Institutional pressures and CSR reporting pattern: focus on Nigeria’s oil industry

This chapter examines the nexus between institutional mechanisms and corporate social responsibility (CSR ) reporting/disclosure pattern in Nigeria. It explores the role institutions play in framing and “legitimising” CSR reporting in Nigeria. The chapter focuses specifically on Nigeria’s oil industry, which is habitually known for lack of accountability, legitimacy, responsibility and transparency in its operation. Institutional issues are considered as being formal and informal. It is often argued that the combination of formal and informal elements of institution , in any social setting, influences and frames the adoption or otherwise of CSR by organisations, through their adherence to acceptable governance regime. Like any jurisdiction, CSR reporting in Nigeria, is heavily influenced by politico-cultural, regulatory, governance and institutional realities, which constrain and/or enable the adoption of a specific type of CSR reporting: good or bad. Consequently, organisations report CSR activities in response to regulatory regimes; cognitive pressures that facilitate an understanding and interpreting CSR practice correctly; and, socio-cultural values enforcing and regulating the same practice. However, in corrupt regime like Nigeria, CSR reporting tends to foreground social performance and philanthropy at the expense of accountability and business responsibility , which disadvantages wider stakeholders’ interests. Through prior literature reviewed, this paper highlighted and found that multinational corporations (MNCs) in Nigeria use CSR reporting to advance shareholder interest, legitimise their behaviour and advance profit maximisation, given a lack of poor institutional regulations influencing CSR reporting. This CSR practice results in a lack of accountability, legitimacy and responsibility in CSR (reporting) in Nigeria.