Multinational Organizations and Management of Youth Restiveness

An Assessment of the Coping Strategies of the Shell Petroleum Development Company (SPDC) in Rivers State, Nigeria

Abstract

The Niger Delta in Nigeria, which is known for being the epicenter of the oil and gas industry has experienced severe violence and socio-economic challenges that have led to oil multinational corporations adjusting their operations commensurately. The underlying causes of the violent conflicts include failure of the state and multinationals to provide the much-needed human and infrastructural development in host communities amidst deleterious environmental challenges. This has led to long years of different forms of agitations and social conflicts by mostly youth groups. This study assesses the coping strategy of the Shell Petroleum Development Company (SPDC) in terms of managing youth restiveness in Rivers state, Nigeria. Within a social conflict perspective, the study examines how SPDC copes with youth violence and the effectiveness of associated strategies. Using a descriptive design, data were collected from 300 SPDC staff through the use of questionnaire and analyzed using descriptive statistics. Findings reveal that youth restiveness in the state has over the years proven to be a huge source of threat to the operations of the company and that SPDC’s major coping strategy despite trying several social investment approaches such as the Global Memorandum of Understanding (GMoU), remains largely the divestment of its onshore assets. This is considered very effective as it has reduced the direct impact of youth led conflicts on the company’s operations. Based on this, the study recommends among others that companies buying off SPDC assets should prioritize the democratic model associated with the GMoU, especially in areas where it has not been established since the model has helped in mitigating conflicts in areas where it is currently in use.