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  • i

    EFFECTIVENESS OF CORPORATE REPUTATION MANAGEMENT STRATEGIES IN SELECTED OIL & GAS

    COMPANIES IN NIGERIA

    BY NKWOCHA, JOSIAH AKALAZU REG. NUMBER PG/Ph.D/07/46733)

    DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION,

    UNIVERSITY OF NIGERIA (UNN) ENUGU CAMPUS

    FEBRUARY 13, 2014

  • ii

    EFFECTIVENESS OF CORPORATE REPUTATION MANAGEMENT STRATEGIES IN SELECTED OIL & GAS

    COMPANIES IN NIGERIA

    BY NKWOCHA, JOSIAH AKALAZU REG. NUMBER PG/Ph.D/07/46733)

    BEING A THESIS PRESENTED TO THE DEPARTMENT OF MARKETING, FACULTY OF BUSINESS ADMINISTRATION,

    UNIVERSITY OF NIGERIA, ENUGU CAMPUS. IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

    FOR THE AWARD OF A Ph.D DEGREE IN PUBLIC RELATIONS MANAGEMENT

    DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION,

    UNIVERSITY OF NIGERIA (UNN) ENUGU CAMPUS

    SUPERVISOR PROF. JUSTIE O. NNABUKO

    FEBRUARY 13, 2014

  • iii

    DECLARATION

    I, NKWOCHA, JOSIAH AKALAZU, a postgraduate student of the Department of

    Marketing, with Registration No. PG/Ph.D/07/46733, has satisfactorily completed the

    requirements for the courses and research work for the degree of DOCTOR OF

    PHILOSOPHY in Public Relations Management.

    The work embodied in this thesis is original and has not been submitted in part or full

    for any Diploma or Degree of this or any other University.

    --------------------------------------------

    NKWOCHA, JOSIAH AKALAZU Registration No. PG/Ph.D/07/46733

  • iv

    APPROVAL PAGE

    This thesis has been read and approved for the Department of Marketing,

    University of Nigeria (UNN), Enugu Campus

    ----------------------------------- -------------------------------------------

    PROF. J. O. NNABUKO, Ph.D E A. EHIKWE, Ph.D Supervisor Head, Department Of Marketing

  • v

    DEDICATION

    To God Almighty, who granted me this educational milestone.

    To my parents, Mr. Samuel Nnoromele Nkwocha-Eke (1904 1991) and

    Mrs. JoannahMgbeke Nkwocha (1911 1976).

  • vi

    ACKNOWLEDGEMENTS

    Many people have played supportive roles in making my Ph.D programme and this

    research report a reality. I owe a debt of gratitude to all of such persons.

    Firstly, is late Professor Ikechukwu E. Nwosu, an international marketing

    communications scholar, who was my Course Director/Supervisor before he died on 28th

    May 2011. He supervised my Masters Degree project, wrote the Foreword of my book

    on Media Relations Management, and encouraged me to do a Ph.D. He was my mentor.

    I pray that God Almighty will grant his soul eternal rest.

    My next debt of gratitude goes to Prof. (Mrs) J. O. Nnabuko, PhD, former Associate

    Dean of the Faculty of Business Administration who was re-assigned to be my

    Supervisor. She did so with great commitment and guidance. So also are: Prof. (Mrs)

    Geraldine E. Ugwuonah, Dean of the Faculty of Business Administration; Dr. Andrew E.

    Ehikwe, the current Head of Department of Marketing, Dr. E. K. Agbaeze, the Faculty

    of Business Administration representative at the School of Postgraduate Studies; Dr.

    Shedrack C. Mogoluwa, the former HOD Marketing; Dr. Joseph.I Uduj and Dr. A.C.

    Nwaizugbo, (now at Nnamdi Azikiwe Universtiy, Awka).

    I also thank my fellow Ph.D candidates who, through peer-review mechanism, made

    constructive criticisms that eventually enriched my work. They are Benedict Odigbo,

    Festus Akande, Livinus Ekemezie and Silk Ugwu.

  • vii

    My thanks also go to the following persons who played various roles in enriching this

    study: Dr. Tyotom Keghku of Benue State University; Dr. Wole Adamolekun of the

    Petroleum Products Pricing Regulatory Agency (PPPRA); Mr. Peter Ademu-Ette, Public

    Relations Adviser at Shell Petroleum Corporation (SPDC); Emenike Okorie of Chevron

    Nigeria Limited; Yemi Fakayejo of ExxonMobil, Karibi George, Chairman of NIPR Rivers

    State Chapter; and officials of Department of Petroleum Resources (DPR). Let me also

    acknowledge the efforts of my Research Assistants, Nkiruka Chukwumee and Wilson

    Nnanyere Okere, who worked hard in sourcing materials for this study and

    administering our questionnaires on respondents.

    I wish to appreciate my boss, Manish Mundra, who inspires me to be the best in my

    profession. Others are my secretary Mike Achaziem, Theo Nwachukwu, Dr. Ngozi

    Anyaegbunam, Chief Adolphus Okebugwu, Stanley Egbochukwu, Onome Osifo-Whiskey

    and Sam Ozioko who assisted in various ways.

    My family deserves great mention for being my greatest source of strength and

    happiness. My wife, Lady Joy Nkwocha; and the children Jewel, Joan, Jerry, Jossy

    Junior and Joyce gave me the peace of mind that made it possible for me to combine

    both work and studies. So also is my brother, Nelson Nkwocha. Finally, the greatest

    gratitude goes to God Almighty.

    NKWOCHA, JOSIAH AKALAZU,

    February, 2014

  • viii

    ABSTRACT

    Corporate Reputation Management (CRM), a multi-disciplinary concept in Public Relations practice, is an important management function in the oil and gas industry in Nigeria. Its five major strategies namely strategic communications, stakeholder engagement, corporate social responsibility (CSR), events & protocols management, as well as issues & crisis management have been employed in building, sustaining, promoting, projecting and repairing the reputation of selected oil and gas companies since the middle 1990s. However, the companies have continued to suffer from hostile community agitations, bitter public complaints, sabotage of oil facilities, negative media publicity and other reputational defects despite huge budgets to these areas. This has prompted the need to evaluate the effectiveness of the CRM strategies. The study had the objectives to: (i) ascertain if international oil companies operating in Nigeria have significantly adopted CRM strategies, (ii) find out whether the CRM strategies identified were effective in building and sustaining the reputation of the selected oil companies, (iii) assess if evaluative research about the effectiveness of CRM strategies was usually carried out in the Public Relations operations of the selected oil companies in Nigeria, (iv) ascertain the level of knowledge of the culture of CRM in the selected oil companies and (v) determine the level of relationship between CRM and successful business operations in the oil and gas industry in Nigeria. This study adopted a survey design methodology. The five hypotheses formulated in the study were tested appropriately. The findings show that the CRM strategies are highly effective but they have been poorly applied in the selected oil and gas companies namely Shell Petroleum Development Corporation (SPDC), Chevron Nigeria Limited, ExxonMobil Corporation and Nigeria Agip Oil Company Limited. The findings also show that CRM is not strategically positioned in top management hierarchy of the companies to participate in policy formulation and playing its leading role in building positive image for the organisations. The study has made various recommendations to address and redress these anomalies so that the oil and gas industry in Nigeria would build better relationships with critical stakeholders based on mutual understanding and benefits. Most importantly, the study recommended full and optimal application of the five CRM strategies, and a new model in stakeholder engagement called Partnership and Participation in Community Relations and Development (PPCRD) while corporate reputation management should be located in the top management hierarchy so that it could be given the attention it deserves in the oil and gas industry in Nigeria.

  • ix

    TABLE OF CONTENTS

    Cover page ............................................................................i

    Title page --------------------------------------------------------ii

    Declaration. iii

    Approval page iv

    Dedication. v

    Acknowledgments..vi

    Abstract....vii

    Table of Contents -------------------------------------------viii

    1.0 CHAPTER ONE: INTRODUCTION

    1.1 Background of the Study --------------------------------------- 1

    1.2 Statement of the Problem ........ 6

    1.3 Research Objectives ..............10

    1.4 Research Questions ...............11

    1.5 Significance of the Study ......... 14

    1.6 Research Hypotheses .................. 12

    1.7 Scope of the Study........ .............14

    1.8 Limitations of the Study.................. ... 15

    1.9 Definition of Operational Terms..................................... 16

    1.10 Summary.......20

  • x

    References.................................................................................... 22

    2.0 CHAPTER TWO: LITERATURE REVIEW

    2.1 Introduction.............................................................................25

    2.2 Definitional and Conceptual Issues about Corporate Reputation

    Management (CRM)..................................................................26

    2.3 The Concept of Strategy in CRM...................33

    2.4 CRM in the Practice of Public Relations.........................46

    2.5 Multi-disciplinary Nature of Corporate Reputation (CR)................47

    2.6 Differences between CR and Corporate Image...........................52

    2.7 CR and Brand Reputation: What distinction? ...................... .....52