Strategic Responses to Social Demands: Some Lessons for Marginal Oil Field Operators in Niger-Delta Region

Corporate social responsibility has become a business imperative as organization deliberately and strategically include public interest on corporate decision in an attempt to satisfy the demand of sustainable development. Balancing short term sight and long term perspective against triple bottom requirements in the face of rapidly changing social environment presents uncharted challenges and opportunities for businesses. For marginal oil field operators located in the Niger Delta, the region is characterized by poverty, underdevelopment and violent conflicts. The study investigated the strategies adopted by marginal oil field operators in the region to achieve competitive advantage and success. Combining several methodological framework through literature review and multiple firm level case study to examine the various strategies that marginal oil field operators in Niger Delta region adopts in their efforts to becoming social responsible corporate entity. Data gathering is through internet and review of existing literature. The study established that marginal field operators may apply different strategies in responses to social demands in their operating environment. It is observed that the dynamic response or interactive strategy have produced beneficial result by sustaining peace in their operating environment in the long run compared to reactive or adaptive strategy which might gain temporary benefits in the short run. The significance of the study is that it would benefit investors in marginal oil field development as it would provide an understanding of the challenges in the business environment and the different strategic responses needed to handle these challenges. The study recommends that investors in oil and gas business assess their operating environment carefully in order to develop strategies that would result in a cost effective way of managing business and bring about harmonious relationship between the host communities and the oil company.