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Begin New Search Topic Multinational Corporations Political Geography Africa

1. Exxonmobil and Community Development: an Evaluation of its Corporate Social Responsibilities to Host Communities in Akwa Ibom State

Author:
Edet Joshua Tom, Itoro Bassey Ebong, and Maureen Oki
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Journal of Political Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Multinational oil companies are expected to be socially responsible to their workers, communities and other stakeholders through their social activities, even at the expense of their immediate profit. In line with the above, ExxonMobil has claimed to have invested millions of dollars in community development projects within the host communities since her inception. The host communities on the hand claimed that the company has reneged on its corporate social responsibilities to them. The main objective of this work is to assess ExxonMobil efforts in discharging its corporate social responsibilities (CSR) in oil producing communities of Akwa Ibom State in Nigeria. To achieve the objective of the study, survey and descriptive research design were adopted. Data were drawn from both primary and secondary sources. Accordingly, stakeholder theory of CSR was used as theoretical framework. The major finding of the study revealed among others that ExxonMobil h ad not significantly engaged in health care and skill acquisition programme in its host communities in Akwa Ibom State due to poor implementation of corporate social laws as well as the complicity of the Community Liaison Officers (CLOs) and the Exxon Mobil officials in the implementation of corporate social projects and programmes within the host communities. Based on the findings, the study recommended among others that the government should put a legal framework on ground that will make Corporate Social Responsibility mandatory as against the practice currently in vogue where Corporate Social Responsibility is discretionary. This will make the oil and other multinational companies operating in Nigeria to take CSR as a serious business rather than what is obtainable.
Topic:
Development, Oil, Multinational Corporations, and Exxonmobil
Political Geography:
Africa and Nigeria

2. Profit shifting by multinational corporations: Evidence from transaction-level data in Nigeria

Author:
Bathusi Gabanatlhong, Javier Garcia-Bernardo, Paulinus Iyika, and Miroslav Palanský
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Research on profit shifting by multinational corporations in developing countries is limited due to a lack of data. In this paper we use, for the first time, novel administrative data on the transactions of multinational corporations operating in Nigeria vis-à-vis related parties in other jurisdictions. The data provides a breakdown of these intra-group transactions into seven categories: (1) tangible goods, (2) services and fees, (3) royalties, (4) interest, (5) dividends, (6) reimbursements, and (7) other. We develop a methodology that uses this data to identify which transactions are most often used by multinationals to shift profits out of Nigeria and estimate their relative importance. We find that profits reported in Nigeria are highly sensitive to the hypothetical tax that would be paid on a transaction’s value in the partner jurisdiction: a 1 per cent increase in the hypothetical tax on outgoing transactions is associated with a 0.28 per cent increase in reported profits in Nigeria. Payments for services and fees, royalties, and interest going from Nigerian companies to affiliates in low-tax countries are the most important channels of profit shifting in Nigeria. We argue that our approach can be used to inform low-cost policy interventions and increase audit efficiency with potentially strong effects on corporate income tax collection.
Topic:
Multinational Corporations, Profit, Transactions, and Tax Havens
Political Geography:
Africa and Nigeria

3. Profit shifting by multinational corporations in Kenya: The role of internal debt

Author:
Roseline Misati, Kethi Ngoka, Anne Kamau, and Maureen Odongo
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Illicit financial flows directly impact a country’s ability to raise, retain, and mobilize its own resources to finance sustainable development. Against a backdrop of a weak public financial position attributed to capital flight, tax avoidance, and dependence on corporate income taxes, governments in Africa face impediments to their efforts to widen the tax base. Using firm-level annual data from 2015–19 from multinational corporations’ audited financial statements, we assess the scale of profit shifting by those corporations with a presence in Kenya. Using a panel analysis, the study delves into the incentives for profit shifting, focusing on internal debt. It finds that a 10 per cent increase in the difference between Kenya’s corporate tax rate and that of the lending corporation’s home country increases the internal debt ratio by between 1 and 2 per cent. The results provide a basis for the design of targeted tax and revenue administration reforms against the backdrop of rising revenue needs.
Topic:
Multinational Corporations, Tax Systems, Profit, and Corporate Tax
Political Geography:
Kenya and Africa

4. The Role of Multinational Oil Corporations (Mnocs) in Nigeria: More Exploitation Equals Less Development of Oil-Rich Niger Delta Region

Author:
Oluwatoyin Oluwaniyi
Publication Date:
12-2018
Content Type:
Journal Article
Journal:
Brazilian Journal of African Studies
Institution:
Brazilian Journal of African Studies
Abstract:
Nigeria is not exempted from the integration of developing economies into the global capitalist system. The origin of Nigeria’s integration can be traced to the influx of MNCs in the manufacturing and banking sectors during the colonial era. But by 1956, the discovery of crude oil in Oloibiri by Shell D’Archy, expanded the integration into the extractive sector and Multinational Oil Corporations (MNOCs) emerged as the main extractive bodies (Oluwaniyi 2010). From 1956, crude oil in the Niger Delta region has been central to Nigeria’s political economy, accounting for over 90% of its foreign revenue, defining its place in ‘ international relations’ (Raji; Yusuf and Samuel 2013, 24; Soremekun 2011, 99). Though some scholars have associated multinational oil corporations with the development of host states, Niger Delta region continues to languish in deep poverty. The oil-rich communities fail to enjoy benefits commensurate to the profits gained by the levels of exploration of crude oil and exploitation in the region. This paradox further underlines the violent crisis perpetrated by frustrated youth in the region (Obi and Rustad 2011). Likewise, Angola, Equatorial Guinea, and Sudan are also among the top five sub-Saharan African oil exporters but, in terms of development, their performance have been dismal (UNCTAD 2007). The effects of MNOCs’ presence have triggered debates on the extent to which they have contributed to the development or under-development in the region. It is against this background that it has become extremely pertinent to evaluate, in concrete terms, the effects of MNOCs’ activities in the Niger Delta region. The objectives of this paper include, to analyse the extent to which multinational oil corporations have delivered on their larger expectations in the Niger Delta region, the role of the state in mediating or perpetuating crises between the MNOCs and the oil-rich communities, and impacts on relations in the region.
Topic:
Development, Economics, Oil, and Multinational Corporations
Political Geography:
Africa and Niger

5. The Privatisation of Security in Africa: Challenges and Lessons from Côte d’Ivoire, Mali and Senegal

Author:
Alan Bryden, Aliou Diouf, Edem K. Comlan, Kadidia Sangaré Coulibaly, Aly Sagne, and Emmylou Boddi
Publication Date:
01-2016
Content Type:
Commentary and Analysis
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
Private security in Africa is booming. Whether from the perspective of major multinational players or small-scale local enterprises, the market for commercial security has expanded and evolved over recent years. However, policy makers rarely address private security, national parliaments and regulatory bodies provide limited oversight in this area, and the attention of African media and civil society is localized and sporadic. In short, a fundamental shift in the African security landscape is taking place under the radar of democratic governance. "The Privatisation of Security in Africa: Challenges and Lessons from Côte d’Ivoire, Mali and Senegal" provides expert accounts which portray the realities of the contemporary private security industry in Africa. The volume analyses key characteristics of security privatisation in Africa, offers new insights into the significance of this phenomenon from a security sector governance perspective and identifies specific entry points that should inform processes to promote good governance of the security sector in Africa.
Topic:
Security, Privatization, Governance, Law Enforcement, and Multinational Corporations
Political Geography:
Africa, Senegal, Mali, and Côte d'Ivoire

6. Restraint of Statehood and the Quality of Governance by Multinational Companies in Sub-Saharan Africa

Author:
Jana Hönke and Tanja A. Börzel
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
Collaborative Research Center (SFB) 700
Abstract:
This paper explores to what extent the quality of governance by MNC in areas of limited statehood depends on the limitation, and, more importantly, on the restraint of statehood. The control over the monopoly of force and a minimum of state capacity to set and enforce rules are only one condition among others facilitating inclusive governance contributions. Largely overlooked so far is that state actors (or other local authorities) need to be checked and held accountable in order to ensure a certain quality of business contributions to governance. To develop this argument, we introduce the concept of quality of business contributions to governance and discuss to what extent limited and restrained statehood accounts for the substantial variation in quality observed empirically. Based on a discussion of the ambivalent role of statehood for governance by non-state actors, we conceptualize restraints on statehood as a scope condition for the quality of business contributions to local governance. In addition to institutional restraints drawn from liberal state and democratic theory, such as the rule of law and elections, we consider societal mechanisms of restraint at the local level, such as embeddedness in societal institutions and community pressure. Empirically, we explore our argument and the power of these various mechanisms of restraint in case studies of mining companies in Sub- Saharan Africa and explore gold mining companies in Tanzania in more detail.
Topic:
Governance, Multinational Corporations, and Mining
Political Geography:
Africa, Tanzania, and Sub-Saharan Africa