IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 5 2018

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Corporate Governance in International Oil Companies: Lessons for Nigeria.

Ibekwe, Wechie and Harry, Anga Jones

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Abstract

This paper examines corporate governance practices and processes in the international oil companies by reviewing existing literature. The oil companies play a crucial role in driving the global economy. The procedures involved in producing and distributing oil and gas are very complex, capital-intensive and requires sophisticated technology. The paper further reviews corporate governance standards, governance structures put in place in international oil companies and the implementation thereof. Also reviewed, is the significance of social and environmental reports by corporations, corporate failures in international corporations, the notorious collapse of Enron in 2001, one of America’s largest companies and the lessons learnt by other international oil companies as a result of the collapse. The process and implementation of corporate governance in Nigeria oil companies was also considered. The study concludes that a sound governance framework encompasses multiple areas across oil companies and several crucial segments to include in the planning to ensure that the developed governance framework is both implementable and also takes root within the organization to ensure its benefits are achieved. It was recommended that diverse model of corporate integration enhances the functionalities of the corporate entity, facilitates optimization processes, thereby contributing to long term sustainability and growth. Oil companies in Nigeria should improve on the corporate governance framework, especially the oil companies managed and controlled by government to reduce the corrupt practices in the secto

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