ICANBusiness, Management and FinanceBusiness Ethics and Corporate Social Responsibility2021

QUESTION 2 Nigerian National Petroleum Company Limited (NNPC Ltd) recently published its maiden Sustainability Report following its conversion from a government corporation to a limited liability company under CAMA 2020. The report highlighted several CSR initiatives including funding of scholarships for students in Niger Delta communities, construction of rural health centres, and a commitment to reduce gas flaring by 40% within five years. However, a non-governmental organisation (NGO), Clean Future Nigeria, has alleged that the company's CSR activities are merely 'greenwashing' – a public relations exercise designed to distract from its continued environmental violations in Bayelsa and Rivers States. You are a management consultant engaged by the Board of NNPC Ltd to advise on its CSR strategy. Required: (a) Explain the concept of 'greenwashing' and describe FOUR indicators that could support Clean Future Nigeria's allegation against NNPC Ltd. (8 marks) (b) Distinguish between philanthropic CSR and strategic CSR, and advise NNPC Ltd on how to transition from a philanthropic to a strategic CSR approach, giving THREE practical examples relevant to the oil and gas sector. (12 marks) (c) Identify THREE international frameworks or standards that NNPC Ltd should adopt to strengthen the credibility of its sustainability reporting. (6 marks) (Total: 26 marks)

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