This research aims to enhance understandings of the current perceptions and practice of corporate social responsibility (CSR) of oil companies and consortia in South Sudan.Drawing on interviews with oil company representatives and international frameworks of corporate responsibility, the principal aim is to supplement the wealth of research that already exists in this domain with a more practical approach to how the oil companies and consortia might better manage and mitigate the social and environmental challenges that so urgently need addressing.
This research yielded many results:
• Companies face very real challenges around community expectation management;
• Some companies do not feel that conflict sensitivity falls under their remit as a private enterprise, and so do not take ownership of conflict-related issues
• Companies and Joint Operating Companies (JOCs) in the sector have so far been unable to develop strategies and systems to implement, robust CSR initiatives;
• Accountability between JOCs, companies and government is unclear and possibly causes problems including: a lack of ownership of issues on behalf of the companies; a lack of transparency over decisions and impact; and blurred responsibilities over community and environmental issues;
• The lack of usability of global best practices, standards and guidelines from the global CSR sector is evident and could be a barrier to learning and development in the South Sudanese context;
• Very little is understood by the companies about stakeholder engagement, prioritization, and the value of working with other organisations.
Recommendations have been provided that speak to all actors with a stake in South Sudan’s oil sector, including oil companies and consortia, civil society and national as well as state-level government. Next steps hinge around four key areas:
1. Conduct deeper research once the operating environment has stabilized: The scope and depth of the current research was limited due to the fast-changing operational environment in which oil companies and consortia find themselves, given that independence was only a few months ago. Undertaking similar research in six months, once the companies are settled into new offices, and once resource handover from Sudan and South Sudan has been agreed, would provide more indicative and robust findings.
2. Increase the accountability of Joint Operating Companies and companies on
CSR: Historic tensions between the oil sector and communities may be attributed to there being blurred lines of responsibility between JOCs and companies.
Establishing clarity on what accountability means, to whom, and how to enact this, is a first step towards building the capacity of individuals and organisations in the sector to better manage and mitigate social and environmental issues.
3. Build capacity of civil society to hold companies and government to account and support CSR objectives: Civil society has a critical role to play in ongoing advocacy over compensation, human rights and environmental abuses that are attributable to the oil sector. However, this research has also found that companies have a real need to better understand community needs, and need help in working with communities. Encouraging elements of civil society to engage more directly with the oil companies and consortia would help to bridge the information gap and forge trust for the future.
4. Develop consensus around national objectives for the sector: This research highlights a need for the governance of the sector to be more transparent and accountable. As such, we recommend that existing institutions are bolstered to become more widely representative and accountable in governance, in order for all parties to collectively determine roles and responsibilities for the sector. In the event that no such institution exists or can be sufficiently adapted, we propose establishing a new, multi-stakeholder Oil National Working Group with responsibility towards building legal infrastructure in addition to guiding voluntary CSR interventions.
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