Social Media and Multinational Corporations’ Corporate Social Responsibility in China: The Case of ConocoPhillips Oil Spill Incident

Abstract

Research problem: The study attempts to study how an empowered Chinese public coped with and interpreted the environmental crisis of the ConocoPhillips oil spill and how ConocoPhillips reacted to the growing influence of social media. Research questions: In what ways did the Chinese public exercise its new power through social media in addressing the ConocoPhillips Oil Spill Incident? How did a multinational company like ConocoPhillips act during the crisis and react to the voices of the public through new media? Literature review: Social media has caused a power shift in China by allowing the ordinary Chinese public who used to be the silent majority to expose scandals and express their opinions about crises with greater freedom. At the same time, pressure is growing on corporations to exercise social responsibility, through responding to economic, legal, ethical, and discretionary expectations that society has. Stakeholder theory indicates that only by meeting the needs and expectations of the individuals and groups who can affect or are affected by the firm's objectives can a firm survive and succeed. In developing countries, corporate social responsibility is characterized by a lack of systematic and institutionalized approach, with stakeholders, such as the public and community, being neglected for a long time. Methodology: Researchers conducted a thematic analysis of 932 microblog and blog entries about the ConocoPhillips Oil Spill Incident in China that were published on leading Chinese social media websites between June 2011 to February 2013. Results and discussion: The study found that the oil spill sparked an uproar of anger and criticism in the Chinese online community. Most posts on microblogs and blogs engaged in finding the causes and laying the blame for the oil spill. The overwhelming majority of the Chinese public attributed the crisis to the faulty laws and inaction on the part of the Chinese government regulators, to ConocoPhillips, and the Chinese joint venture partner China National Offshore Oil Corporation's failure to undertake due responsibilities. In response to mounting online criticisms, ConocoPhillips exhibited little interest in engaging with the Chinese public and showed poor communication in terms of Corporate Social Responsibility (CSR). The study's theoretical contribution lies in combining CSR and Stakeholder theory with Discourse Power theory. Practical implications to multinational corporations seeking long-term business development in the developing country contexts, such as China, are that managers need to engage in responsive listening, actively participate in online conversations, and constantly scan the social media environment to manage its relations with the general public. Particularly, firms experiencing crises can gain the public's emotional support by communicating emotion-laden messages through social media.