Community Expectations from Ghana's New Oil Find: Conceptualizing Corporate Social Responsibility as...

Community Expectations from Ghana's New Oil Find: Conceptualizing Corporate SocialResponsibility as a Grassroots-Oriented ProcessAuthor(s): Nathan AndrewsSource: Africa Today, Vol. 60, No. 1 (Fall 2013), pp. 55-75Published by: Indiana University PressStable URL: http://www.jstor.org/stable/10.2979/africatoday.60.1.55 .

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In light of the already estab-

lished false developmental

promise of corporate social

responsibility in the litera-

ture, particularly in the oil

industry, a more grassroots

conception can yield greater

dividends than the usual

top-down and business-

case approach, which social

responsibility often takes.



Community Expectations from Ghana’s New Oil Find: Conceptualizing Corporate Social Responsibility as a Grassroots-Oriented ProcessNathan Andrews

The discovery of oil comes with many positive expectations from governments and citizens, but evidence of conflict- and problem-ridden resource-rich countries defies conventional knowledge—which suggests that abundance in resources culminates in socioeconomic blessings. Ghana recently joined the list of oil-producing countries, with oil production expected to reach 250,000 barrels per day in the next year or two; however, while transnational oil companies and the domestic government have begun making gains from this discovery, one of the nearby communities, Cape Three Points, is far removed from the rest of the country in access to basic amenities. This paper argues for corporate social responsibil-ity to be more grassroots-oriented, premised on the position that it is supremely important for extractive companies to adopt policies of social and environmental sustainability.

Discussions of oil and development are often placed in the context of the resource-curse thesis, which posits that countries rich in oil and gas resources are likelier to be cursed than blessed, since several factors account for the diversion of the wealth to other needs, often nondevelopmental needs. Yet, such discussions ignore the instrumental role that corporate social responsi-bility (CSR) plays in engendering or inhibiting the curse, if any. According to a recent World Bank study, “in many developing countries, natural resources are the proverbial main game in town, and the extractive industries sector is both shaped by and in turn has an influence on political, economic, societal, and institutional dynamics writ large” (Barma et al. 2012:1). This implies that the political economy that undergirds resource rents cannot be under-estimated if some sort of overall national bonanza is to result from resource extraction. Ghana recently joined the list of oil-producing countries, with oil production expected to reach 250,000 barrels per day in the next year



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or two, or perhaps sooner; however, one of the nearby communities, Cape Three Points (CTP), is far removed from the rest of the country in access to basic amenities, yet companies have trooped in to make gains from this discovery, and so has the domestic government, which has already received its first share of oil revenue. Recent news reports indicate that Ghana has lifted about 5.9 million barrels of crude oil, with accumulated revenue of US$903 million (Myjoyonline 2012).

The pilot study that informs this paper sought to engage with members of CTP to ascertain their expectations from the oil find. Research findings and existing literature lead this paper to argue for CSR to be more grassroots-oriented. The paper is premised on the principle that corporations whose work directly impacts surrounding communities have a crucial responsibil-ity toward these communities. Their ability to respond appropriately can be realized when the agency that CSR programs target is placed at the center of the negotiations and processes that result in them. If people are far removed from the government, as respondents at CTP indicated, they are likelier to be placed on the back burner of company priorities.

According to those who argue for the business case (Hamann 2004), it is the company’s prerogative to have CSR initiatives in place as a way to mitigate the negative impacts of its activities on both the society and the environment, with the ultimate goal of increasing its profit margin; however, for it to be more effective, these initiatives should be developed with the conscious involvement of the affected people, or those likely to be affected. Until the people feel they are being listened to and are being involved in this process, there is little that companies can do to appease them. Furthermore, it is incumbent on the domestic government to ensure that appropriate insti-tutions are in place to guarantee the protection of the people from exploita-tion. A government cannot use these transnational companies as scapegoats for the proactive role that it should be playing in community development, as the study shows that the people of CTP expect government to do more in improving their livelihood.

This paper is the outcome of a pilot study conducted in April 2011 to ask members of CTP about their expectations from the oil find. Overall, ten semistructured interviews and two focus-group discussions (comprising six men and four women, respectively) were conducted to ascertain general perceptions about community expectations. The primary question asked, which led to follow-up questions, was What do you see as the potential benefit of the oil discovery in your area? In part because of the qualitative focus of the research, the sample size represents such a small community fairly. The research could have benefited from interviews with government and company officials, but this would have meant expanding its focus, which was solely on initial community expectations. Moreover, since this was a new venture, it was unclear what kind of questions would have been relevant for officials to respond to. Future studies could examine the broader context of CSR in all of Ghana’s oil districts and engage more consciously with company-specific initiatives. This particular study, nonetheless, seeks



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to contribute to the ongoing debate on CSR and on the resource curse (more often associated with oil or gas resources). The paper is structured as follows: the first part provides a brief survey of the resource-curse thesis; the second part reviews the concept of CSR; and the third part offers a background to the oil-find dynamics in Ghana. The final part, with references to primary data, postulates CSR as a grassroots-oriented process. The conclusion sums up the paper and examines the way forward.

The Idea of the Resource Curse: True or False?

With regard to the resource-curse idea, it is instructive to refer to a World Bank report (2006) that asked, “Where is the wealth of nations?” The reason for asking this question is unclear, but one can assume that the bank admits that wealth generated from resource extraction in many countries has escaped the people (or countries) it has been expected to help. The report con-cludes that human and institutional wealth forms a greater portion of this wealth, as natural resources constitute only a quarter of the wealth in low-income economies, yet this amount is worth managing well if any dividend is expected from it. There is historical and empirical evidence that natural resources stimulate economic development when they are “combined with the accumulation of knowledge for economic innovation” (Lederman and Maloney 2007:3). This means that in combination with knowledge, good infrastructure, and good governance, natural resources will yield optimal returns—and that there is no resource curse, since the positive effects out-weigh the negative. However, in the context of Ghana, it may be difficult to identify a perfect combination of these stimulators. Therefore, to use Leder-man and Maloney’s assessment will mean that resources will not necessarily fuel or improve development.

Whether we call it resource drain, looting of Africa, or natural resource malfeasance, there is some evidence that countries with abundant resources are experiencing various forms of poverty, wantonness, conflicts, institu-tional decadence, economic retrogression, and general political or develop-mental instability. This is what is generally called the resource curse (Auty 1993; Stevens 2003) or the paradox of plenty (Karl 1997). A typical economic aspect of the curse will be the so-called Dutch disease, a situation where increased natural-resource exploitation puts the manufacturing and other sectors of the economy at a disadvantage—the boom and dislocation effect. Although Sachs and Warner (1997) presented empirical evidence of a statisti-cally significant and robust association between natural-resource abundance and economic growth, there is no agreement on whether the curse actually exists or not. Some promining and pro–free-market enthusiasts posit that mineral resources offer opportunities instead of curses (Davis and Tilton 2005), and some say that effects are both negative and positive (Stijns 2005). Countries may be politically and economically stagnant for many reasons. Therefore, using the curse as the sole justification for this phenomenon



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seems arbitrary. Also, the lack of consensus in the literature indicates that even though a curse may be apparent, what contributes to it or whether and how it can be terminated are unclear.

The validity of the resource-curse thesis itself has been questioned (Haber and Menaldo 2011), but the argument has been made that the extent of the curse depends on the ability of governments (institutions) to manage large resource revenues in a sustainable manner (Atkinson and Hamilton 2003)—meaning that it is contingent on political incentives (Robinson et al. 2006), the types of resources the country in question has (Boschini, Petters-son, and Roine 2007), and the nature of rent seeking (Sarraf and Jiwanji 2001). The collusion between corporations and government officials compounds the adverse consequences of resource wealth (Humphreys, Sachs, and Sti-glitz 2007). Other authors have called our attention to asking what political and social variables—present and historical—have caused some countries to utilize natural resources for development and what has prevented others from doing so (Rosser 2006; Snyder 2006; Snyder and Bhavnani 2005). From here, we can say the curse has social, political, and economic explanations, but it is becoming increasingly popular in the literature that “institutions are decisive for the resource curse” (Mehlum, Moene, and Torvik 2006:1).

Resources reside in an environment, but most explanations ignore this factor—the sociocultural milieu that can influence people’s notions of responsibility, probity, and accountability. Another often-ignored factor is that the ultimate curse could be the so-called Washington consensus. The literature is silent on the external factors that inspire the extent to which resource extraction benefits the home countries, as the focus has been on homegrown institutions and dynamics without accounting for the influence of high-handed campaigns or demands to open the markets. This would be a good research area for resource-curse scholars. Additionally, even recent literature takes the idea of democracy as a given, though it attributes its lack thereof to the abundance of mineral wealth (Ross 2001; Tsui 2011). In the Ghanaian context, it may be too early to start discussing the oil curse, though the country can take in good faith cautionary notes (Acosta and Heuty 2009; Green 2008) that show that, despite the potential to use oil revenue for its good (Moss and Young 2009), it remains uncertain whether this will play out positively or negatively (Gyampoh 2011).

The Concept of CSR

CSR, similar to the resource curse, is a contested discourse, with no par-ticular consensus around its scope and purpose. Considered “a philosophy about the relationship [between] business and society” (Ofori and Hinson 2007:179), it was formerly perceived primarily as corporate philanthropy. The scholarly literature dates to about the 1950s (Crane et al. 2008), even traceable to several centuries of evidence of “the business community’s concern for society” (Carroll 2008a:19).1 CSR has different names, and it



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means different things in different contexts, including corporate responsibil-ity, corporate ethics, and corporate citizenship (McIntosh 2003); corporate accountability, corporate social investment, corporate social performance, and corporate community relations (Burke 1999); business ethics (Crane and Matten 2007); corporate environmental management; and corporate develop-mental responsibility (Tavis 1982). By definition, a corporation is “treated by the law as having a legal individuality or entity other than that of a natural person” (Webster’s 1976:510). This makes the notion of an ethical corpora-tion a self-contradiction, because one cannot expect an artificial entity to adopt practices and policies that take cognizance of the social environment within which it thrives.

The Canadian Business for Social Responsibility defines CSR as “a company’s commitment to operating in an economically, socially, and environmentally sustainable manner, while recognizing the interests of its stakeholders, including investors, customers, employees, business partners, local communities, the environment, and society at large” (cited in Gawel 2006:11). For Hohnen and Potts, it is “the basis on which business renegoti-ates and aligns the boundaries of its accountability” (2007:6). Hirschland defines it as “the expectations of businesses by nonstate stakeholder groups, and the strategic management of these demands by businesses that help to assure profits and enterprise sustainability” (2006:7). Instead of CSR, some prefer to speak of corporate sustainability, meaning “meeting society’s expec-tation that companies add social, environmental, and economic value from their operations, products, and services” (PriceWaterhouseCoopers, cited in Hopkins 2006:20).

Others consider CSR part of an evolutionary or developmental pro-cess, which occurs “as organizations mature in their behavior and attitude towards both their stakeholders and their ideas concerning social responsi-bility” (Aras and Crowther 2009:48). This characterization assumes that a company will adopt a culture of responsibility as it evolves and matures, but the length of time needed for companies to reach this maturity is indetermi-nate, making such an assumption unreliable. The World Business Council for Sustainable Development says CSR is a “continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large” (Hopkins 2007:25). Carroll, in con-trast, thinks CSR is “the general belief held by growing numbers of citizens that modern businesses have responsibilities to society that extend beyond their obligations to the stockholders or investors in the firm” (2008b:122). This definition at least shows the need for CSR to extend beyond mere compliance with legal codes of behavior.

The UN Global Compact seems to be an enduring framework, launched in July 2000, for businesses that share the commitment to align their opera-tions, strategies, and practices with ten universally accepted principles, which fall within the areas of human rights, labor, environment, and anti-corruption. It is often regarded as the world’s largest corporate citizenship



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initiative, with an overarching mission to realize “a more sustainable and inclusive global economy through responsible business practices” (United Nations 2007:5). According to Ruggie, “the uptake of the Global Compact has exceeded the wildest expectations of any of its architects—suggesting that it does indeed respond to a critical need, at a critical time” (2004:17). The compact was part of an endeavor to salvage the state-based system of global governance from its struggles in an evolving international or global sphere and to show the role that international law can play in governing business and human rights (Ruggie 2002, 2007).

The literature on CSR in Africa is insufficient. In the Ghanaian con-text, an in-depth report by Atuguba and Dowuona-Hammond (2006) shows that while a variety of policies, laws, practices, and initiatives exist to pro-vide a framework for CSR, there is no comprehensive CSR document in the country. This makes it particularly hard for stakeholders who seek to hold corporations accountable for their socioenvironmental responsibilities. Its voluntariness does not make matters any better. Although CSR is gradu-ally embracing the concepts of accountability and profitability, the lack or ineffectiveness of regulation makes it lean toward the latter. The authors therefore recommend that a firm and consolidated CSR policy be developed so as to safeguard people and communities from the adverse impacts of corporate activities. This is because, while there is ample literature on the extractive industry in general (mostly on mining), the specific literature on the nature, scope, rationale, and impact of CSR initiatives in Ghana remains underdeveloped (Ofori 2007; Ofori and Hinson 2007).

Aside from this, there is little to show for the connection between CSR and development (Agbonifo 2011; Blowfield 2005; Frynas 2008; Idemudia 2007, 2010; Jenkins 2005). A study by Frynas found three different views of oil industry insiders regarding CSR: “CSR is a waste of time,” “CSR is about managing perceptions and making people inside and outside the company feel good about themselves,” and “CSR is a red herring in terms of develop-ment projects” (2005:582). In this respect, the four key drivers of CSR include obtaining competitive advantage, maintaining a stable working environ-ment, managing external perceptions, and keeping employees happy—con-cerns that drive oil companies to indulge in social investments in Nigeria but do not show how to make the delivery of development a crucial motive.

Jenkins (2005) argues that one of the ways in which business can contribute to poverty reduction is through job creation, but because of the abysmal numbers that local corporations usually employ, this impact is lim-ited. He believes that because the development agenda is missing from the CSR construct, even the UN Global Compact fails to be explicit on poverty reduction or equity, attributing it to the focus on environmental, labor, and human-rights issues. He presents a good case in saying that poverty reduc-tion is not the focus of CSR because in some cases building a hospital does not necessarily mean that the local people will have access to it, or that it is what they actually need. The same with donating money toward sports and cultural activities: the money may be going to local elites without trickling



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down to average community members. A survey by Corrado and Hines in Great Britain indicates that in defining CSR, responsibility to customers ranks as the most important element (at 20%), followed by responsibility to the local community (at 17%, cited in Michael 2003). This speaks volumes about the real intent of CSR, even in a global North context.

Fox (2004), in contrast, attributes the “ambiguous relationship” between CSR and international development to three main reasons, of which the first is the voluntariness of CSR: he argues it will be useful to concep-tualize CSR, rather, as a corporation’s overall contribution to sustainable development, be it positive or negative. The second reason is the dominance of the agenda by actors in the North, such as OECD-based nongovernmental organizations. This is compounded by the proliferation of global codes of conduct that ignore local views of responsible business. Lastly, Fox argues that the focus on large corporations is short-sighted because “not only are SMEs the mainstay of most economies in terms of employment creation, but their cumulative social and environmental impacts are highly significant” (2004:30). There is therefore a potential for sustainable development if CSR is to make SMEs relevant cases to study.

It is clear that the notion of CSR is lacking in many ways. To solidify the argument for a grassroots-oriented process, one can argue it has lost touch with local realities in oil-affected communities.

Ghana in the Limelight: Oil Find at CTP

Ghana’s offshore Jubilee field was discovered by Kosmos Energy, a US-based firm, in 2007, with an estimated amount of 0.6 to 1.8 billion barrels. It is located 60 kilometers offshore between the Deepwater Tano and West Cape Three Points blocks. Another significant discovery was made in February 2011 by Tullow Oil, an Anglo-Irish firm, which aimed to produce 55,000 barrels per day (bpd), increasing the net production to 120,000 bpd by the middle of that year. Phase I development of the core field has been underway since July 2008, with the first batch of oil delivered in December 2010. By May 2011, the field was reported to be producing about 70,000 bpd from five wells, including the Odum, Mahogany-1, Mahogany-2, Heydua-2, and Mahogany-3 wells (figure 1). The expectation was that this estimate would increase to 90,000 bpd by the end of the third quarter of 2012 (Daily Guide 2012), having already increased to an average of 85,000 bpd earlier in that year. By June 2012, the Government of Ghana had accrued $680 million from six crude-oil liftings2 (Ghanaweb 2012a, 2012b), with an addition of $434 million at the end of September 2012. This represented a 29 percent increase in oil revenue (Dontoh 2012). The International Monetary Fund speculation is that over the period 2012–2030, $20 billion could accrue to the Ghanaian government as rents from the oil and natural gas production at the Jubilee field (International Monetary Fund 2008). Just as the country’s approximate 14.4 percent GDP growth rate for 2011 (Ghanaweb 2012a, 2012b) was partly



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attributable to oil exploration and exports, even the depreciated 8.5 percent estimate for the 2012 GDP growth rate was boosted by oil outcomes.

The western coastal belt of Ghana, which includes the Tano, Cape Three Points, and Saltpond basins, has substantial deposits of oil. This par-ticular study, however, focuses on just CTP because its offshore waters were where oil in Ghana was fi rst found, in 2007, with a projected deposit of 600 million barrels (Modern Ghana 2007). CTP, with a latitude of 4.75 (4° 45' 0 N) and a longitude of –2.1 (2° 6' 0 W), is a small peninsula in the western region of Ghana, located between two coastal towns, Dixcove and Princess Town. It is situated 362 kilometers south of the approximate center of Ghana and 227 kilometers southwest of the capital city, Accra. It has a population of about 500 people, who mainly fi sh and farm for subsistence and occasionally for microscale profi ts within the community. Before the discovery of oil, its Tourism Development Committee promoted the village for its lighthouse, a popular attraction. The currently functioning solar-powered lighthouse, built in 1925, gives tourists a nice view of the surrounding landscape and sea. There has been some gold mining in the area, but it has not yet led to basic devel-opmental amenities for the residents.3 Tullow Oil holds the West Cape Three Points license with 22.9 percent; partners on the license include Kosmos Energy (30.88%), Anadarko Petroleum (30.88%), Sabre Oil and Gas (1.85%), the Ghana National Petroleum Corporation (10%), and the EO Group (3.5%).4

Figure 1. Area view of Ghana’s offshore sedimentary basins, with Cape Three Points Basin in the center (GeoExPro 2012).



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CSR as a Grassroots-Oriented Process: Discussion of Finding5

The findings from this study suggest that CSR initiatives can benefit immensely from an agent-oriented configuration that sees social responsi-bility from a bottom-up or grassroots perspective. By grassroots, I refer to the communities whose daily lives have been affected in one way or another by oil. Idemudia, assessing corporate development partnership initiatives involving Exxon Mobil’s business-NGO partnership model, Total’s business-community partnership model, and Shell’s business-state partnership model in Nigeria, concludes that “ ‘bottom-up’ corporate partnerships appear to be a much more efficient and effective means for oil TNCs to deliver on their affirmative duties than any alternative approach” (2009:112). The Ghana example is new, and thus it will be difficult to speculate fully the form or scope that CSR activities will take; hence, the Nigerian example does offer a good instance where crude oil exploration in commercial quantity began as early as the late 1950s (Idemudia 2010). In light of the already established false developmental promise of CSR in the literature, particularly in the oil industry (Frynas 2005), a more grassroots conception can yield greater dividends than the usual top-down and business-case approach, which social responsibility often takes. This conception involves four main interrelated steps: listening to the people, establishing initiatives that identify with their specific needs (instead of imposing a predetermined CSR program on them), being self-reflexive and adapting to the changing times (including the changing needs of affected communities), and government taking full responsibility for its developmental and legal-regulatory role. Overall, the understanding of CSR in this paper is one in which the government plays a key role, in terms of regulating companies and delivering its mandated share of the developmental promise.

Listening to the People

Well, this is Cape Three Points, where the oil is being drilled, but did you see the kind of road you drove on when you were coming? You carefully look at the deplorable state of this com-munity. Does it look like a place where oil is explored? There is no electricity here, no potable drinking water, no health post. So once the oil is drilled here, we expect that at least there will be electricity and good roads, as well as a health post. (Kojo 2011)

The above statement by Kojo, the first man interviewed in the community, is a concern that ran through most of the responses this research generated. Another man, Kwesi (2011), added, “We have said a lot, but we haven’t seen anything yet.” His main concern was, “When you even say what you expect, it will not be done, so what is the need? If I had seen you earlier on, I wouldn’t have waited to respond to you; maybe I would have gone to sleep.” People in



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Ghana are generally hospitable and open to visitors, but Kwesi did not see the importance of speaking about his expectations as a result of the neglect that CTP had experienced before the oil find. He therefore doubted whether the oil find would make any difference or would necessarily cause someone to listen to him. A female respondent confirmed this: “As for oil, so much was expected from it, but we still haven’t seen anything, and I don’t think it really brings any changes here. . . . We are still suffering from poverty” (Maame Akosua 2011).

Listening is a crucial aspect of community development. To move CSR away from a high-handed abstract configuration, the government and com-panies will have to listen and understand the complex sociocultural milieu within which extraction takes place. As argued by Humphrey, “a company that does not listen attentively will not pick up nuances of community opin-ion and cannot expect to establish a secure basis for good-quality relations. There is therefore the need for oil MNCs to seek innovative ways to improve corporate-community communication” (cited in Idemudia 2007:400). The people interviewed at CTP expressed a sense of hopelessness with regard to being listened to. Kosmos Energy pledges: “Kosmos is a caring corporate citizen, committed to partnering with communities in our operational areas. We initiate and support efforts to improve lives in those communities by developing programs targeting health care, education, and community development” (Kosmos 2012), and Tullow Oil speaks of an aspiration “to create shared prosperity for our shareholders and for our host countries and local communities” (Tullow Oil 2012), but the visit to CTP revealed that no company has been in direct contact with the people. It is unclear how notions of “creating shared prosperity” or “partnering with communities” will be upheld if the said communities have not yet been visited.

A man in his sixties, Atta (2011), declined our request to discuss his expectations, based on his belief that “I don’t think it will be met, so there’s no need to talk about them.” Nevertheless, CTP is not the only community affected by oil drilling, and it is possible the other communities this study did not capture have been well contacted or consulted. People at CTP were particularly worried that the launch of the Jubilee field was done in Sekondi-Takoradi, the capital city of the Western Region of Ghana. Some noted that having the launch at CTP would have revealed their plight to investors and prospecting companies that may have been in a position to help them. For now, they think the expected employment and other socioeconomic benefits of oil drilling, if any, will be felt by people in the city, more than by those in the rural communities that may be experiencing directly any devastating impacts of the project. The need for a good relationship cannot be overem-phasized because in the context of oil-fueled violence in the Niger Delta, a poor relationship and the misrepresentation of facts and figures have played a key role (Idemudia 2007). This relationship begins with good communication and mutual understanding of what should be prioritized.



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Needs-Based CSR

Establishing initiatives that identify with people’s specific needs instead of imposing a predetermined CSR agenda on them has the potential to improve outcomes. While the literature is silent on the nature and scope of CSR in Ghana itself, the whole idea is being pursued as a Western idea, pushed on local communities without the ability to add their voice, or even without full assessment of their needs. In Ghana, “companies have tended to set their own rules and generally make their own decisions, financing community development programs of their choice and engaging in barbaric activities such as military sweeps” (Hilson 2007:46). In fact, Peter Bradford, chief executive officer of Golden Star Resources Ltd. (a Canadian mining company operating in Ghana), is reported to have agreed that “projects sometimes lacked full consultation with and ownership from the community” (Golden Star Resources 2006, cited in Hilson 2007:51). This means that regardless of how much money is pledged and actually used, demonstrable development outcomes will still be lacking. This study was done during the early stage of oil exploration, but people interviewed reported direct impacts they had begun to experience:

Those who drill the oil, I don’t know how they are doing it. A lot of rubbish [mainly plastic waste] comes to the shore all the time. The kind of things it even blows into our eyes—it is even affecting our eyes. Here we are fishermen, but you go fishing and you don’t get anything but refuse. Because of the oil in the sea, the fish we harvest are small, and this is affecting our living standards. Already this is a poverty-stricken area, and our main source of livelihood is tampered with as a result of this drilling. (Yaw 2011)

Despite Yaw’s concern, a female respondent did express doubts about whether the filth that comes from the sea was mainly a result of the drilling “because we can’t really tell if it is coming from the oil exploration or not. All we know is that the sea brings it here” (Naana 2011). This, however, does not discount the general perception among the villagers that oil drilling has affected the environment—which has therefore had a negative impact on the fish they harvest and their farm produce, such as cassava. Maame Akosua (2011) speaks of this telling impact:

You see, it is when our men go for fishing that we the women get some to sell and make money to take care of ourselves. But now when they cast their nets in the sea, it is mostly refuse they catch and very little fish. It is refuse, refuse the oil has brought us! You go to the sea and see for yourself. Even the cassava that we grow here, even when you taste it, it doesn’t taste well.



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The Akan6 word nwura, which can be glossed as “refuse,” is much stronger and represents the disgusting outcome of oil drilling. Using it twice in one sentence, as Maame Akosua does, signifies utter disgust. Cassava is a staple food in most rural areas in Ghana, and since she has been preparing most of the dishes for her household, she can attest to the difference in taste, yet it is a different case whether or not oil drilling necessarily adulterates the taste of farm produce. Overall, female respondents in this study expressed stronger and more passionate sentiments with their choice of words and body language.

Some commentators (Adanhounme 2011; Vertigans 2011) have estab-lished a connection between current CSR projects in Africa and the colo-nial civilizing mission. To some extent, these authors think the past has not really passed because the practice of building schools and hospitals to improve the living standards of the poor does not necessarily address the voice of the subaltern. As already apparent in the literature “the northern-centered nature of mainstream CSR agenda means that it is not just insensi-tive to local priorities, but also potentially harms the prospects of sustainable livelihood in the south” (Idemudia 2007:370). In CTP, nevertheless, the needs that people expressed included accessibility to potable water, a clinic, electricity, toilets, and motorable roads. Lack of access to a basic amenity like a clinic is detrimental to everyone’s health, particularly women’s. One woman noted that crossing the river to the next town, Dixcove, is the only option, since the road network is bad: “And for the women, if you are in labor around that time, you have to cross the sea in a canoe to the next town for a vehicle, and if you are not lucky, you can die or lose your [unborn] child” (Ama 2011).

While I am sympathetic to the notion that CSR is a colonizing mis-sion, I argue that CSR, if it should exist, should target what the people say they need. By doing so, they will have a voice in connecting projects to their needs, though admittedly these are basic amenities that government should provide, with or without oil. But as the women in the focus group expressed the need for a clinic that would attend to their health needs, it is difficult to deny them the possibility of CSR living up to this expectation. In essence, understanding and appreciating the local context and culture within which CSR activity is expected to work could improve its outcome. A process of deliberative democracy whereby locals are made an integral part of the CSR agenda can reduce the tendency of projects to represent the colonial past. Even when oil companies in the Niger Delta have shifted to a more develop-ment-conscious CSR approach, the community-development partnerships, the failure to involve the community in the design, implementation, and monitoring of community-development projects means that these projects and initiatives “often fail to reduce voicelessness and powerlessness in its [sic] host communities and therefore undermine the impact . . . on poverty reduction” (Idemudia 2009:102).



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Flexibility and Adaptability of CSR

Apart from listening to the people and addressing their needs, CSR should be a continually evolving process, one that measures up to the fluidity of the sociocultural structures in which it is embedded. The three-phase evo-lution of CSR in the Nigerian case is a good example here (Idemudia 2010). Social responsibility is a never-ending activity because the more profits companies make, the more communities may expect them to be account-able and responsible for the negative social and environmental impacts of their operations. The demographics of many oil-rich communities will keep changing because of the boom and bust of oil production, and therefore CSR should acknowledge the change so as to engage in activities that target the bigger population, not just the enclave communities often identified by oil companies.

Because of the current state of things at CTP, this research found that the young men who are unable or unwilling to engage in subsistence fishing or farming migrate to Côte d’Ivoire in search of greener pastures. Some even-tually return, mainly during popular holidays and festivals, to bring goodies to their families. Since Sekondi-Takoradi is the hub of the oil action, it is likely that those men who remain will migrate there, leaving CTP almost a ghost town, a town full of older people who can do little for themselves. A grassroots-oriented CSR will seek to address the issues that result in this migration and curb it so as to ensure that the young and healthy are helping in the development of their own communities instead of fleeing. The inabil-ity of CSR to live up to this expectation in Ghana is evident in the mineral sectors, where some previously booming mining towns, such as Badukrom, Atakrom, and Kronko, have become ghost villages (Akabzaa, Seyire, and Afriyie 2007; Nyame, Grant, and Yakovleva 2009).

Another issue that reflects the lack of flexibility of CSR in Ghana is the discussion that ensued in parliament on the proposed Petroleum Revenue Management Bill 2010. The agitation was mainly over clause 23, which states that “outside of the national budget allocations extra budget-ary activities and statutory earmarking of petroleum revenue for any special considerations is prohibited” (Parliament of the Republic of Ghana 2011:11). This provision contradicted the demand by local authorities in the Western Region, who requested that about 10 percent of revenues should be allo-cated to the development of their region. This would differ from company-specific CSR initiatives, but it was heading for compulsory CSR legislation in Ghana’s oil laws, as in Nigeria, where oil companies are required to “contribute 3% of their annual budget to fund the federal government’s development initiative for the oil-producing communities” (Okpanachi and Andrews 2012:440). Nonetheless, the bill was passed in March 2011 without the amendment that would make it a legal requirement to deal with the developmental needs of oil communities.



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The revenue is not supposed to be for this community: it is for all the surrounding communities. But even that—people still sit in Parliament and debate that no revenue should be allocated to communities that will be affected. Because others say that in the Ashanti Region, where gold is mined, no com-pensations are paid to surrounding communities that suffer from mining activities. (Kojo 2011)

This statement was the main argument by the parliamentarians who opposed the proposal, but the lack of adequate compensation in mineral-mining areas of Ghana has neither resulted in sustainable development nor improved livelihoods (Bush 2009; Hilson 2002). People have already been experiencing the effects of oil drilling, and having such a condition in the revenue bill (now an act) would have shown the country’s ability to learn from past mistakes and make the situation better for people in oil-affected communities.

Responsible Government

No measures have been put in place to meet our expectations. It has always been empty promises upon empty promises. As for us, we feel we are not part of the government. (Nana 2011)

A fourth angle to this approach, which sits outside the purview of oil com-panies, is the role of government. There has been a tendency to shift the blame to the government in the Niger Delta case, for instance—a scenario where there exists a ping-pong relationship between company and govern-ment without a clear understanding of who does what (Idemudia 2010). On the other hand, community members, instead of relying on the government for basic amenities, resort to relying on oil companies’ community-develop-ment projects and programs—a case that Vertigans (2011) argues resembles the colonial past and thus a formidable threat to any nation-building and responsible governance efforts. At these early stages of the development of oil in Ghana, the community members interviewed at CTP did mention the government several times, implying that it is the responsibility of the government of Ghana to deal with the situation of bad roads and the lack of access to other basic needs, such as potable water and proper housing and electricity. These mentions solidify the point already made: that people at CTP have not been contacted by any of the oil companies, at least at the time this research was done. Several statements speak to the hopelessness of community members regarding what government can do.

Governments after governments come with all kind of prom-ises during campaign time. Fleets of vehicles come here, all in the name of trying to know our needs so that once they are elected in power they will help. But as soon as they win,



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they forget about us. When they give us such promises, we give them goods such as goats and foodstuffs, because we are excited. It is left with the hairs on our penis that we haven’t given them. However, nothing comes up at the end of the day. As for us, we know no government will do anything for us. (Opanyin 2011)

This lack of faith in government is a result of many years of empty promises regarding basic goods and services. Despite this, the villagers engage in a ritual of gift-giving where government officials who visit are offered several livestock and some farm produce out of the little they have. While this is a common practice in most rural areas, it is unclear why people still do this in the light of the living conditions they face. Kwesi (2011), for instance, resolved: “We know that maybe some government will mind us someday, but as of now, it feels like we are not a part of Ghana.” This point was reiterated by a family elder, Abusuapanyin (2011), who noted, “We are really far from government; the government doesn’t even know us.” While Ghana is generally considered to be doing well on a national scale in terms of GDP figures, there remain poverty and social exclusion in many rural areas (Ackah and Aryeetey 2012; Adjei and Buor 2012). However, in CTP, the people feel entitled to a better life because much money is being made off their shores. Beyond its own developmental responsibility, the government is expected to have robust oil legislation in place to safeguard communities.

Idemudia notes that community perceptions usually form the basis for community action, be it disruptive or supportive; hence, identifying the factors that influence and shape these perceptions presents “fertile ground for a better understanding of community actions” (2007:236). Therefore, being cognizant of these perceptions in Ghana is useful toward ascertaining the actions that oil communities can take. But so as not to divert attention from systemic political and economic solutions that can come from within, as suggested by Frynas (2005), the Ghanaian government should play its part in addressing the basic concerns of communities; companies cannot be used as scapegoats for the basic duties it owes its people.

Conclusion: Way Forward?

Many will agree that “resource wealth should translate into collective and sustainable development” (Barma et al. 2012:234, emphasis in original); however, this normative or ideal understanding of the expected outcome of resource extraction is often met with practical realities that make one continually wonder why the situation is quite the opposite. I have argued, in the context of CSR, that a more bottom-up approach is needed to ensure that developmental programs and initiatives in Ghana’s oil communities meet popular expectations. Also, by arguing for a process, I mean that CSR cannot be conceived as an end-state because it should continually evolve to



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attend to the changing needs of all of its stakeholders. Such an endeavor will be crucial to ensuring both the acceptance and the sustainability of measures to mitigate the adverse effects of oil extraction on host communities. Two years after the study that informs this paper was conducted, it is now worth-while to examine other dynamics that have played out in Ghana to begin to speculate whether the country will escape the resource curse or not (if such a thing exists at all). Also, more research is needed on the nature of specific community demands and how companies and government are responding to them, in addition to a analysis of companies’ CSR initiatives and their effects on oil-effected communities beyond CTP.

In the broader scheme of things, Okpanachi and Andrews (2012) have outlined four lessons Ghana can learn from Nigeria so as to make good returns from its oil wealth instead of deteriorating into a typical paradox-of-plenty example. According to them, areas that need continuous strength-ening and improvement include the legal and regulatory framework and redistributive policies, oil management (particularly the management of oil revenue), corporate social responsibility, and the oil–civil-society complex, which has the potential of ensuring community participation and overall transparency. If these issues are handled carefully, in addition to making CSR more agent-oriented, Ghana could be a brightening example of a country that has used resources to its benefit.

ACKNOwLedGMeNts

due appreciation goes to Patricia serwaa Afrifa and Alex Osei-Kojo for their research assistance

in the field. An earlier draft of this paper was presented at the 2012 African studies Associa-

tion annual conference in Philadelphia. sincere thanks to Michael Nelson and members of the

panel for their feedback. I am also grateful to the anonymous reviewers of this journal for their

thoughtful comments and suggestions. Finally, I wish to acknowledge the financial support

of the trudeau Foundation and the social sciences and humanities research Council, both of

which were received at the time this paper was being prepared. the usual disclaimer applies,

nonetheless.

NOtes

1. some date it to the nineteenth-century boycotts of foodstuffs that were thought to have

been produced with slave labor or the moral vision of entrepreneurs such as Cadbury and

Marks (Frynas 2008:275).

2. this simply refers to the carrying of oil, in commercial quantities, from the drilling/production

site for export or consumption.



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3. Nobel Mineral resources Limited, a U.s.-based company, has begun work on its shared venture

with AXMIN Limited, Consolidated Minerals Limited (Ghana), and the republic of Ghana in

northwestern CtP. see http://www.nobleminres.com.au/projects/cape-three-points.

4. see http://www.offshore-technology.com/projects/jubilee-field.

5. Pseudonyms are used to maintain anonymity while capturing the views of interviewed

community members.

6. Akan, with many dialects, is one of Ghana’s most-spoken languages. Interviews were

conducted in it.

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