SUSTAINABILITY

FOR

HR:

ADVANCING

CORPORATE

CULTURE

AND

CORPORATE RESPONSIBILITY IN OANDO NIGERIA PLC. By CHINONSO NDUKWE Doctoral Research Proposal

PROPOSAL OUTLINE

1.1.RESEARCH OVERVIEW 1.2.PREAMBLE 1.3.RESEARCH SIGNIFICANCE 1.4.RESEARCH AIMS AND OBJECTIVES 1.5.CONCEPTUAL ELUCIDATION AND ANALYTICAL FRAMEWORK 2.2.RESEARCH PHILOSOPHY 2.3.RESEARCH METHODOLOGY 2.4.CONCLUSION REFERENCES AND BIBLIOGRAPHY APPENDIX

1.1.RESEARCH OVERVIEW The brilliant balance of this research lays hugely on the amalgamation of three powerful machines of business in the 21st century namely human resource management, CSR and sustainability. It is somewhat bizarre and intense looking at the bitter experiences of several people living at oil producing developing countries like Nigeria; the situation does not create room for better life now, and cancels any prospect for the future of business. Commentators would rather describe the business situation as clearly disparaging, extinctive and hapless, Ndukwe, (2010), NDDC, (2004), Idemudia and Ite (2006). The dilemma here is, if human resource can employ men and women for profitable business, how can it locate them for externalisable attributes that can transform corporate social responsibility into a tangible sustainable enterprise in Nigeria? The concept of corporate social responsibility has become a Google of multivariate inquisition. Levitt (1958), Friedman (1962, 1970), Henderson (2001), Sundaram and Inkpen (2004) have in different investigations decoupled business from CSR. Bowen ,(1953) , Davis (1960 ,1967 ,1973), Carol , (1979 ,1999 ,2004) , Freeman ,(1984 ), Porter and Kramer (2008) on the contrary argue that corporate social responsibility is good for business. Yet the battle is unresolved, McWilliams et al. (2005) Idemudia (2007) believes that the volatility of corporate community relationship in the Nigerian oil sector has given birth to revenue lost, militancy, and of course an unbelievable lack of credibility for the oil firms in the country. Wells et al. (2001) and Frynas (2007) agree in tandem that there is a shameful chasm between the CSR professions of oil companies and the attendant behaviour of these giant players in the rich oil, mining and gas sectors. Whereas Fombrun and Shunley (1990) postulate that investment in CSR can pioneer brand differentiation and generate reputation, McWilliams and Siegel (2001) conjecture that the concept if engrafted into policy and strategic formulations should be measured through a cost/benefit effect. McWilliams et al (2005) evoke the question of whether firms can use CSR to gain sustainable competitive advantage. But particularly, Ostendorp (2005) models the potent of Human resource concepts channelled towards corporate social responsibility in Switzerland. Moon (2007) on the UK companies CSR argues that the concept is a composite driver of sustainable development. In the same direction of study, Fuentes-Garcia et al. (2008) localize the HR/CSR concept in a Spanish context and recommend that organizations should follow Dow Jones Sustainability Index guidelines which include:

a. Corporate citizenship b. Commitment to interest groups c. Working practices d. Development of human capital e. Organizational learning f. Social information g. Attraction and retention of qualified workers h. Standards for suppliers Source: Fuentes-Garcia et al. (2008:8) However, Sherma et al. (2009) establish a fascinating coverage of this lacuna between corporate social responsibility and sustainable business in India. They theorize that at the centrality of driving sustainable development is the conscious engagement of human resource management in a synergistic operation, firstly by initiating the organization at all levels into corporate social responsibility values and culture which will afterwards permeate the economic spaces of the business community relentlessly. And secondly, by developing a successive human capital framework that will doggedly carry on the job extensively, differentiating the organization and creating sustainability for the environment, society, and the economy in the long run. Figure 1: Environment surrounding business: Economy and Society

Source: Ott, (2003) Miller (1987:352) defines human resource management as the control of those decisions and activities that involve the, management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage. CIPD (2001) moves the concept further by amplifying the issue of strategic human resource management, defining the term as a creation of the omni-crucial framework for applying people management practices to achieve business outcomes. Armstrong and Baron (2003: XV) define strategic human resource management as the address of broad organizational issues involving changes in structure and culture, organizational effectiveness and performance. It endeavours to march resources to future requirements, the development of distinctive capabilities, knowledge management and the management of change. It is concerned with both human capital and the development of process capability to get things done effectively.

1.2. PREAMBLE Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did. So throw off the bowlines. Sail away from the safe harbour. Catch the trade winds in your sails. Explore! Dream!! Discover!!! MARK TWAIN Black Herald (2007) report shows that Crude Oil is the bastion of the Nigerian economy accounting for about 90% of foreign revenue. According to The Economist (2006) while the Nigeria non-oil sector is growing rapidly, the overall economy remains massively reliant on oil and gas earnings. Oando Nigeria Plc. is one of the strongest among the pool of Nigerian indigenous oil companies. An energy group listed in Lagos became the first company from another African country to be listed on the JSE too (Johannesburg Stock Exchange). Wale Tinubu, Oando's chief executive, explains in The Economist that the group plans to raise $500m in equity and debt before the end of the year to finance its expansion, (The Economist, 2006). While Nigeria oil companies bask in the ecstasy of expansion and globalization, the risk of off-shore hazards, pollution, decease, degradation, poverty, unemployment, employee dissatisfaction, corporate irresponsibility, the heat of pressure groups and youth militancy characterize the sector. The interface of sustainability with business hinges on these socioecological consequences of business activity. Prompting Daly and Cobb (1989) to ask: what use is the sawmill without a forest? Indeed, what use is HRM in Nigeria without influencing sustainable business? Most often, defining concepts by stating what they are not makes the meaning more crystal clear. Sustainability is not the release of anthropogenic particulates like sulphate aerosols. It is not deforestation, is not fossil fuel emission, pouring chemical waste on land fields, corporate /community wars, employee disengagement. Bookchin (1993) constructs these points in more concrete forms: economic, ethnic, cultural, and gender conflicts, among many others, lie at the core of the most serious ecological dislocations we face today--apart, to be sure, from those that are produced by natural catastrophe.

Armstrong (2005) in The Future of Human Resource Management argues that the salt of Human Resource profession is in enhancement of close functioning among lines directors and other colleagues, to design the policies and practices that elicit the discretionary behaviour that leads to sustainable success. Sustainability as a policy model has its derivation in the Brundtland Report of 1987. Sustainability is concerned with the well-being of future generations and in particular with irreplaceable natural resourcesas opposed to the gratification of present needs which we call well-being, Kuhlman and Farringhton (2010). Within the concentric purview of human resource management, CSR and sustainability, revolve the matters of strategic retention, knowledge planting, waste diminution, greenhouse gas control, green-branding, green-service, techno-managerial innovations, personnel repositioning, biodiversity and capacity fortification, human capital development, and the lasting conflation of social capital growth and organizational profitability. Unfortunately, this level of operationability is scarcely visible in the Nigerian oil sector since oil business started in 1908.

1.3. RESEARCH SIGNIFICANCE To do business today and also reserve the opportunity for tomorrows development remain crucial to this research. Looking at ways human resource management can intervene in the current appalling complacent situation of irresponsible business in Nigeria is a worthwhile management research. Sustainability saves cost, nature, life and the future of business. However, to pioneer such a mainstream business concept, albeit a broad spectrum of organizational tools, through a human resource management perspective is not only a scholastic palladium of economic advancement, but an indefatigable opportunity to reconstruct practice, policy and corporate rebuilding. Recognizably, there are several studies in the management of sustainability via a cutting-edge human resource initiative in a Western milieu but there is little or no work on the issue in a Nigerian context and there are overwhelming disparities. There are empirical consequences recorded on lackadaisical human resource structures and stipulates, looking at the flops concerning the Deep Water Horizon Oil rig spillage that preceded the resignation of Tony Hayward BP CEO (BBC, 2010), and the more scary Niger Delta spillage that never received

attention ; about 9,000 spills (Vidal, 2010) , coupled with an avalanche of organizational intellectual/human capital questions that need to be addressed to enhance sustainability in the Nigerian business. For Nossiter (2010) describes the sustainability problems an awful spill of five decades. I find this research interesting and of huge signification, because it is an appropriate follow up to my MBA in Human resource management. 1.4. RESEARCH AIMS AND OBJECTIVES At the heart of my research therefore is an investigation of how; i. to identify human resource management practices that can be used to contextualize organizational choices that depict corporate irresponsibility in Nigeria. Establishing feasible links between unsustainable business and human resource programmes in Nigeria Oil sector. ii. To investigate different dimensions of resource structures and policies that characterized the culture of philanthropy instead of sustainability in the oil sector. A detailed reconstruction of the practice of corporate giving through a formulaic human resource engagement strategy will constitute part of the objectives of this aim. iii. To critically examine the comparative designs of green service and its relationship to HR as a corporate objective and not as stakeholder /shareholder riposte. iv. v. To evaluate the culture of learning and the value of cost in the oil sector sustainability. To develop a paradigm of conceptualizing sustainable business through human resource management based on the Western literature in a Nigerian context. 1.5 CONCEPTUAL ELUCIDATION AND ANALYTICAL FRAMEWORK In A Holarchical Model for Regional Sustainability Assessment, Jiliberto (2004:511) argues that sustainability is as a result of juxtaposing certain economic, social and environmental aspects of reality. Gollan (2005) posits that to reinforce economic profitability, to ensure corporate survival, that a high involvement management through human resource management is unequivocally pivotal. Rimanoczy and Pearson (2010) instance the symbiotic emergency of people, profit and planet collaboration through the portent of Action Reflection Learning (ARL) powered by the human resource department of organizations. They suggest

change in organizational culture, novel leadership/executive competencies, collaborative team work analysis and specific learning goals testing as possible pathways of establishing the human resource sustainability design. Most recently, Liebowitz (2010) argue that though research in how HR can carry out sustainability culture and ensure environmental stewardship is absolutely a new area, that analytical development of new strategies of recruitment and selection, sustainability performance evaluation and appraisal, succession system and training system advancement, a win-win-win reunion amongst conflicting multiple stakeholder will constitute the conceptual framework of the field. Blake-Beard et al. (2010) provide flexible work system (FWS) as a legitimate pattern of propagating employee/social sustainability. Sherma et al (2010) emphasize on culture radicalization and advancement through a human resource /employee and society interface in multivariate business activities that ensue in the course of time. Against that back drop, this research will study recruitment systems in Oando Plc., retention and appraisal policies, learning and advancement ideologies, work processes and employee engagement procedures, culture and organizational knowledge management, CSR concepts , stakeholder capital , greening in production and exploration services in Nigeria. These will form the bulk of the issues to be reviewed towards developing a model of sustainable human resource management in the oil sector.

2.1.RESEARCH PHILOSOPHY Interpretivism. Walsham (1995) posits that Interpretivism adopts the position that our knowledge of reality is a social construction of human actors. Leitch et al. (2010) provide a spruce schema for the interpretivistic underpinnings of this research. They address validity, generalizability, objectivity, reliability and communicability as regards to process rather than research outcome in management studies. Following this research pace, contradistinguishable from the positivist ideology, because of its resilient regard of life and knowledge from the point of view of the people living and what they know (Schwandt, 1999), creating a versehen between the researcher and the participants (Mingers, 2001), who becomes a vehicle through which knowledge and reality is revealed (Caravan et al, 2001), Positivism discovers while a problem is linked to a particular phenomenon rather from life generally

Polonsky and Waller (2005:106) adumbrates nine very vital ingredients of research technique; validity, reliability, appropriateness, amount of data, flexibility, costs, time, potential errors and the researchers ability. All these factors will be measured to ensure the work arrives at logical inferences. 2.2.RESEARCH METHODOLOGY Qualitative research method will be utilized in this doctoral research. The research will hold seven focus groups which will be used to generate a questionnaire for 700 respondents. This massive style of information procurement is to expand the horizon of knowledge in the field so as to be able to reach at more valid and cogent conclusions and recommendations on what human resource management is expected to do to rescue the situation. This is targeted to last within a three-year period. Qualitative researchers use methods as a way to enter the subjective reality of the participant, (Schwandt, 2003). It involves a subjective and informal inquiry .They are not objective as the positivistic researchers who remain in a formal stance. This is a major epistemological disparity between interpretivism and the earlier positivism. Through a grounded theory of interpretation of qualitative data this project will harness the themes listed in the objectives. Grounded theory will enable this research to: i. ii. iii. iv. Collect rich and useful data. Acquire inductive data without getting lost in it. Ensure flexible management research data and time. Retain originality, analytical focus and validation till the end of the work.

However, Corbit and Strauss (2008:1) define methodology as a way of thinking about and learning social phenomenon. In the same work they argue that research comprise of system and philosophical orientation. More so, they referred to qualitative analysis, which this report adopted, as a process of examining and interpreting data in order to elicit meaning and gain understanding and develop empirical knowledge.

2.3. CONCLUSION The issues of human resource management and sustainable business in Nigeria are very crucial phenomena. Sustainability in the oil sector will improve economic development, social safety and environmental conservation. To reduce cost, improve sustainable recycling, save time and space, sustainable human resource management must be engaged as a practical form of enterprise within the organization and with the stakeholders. How can this project carry out this HR dimension of sustainability? When is it ripe for oil companies in Nigeria to engage in sustainable business? This research tries to reconceptualise corporate social responsibility through a more sustainable human resource management scheme. This means that sustainable business could always be from the inside out. This is correspondent to the philanthropic style of CSR in Nigeria. It has neither improved business nor society. The environmental hazards and the long-run effects on business are in view here. Green business has come to stay. However, yet to be ascertained are the resource policies, personnel, strategy and agenda that will advance the cause of sustainability. Is it not time? Creating new dimensions of culture and responsible business operationality are thematic issues of note in this work.

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APPENDIX 1 NIGER- DELTA OIL SPILL

Source /Description: A ruptured pipeline burns in a Lagos suburb after an explosion in 2008 which killed at least 100 people. Photograph: George Esiri/Reuters