CHAPTER IINTRODUCTION1.1 BACKGROUND OF THE STUDY:Multinational Corporation is used by people both in the business and nonbusiness sectors, to some people it means a Fairly big firm that has about five orsix branches in a state, while others see it as a big firm that has branches in all thestates or divisions of a country. According to Prasad & Shetty, (1976)“Multinational corporations are firms that operate effectively under differentnational sovereignties”. They further stress that multinational corporations aresuch firms that must cope with wide variations in economic conditions, differentvalues and cultural systems and wide geographical separation.This definition, multinational corporations are large firms that operate in differentparts of the world, but most of the times have one acclaimed headquarters,situated in a place it was first established. There are various multinationalcorporations both in Nigeria and abroad.However, For the purpose of this research works, the researcher is usingExxonmobil oil producing Nigeria at Eket, Akwa-Ibom State. it is of note to11mention that multinational corporations operating in foreign hands must respectthe tunes and dictates of the host government or face expropriation. By the natureof their operation, multinational corporations must cope not only with morecomplex organizational structure but with far more elaborate and sensitivearray of environment variables than domestic operations have these corporationsare seen as giants amongst economic entities and primarily because of their size,economic power, efficiency, stability, dynamism, flexibility and quite often atechnological oligopoly. Elwood (1979), said that the size and scope ofmultinational corporations within many developing nations often bring aboutsignificant social changes that disrupt or counteract social programmes and goalsof host government.Multinational corporations are known for their exploitative tendencies indeveloping countries. There has been lots of accusation by concerned Africancountries that these corporations are only out to suck dry the natural and humanresources of poor African countries without correspondingly compensating themor showing appreciation in return. Despite the fact that these corporations exploitthese African countries and realize huge profits from their business operations, itis difficult for saying they satisfy the yearnings and aspiration of the communitieswhere they operate in terms of business social responsibility.Offlang (1980) asserts that, going by the concept of imperialism and dependencyas characterized by the exploitation of the developing countries by the west andas manifested by the infiltration of western capital into poor African countries,one can categorically say that the contribution of these multinational corporationsto the community development is not encouraging. This is evidenced by publicout-cry for compensation by Communities where these corporation arc operating due to the 1ct that thesecommunities provide the needed raw materials for that operation.At times these communities after waiting patiently for these. corporations to meettheir social demands without any response, take the law into their hands to showTheir resentments. It is note to stress that the oil producing communities are theones which are supposed to benefit more From Multinational Corporation involvein oil exploration in such areas. Intact these oil exploration corporations shouldprovide lots of social amenities like pipe bore water, electricity, good roads,recreational facilities and host of others to these communities. The corporationsocial activities to these communities should extend to the areas of employment,scholarship and other incentives.In further expressing my view on the fact that the oil producing communitiesshould benefit more from oil exploration multinational corporations that areoperating in such of the pollution and other hazards caused these communitiesdue to oil drilling. These are cases, which due to oil spillage a lot of aquaticanimals die and the seawater becomes bad and poisonous thereby causing untoldhardship on such communities.1.2. STATEMENT OF THE PROBLEMAs a result of the hazards and exploitation of multinational corporations on thecommunities in which they are operating, it is important for them to show aserious concern in terms of being socially responsible to these communities.However, it is difficult for one to. Say that a particular corporationhas contributed adequately to the development of a particularCommunity because development encompasses many things ranging from theprovision of infrastructural facilities, employment, scholarships and .a lot more.Communities cry out of neglect, lack of appreciation and insufficientcompensation by corporations that are operating in their areas.The corporations on their pa refute- this claim by saying that they haveresponded adequately to their social needs. The researcher also notice a problemof disparity between the corporation and the community as to who have fulfill hispromise of providing social infrastructures and economic benefit (or) whether thecommunity is satisfied with what the corporation has so far done to thecommunity.1.3. OBJECTIVEOFTHESTUDY;The main objective of the research work is to appraise the contributions ofMultinational Corporation towards community development.11The specific objectives of the study are:a. To analyse the difference in opinion between the corporations and hostCommunity.b. To evaluate the level of social responsibility Carried out by ExxonmobilOil Producing Nigeria.Plc in Eket.c. To determine to what extend Exxonmobil have Contributed towards thedevelopment of Eket.D To investigate what the corporation has actually done in the community interms of infrastructural growth.e. To examine the benefit of Exxonmobil to the people of Eket.f. To highlight the problems caused to Eket community and environment dueto the existence of Exxonmobil.g. A suggestion that Exxonmobil should principally develop Eket as her hostcommunity.1.4. SIGNIFICANT OF THE STUDYThe study focuses on the contribution of Multinational Corporation to hostcommunity when properly articulated, it will be of tremendous benefit to manyinterest groups Exxonmobil and the people of Eket are at variance over the issueof the firms satisfying them infrastructural and otherwise. The people feel thecorporation has not adequately compensated them and as such their yearningsand aspirations are yet to be satisfied. The study would be useful to engender11efficient and effective human relation among stall ci the corporation and hostcommunity, the study will help to discover the corporation and the peoplebecause of the difference in their claims. This study will be useful to erase thedisparity, call for a compromise, and also counter the possibility of frequentcontribution between both parties.However, the researcher is convinced that not only the people of Eket, thegovernment of the Federal Republic of Nigeria and staff of Exxonmdbil but alsothe general leader would find this study valuable. The research work will bebeneficial to researchers and prospective researchers in the area of the study. Itwill serve as a guide for future researches.1.5 SCOPE OF THE STUDY:This research study is to assess the contribution of multinational corporations tocommunity development by Exxonmobil to the people of Eket.