The false developmental promise of Corporate Social Responsibility: evidence from multinational oil companies

Abstract

Using the example of multinational oil companies, this article suggests that there are fundamental problems surrounding the capacity of private firms to deliver development and the aspiration of achieving development through Corporate Social Responsibility (CSR) may be fundamentally flawed. The article is based on an extensive twelve‐month research project on the Gulf of Guinea region funded by the Nuffield Foundation. This research identified a number of constraints to a developmental role for CSR: the subservience of CSR schemes to corporate objectives; country‐ and context‐specific issues; the failure to involve the beneficiaries of CSR; the lack of human resources; technical/managerial approaches of company staff and the lack of CSR's integration into larger development plans. But even if private companies were able to overcome practical problems, it argues that the current CSR agenda fails to address the crucial issues of governance and the negative macro‐level effects that multinational companies cause in host countries. The article concludes by suggesting that a focus on CSR may divert attention from broader political, economic and social solutions for developmental problems.

Corporate social responsibility in the oil and gas sector

“…As the author has previously argued, when environmental improvements can be reduced to distinct technical tasks, oil companies can perform CSR tasks to a high standard. 28 Environmental improvements such as new oil pipelines, improved forms of combustion or new production processes require similar engineering and managerial skills to those needed by oil companies in their commercial day-to-day operations, for instance, increasing production levels or reducing production costs. Technical problems need to be solved, new production processes and patents need to be developed, project teams need to be formed, and so on.…”

Who is Who? Identifying the Different Sub-groups of Secondary Stakeholders within a Community: A Case Study of the Niger Delta Region of Nigeria Communities

“…The region has experienced underdevelopment, local unrest and conflicts due to misalignment of priorities among the following main stakeholders; oil producing companies (both local and International), communities within the NDRN, and the government (i.e. various government agencies, the local government, state government and federal government) (Akpomuvie, 2011;Obi, 2010;Omofonmwan and Odia, 2009;Emoyan, 2008;Opukri and Ibaba, 2008;Omeje, 2006;Eweje, 2006;Frynas, 2005;Frynas, 2000). The impact and influence of the various communities within the NDRN on the NOGI has increasingly become of concern over the last three decades (Frynas, 2009;Eweje, 2007;Omeje, 2006).…”

Sustainable Oil and Profitable Wind

“…We agree with the authors when they state, "studies on the relation between such controversial industry sectors and CSR are in its infant stage and we do not fully understand why and how firms in controversial industries gain or sneak legitimacy through CSR engagement" (p. 468). However, in recent years in particular, there have been a few studies (Banerjee & Bonnefous 2011;Cai, Jo & Pan 2012;Du & Vieira Jr. 2012;Frynas 2005;Yoon, Gürhan-Canli, & Schwarz 2006;Livesey 2002;Livesey & Kearins 2002;O'Connor & Gronewold 2012;Palazzo & Richter 2005;Slack 2012;Wheeler, Fabig & Boele 2002). Results appear to be counter-intuitive and show that controversial industries do not avoid CSR claims.…”

“…Oil and gas are subsumed to the controversial industries (Du & Vieira Jr. 2012) whose CSR activities are often perceived with suspicion (Frynas 2005;Vertigans 2013;Woolfson & Beck 2005). Slack (2012) argues that communication of social and environmental responsibilities within these industries "remains largely window dressing that serves a strategic purpose of mollifying public concerns about the inherently destructive nature of extractive industries operations" (p. 179).…”