Corporate Citizenship in Africa

Abstract

Oil production has been a major source of export revenues for many African countries, and yet has played a questionable role in the development of sub-Saharan Africa. Multinational companies in the oil sector have had established operations in the continent for several decades, despite many operational difficulties. In some countries, they endured an institutional environment that was not particularly attractive to business, such as civil wars, famine, lack of safety, disease and widespread corruption. On the other hand, once they were established, they could operate with limited government regulation or social control from civil society, especially with respect to environmental and social standards. Allegations of bribery, environmental degradation, social conflict and lack of integration with the local economy have historically plagued the behaviour of corporations in Africa (Bayart et al. 1999). Recently, however, there appears to be some positive movement towards responsible management of African oil revenues that is gaining attention (Katz et al. 2004). How companies and governments leverage these opportunity costs is particularly important to understand in the context of African development. © 2006 Taylor & Francis.

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