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Corporate environmental accountability in Nigeria: an example of regulatory failure and regulatory capture

Corporate environmental accountability in Nigeria: an example of regulatory failure and... The purpose of this study is to investigate how state regulations become ineffective in holding corporations accountable for environmental degradation in an emerging economy context, with a specific focus on oil and gas and cement industry in Nigeria.Design/methodology/approachThe study draws on capture theory to bring out the factors that have rendered redundant the state intervention to make corporations accountable for their environmental activities. The research setting is the oil and gas and cement industry in Nigeria. Data for the study are derived from both documentary analysis and semi-structured interviews and analysed using a thematic technique.FindingsThe findings of the paper demonstrate a regulatory failure to hold corporations to account for their environmental activities. A lack of political will, outdated regulations and the manipulation of the regulators, all have played a part in preventing corporations from being accountable for their activities. In addition, the widespread elite corruption in the country has provided corporations with leeway to manipulate their environmental accountability practices. The study emphasises the need for continuous review of the regulations and efforts to reduce corruption in order to promote corporations' environmental accountability in Nigeria.Research limitations/implicationsThe research is limited to Nigeria, oil and gas and cement industries. The theoretical lens can be used to address problem of capture of the regulations and institution in the country.Practical implicationsThe practical implication is that it would enhance environmental regulations in Nigeria and emerging economies. It will also provide support from researchers emerging markets on the adoption of capture theory in future research.Social implicationsIt will promote corporate best environmental practices in the country. It will reduce the issues surrounding environmental accountability practices and create awareness on environmental issues among the populace. It will create the impression that corporations will be held accountable for their environmental activities in the country and the need to have improved environmental regulations in the country.Originality/valueThe study adds to the debate on corporate environmental accountability practices engendering insights from the Nigerian oil and gas and cement industry. The paper demonstrates how companies in emerging economies can capture state regulations and how rendering environmental accountability becomes more of rhetoric than a reality with little impacts on the welfare of people and society. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting in Emerging Economies Emerald Publishing

Corporate environmental accountability in Nigeria: an example of regulatory failure and regulatory capture

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2042-1168
DOI
10.1108/jaee-02-2019-0038
Publisher site
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Abstract

The purpose of this study is to investigate how state regulations become ineffective in holding corporations accountable for environmental degradation in an emerging economy context, with a specific focus on oil and gas and cement industry in Nigeria.Design/methodology/approachThe study draws on capture theory to bring out the factors that have rendered redundant the state intervention to make corporations accountable for their environmental activities. The research setting is the oil and gas and cement industry in Nigeria. Data for the study are derived from both documentary analysis and semi-structured interviews and analysed using a thematic technique.FindingsThe findings of the paper demonstrate a regulatory failure to hold corporations to account for their environmental activities. A lack of political will, outdated regulations and the manipulation of the regulators, all have played a part in preventing corporations from being accountable for their activities. In addition, the widespread elite corruption in the country has provided corporations with leeway to manipulate their environmental accountability practices. The study emphasises the need for continuous review of the regulations and efforts to reduce corruption in order to promote corporations' environmental accountability in Nigeria.Research limitations/implicationsThe research is limited to Nigeria, oil and gas and cement industries. The theoretical lens can be used to address problem of capture of the regulations and institution in the country.Practical implicationsThe practical implication is that it would enhance environmental regulations in Nigeria and emerging economies. It will also provide support from researchers emerging markets on the adoption of capture theory in future research.Social implicationsIt will promote corporate best environmental practices in the country. It will reduce the issues surrounding environmental accountability practices and create awareness on environmental issues among the populace. It will create the impression that corporations will be held accountable for their environmental activities in the country and the need to have improved environmental regulations in the country.Originality/valueThe study adds to the debate on corporate environmental accountability practices engendering insights from the Nigerian oil and gas and cement industry. The paper demonstrates how companies in emerging economies can capture state regulations and how rendering environmental accountability becomes more of rhetoric than a reality with little impacts on the welfare of people and society.

Journal

Journal of Accounting in Emerging Economies – Emerald Publishing

Published: Sep 10, 2020

Keywords: Regulatory capture; Oil and gas and cement industry; Corporate environmental accountability; Corruption; Nigeria

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