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Lars H. Gulbrandsen and Arild Moe Oil Company CSR Collaboration in “New” Petro-States Beyond CSR? Business, Poverty and Social Justice National Liberal Club, London, 22 May 2006. Starting points.

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Lars H. Gulbrandsen and Arild Moe

Oil Company CSR Collaboration in “New” Petro-States

Beyond CSR? Business, Poverty and Social Justice

National Liberal Club, London, 22 May 2006


Starting points
Starting points

  • Opening of oil-rich, hitherto ‘closed’ petroleum provinces - with problematic political conditions

  • Need for geographic diversification (of international oil companies)

  • The communications revolution and the ascent of the NGOs


The paradox of plenty the macro csr challenge
The paradox of plenty: The macro CSR Challenge

  • ‘The resource curse’: Negative correlation between resource endowment and social development in developing countries

  • Rapid development of natural resources has negative impact on economic and political development?

  • New expectations to international oil companies


Expectations to the oil industry from micro to macro csr
Expectations to the oil industry - from micro to macro CSR

  • Reinvestment in local communities - local content

  • Protection of indigenous people

  • Employment

  • Environmental safeguards

  • Anti-corruption

  • Transparency

  • Ensure that oil revenues are used for wider social development


Degree of commitment communication and action
Degree of commitment: communication - and action?

Macro

Community

TotalFinaElf

Unspecified


Differences but also similarities scope for co operation between companies
Differences, but also similarities: Scope for co-operation between companies?

  • A fiercely competitive industry, but nevertheless a lot of co-operation

  • Consortia / operating companies:

    CSR excluded

  • Establishment of special co-operative forums


Collaborative forums
Collaborative forums between companies?

  • Azerbaijan

    • Business Development Alliance

    • Government and Public Advisory Forum

  • Kazakhstan

    • Kazakhstan Petroleum Association

    • Foreign Investors Council


Example issues raised azerbaijan
Example: between companies?Issues raised - Azerbaijan

  • Improvement in tax and regulatory regime

  • Training of journalists

  • Anti-corruption programme

  • Common brochure on CSR policies

  • Meeting with the opposition

    => Collective action very limited


Practical co operation on micro issues
Practical co-operation on micro-issues between companies?

Oil companies typically engage themselves individually in the micro-CSR issues

  • Benign issues

  • CSR ”competition”

  • PR effects


Practical co-operation on macro-issues between companies?

  • Oil companies have difficulty co-operating to address and promote macro CSR-issues

  • ‘Malign’ issues

  • Different company policies

  • Position in host country - vulnerability:

    • Exploration /production phase

    • Size

    • Operator /partner

  • Collective action problems


Still unchartered waters
Still unchartered waters between companies?

Inadequacies of industry:

  • Insufficient expertise, unintended side-effects

    Competing norms:

  • National sovereignty vs Global norms

    Need for broader legitimacy:

  • Co-operation with international institutions - possibility?


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