A Stone and a Thousand Pebbles: A Pathway to Focusing Oil Companies’ Corporate Social Responsibility on Value Creation in Developing Countries

Abstract

Corporate social responsibility (CSR) means different things to different people. To opponents, it is a waste of corporate resources, while to its proponents it is essential for organizational survival. This paper reviews these divergent views of CSR, specifically considering the point of view of developing countries. The paper indicates that, whether CSR is considered as a necessary requirement for organizations or as a voluntary activity, it affects the economic growth and development of most developing countries. Developing countries and oil companies, either national or multinational, can team up with governments in economic growth and development. Interventions by oil and gas companies can be classified into two major issues: 'a thousand pebbles' aimed at addressing numerous small projects executed within various host communities and 'a big stone' aimed at helping developing counties to develop economically and environmentally. While pursuing the big stone, oil and gas companies could aim at long-term, medium-term, or short-term plans. The big stone could be either industry-specific or environment-specific.

Keywords: corporate social responsibility, developing countries, big stone, thousand pebbles