THE TOP-DOWN MODEL: A DISCUSSION OF CORPORATE SOCIAL RESPONSIBILITY POLICY IN CHINA

Shu Li 1

Paul Appiah-Konadu 2

INTRODUCTION

Corporate Social Responsibility (CSR) has gained significant prominence in China in the period after the reforms and opening-up of the Chinese economy which ushered in the separation of corporate management and state administration as well as the integration of the Chinese economy with the global economy. Since then, the Chinese government and citizens have realized the need to hold enterprises responsible for the effects of their activities on society; and hence began to formulate CSR policies, and to integrate relevant laws, incentives, supervision and control mechanisms in corporate regulations. In 2001, China’s accession to the WTO provided a platform for international reference and exchanges for the development of CSR policies. In 2006, CSR was recognized by the country’s highest authority in legal form for the first time, which also meant that CSR became a national economic development strategy and policy. Unlike the private sectorled CSR in Europe and North America, this study shows that CSR in China is mainly a government-guided phenomenon and more popular among state-owned enterprises (SOE).In this light, we opine that the improvement of CSR policy and practice in China requires reforms designed with special consideration of the unique characteristics of the Chinese society to encourage stakeholder involvement in the policy formulation and participation in the implementation process.

Keywords: China, CSR Policy, Corporate Social Responsibility, TopDown Model

DOI: https://dx.doi.org/10.4314/jsdlp.v12i1.7

1 Shu Li works at Department of Law, University of Brescia, Italy

2 Paul Appiah-Konadu works Department of Law, University of Brescia, Italy; and Sustainability Center, Lagos Business School, Nigeria

EQUATOR PRINCIPLES 4-REVISED CLIMATE CHANGE RISK: WHAT DOES THIS MEAN FOR PROJECT FINANCING IN AFRICA AMIDST THE ONGOING ENERGY TRANSITION?

Ailly P.G Sheehama

INTRODUCTION

Since its inception, the Equator Principles Association introduced a risk management framework in response to the ever-changing environmental and social risk in projects. The Equator Principles (EPs) result from minimum standards for risk management to stop the race to the bottom. In June 2013, EP3 was introduced, and climate change requirements were added to address the 'transition towards an ethical and lowcarbon economy.'1 This eventually led to the newly revised Equator Principles 4 (EP4s), 'Climate Change Risk Assessment' (transition risk), in July 2020. This article analyses the effect of the transition risk of EP4 to determine whether this new addition will support or inhibit oil and gas project financing in Africa amidst the ongoing energy transition by questioning the underlying assumptions upon which the policy design was developed. The article concluded that consideration for project financing in Africa could be expected to address the energy needs in Africa while at the same time essentially pushing governments to take into consideration climate change by putting in place processes, policies, and systems to manage these risks.'2 Furthermore, the transition risks definition and implementing standards of EP4 are broadly worded, allowing adapting the principles to a wide range of regimes that positively contribute to these domains. This essentially enables consideration of ethical transition and provides for coordination and coherence across different policy domains.

Keywords: Climate change; Equator principles; Corporate social responsibility; Business and human rights; Risk assessment.

DOI: https://dx.doi.org/10.4314/jsdlp.v12i1.4

Ailly Sheehama, BA Law (Namibia), MA International Oil and Gas Law and Policy (Scotland), Deputy Country Director (Namibia), African Energy & Minerals Management Initiative (AEMI). Email: aillysheehama@gmail.com

INTERROGATING THE MULTILATERAL TRADING SYSTEM AND PARADIGMS OF CORPORATE SOCIAL RESPONSIBILITY: IMPLICATIONS FOR NIGERIA

Laura Ani

INTRODUCTION

Corporate social responsibility (CSR) norms are a strategic business policy that now forms the cornerstone of how international trade is governed globally. Although initially a voluntary initiative, its relevance in promoting social, environmental, and ethical responsibilities among global investors has arguably been conceived as trade distorting and violating the tenets of the World Trade Organization (WTO). Nonetheless, CSR is now mainstream in all related global transactions. This article seeks to evaluate the impacts of global CSR on international trade and examine the extent of Nigeria’s participation in global CSR. The article argues that Nigeria should go beyond considerations of trade that focuses mainly on liberal market access and expand the practice to include environmental, social, and ethical practices. It concludes that adherence to international CSR will propel developing countries to meet the UN Sustainable Development Goals.

Keywords: Corporate Social Responsibility, World Trade Organization, Sustainable Development.

DOI: https://dx.doi.org/10.4314/jsdlp.v11i2.4

LLB, LLM, M.Phil., Grad ICSAN. Research Fellow, Nigerian Institute of Advanced Legal Studies, Abuja. Email: ashleyani29@gmail.com

ATTAINING THE SUSTAINABLE DEVELOPMENT GOALS IN AFRICA: THE NEW CSR FOR MULTINATIONAL CORPORATIONS

Nojeem Amodu

INTRODUCTION

The fact that Africa is one of the worst performing regions in global audits about long-term development trends is longer news. The continent has repeatedly missed targets set by the United Nations and there are concerns it might just be left behind in the attainment of the latest 2030 Agenda Sustainable Development set by world leaders in 2015. With a view to complementing states’ responsibilities towards the provision of public goods and social services useful to actualize the Sustainable Development Goals (SDGs) in Africa, this article interrogates the nature of multinational corporations (MNCs) and juxtaposing the non-state actor responsibilities within wider societal contexts with state duties in advancing the SDGs. The article not only sets the tone for a “new corporate social responsibility” in terms of improved pursuit of sustainability within business communities in corporate Africa, it also recommends workable measures, integrating progressive roles for both the state and MNCs towards the realization of the SDGs on the continent.

Keywords: Corporate Responsibility; MNCs; SDGs in Africa; New CSR Roles; Regional Integration.

DOI: https://dx.doi.org/10.4314/jsdlp.v11i2.5

Postdoctoral fellow at the University of Cape Town, South Africa. Email: nojeem.amodu@uct.ac.za

OIL PRODUCTION AND HOST COMMUNITY RELATIONS IN NIGERIA: THE LIMITS OF THE UTILITARIAN APPROACH

Lola Ayotunde*

ABSTRACT

While resource extraction generates enormous revenue for resource-rich countries such as Nigeria, it could also engender human rights violations in host communities. This article explores the efficacy of the prevailing utilitarian approach to oil and gas management in Nigeria. The utilitarian calculus is applied to Nigeria’s oil and gas management to demonstrate how the utilitarian theory substantially influences the decisions of the Nigerian government. Although utilitarianism posits that the happiness of the majority is the primary objective of governance, this is arguably not a viable reason to violate the rights of the minority Niger Delta communities for the economic gains of the majority of Nigerians. As an alternative to the ineffective and unsustainable utilitarian resource management approach, this article discusses the importance of the human rights-based approach to resource management.

Keywords: Utilitarianism, Oil and Gas, Niger Delta, Human Rights, Corporate Social Responsibility.

DOI: https://dx.doi.org/10.4314/jsdlp.v9i2.8

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* PhD student at the College of Law, University of Saskatchewan, Canada. She holds a master’s (LL.M) degree in Sustainable Development Law from the same University and was called to the Nigerian Bar in 2012. The author is a member of the Law and Society Association and student member of the Saskatchewan Law Society

THE EFFECTS OF LEGISLATION ON CORPORATE SOCIAL RESPONSIBILITY IN THE MINERALS AND MINES SECTOR OF NIGERIA

Adedoyin Akinsulore*

ABSTRACT

This paper examines the effect of legislation on the corporate social responsibility in the minerals and mines sector of the Nigerian economy. Observing that the extractive industry sector in the country is populated by enclave industries that give little priority to CSR, the paper analyses the Nigerian Minerals and Mines Act, 2007. The Act obligates contracting a Community Development Agreement (CDA) between the mineral title holder and the community where the mining company is to operate. Linking CSR and the CDA through the stakeholder theory, the paper observes that corporate actors in the solid minerals sector of the country can no longer deprioritise CSR in their corporate planning as hitherto. It concludes that the effect of this law is to empower the community as an important stakeholder thereby validating the stakeholder thesis herein espoused.

Keywords: Corporate social responsibility (CSR), minerals, mines, agreement, human rights.

doi: http://dx.doi.org/10.4314/jsdlp.v6i2.5

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* Department of Public Law, Obafemi Awolowo University, Ile-Ife, Nigeria e-mail: adedoyinakinsulore@gmail.com or adakinsulore@oauife.edu.ng

STAKEHOLDER APPROACH TO CORPORATE SOCIAL RESPONSIBILITY: RECIPE FOR SUSTAINABLE PEACE IN THE NIGER DELTA REGION?

Sunday Bontur Lugard*

ABSTRACT

Corporate Social Responsibility (CSR) is a pathway to positive and sustainable engagement of business-stakeholders in general and its host community in particular, especially when the operations of such enterprise have a way of negatively impacting the environment or other interests of such a community. Empirical research has shown that such engagement has a way of not just improving corporate-community relations but acts as a strategic roadmap to allow stakeholders take ownership of and buy in into corporate sustainability plans. This is one area International Oil Companies (IOCs) operating in Nigeria’s Niger Delta region have arguably floundered, and hence the ensuing and seemingly intractable confrontations from the host communities and militant groups who perennially feel left out of topdown CSR initiatives. This paper discusses the concept of “emotional equity” as a missing piece in community involvement in corporate sustainability in Nigeria. It examines how a stakeholder approach to CSR could serve as a participatory and level playing approach that would engender peaceful, symbiotic engagement and cohabitation between the IOCs and their host communities.

Keywords: Corporate social responsibility, development, environment, pollution

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* LL.B, BL, LL.M is a Lecturer in the Department of International Law and Jurisprudence, Faculty of Law, University of Jos, Nigeria. Email: lugards@unijos.edu.ng.

CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY IN THE NIGER DELTA REGION OF NIGERIA

Hakeem Ijaiya, Ph.D*

ABSTRACT

The Niger Delta Region of Nigeria produces a significant portion of the aggregate oil wealth of Nigeria. Since 1956 when oil was first struck in Oloibiri in Southern Nigeria, the Niger Delta region has accounted for over 90 per cent of Nigeria’s oil income. However, the region has perennially suffered from environmental neglect, crumbling infrastructures and services, high unemployment, social deprivation, abject poverty and endemic conflict. This has led to calls for oil companies operating in the Niger Delta to demonstrate the value of their investments to Nigeria by undertaking increased community development initiatives that provide direct social benefits such as local employment, new infrastructure, schools, and improved health care delivery. This paper examines the concept of Corporate Social Responsibility (CSR) that is, how companies manage their oil exploration and business processes to produce an overall positive impact on society. It reviews the evolution and growth of the CSR concept under international law and the key institutions that have spearheaded this growth. Since the emergence of the CSR concept in Nigeria, it has been espoused mainly as an optional and non-obligatory responsibility for oil companies. There is currently no national law in the area of CSR. More so, many of the International Corporate Responsibility Instruments, such as, the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises; United Nations (UN) Global Compact and the 1998 ILO Declaration on Fundamental Principles and Rights at Work are soft law instruments with less binding status in international law and by extension in Nigeria. This paper examines the need for a more coherent and binding recognition of the CSR principle in Nigeria. In a country such as Nigeria, where the principles and benefits of democratic governance are still fragile, there is a need for a dynamic and step-wise approach through which the CSR concept could be continually mainstreamed into national laws and policies. Keywords: Corporate Social Responsibility, Niger Delta, Environment