Environmental and social accountability in emerging economies: strategic pressures from and responses to vulnerable local communities

Abdurafiu Olaiya Noah, Pawan Adhikari and Pik Kun Liew

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Drawing on Oliver’s typology of strategic responses (1991), this study demonstrates the strategic pressures that vulnerable local communities in Nigeria have exerted on cement companies and the multiple strategies that these companies have devised to discharge their environmental and social accountability (ESA). The data for this study were obtained through semi-structured interviews and document analysis. By exploring the role of local communities in Nigeria, our findings highlight the changing context of ESA in emerging economies in which local communities, often referred to as weak and passive stakeholders, have forced multinational companies to respond to their commitment to ESA. However, the extent to which local communities’ voices can alter companies’ profit maximisation that compromises people’s welfare and the environment has caused concern. The power and influence wielded by companies, which has enabled them to devise a multitude of strategic responses, has subtly dominated local voices and actions, confining ESA practices largely to the content of their annual statements. This raises concerns about current mechanisms for discharging ESA to promote sustainable development and attain sustainable development goals (SDGs) in emerging economies. In investigating the aforementioned, the paper also addresses the call made by prior work delineating the nexus between corporations and local communities in shaping ESA in the unique contexts of emerging economies.

Keywords: emerging economies; environmental and social accountability; local community; Nigeria; strategic responses (search for similar items in EconPapers)
JEL-codes: M14 Q56 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2024-05-30
New Economics Papers: this item is included in nep-env
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Published in Accounting Forum, 30, May, 2024. ISSN: 0155-9982

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