Assessing the Effectiveness of Cnooc Corporate Social Responsibility Practices In Hoima District

Abstract

This dissertation aimed to assess the effectiveness of CNOOC corporate social responsibility practices in Hoima district; taking lessons from experiences of other resource rich countries such as Nigeria. Literature was reviewed about the indigenous people, their rights and whether CNNOC’s CRS are worth a count to the people of Hoima. The Sustainability reports of Chinese National Offshore Oil Company (CNOOC) has been analyzed, using content analysis, to determine the company’s’ level of engagement in mitigating environmental impacts. CSR practices of IOCs in Nigeria and other resource rich countries were analyzed; to extrapolate lessons for protection of Uganda’s society and environment, through CSR. The findings revealed that majority of the locals in Hoima are not contented with the oil operations in the area, about 58.3% were not contented and (41.7%) were contented. If such CRS aren’t well managed the current situation will result in poverty stricken, conflict filled and environmentally degraded landscape – in other words another Niger delta. When CSR goes wrong several issues arise - for instance the community will withdraw its social license to operate and in many cases sabotage production - for example, the case of the Niger delta where oil bunkering and militancy is the order of the day. It’s a role for the government implement policies that could mitigate such issues. Lastly, recommendations were made to both the government and international oil companies suggesting that the government should join Extractive Industries Transparency Initiative (EITI) and encourage transparency and compliance, to reduce corruption in Uganda. Companies were advised to engage all stakeholders and ensure technology transfer going forward, in order for citizens (Indigenes) to build businesses in preparation for the production phase and develop capacity to meet the upcoming needs. If all this is adhered to, then this should facilitate Uganda having a sustainably developed Hoima.