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A COMPARATIVE CASE STUDY ON ACCOUNTABILITY OF CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICES IN OMAN LNG AND OMIFCO AT SUR CITY IN OMAN
Corresponding Author(s) : Hilal Al Salmi
Humanities & Social Sciences Reviews,
Vol. 7 No. 5 (2019): September
Abstract
Purpose: The objective of the study is to familiarise policymakers and practitioners in both the companies in their achievements of CSR projects and specialization by comparing Corporate Social Responsibility Practices (CSR) in Oman Liquefied Natural Gas Company LLC (Oman LNG) and Oman India Fertilizer Company (OMIFCO).
Design /methodology/approach: A questionnaire survey was adopted and the details of the companies’ business CSR approaches, CSR projects, measurements of CSR projects, disclosure, and challenges, in the long run, were obtained from the CSR experts in the companies. Further, secondary data was also collected from the companies’ websites, annual reports, and CSR bulletins.
Findings: The results of the study indicate that both the companies contribute to society in a positive way as they are accountable to implement CSR as they are the main players in Sur. Both the companies, value developing a practical CSR strategy in their business model concerning customers, stakeholders, contractors, and suppliers, more importantly, the society. However, there is no systematic approach and assessment approach to the level of impact on their CSR projects.
Research Limitations / Implications: It is suggested that there is a need to establish a formal mean of dialogue between both the companies and the rest of the stakeholders in order to harmonize CSR projects so that replication of projects can be avoided. To achieve harmony of CSR projects, it is necessary to unite and share the best practices and innovative initiatives of CSR, through the development of a guide to familiarise the CSR concepts along with the tools and methodologies.
Practical Implications: It can be seen that setting measurable goals, techniques, sustainability issue mapping, sustainability management system, life cycle assessment and CSR reporting are the significant gaps in the CSR approach of both the companies and the model practices should prescribe the same.
Originality/value: This is the first-hand study of its kind as there is no comparative study of O&G companies has been done.
Keywords
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- Ajayi, S., & Ovharhe, L. (2016). The Effect of Corporate Social Responsibility on the Performance and Growth of the Oil & Gas Industry in Nigeria a Case Study of Nigeria LNG Limited. Available at SSRN 2745079. https://doi.org/10.2139/ssrn.2745079 DOI: https://doi.org/10.2139/ssrn.2745079
- Al Matani, A. N., Voet, B. P., & Bosma, P. (2005). Oman LNG 2000 – 2005 The First Five Years of Operation GasTech (Mar. 2005 ed., pp. 1-11). Bilbao, Spain.
- Al Salmi, H. (2018). Corporate Social Responsibility Best Practies n Oman and the World. New Delhi: Independent Thought Publication.
- Al Shezawi, H. A., & Khan, F. R. (2018). In-Country Value (ICV)–Entrepreneurial Opportunities in the Companies of Oman. International Journal of Management, Innovation & Entrepreneurial Research, 4(1), 25-41. https://doi.org/10.18510/ijmier.2018.415 DOI: https://doi.org/10.18510/ijmier.2018.415
- Ali, Y., Nusair, M. M., Alani, F., Khan, F. R., & Al Badi, L. (2017). Employment in the Private Sector in Oman: Sector-Based Approach for Localization. Humanities & Social Sciences Reviews, eISSN, 2395-6518. https://doi.org/10.18510/hssr.2017.511 DOI: https://doi.org/10.18510/hssr.2017.511
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- Boli, J., & Hartsuiker, D. (2001). World culture and transnational corporations: sketch of a project. Paper presented at the International Conference on Effects of and Responses to Globalization, Istanbul.
- Bowen, H. R. (2013). Social responsibilities of the businessman. Iowa:IA: University of Iowa Press. https://doi.org/10.2307/j.ctt20q1w8f DOI: https://doi.org/10.2307/j.ctt20q1w8f
- Carroll, A. B. (1977). Managing corporate social responsibility: Little, Brown.
- Du, S., & Vieira, E. T. (2012). Striving for legitimacy through corporate social responsibility: Insights from oil companies. Journal of Business Ethics, 110(4), 413-427. https://doi.org/10.1007/s10551-012-1490-4 DOI: https://doi.org/10.1007/s10551-012-1490-4
- Fenwick, T., & Bierema, L. (2008). Corporate social responsibility: issues for human resource development professionals. International Journal of training and Development, 12(1), 24-35. https://doi.org/10.1111/j.1468-2419.2007.00293.x DOI: https://doi.org/10.1111/j.1468-2419.2007.00293.x
- Frynas, J. G. (2009). Corporate social responsibility in the oil and gas sector. Journal of World Energy Law & Business, 2(3), 178-195. https://doi.org/10.1093/jwelb/jwp012 DOI: https://doi.org/10.1093/jwelb/jwp012
- Ha, Q. (2016). Corporate Social Responsibility in Oil and Gas Industry: Performance of Neste Oil Corporation.
- Hoffman, A. J. (2000). Competitive environmental strategy: A guide to the changing business landscape: Island press.
- Hollender, J. (2004). What matters most: Corporate values and social responsibility. California management review, 46(4), 111-119. https://doi.org/10.2307/41166277 DOI: https://doi.org/10.2307/41166277
- Idemudia, U., & Ite, U. E. (2006). Corporate–community relations in Nigeria's oil industry: challenges and imperatives. Corporate Social Responsibility and Environmental Management, 13(4), 194-206. https://doi.org/10.1002/csr.101 DOI: https://doi.org/10.1002/csr.101
- Khan, F. R., & Al Mamari, A. (2016). Corporate Social Responsibility (CSR) Activities of Selected Companies at Sohar Port, Oman. International Journal of Management, Innovations & Entrepreneurial Research, 2(1), 01-12. https://doi.org/10.18510/ijmier.2016.211 DOI: https://doi.org/10.18510/ijmier.2016.211
- Kirat, M. (2015). Corporate social responsibility in the oil and gas industry in Qatar perceptions and practices. Public Relations Review, 41(4), 438-446. https://doi.org/10.1016/j.pubrev.2015.07.001 DOI: https://doi.org/10.1016/j.pubrev.2015.07.001
- Kooskora, M., & Vau, K. (2011). Strategic corporate responsibility: A key for surviving and succeeding through turbulent times. Paper presented at the Proceedings of 5th International Conference ‘Management Theory and Practice: Synergy in Organisations.
- Lee, M. D. P. (2008). A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead. International journal of management reviews, 10(1), 53-73. https://doi.org/10.1111/j.1468-2370.2007.00226.x DOI: https://doi.org/10.1111/j.1468-2370.2007.00226.x
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- Minnee, F., Shanka, T., Taylor, R., & Handley, B. (2013). Exploring corporate responsibility in Oman–social expectations and practice. Social Responsibility Journal, 9(2), 326-339. https://doi.org/10.1108/SRJ-02-2012-0018 DOI: https://doi.org/10.1108/SRJ-02-2012-0018
- Oman LNG LLC. (2015). Partners in Progress - Annual Report 2014 (pp. 35). Muscat: Oman LNG LLC.
- Oman LNG LLC. (2016). People...Partnership...Progress... Annual Report 2015 (pp. 39). Mina Al Fahl, Muscat, Sultanate of Oman.
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- OMIFCO. (2015). OMIFCO Community Investment Review 2013-2015 Growing with the community. Oman: External Affairs Departemnt
- OMIFCO. (2016). OMIFCO community Investment Review 2013-2015 (pp. 3). Sur, Sultanate of Oman: OMIFCO.
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- OOC. (2013). Responsibly Investing in the Future of Oman OOC and its Group of Companies Sustainability Report 2013. Oman: Oman Oil Company.
- Roddick, A. (1999, August). Consumer and Society. KLM Herald Magazine, 23.
- Ruggiero, V., & South, N. (2013). Green criminology and crimes of the economy: Theory, research and praxis. Critical Criminology, 21(3), 359-373. https://doi.org/10.1007/s10612-013-9191-6 DOI: https://doi.org/10.1007/s10612-013-9191-6
- Sangeetha, K., & Pria, S. (2011). Factors influencing CSR initiatives of the banks in Oman: A study based on stakeholders' perspective. Journal of Management Research, 3(2), 1-16. https://doi.org/10.5296/jmr.v3i2.609 DOI: https://doi.org/10.5296/jmr.v3i2.609
- Sheehy, B. (2015). Defining CSR: Problems and solutions. Journal of Business Ethics, 131(3), 625-648. https://doi.org/10.1007/s10551-014-2281-x DOI: https://doi.org/10.1007/s10551-014-2281-x
- Skjærseth, J. B., & Skodvin, T. (2001). Climate change and the oil industry: Common problems, different strategies. Global Environmental Politics, 1(4), 43-64. https://doi.org/10.1162/152638001317146363 DOI: https://doi.org/10.1162/152638001317146363
- Spence, D. B. (2011). Corporate social responsibility in the oil and gas industry: The importance of reputational risk. Chi.-Kent L. Rev., 86, 59.
- Taher, S. (2015). CSR Oman returns in October to enrich culture of sustainability in Oman [Press release]. Retrieved from https://www.zawya.com/mena/en/press-releases/story/CSR_Oman_returns_in_ October_to_enrich_culture _of_sustainability_in_Oman-ZAWYA20150920060318/
- Tai, F.-M., & Chuang, S.-H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117. https://doi.org/10.4236/ib.2014.63013 DOI: https://doi.org/10.4236/ib.2014.63013
- Weber, M. (2008). The business case for corporate social responsibility: A company-level measurement approach for CSR. European Management Journal, 26(4), 247-261. https://doi.org/10.1016/j.emj.2008.01.006 DOI: https://doi.org/10.1016/j.emj.2008.01.006
- Zadek, S. (2001). Third generation corporate citizenship. London: The Foreign Policy Centre.
References
Ajayi, S., & Ovharhe, L. (2016). The Effect of Corporate Social Responsibility on the Performance and Growth of the Oil & Gas Industry in Nigeria a Case Study of Nigeria LNG Limited. Available at SSRN 2745079. https://doi.org/10.2139/ssrn.2745079 DOI: https://doi.org/10.2139/ssrn.2745079
Al Matani, A. N., Voet, B. P., & Bosma, P. (2005). Oman LNG 2000 – 2005 The First Five Years of Operation GasTech (Mar. 2005 ed., pp. 1-11). Bilbao, Spain.
Al Salmi, H. (2018). Corporate Social Responsibility Best Practies n Oman and the World. New Delhi: Independent Thought Publication.
Al Shezawi, H. A., & Khan, F. R. (2018). In-Country Value (ICV)–Entrepreneurial Opportunities in the Companies of Oman. International Journal of Management, Innovation & Entrepreneurial Research, 4(1), 25-41. https://doi.org/10.18510/ijmier.2018.415 DOI: https://doi.org/10.18510/ijmier.2018.415
Ali, Y., Nusair, M. M., Alani, F., Khan, F. R., & Al Badi, L. (2017). Employment in the Private Sector in Oman: Sector-Based Approach for Localization. Humanities & Social Sciences Reviews, eISSN, 2395-6518. https://doi.org/10.18510/hssr.2017.511 DOI: https://doi.org/10.18510/hssr.2017.511
Andriof, J., Waddock, S., Husted, B., & Rahman, S. S. (2017). Unfolding stakeholder thinking: theory, responsibility and engagement (First Published 2002 by Greenleaf Publishing Limited ed.). New York: Routledge. https://doi.org/10.4324/9781351281843
Boli, J., & Hartsuiker, D. (2001). World culture and transnational corporations: sketch of a project. Paper presented at the International Conference on Effects of and Responses to Globalization, Istanbul.
Bowen, H. R. (2013). Social responsibilities of the businessman. Iowa:IA: University of Iowa Press. https://doi.org/10.2307/j.ctt20q1w8f DOI: https://doi.org/10.2307/j.ctt20q1w8f
Carroll, A. B. (1977). Managing corporate social responsibility: Little, Brown.
Du, S., & Vieira, E. T. (2012). Striving for legitimacy through corporate social responsibility: Insights from oil companies. Journal of Business Ethics, 110(4), 413-427. https://doi.org/10.1007/s10551-012-1490-4 DOI: https://doi.org/10.1007/s10551-012-1490-4
Fenwick, T., & Bierema, L. (2008). Corporate social responsibility: issues for human resource development professionals. International Journal of training and Development, 12(1), 24-35. https://doi.org/10.1111/j.1468-2419.2007.00293.x DOI: https://doi.org/10.1111/j.1468-2419.2007.00293.x
Frynas, J. G. (2009). Corporate social responsibility in the oil and gas sector. Journal of World Energy Law & Business, 2(3), 178-195. https://doi.org/10.1093/jwelb/jwp012 DOI: https://doi.org/10.1093/jwelb/jwp012
Ha, Q. (2016). Corporate Social Responsibility in Oil and Gas Industry: Performance of Neste Oil Corporation.
Hoffman, A. J. (2000). Competitive environmental strategy: A guide to the changing business landscape: Island press.
Hollender, J. (2004). What matters most: Corporate values and social responsibility. California management review, 46(4), 111-119. https://doi.org/10.2307/41166277 DOI: https://doi.org/10.2307/41166277
Idemudia, U., & Ite, U. E. (2006). Corporate–community relations in Nigeria's oil industry: challenges and imperatives. Corporate Social Responsibility and Environmental Management, 13(4), 194-206. https://doi.org/10.1002/csr.101 DOI: https://doi.org/10.1002/csr.101
Khan, F. R., & Al Mamari, A. (2016). Corporate Social Responsibility (CSR) Activities of Selected Companies at Sohar Port, Oman. International Journal of Management, Innovations & Entrepreneurial Research, 2(1), 01-12. https://doi.org/10.18510/ijmier.2016.211 DOI: https://doi.org/10.18510/ijmier.2016.211
Kirat, M. (2015). Corporate social responsibility in the oil and gas industry in Qatar perceptions and practices. Public Relations Review, 41(4), 438-446. https://doi.org/10.1016/j.pubrev.2015.07.001 DOI: https://doi.org/10.1016/j.pubrev.2015.07.001
Kooskora, M., & Vau, K. (2011). Strategic corporate responsibility: A key for surviving and succeeding through turbulent times. Paper presented at the Proceedings of 5th International Conference ‘Management Theory and Practice: Synergy in Organisations.
Lee, M. D. P. (2008). A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead. International journal of management reviews, 10(1), 53-73. https://doi.org/10.1111/j.1468-2370.2007.00226.x DOI: https://doi.org/10.1111/j.1468-2370.2007.00226.x
Lindgreen, A., & Swaen, V. (2010). Corporate social responsibility. International journal of management reviews, 12(1), 1-7. https://doi.org/10.1111/j.1468-2370.2009.00277.x DOI: https://doi.org/10.1111/j.1468-2370.2009.00277.x
Minnee, F., Shanka, T., Taylor, R., & Handley, B. (2013). Exploring corporate responsibility in Oman–social expectations and practice. Social Responsibility Journal, 9(2), 326-339. https://doi.org/10.1108/SRJ-02-2012-0018 DOI: https://doi.org/10.1108/SRJ-02-2012-0018
Oman LNG LLC. (2015). Partners in Progress - Annual Report 2014 (pp. 35). Muscat: Oman LNG LLC.
Oman LNG LLC. (2016). People...Partnership...Progress... Annual Report 2015 (pp. 39). Mina Al Fahl, Muscat, Sultanate of Oman.
Oman LNG LLC. (2017). Sustainable Partnerships (pp. 18). Muscat, Sultanate of Oman: Oman LNG Development Foundation.
OMIFCO. (2015). OMIFCO Community Investment Review 2013-2015 Growing with the community. Oman: External Affairs Departemnt
OMIFCO. (2016). OMIFCO community Investment Review 2013-2015 (pp. 3). Sur, Sultanate of Oman: OMIFCO.
OMIFCO. (2017). CSR Strategy. Retrieved 14.09.2019, from OMIFCO http://omifco.com/adminomifco/uploads/1488357438_CSR-%20strategy.pdf
OOC. (2013). Responsibly Investing in the Future of Oman OOC and its Group of Companies Sustainability Report 2013. Oman: Oman Oil Company.
Roddick, A. (1999, August). Consumer and Society. KLM Herald Magazine, 23.
Ruggiero, V., & South, N. (2013). Green criminology and crimes of the economy: Theory, research and praxis. Critical Criminology, 21(3), 359-373. https://doi.org/10.1007/s10612-013-9191-6 DOI: https://doi.org/10.1007/s10612-013-9191-6
Sangeetha, K., & Pria, S. (2011). Factors influencing CSR initiatives of the banks in Oman: A study based on stakeholders' perspective. Journal of Management Research, 3(2), 1-16. https://doi.org/10.5296/jmr.v3i2.609 DOI: https://doi.org/10.5296/jmr.v3i2.609
Sheehy, B. (2015). Defining CSR: Problems and solutions. Journal of Business Ethics, 131(3), 625-648. https://doi.org/10.1007/s10551-014-2281-x DOI: https://doi.org/10.1007/s10551-014-2281-x
Skjærseth, J. B., & Skodvin, T. (2001). Climate change and the oil industry: Common problems, different strategies. Global Environmental Politics, 1(4), 43-64. https://doi.org/10.1162/152638001317146363 DOI: https://doi.org/10.1162/152638001317146363
Spence, D. B. (2011). Corporate social responsibility in the oil and gas industry: The importance of reputational risk. Chi.-Kent L. Rev., 86, 59.
Taher, S. (2015). CSR Oman returns in October to enrich culture of sustainability in Oman [Press release]. Retrieved from https://www.zawya.com/mena/en/press-releases/story/CSR_Oman_returns_in_ October_to_enrich_culture _of_sustainability_in_Oman-ZAWYA20150920060318/
Tai, F.-M., & Chuang, S.-H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117. https://doi.org/10.4236/ib.2014.63013 DOI: https://doi.org/10.4236/ib.2014.63013
Weber, M. (2008). The business case for corporate social responsibility: A company-level measurement approach for CSR. European Management Journal, 26(4), 247-261. https://doi.org/10.1016/j.emj.2008.01.006 DOI: https://doi.org/10.1016/j.emj.2008.01.006
Zadek, S. (2001). Third generation corporate citizenship. London: The Foreign Policy Centre.