Corporate Social Responsibility (CSR)
CSR as a strategy in the oil and gas sector
Background “When I look at an investment proposal now, it still covers the technical issues, of course. It certainly covers the financial issues. But fully half of that proposal deals with what I would call the non-technical risk. The social performance, the sustainability issues – how have these been taken into account? What are the headline issues? How are we dealing with them?….it’s simply not possible to have a successful project if you don’t do this right…” (Odum M, Shell, From Trust me to Show me: Moving Sustainability at Shell from priority to core value, 2011)
“….For oil and gas companies, which rely on positive relationships with society more than most other industries, this poses a serious problem. When people believe that a company exists only to make itself rich, the company’s actions are viewed as a zero-sum game where a win for the company means a loss for society….” (Browne, J, Why trust should matter to every CEO, Fortune, 2016)
Oil and gas firms operate in many challenging locations. They can often find themselves entering into areas where there is mistrust and hostility towards them by local communities. Firms are faced with a dilemma of making sure that project timelines and costs are met whilst also maintaining harmonious community relations. Corporate Social Responsibility (CSR) can used strategically by oil and gas firms to help bridge this gap between themselves and the communities they operate in.
Write a 2,500 word report, critically analysing one firm’s use of Corporate Social Responsibility (CSR) as a strategy in the oil and gas sector in one geographical location.
Your report should include the following: Analysis of the policies and approach to Corporate Social Responsibility by the firm you have chosen in one geographic location. (LO 2)
The advantages and disadvantages of Corporate Social Responsibility for the firm.
Recommendations as to how the firm could improve its Corporate Social Responsibility in that particular location. (LO 3)
Your report must include oil and gas examples relating to your chosen firm.