Exploring the impact of strategic proactivity on perceived corporate social responsibility in Nigeria’s petroleum industry: A structural equation modeling approach

Abstract

In the past few years, there has been a gradual re-orientation taking place in the relationship between business and society in the Nigerian petroleum industry. The re-emergence of democracy has led to an increased awareness about the role of oil companies in their host-communities. Oil companies are aware of this, and have devoted increased effort towards contributing to their host-communities. Despite the fact that, of recent, these oil companies are contributing more than ever, there is an increase in the conflict between these companies and the stakeholders in their host-communities. This is threatening their sustainability. This problem highlights a gap in theory and practice of CSR. In recent times, there have been calls for shift of scholarly focus towards a performance based CSR theory and practice. This paper empirically tested this performance based perspective by exploring the interactive process that leads to CSR outcomes. This was done through a quantitative research study. 623 members of Eket and Ibeno youth councils took part in a survey from which 591 valid samples were generated. A structural equation modelling (SEM) statistical technique was employed. The results showed a positive relationship between strategic proactivity and perceived CSR, with perceived economic value dimension demonstrating partial mediating impact on the relationship.