The Impact of Environmental Cost on Corporate Performance: A Study of Oil Companies in Niger Delta States of Nigeria

The study examined the impact of environmental cost on corporate performance in oil companies in the Niger Delta States of Nigeria. The field survey methodology was utilized involving a selected sample of twelve oil companies. The multiple regression analysis was explored to test the hypothesis. An investigation was undertaken into the possible relationship between corporate performance and three selected indicators of sustainable business practices: Community Development Cost (CDC), Waste Management Cost (WMC) and Employee Health and Safety Cost (EHSC). The study revealed that sustainable business practices and corporate performance is significantly related. And sustainability may be a possible tool for corporate conflict resolution as evidenced in the reduction of fines, penalties and compensations paid to host communities of oil companies. Therefore, the researchers recommended that the management of oil companies in the Niger Delta States of Nigeria develop a well articulated environmental costing system in order to guarantee a conflict free corporate atmosphere needed by managers and workers for maximum productivity and eventually improve corporate performance.