Sustaining the Oil and Gas Industry through corporate social responsibility practices by multinational oil and gas companies in emerging economies.

Abstract

The objective of this study was to provide empirical evidence from the perspective of corporate social responsibility practices by multinational oil and gas companies in emerging economies on how investments in and disclosure of this practice could enhance financial sustainability. Accounting-based measures on investments, financial performance, disclosures of activities and panel data set on company size (total assets) over a 10-year period (t) were analysed. Findings show that oil firms with interest in emerging economies take key aspects of corporate social responsibility practices seriously. There was significant positive relationship (p = 0.0035 < 0.05) between investment in the practice and sustainability in financial performance. No significant relationship (p = 0.4409 > 0.05) was established between disclosure and financial performance. Functional corporate social responsibility practices were envisaged to yield sustained dividend in terms of a stronger financial outlook for oil and gas companies for poverty alleviation and to achieve key sustainable development goals and targets in emerging economies.

Corporate governance and CSR for sustainability in Oil and Gas: Trends, challenges, and best practices: A review

“…The Equator Principles set a benchmark for responsible project financing and helped to raise awareness about the importance of CSR in the industry (Dashwood, 2020, Gangi, et. al., 2019, Gyane, 2019. Another key development was the emergence of the United Nations Global Compact in 2000, which encouraged companies to align their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment, and anti-corruption.…”