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Social Investment through Community Enterprise: The Case of Multinational Corporations Involvement in the Development of Nigerian Water Resources

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  • Emeka Nwankwo
  • Nelson Phillips
  • Paul Tracey

Abstract

This paper examines the different mechanisms used by multinational corporations (MNCs) in Nigeria seeking to make long-term social investments by meeting the critical challenge of improving water provision. Community enterprise – an increasingly common form of social enterprise, which pursues charitable objectives through business activities – may be the most effective mechanism for building local capacity in a sustainable and accountable way. Traditionally, social investments by MNCs have involved either donations to a charity, which then assumes responsibility for delivering social outcomes, or direct management of social investment in-house. These approaches have been criticized, however, for their limited contribution to local capacity building, their focus on short-term outcomes, and the restricted role that they afford to communities. Partnering with community enterprise, provided there is sufficient local capacity to support it, is the most effective mode of governance through which MNCs can manage social investments in developing countries. Copyright Springer Science+Business Media, Inc. 2007

Suggested Citation

  • Emeka Nwankwo & Nelson Phillips & Paul Tracey, 2007. "Social Investment through Community Enterprise: The Case of Multinational Corporations Involvement in the Development of Nigerian Water Resources," Journal of Business Ethics, Springer, vol. 73(1), pages 91-101, June.
    • Handle: RePEc:kap:jbuset:v:73:y:2007:i:1:p:91-101
    DOI: 10.1007/s10551-006-9200-8
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    References listed on IDEAS

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    1. Frederick Bird, 2004. "Wealth and Poverty in the Niger Delta: A Study of the Experiences of Shell in Nigeria," Palgrave Macmillan Books, in: Frederick Bird & Stewart W. Herman (ed.), International Businesses and the Challenges of Poverty in the Developing World, chapter 2, pages 34-63, Palgrave Macmillan.
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    1. Ronaldo Parente & Marne Melo & Daniel Andrews & Arun Kumaraswamy & Flavio Vasconcelos, 2021. "Public sector organizations and agricultural catch-up dilemma in emerging markets: The orchestrating role of Embrapa in Brazil," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 646-670, June.
    2. Syrus M. Islam, 2022. "Impact investing in social sector organisations: a systematic review and research agenda," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 709-737, March.
    3. Ans Kolk & François Lenfant, 2013. "Multinationals, CSR and Partnerships in Central African Conflict Countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(1), pages 43-54, January.
    4. Sesan, Temilade & Raman, Sujatha & Clifford, Mike & Forbes, Ian, 2013. "Corporate-Led Sustainable Development and Energy Poverty Alleviation at the Bottom of the Pyramid: The Case of the CleanCook in Nigeria," World Development, Elsevier, vol. 45(C), pages 137-146.
    5. Jamali, Dima & Karam, Charlotte & Yin, Juelin & Soundararajan, Vivek, 2017. "CSR logics in developing countries: Translation, adaptation and stalled development," Journal of World Business, Elsevier, vol. 52(3), pages 343-359.
    6. Alinaghian, Leila & Razmdoost, Kamran, 2021. "How do social enterprises manage business relationships? A review of the literature and directions for future research," Journal of Business Research, Elsevier, vol. 136(C), pages 488-498.
    7. K. Parboteeah & Helena Addae & John Cullen, 2012. "Propensity to Support Sustainability Initiatives: A Cross-National Model," Journal of Business Ethics, Springer, vol. 105(3), pages 403-413, February.
    8. Akiebe Humphrey Ahworegba & Christophe Estay & Myropi Garri, 2020. "Institutional duality incidence on subsidiaries: configuration, differentiation and avoidance strategies," Post-Print hal-03632783, HAL.
    9. G. Lumpkin & Todd Moss & David Gras & Shoko Kato & Alejandro Amezcua, 2013. "Entrepreneurial processes in social contexts: how are they different, if at all?," Small Business Economics, Springer, vol. 40(3), pages 761-783, April.
    10. Sushant Kumar & Vishlavath Giridhar & Pradip Sadarangani, 2019. "A Cross-national Study of Environmental Performance and Culture: Implications of the Findings and Strategies," Global Business Review, International Management Institute, vol. 20(4), pages 1051-1068, August.
    11. Wenlong Yuan & Yongjian Bao & Alain Verbeke, 2011. "Integrating CSR Initiatives in Business: An Organizing Framework," Journal of Business Ethics, Springer, vol. 101(1), pages 75-92, June.
    12. Ivan Montiel & Alvaro Cuervo-Cazurra & Junghoon Park & Raquel Antolín-López & Bryan W. Husted, 2021. "Implementing the United Nations’ Sustainable Development Goals in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 999-1030, July.
    13. Bacq, Sophie & Hertel, Christina & Lumpkin, G.T., 2022. "Communities at the nexus of entrepreneurship and societal impact: A cross-disciplinary literature review," Journal of Business Venturing, Elsevier, vol. 37(5).
    14. Josep F. Mària & Jennifer Goodman, 2023. "Conflicts in the framing of conflicts: The case of community investment in a mining company in the Democratic Republic of the Congo," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(5), pages 671-687, July.
    15. Salla Laasonen & Martin Fougère & Arno Kourula, 2012. "Dominant Articulations in Academic Business and Society Discourse on NGO–Business Relations: A Critical Assessment," Journal of Business Ethics, Springer, vol. 109(4), pages 521-545, September.
    16. Amankwah-Amoah, Joseph & Debrah, Yaw A. & Honyenuga, Ben Q. & Adzoyi, Paulina N., 2017. "Business and government interdependence in emerging economies: Insights from hotels in Ghana," MPRA Paper 81320, University Library of Munich, Germany.
    17. Hoogendoorn, B. & Pennings, H.P.G. & Thurik, A.R., 2010. "What do We Know about Social Entrepreneurship: An Analysis of Empirical Research," ERIM Report Series Research in Management ERS-2009-044-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

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