Transparent Stakeholder Involvement and Corporate Credibility of Oil Firms in Nigeria

Abstract

The purpose of the study was to investigate the extent of relationship between transparent stakeholder involvement and corporate credibility of oil firms in Nigeria. The study had its foundation on the stakeholder theory and organizational image management theory. It specifically studied the significance of relationships between transparent stakeholder involvement and corporate credibility measured by trustworthiness, integrity and advocacy. The study adopted a cross sectional survey and administered a structured questionnaire to 400 respondents from 10 different host communities of oil producing firms in the Niger Delta region of Nigeria. 301copies of questionnaire were retrieved and used to test the three hypotheses earlier formulated. The hypotheses were tested using the Pearson‟s Product Moment Correlation Coefficient while the reliability and validity of measurement instruments were also confirmed. The study results reveal a strong and positive relationship between transparent stakeholder involvement and trustworthiness as well as advocacy. The study concluded that transparent stakeholder involvement has a strong, positive and significant relationship with corporate credibility of oil firms in Nigeria. It therefore recommended that oil producing companies should interact with stakeholders in a transparent manner especially in their relationship with host communities, and government should also be seen to pursue trustworthiness, integrity and advocacy in the whole process.