Corporate Social Responsibility of Oil Companies and Host Community’s Satisfaction: Case Study of Total Company Block (10) Yemen

Abstract

This study aims to investigate the relationship between oil host community and TOTAL Company that operates in block 10 in Sah district in Hadramout governorate, Yemen. Moreover, the study examined the relationship between the philanthropic activities provided by the company and the environmental impact caused by oil operation of the company, and the satisfaction of host communities.

The quantitative research method was used by distributing 270 questionnaires in host communities in Saha district, Hadramout governorate. Furthermore, this research used simple random sample to collect the data and SPSS was used for descriptive analysis and cleaning the data while Partial Least Squares Structural Equation Modeling (PLS-SEM) used to testing the hypothesis.

The results found that the level of host community's satisfaction is low. In addition, it approved that there is a positive relationship between philanthropic activities and the host community's satisfaction. Furthermore, the study revealed there is a negative relationship between the environmental impact caused by the company' operations and the host community's satisfaction. The study recommended that to promote the host community's satisfaction the oil producing company need to concentrate on protecting the environment form oil accidents and offering the charity activities for the resident of host community.