Corporate Social Responsibility of Oil Companies in Developing Countries: From Altruism to Business Strategy

Abstract

ABSTRACTThe growing importance of corporate social responsibility (CSR) in today's competitive business climate is well known. CSR is particularly important for firms in sectors characterised by their close ties with their social and environmental context, especially multinational enterprises (MNEs) operating in resource‐rich developing countries and, more specifically, in the oil sector. Numerous question marks surround the extent to which oil MNEs really contribute, through CSR activities, to sustainable development in these countries. Based on a case study, this paper examines the adoption of an environmental management system (EMS) in Luanda Oil Refinery in Angola. The results illustrate the potential of CSR, when integrated into MNE business strategy, to improve the social and environmental situation of such countries, due not only to its impact on the company's immediate surroundings but on the wider legislative, administrative and entrepreneurial context also. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment