Introduction of the role of CSR in oil industry , focusing on British petroleum - Term Paper Example

Role of CSR in the Oil Industry: Focus on British Petroleum Introduction The dynamics of the oil industry ensure that it is always in the news no matter what happens. Oil is one of the most debatable topics in the world; everything from prices, output and regulation attracts huge debate. Studies show that oil is still the most precious commodity in international business. In addition, oil has multidimensional facets comprising politics and diplomacy (Frynas, 2009:34). In essence, the subject of oil is very controversial and will remain among us until another source of energy usurps it, which is highly unlikely.

Oil companies make monstrous profits, but there is an aspect of the oil industry which makes CSR ideal for it. Oil firms generate a lot of controversy through environmental damage, and therefore, CSR is one of the key approaches to managing negative perceptions of oil firms and the oil industry. British petroleum firms have accepted that the public views them with suspicion and scepticism, so the best way to change this is to use CSR. British petroleum firms like Royal Dutch Shell and British Petroleum PLC have managed to significantly enhance their brand image by sponsoring community programs and actively participating in community benefit activities.

According to Frynas (2009:34), the two companies spend a significant share of their profits on improving lives in communities across the world. They have especially been active in academics, providing annual scholarships to bright and needy students who are often hired by the companies later. These are just some of the CSR activities a select few of British petroleum firms engage in. So far, results show that efforts are effective, helping to cultivate trust and good perception of the firms. ReferenceFrynas, J. (2009) Beyond corporate social responsibility: oil multinationals and social challenges, Cambridge, Cambridge UP.