Expanding Corporate Social Responsibility in the Petroleum Industry : Improving Good Governance in Oil Exporting Countries

Abstract

Petroleum has become a greater problem in regard to conflict in the world and resources have often been seen as a curse rather than a benefit. Countries possessing such resources often perform more poorly in terms of government, society and the economy than other countries that do not possess such riches. Resources can be used to greatly increase the living standards of the population of a country, but this has primarily been limited to cases where petroleum resources exist in countries that already have good governance. Macro-level Corporate Social Responsibility (CSR) can play a crucial role in helping to build better governance and to manage revenue inflows. This thesis argues for an expanded role of CSR in petroleum rich countries which have poor governance. It also asserts that current micro-level CSR is not effective in alleviating the difficulties associated with petroleum wealth and in the end might even hinder good governance. This thesis supplements existing knowledge by scrutinizing assumptions within the field of CSR and political science, and concludes that expanding CSR at the macro-level will help to improve governance and prosperity which will result in more peaceful societies. These possibilities are illustrated by the seminal CSR work being done by BP in Azerbaijan.