Corporate Social Responsibility and Environmental Sustainability in Energy Sector

Despite widespread popularity, Corporate Social Responsibility (CSR) in the energy sector is frequently criticised for being a superficial public relations tool, failing to drive substantive environmental stewardship or deliver tangible benefits to host communities. This chapter confronts this implementation gap by rigorously examining the role of CSR as a critical governance mechanism for achieving genuine environmental sustainability. It traces the historical evolution and sector-specific definitions of CSR, moving from philanthropic beginnings to its current strategic imperative. The analysis is grounded in key theoretical frameworks, including stakeholder theory and corporate citizenship, establishing the fundamental principles of accountability and transparency. The chapter critically assesses how CSR must fundamentally adapt to support the global energy transition, linking environmental performance directly to a company's Social Licence to Operate (SLO). It argues that effective outcomes depend on robust, multi-stakeholder strategies that delineate the complementary roles of governments as regulators, corporations as implementers, and host communities as empowered partners. This theoretical and strategic foundation is then applied through a detailed case study framework focused on Nigeria, illustrating the complex challenges and necessary adaptations for implementing effective, context-sensitive CSR in a developing economy. Ultimately, the chapter provides a roadmap for transforming CSR from a discretionary programme into an integrated, accountable, and impactful component of sustainable energy development.