger-Delta region in the light of environmental degradation and the continuous agitation for a sustainable approach to corporate social responsibility (CSR). The study adopted the ex-post facto research design. Questionnaires were used to collect data from primary sources while relying on previous studies for secondary data. The Yaro Yamani sampling determination technique was applied to a sample size of 300 respondents drawn from a population of three million. Data collected were analysed

The basic tenet of this theory is that the firms’ success is dependent upon the successful management of all its stakeholders and not only the shareholders. According to Freeman (1984) stakeholders comprise any group or individual who can affect or be affected by the achievement of the organisation’s objectives. Some scholars have agreed with his position on the responsibility of the firm to a broader set of stakeholders other than shareholders while Friedman (2002); Brenner and Cochran (1992) have opposed the idea. Stakeholder theory tries to articulate a fundamental question in a systematic way: which groups are stakeholders deserving or requiring management attention and which group are not (Mitchel et al 2001). Stakeholder’s analysis enables identification of those societal interest groups to whom an adequate account of activities would be deemed necessary. According to Trotman (1999), this theory proposed an increased level of environmental awareness which creates the need for companies to extend corporate planning to include the non traditional stakeholders like the regulatory adversarial groups in order to adapt to changing social

This is because the oil companies justify their neglect of the host communities on the ground that they pay their taxes to government who should in turn provide basic amenities to her citizens. There should be an all-inclusive process of planning and budgeting for all projects and programmes after a joint assessment and special attention should be paid to the weaker and neglected sectors of the society. It is also recommended that all CSR projects and programmes should be captured in the memorandum of understanding (MOU) and the implementation monitored and reported periodically to all stakeholders. Environmental sustainability should focus on capacity building, employment of indigene into the managerial cadre and not just menial workers, provision of skill and infrastructural development for the marginalised and under privileged sections of the communities. CSR intervention in form of projects especially infrastructure and job opportunities should be directly managed and supervised by the company. This is because the use of contractors has led to abandonment or improper execution of much needed CSR projects and it has negative effects on the local people. CSR should not be seen as philanthropic or charitable event but a strategic tool for sustainable