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Service Failure, Recovery, and Sustainable Development: Towards Justice in the Extractive Industry of Nigeria

Service Failure, Recovery, and Sustainable Development: Towards Justice in the Extractive Industry of Nigeria

Anthony Nduwe Kalagbor (University of Cumbria, London, UK)
Copyright: © 2024 |Pages: 23
DOI: 10.4018/979-8-3693-2045-7.ch072
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Abstract

Extant literature on corporate social responsibility (CSR) and marketing shows that CSR plays an important role when a service fails; thus, application of recovery strategy becomes crucial for sustainable development. CSR creates greater performance expectations amongst stakeholders as well as helps to legitimise organisational activities when a service fails. This study maintains that CSR is crucially important not only in legitimising organisational actions, but in ensuring that stakeholders' loyalty, trust, and justice are assured. This CSR, service failure, and recovery nexus is more needed in the controversial extractive industry in Nigeria, which has a history of illegitimacy, irresponsible corporate responsibility, lack of accountability, and failure of justice, which have triggered and sustained corporate-stakeholder conflict. This landscape has negative impact on sustainable development, peace, and justice in the Niger Delta region of Nigeria, where oil is extracted.
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Background

For service practitioners, academics, and policymakers (La & Choi, 2018) within the field of service recovery strategies, service failure is characterised by inevitability. Service failure can be defined as service performance, which fails to meet the expectations of stakeholders’ (Varela-Neira, et al., (2010). While service recovery, can be defined as the actions and steps taken by a service provider as a response to service failure (Fatma, et al., 2016). It also entails systematic business and operational procedures and strategies that are appropriately designed and implemented within an organisation in order to recognise stakeholders’ who have issues. The aim is to address these issues to the stakeholders’ satisfaction so as to achieve stakeholders’ retention (La & Choi, 2018). On the other hand, corporate social responsibility (CSR), according to (Carrorl, 2016; Bowen, 1953) is about the responsibility of a company that makes it a socially responsible organisation beyond what is prescribed by law. However, (Desjardins, 2000) states that sustainable development is sustainability discourse, which began with the reconsideration that economic development on a global level cannot be separated from issues that borders on ecological stability, social justice and equity, hence the role business can play in sustaining the world without jeopardising the wellbeing of people and the environment now and in the future (Barbier, 1987).

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