Chevron Adopts Shared Value As A Strategy To Impacts Positively On Host Communities    

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Shared Value Service is a management strategy in which companies find business opportunities in social problems while philanthropy and Company Social Responsibility (CSR) focus efforts on “giving back” or minimizing the harm business has on society. Shared value focuses company leaders on maximizing the competitive value of solving social problems in new customers and markets, cost savings, talent retention, and more

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide also third-largest oil producer in Nigeria and one of its largest investors. Chevron is known for environment friendly

“Chevron has shown itself to be honest and consistent in carrying out corporate responsibility programmes. The GMoU concept is the right approach for developing the communities of Niger Delta. Chevron is committed to transparency in implementing whatever it agreed to with its stakeholders. The beauty of the GMoU is that it focuses on the people and their ability to manage themselves. It is a document that has been put in place for the common man and the local man.

We now see the imitative as our own instrument and no more Chevron’s instrument and we are willing to make it grow.” By Barry Negresse, Chairman of Dodo River RDC     

In Nigeria, Chevron Nigeria Limited (CNL) operates under a joint venture arrangement with the Nigerian National Petroleum Corporation (NNPC) and has assets on land, in swamp and near-offshore regions of the Niger Delta.

Also CNL has extensive interests in deepwater especially its operation at Agbami field, one of Nigeria’s largest deepwater discoveries. Not only that, the company has a non-operated interest in another major deepwater development, the Usan project.

Chevron and subsidiaries provide career opportunities for Nigerians, hired as employees and contract workers through third party. The company is involved in virtually every facet of the energy industry.

Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes through transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels.

Therefore it becomes necessary for the CNL to adopt shared values strategy to build prosperity in the region and improve its operating environment. One of the strategies is  the Chevron’s “Partner Initiatives in the Niger Delta” uses a data-driven approach to identify new market opportunities and local solutions to unemployment in the region.

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Since 2005, when CNL/NNPC joint venture agreement adopted a new approach (model) called the Global Memorandum of Understanding (GMoU) , the company has provided billions of Naira or several millions of dollars to the eight RDCs fund use to community engagement in the Niger Delta designed to create participatory development processes to address needs of communities around areas of operations.

“Where the GMoU started on October5, 2005, one of the significant changes that have occurred so far is improved relationship, a better understanding of the feelings of each other. The GMoU is building a bridge based on trust and commitment on the part of the main stakeholders. CNL has never been committed to community affair as it is doing right now. The company has been faithful in meeting its own part of the agreement.” By Edmund Doyah-Tiemo of Egbema Gbaramatu Central Development Committee.

Since then the Global Memorandum of Understanding (GMoU) has proved the value of letting local communities determine their development needs and play a prominent role in realizing their dreams.

Meanwhile, CNL’s shared value strategy is designed to make host communities takes driver’s seat in their own development desired that is the committees work with communities to produce Community Development Plans (CDP) which are designed and carried out to improve the livelihoods of their people has be proving to be effective.

For instance, the records shown that over 600000 people in more than 400 communities, villages and chiefdoms have benefited from the projects. In figures, a total of 258 projects worth about $83million had been completed and commissioned in Regional Development Committees (RDC) communities. These projects cut across education, health & sanitation, economic empowerment, capacity building and transportation.  The projects include; classroom blocks, teachers’ quarters, jetties and walkways, housing units, health centres, portable water, electricity and a micro-credits programme in which people get revolving loan to purchase taxi cab or tricycle for public transportation.

“There are three things Chevron has done that nobody from Delta State can contest. From 2005-2008, we have had a N1.3billion contribution from chevron which we’ve used to execute projects. These projects include skills acquisitions, constructions of training complex in Warri and a town hall in Jakpa. We are building two-bedroom housing units in our 23 Itsekiri communities.” By Mofe Pirah, Chairman of Itsekiri RDC    

The beauty about this shared value strategy, the report disclosed is that some have grown to become registered foundations running their own race or with other development agencies to execute programme. This model of shared value has significantly raised the capacity of the communities, thereby enabling them to drive their development needs and execute complex business transactions by themselves.

According to the reports, CNL provide potential media and other relevant partners with information and resources on their shared value activities, and/or to identify a social issue of importance around which they would like to convene outside partners within the regions

More companies are now building and rebuilding business models around social good, which sets them apart from the competition and augments their success.

For instance, 2009’s GMoU agreement with USAID to extend capacity building support its Advocacy Awareness and Civic Empowerment (ADVANCE) programme implemented by PACT. Chevron contributed about N83million ($550000) to supplement approximately N228million ($1.5million) in funding from USAID for the ADVACE programme over 12 months.

 

 


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