# The societal commitment of large Algerian companies

Rachid Touil, Ouyahia Zoubida

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Rachid Touil, Ouyahia Zoubida. The societal commitment of large Algerian companies. International Journal of Economic Performance -, -, 2023 06 (02). hal-04680588

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# The societal commitment of large Algerian companies

## -The SONATRACH case-

<table><tr><td>TOUIL Rachid Sofiane ID *</td><td>OUYAHIA Zoubida ID</td></tr><tr><td>Touil.sofiane@univ-oran2.dz</td><td>ouyahia.zoubida@univ-oran2.dz</td></tr><tr><td>L'IDD-RUIS, university of Oran 2, Algeria</td><td>L'IDD-RUIS, university of Oran 2, Algeria</td></tr></table>

Submitted:01/07/2023

Accepted:30/08/2023

Published:30/12/2023

## Abstract:

Our study aims to know the CSR practices of the first company in Africa, SONATRACH, we opted for a semi-directive interview with three senior executives who answered economic questions, questions relating to the company's internal and external society, and questions relating to environmental issues. The results show that SONATRACH's responsible practices are a corporate citizen par excellence, the company opts for a responsible policy that applies international standards of behavior, ethics, and the environment, which makes this company a model for any other large company.

**Key words:** Social responsibility, Environment, Social, Iso26000.

**JEL Classification Codes:** Q56,M14.

<footnote>* Corresponding author</footnote>
**Introduction :**

Today, economic, social, and environmental issues remain priority concerns for governmental and non-governmental organizations in most countries of the world. These three factors have a strong impact on the country's economy, on society, but also on the ecosystem which continues to deteriorate. Consequently, the governments and even the NGOs which defend this cause, strongly encourage the organizations to be part of a perspective of sustainable development.

Organizations play a major role in this regard; some monitor and regulate the actions of others, such as the United Nations, the World Bank, local NGOs, etc. Others are the actors, this is the case of companies in a global way, industrial companies, and multinationals in a particular way because of their strong impact of activities on the economy, the environment, society, and the environment. world.

To involve large companies in sustainable development, they must be included in the corporate social responsibility (CSR) approach. An approach that the company must take seriously and that it must integrate into its management system, "*CSR is no longer a marginal oddity: it is at the heart of management.* » (Lepineux, Rosé, Bonanni, & Hudson, 2016).

Previously, the company operated in its market, but today the company is located in its market but also in its society, this reveals a certain ambiguity in CSR.

Corporate social responsibility includes three components, the economic component which makes the company responsible for its economic situation, internal and external, at the country level, the social component brings the best social practices at the internal and external levels, and the last c' is the environmental component that gives the importance of keeping an external environment within. These three components reflect the demand of stakeholders, internal or external to the company opting for requests that represent its interest. A so-called responsible company is a company that manages to meet the requirements of stakeholders in the context of sustainable development and CSR.

This great importance associated with corporate social responsibility has motivated us to conduct a study aimed at knowing the socially responsible practices implemented by SONATRACH, an Algerian multinational which ranks first in Africa, operating in the oil and gas industry. the gas company, with 154 subsidiaries in different areas of activity.

The oil and gas group has a direct impact on the world oil and gas markets, but also the ecosystem and society. From that moment and as the SONATRACH group is not immune to pressure from stakeholders like any other multinational, we raise the main
question of our research: What are the socially responsible actions of the SONATRACH
group on the national scale? Said differently What is SONATRACH's social
responsibility?

To respond to this problem, four semi-structured interviews have been scheduled with senior managers of the group, the first addresses the economic responsibility of the company, the second aims to identify social practices, the third explains the group's contribution to a healthy environment, and the last interview concludes the group's socially responsible practices.

CSR is an ambiguous concept in the process of growth

Corporate social responsibility is a concept that encompasses three already
complex notions. The definitions are the subject of two main sources.

For Friedman, the social responsibility of the company comes down to meeting the
requirements of the shareholders, ignoring all other responsible actions to other
stakeholders and the rules of ethics, so the manager is on behalf of the shareholders, the
guarantor of the application of these rules.

However Milton Friedman (1962) defines CSR as follows: CSR is the act of
generating maximum profit for shareholders, however, the author wonders about the
question of CSR "Few developments could so deeply undermine the very foundations of
our free society than the acceptance by corporate leaders of a social responsibility other
than that of making as much money as possible for their shareholders. It is a
fundamentally subversive doctrine. Friedman (1970) also gives another definition: CSR
for a company consists in using its resources and engaging in activities intended to
increase its profits. He adds "The company has only one social responsibility, that of
using its resources and carrying out activities aimed at maximizing its profits (for the
shareholder) insofar as it respects the rules of the game, namely that it competes freely
and openly without cheating or fraud (Friedman, 1970). Mintzberg (2004) opposes
Friedman's approach to CSR, he notes that shareholders can never optimize the
possibilities of control available to them to frame the action of managers.

Many economists (Stiglitz, 2003) reject Friedman's position on CSR, so his approach
is socially dismissed outright by many leaders and academics (Pesqueux and
Ramanantsoa, 1995),

The components of CSR

To be socially responsible is to integrate: the economic aspect linked to the economic
responsibility of the company towards the financial health and also towards the economy
of the country, the social aspect which empowers the company to carry out responsible actions towards its internal and external society, and the last is the environmental component which deals with concerns related to the environment. For the company to achieve financial performance and ensure its good financial health, the integration of stakeholders in the company's strategy will be very useful. The company will have its economic development by relying on responsible and transparent financial management and communication with stakeholders, which increases trust between the company and its stakeholders.

For the social responsibility of the company, it is a question of integrating a policy of responsible human resources, in the form of responsible activities promoting employability, training, career development, and recognition at work, while integrating an anti-discrimination policy, continuous improvement of working conditions and ensuring the common well-being of employees. The company extends its socially responsible actions within the company, to societal actions which have a wider scope of responsible actions through charities, associative actions, and social solidarity, support associative organizations and solidarity actions.

As for the environmental responsibility of the company, it is about the responsibility of the companies vis-a-vis the environment, through responsible environmental actions like the responsible management of industrial waste, the investment in green energies, the preservation of natural resources for future generations, the limitation of CO2 emissions, divestment from non-responsible companies, energy savings, and the communication of responsible environmental actions.

## The ISO 26000 standard, a benchmark for CSR

ISO 26000 published in 2010, a non-technical, voluntary standard, contains a guide for implementing a social responsibility approach in an organization.

Also aims to promote a common understanding in the field of social responsibility, and to promote a common understanding in the field of social responsibility and to complement other social responsibility instruments and initiatives, not replace them. When applying ISO 26000, it is recommended that the organization take into consideration societal, environmental, legal, cultural, and political differences and the diversity of organizations as well as differences in economic conditions, consistent with the standards. standards of behavior (ISO 26000, 2010).

## The 7 principles of the ISO 26000 standard

Article 4 of the ISO 26000 standard contains these seven (7) principles, that each organization, whatever its sector of activity and its size, is strongly invited to apply these
7 principles to carry out social responsibility. The 7 principles of the ISO 26000 standard are presented as follows:

**Principle 1:** Accountability; it is taking into account the economic, societal, and environmental impacts of the organization.

**Principle 2:** Transparency; it is the publication of non-confidential information at the level of stakeholders to assess the social responsibility of the organization.

**Principle 3:** Ethical behavior; is the consideration of ethical concerns and their integration into the governance of the organization.

**Principle 4:** Recognition of stakeholder interests; it is about the organization carrying interests that go beyond its own, and those of the shareholders, which go as far as the interests of the stakeholders.

**Principle 5:** it is a question of applying the regulations and excluding any other circumvention practice.

**Principle 6:** Taking into account international standards of behavior; this principle encourages companies to apply international standards of behavior.

**Principle 7:** Respect for human rights; this principle remains the only one of social responsibility to fulfill the function of principle and central question.

## The 7 central questions of ISO 26000 and its 36 areas of action

ISO 26000 addresses seven central issues of social responsibility defined in the standard and represented in the diagram below.

<figure><img src="image_3.png" /><figcaption>**Figure 2 :** CSR and its central issues</figcaption></figure>

**Source :** (ISO 26000, Social Responsibility, 2010)
For the organization to carry out a social responsibility approach, the ISO 26000 standard deals with 7 central questions (QC) which are represented by the diagram, and the central question linked to the governance of the organization is a means of connection between the questions, considered as a core of a CSR approach.

The importance of these central questions for an organization makes it possible to integrate a socially responsible approach into its management system. In other words, the organization will ask itself all the central questions and integrate the answers into the integrated management system to have an integrated and responsible management system.

## Research Methodology

The study was carried out at the General Management of SONATRACH Djenane El Malik - Hydra - Algiers during the period May and April 2023 relating to the degree of societal commitment of SONATRACH and its socially responsible actions, to respond to this problem three interviews semi-guidelines were carried out with four senior executives from SONATRACH, selected according to the correlation between their high-level position and the aspects of Corporate Social Responsibility (CSR), as well as their agreement and their availability. maintenance architecture is as follows:

- The first interview: which relates to the economic aspect of CSR, was conducted with the Audit Director of the Costs of Associations, to deal with the problem relating to the economic responsibility of the company SONATRACH. The course of the interview took place on two axes, The second interview: which relates to the social aspect of CSR, was conducted with the head of the human resources and skills development department and deals with the social issues that the company SONATRACH leads. The interview contains four axes,

The third interview: which relates to the environmental aspect of CSR, was conducted with an engineer and HSE (Health Safety Environment) manager. Three areas characterize this interview, the first relates to waste management, the second to the carbon footprint and pollution, to find out if environmental issues are taken into consideration by the company, and the impact of the activity on the environment. environment, especially carbon emissions.

The fourth interview was held with a senior executive who concluded the three interviews presented with a question relating to the application of the integrated and responsible management system.

These executives interviewed have positions correlated with the three components of CSR, their answers were very specific on the issues of CSR in the case of SONATRACH.
**Study result and analysis**

The analysis and discussion of the results of the study aim to provide answers to the main question of our study, concerning the social responsibility of SONATRACH, the results of the interview were as follows:

**The economic aspect**

The economic component of CSR is the first responsibility of the company because without financial profitability the company will not be able to ensure its sustainability and will not be able to create wealth for the country. A semi-structured individual interview was conducted with the Audit Director of the Costs of Associations, four questions were addressed to him,

**Axis 1: Economic profitability**

* *Financial objectives are often acquired.*

The financial objectives are fixed according to the internal and external context of the company, and according to its turnover of the previous year (n-1), from its two variables that are fixed the financial objectives of the year previous, and at the same time they must be feasible and logical. For the case of SONATRACH, it is very difficult to draw a clear objective to finance, especially with international fluctuations and that it operates on an international scale so it must undergo international issues, some are favorable and others are unfavorable. In this sense we will make a board of a maximum and a minimum turnover to be achieved per quarter, to finally have the annual financial objective.

If we take the case of last year, the company in December 2021 estimated an increase in turnover due to international disturbances and the geopolitical context which had a positive impact on the stock market prices of oil and gas, however, the company achieved an export turnover at the end of May 2022 of 21.5 billion dollars, against 12.6 billion dollars at the end of May 2021, an increase of 70%. And by this, we see that SONATRACH very often achieves its financial objectives.

* *Is the company's financial health good?*

SONATRACH is considered the locomotive of the Algerian economy, the first company in Africa, the first supplier of Italy in Gas, the second supplier of Spain in Gas, the second supplier of Turkey and Greece in LNG, and the major supplier in the world with these hydrocarbon products, with its large network made up of more than 100 subsidiaries and holdings and more than 200,000 employees, and thanks to its export turnover in 2022 which reaches 60 million dollars, which represents 36% of the Algerian GDP, and therefore we can see that the company is in good financial health.
Part of the company's net profits is reinvested for the benefit of the company but another part is devoted to social investment, the company honors and confirms its social responsibility commitments, and its commitments take three forms:

- Social investment linked to public health: Financing of 02 centers specializing in radiotherapy and provision of 10 medical oxygen production plants, carrying out renovation and maintenance work with several hospitals in Algeria, especially those under strong pressure, and financing of major medical equipment for the benefit of hospitals and polyclinics.

- Social investment linked to IT and national education: Equipment for 50 schools spread over the national territory, educational and digital materials to support the efforts of the State in the school digitization project.

- Social investment linked to sports: Sponsorship of the 19th edition of the Mediterranean Games in Oran and recently the signing of the contract with the FAF for the sponsor of the national team.

**Axis 2 : Principle of transparency**

* *Are the income and expenses of the business clearly defined?*

Although it is very difficult to define revenues thanks to international issues, the company tries to identify the financial objectives to be achieved, as for the expenses, they are directly linked to the financial results (Revenues), and the company accomplishes these needs. financial in the first place, and since SONATRACH is considered the first company in Africa and citizen, it must grant social aid in the second place, and which are already mentioned before, this aid varies according to the profitability of the company. Also, SONATRACH has a specific tax system called oil taxation, which boosts the Algerian GDP and the Algerian economy.

* *The distribution of income is equal and rational?*

Revenues are broadly divided into three types of investment:

- Internal social investment: employees receive significant salaries which vary according to rank and function, all the more so they are entitled to several bonuses and other rights such as medical care.

- Investment for SONATRACH: part of the profits is intended for investment and reinvestment for the benefit of the SONATRACH group such as the acquisition of a new device, the construction of a new subsidiary, the development of export networks and the pipeline network, and research and development activities.

- External social investment: the company dedicates a significant part of its profits each year to the good of society, this type of investment is explained in question 2.
Through this information we see that the SONATRACH group opts for a policy of responsible distribution of income, it is not only the company that benefits from its income but it benefits the whole of society thanks to these responsible economic actions...

**The social component**

The social component of CSR constitutes the responsibility of the company towards its society, ie being responsible to internal and external stakeholders. A semi-directive individual interview was conducted with the Head of HR administrative management and career development, nine questions were addressed to him.

**Axis 1 : Territorial anchoring**

* What is SONATRACH's *recruitment policy?*

A recruitment policy is a set of means used to supervise a recruitment process, the SONATRACH recruitment process goes through several stages:

**The detection of needs:** it is a question of precisely defining the needs for future staff, according to the availability of vacant positions, retirements, and the creation of new investments which require external recruitment.

**Recruitment channels:** As part of the new HR policy signed on March 12, 2023, which brings together several stakeholders, executives, governors, the acting Secretary General (SG) of the General Union of Algerian Workers (UGTA), Hamou Touahria and the Secretary General of the national union of SONATRACH, Khellaf Djerroud, the company aims to vary and widen its recruitment channels, the same source specifies that the company has widened its recruitment channels to eight the most important channels are:

- ANEM (National Employment Agency), Universities, Vocational training centers, Trainees and apprentices, Foreigners with a specific mastery, Internal recruitment
Recruitment by season or by contract, Southern Recruitment

**The recruitment competition:** Through the recruitment test we will know if the candidate can occupy the vacant position.

* Does the company recruit people near their industrial sites?

The SONATRACH group operates 5 refining complexes and 6 petrochemical industry complexes, it also sets up 3 main departments to ensure its management, the head office in Algiers, the downstream direction in Oran, and also the direction of Bejaia. The company covers the whole of the Algerian territory through its various activities, which favors the recruitment of the inhabitants of the region. The recruitment policy is done in agreement with the ANEM and the recruits must reside in the region. If
necessary, it will call on candidates from the nearby region, recruitment outside the
region is only done in the following cases: the unavailability of candidates, a specific
position that requires specific skills, or in the case of internal recruitment.

SONATRACH gives priority to the recruitment of people near industrial complexes, and the best example of this is the recruitment from the south in Hassi Messaoud and Hassi R'mel, which gives priority to recruiting people from this area, in case there would not be the profiles requested in this area, the company appeals to the recruitment of the nearby area.

**Axis 2 : Social commitment vis-à-vis internal and external stakeholders:**

* What benefits does the company offer to its employees?

SONATRACH employees benefit from several social advantages, we quote:

- **Medical care:** the company provides full medical care for its employees, including their families.

- **Transportation:** Employees benefit from transport with a symbolic deduction from salaries, also some executives have a company car, to ensure comfort and better performance of employees.

- **Meal:** The company has a restaurant on all their complexes and administrations, this offers employees full and hot meals with a symbolic monthly levy.

- **Nurseries and daycare:** The company has several crèches in all their places of work, with reduced monthly payments,

- **Remuneration policy:** The remuneration policy established by SONATRACH is very favorable. Employees receive motivating salaries and even several bonuses such as performance, risk, and even heat bonuses for workers in the deep south.

- **Right to trade union practice:** The national company authorizes the right to trade union activity for its employees under the name "SONATRACH NATIONAL SYNDICAT", in complete freedom in compliance with the law. The purpose of the union is to bring together all the employees under the roof of the company.

* What is SONATRACH's social commitment to its external stakeholders?

The company is committed to social actions even with external stakeholders:

- **Social dialogue:** The company promotes social dialogue through its dynamic interaction with civil society, NGOs, government bodies, associations, and trade unions, this will create favorable communication between the expectations of external stakeholders and the objectives of the company. Also very important, maintaining the stability of the country and establishing the demand of the stakeholders is considered a strategic objective of SONATRACH because this firm
belongs to the Algerian State (100% shareholder), considered the most important
in Algeria and the African continent, so it carries considerable importance in the
world.

- **External social actions:** The company does a lot of social actions in favor of the community, let's cite a few examples: It supports primary schools in shadow areas, and sponsors Quran competitions, the last one was in the month of Ramadan 2023 in the name of the "Little reciter of the Coran", established an aid program for families with very low incomes during the holy month of Ramadan and at the start of the school year each year, also supports associations which act in the general interest, such as the Algerian Red Crescent. In Béchar, the company provided financial assistance estimated at 10 million dinars to 69 associations and sports clubs.

* These responsible policies put in place for the benefit of the personnel make it possible to ensure what returns of good practices.

Indeed, internal social investment contributes favorably to the performance of employees, a study is made each year by the HR and skills development department on the impact of good practices and social practices of SONATRACH on the performance of the work employed and we see always a positive significance of the impact of these practices on employee performance. If we take the example of meals and transport, we notice that this has a positive impact on the rate of absenteeism and lateness, but also on the achievement of objectives and daily missions, because the company gives a full hot meal this which allows him to have the energy necessary to carry out the missions, and the transport that allows him to be always on time at work and without worrying about the constraints of transport.

Axis 3: Social inclusion and diversity:

* Does your company establish equal opportunities between the two genders when recruiting?

When we call for recruitment, the company never specifies the gender, we often
recruit women for industrial activities, which proves that SONATRACH does not
discriminate between the two genders, and ensures equal opportunities. We rarely
recruit for a gender, for example when the company crèche recruits a nanny because this
job is more suited to women, and the same for supervisory positions, very often we
recruit men for monitoring activities because quite simply this workstation is in no way
suitable for women.
* **Do you hire foreign labor?**

If the job requires a particular skill that cannot be provided by the national labor market or by our workforce, in this case, we call on foreign workers, but only if this demand is not met Internally or nationally, priority is always given to recruiting an Algerian worker.

* **Does your company include work for the disabled?**

Yes SONATRACH includes the work of people with physical disabilities for generally administrative positions that do not require physical effort. Each year the company allocates a quota of vacancies for people with disabilities.

**Axis 4: Ethical behavior:**

* **Does the company require ethical behavior between internal staff and all stakeholders?**

SONATRACH developed in July 2021 an ethical code signed by the CEO Toufik Hakkar, which provides for the ethical principles and values of the SONATRACH group to strengthen the credibility, notoriety, and trust of stakeholders, improve the social climate and sense of belonging. This code is intended for all stakeholders of the SONATRACH group, employees, senior managers, managers, administrators, shareholders, customers, suppliers, partners, NGOs, government, and any interested third parties.

The main lines of this code of ethics are:

- **SONATRACH and its stakeholders:** the company develops a relationship with its stakeholders based on a shared ethic, this social strategy allows it to be in an ethical framework and in mutual respect with its employees, to create a healthy work environment far from disputes, to respect everyone's privacy, participate in public activities in compliance with the laws and regulations in force. This shared ethical framework also affects external stakeholders, business partners, and public authorities.

- **Fight against corruption:** this code of ethics SONATRACH has placed great importance on the fight against all forms of corruption, in this sense new internal control systems are put in place to detect all fraudulent practices. The company strictly prohibits its employees and managers from receiving for their benefit or that of their relatives any payment or any other kind of gift.

- **Conflicts of interest:** the company prohibits all practices of conflicts of interest, in this sense it is forbidden to have a direct or indirect interest in the company or with a partner or a competitor.
- **Protection of SONATRACH assets:** employees without the obligation to protect the tangible or intangible assets of SONATRACH (Vehicles, buildings, installations, materials, know-how, and all other assets) and also confidential information, from any abuse, use on a personal account, degradation, waste or destruction. Each employee is responsible for the proper use and protection of Company assets and resources made available to them.

- **Health, safety, and environment:** the health of employees, the safety of employees and the industry, and the protection of the environment, are part of the concerns of the company. The general policy of HSE leads to a strategy of protecting the employees and the environment.

- **Communication and dialogs:** SONATRACH attaches great importance to the dialogue between employees regardless of their hierarchy and with external stakeholders within an ethical framework. In public communication or communication with a governmental or non-governmental stakeholder, it is important to commit to providing correct and consistent information, as it is prohibited for employees to publish in the media or other communication networks confidential information. It is important to verify the information published in internship reports and any scientific research.

- **Social responsibility:** SONATRACH was among the companies that encouraged the RS MENA project which invites companies to apply the ISO 26000 standard relating to corporate social responsibility. And in recent years the company has strengthened its CSR strategies, several seminars and training sessions have been conducted to make the ISO 26000 standard known and circulated to all staff, to implement its content in the daily practices of the company. And as a corporate citizen it sets up a set of good practices put in place with the outside society, in a framework of economic and social development of the country, especially areas in need of development, these good practices are already cited in the preceding axis. SONATRACH through these actions of patronage and sponsorship,

**Environmental component**

The environmental aspect of CSR constitutes the responsibility of the company
towards its society, that is to say, to be responsible for the environment and the
ecosystem. A semi-structured individual interview was conducted with an engineer and
HSE manager, five questions were addressed to him. The results are as follows:

**Axis 1 : Waste management**

* *How does the company manage its industrial waste?*
Waste is any residue of a process of production, transformation, or use, it is also any object in its useful life that has expired. There are several types of waste, by Law No. 01-19 of December 12, 2001, relating to the management, control, and disposal of waste, they are classified according to their nature, their degree of danger, and their recovery or elimination. The types of waste are of six types:

- Household and similar waste

- Bulky waste

- Special industrial waste (DIS)

- Hazardous special waste

- Healthcare activity waste

- Inert waste (DI)

Waste management is the collection, transport, treatment, reuse, or disposal of waste to protect ecosystems on the one hand and to realize benefits due to the recovery of industrial waste on the other hand. Waste management concerns all types of waste, whether solid or liquid, and each has its specific channel. Industrial waste has three situations, the first is the total elimination of the waste, as is the case with certain toxic gases, we must eliminate them for the protection of our environment, the second situation is the recovery of the waste, we will make a 100% recycling of the waste for another use or a destination of sale, and the last situation is to recycle certain contents of the product and eliminate the rest.

Each waste product has a specific management plan, depending on its degree of hazard and its components:

The management of inert waste and bulky waste such as old installations, metals, carcasses of machines and vehicles, tires, and others, are stored in a waste area of the industrial site, then sorted and sold at auction.

Household waste type waste is collected by the cleaning services agreed with SONATRACH and brought to the public dump.

Hazardous waste is managed according to international standards and takes several management methods:

Laboratory chemical waste is stored in a specific room and then transported by a specific waste transport means to a waste area for disposal. This waste management process is completely secure and aims to preserve the health of employers and the protection of the environment.
the oils are stored in a room that complies with international safety rules, with access only for employees involved in waste management, then they are transported with a suitable means of transport to a specific waste area for disposal.

And non-toxic industrial oils are often reused in other industrial activities, or sold to other companies.

## Axis 2: The carbon footprint and pollution:

* Are environmental issues taken into consideration by the company?

Yes, environmental issues and concerns are taken into consideration by the SONATRACH group, the company's efforts on the environmental point are:

- **Decarbonisation, an absolute priority:** the company has placed the reduction of the carbon footprint among its strategic priorities, this problem is supported by the CEO given its great importance on the national and international points but also the image of the company. In this context, SONATRACH has set the objective of reducing greenhouse gas emissions to less than 1% by 2030, by Algeria's commitments to the World Bank program, and also the company is launching a large large-scale forestry program with the General Directorate of Forests, to offset greenhouse gas emissions. Similarly, the company is committed to investing to reduce fugitive methane emissions from 2024. Several studies are also being conducted to use carbon sequestration technology.

- **Investing in green energy:** Algeria is a country that gives great importance to the environment and takes into account all environmental concerns. The country engages with international organizations such as the UN and the World Bank on environmental and climate issues. SONATRACH traces the first environmental objective to provide clean products on the national and international market to be in a positive correlation between the commitment of the State to the environment and the actions of the company. The company is also opting for a pilot project to produce green hydrogen and biofuels as a low-carbon solution. Great importance is given to renewable energies which are considered a lever for future growth,

- **Climate change is our concern:** the company closely monitors environmental issues and takes environmental problems into account, and in this context, the multinational is committed with its stakeholders to a healthy environment, through the responsible actions listed below.

- **Raising awareness and rational use of energy:** The company and its subsidiaries conduct several awareness campaigns for the rational use of energy. SONELGAZ, for example, regularly conducts awareness campaigns to limit energy waste and
also on the danger granted during poor management. Also, SONATRACH voluntarily leads several cleaning campaigns throughout the national territory and sensitizes young entrepreneurs for the creation of recycling companies.

- **Responsible actions towards the environment:** as part of a healthy environment, the company is launching several voluntary campaigns to preserve our environment, such as afforestation, the development of green spaces, reducing the carbon footprint, and the development of green energies.

**Axis 3: Preservation of natural resources:**

* **What strategy should the company develop to preserve its natural resources for future generations?**

When signing the new HSE policy on March 16, 2021, SONATRACH's responsibility is to preserve natural resources for future generations and ensure rationality in production.

**Closing question for the director**

**Is the SONATRACH management system responsible?**

SONATRACH a multinational with a responsibility of citizenship in its country, is obliged to integrate a dimension of responsibility into its integrated management system.

All large structures having an integrated management system (SMI), if a company voluntarily subscribes to a responsible approach, a dimension (R) which means responsible is added to the SMI formula: SMI + R = SMI -R

Generally, all large companies and multinationals manage to integrate a management system, but adding a dimension of responsibility (R) raises many challenges. It is, all the same, beautiful to realize important figures, to be among the leaders in its market, and to ensure an economic responsibility, but neglecting the company in which the company operates and its environment, is proof of non-responsibility by the company.

SONATRACH since its creation has always integrated the R dimension into its integrated management system, the integration of this dimension means that:

- Be accountable to internal and external society

- Being responsible for the environment and the ecosystem

And this responsibility should not be isolated from the management system, all large or small daily tasks, and all decisions at any scale must be responsible towards the two dimensions mentioned.
**Conclusion**

Our study aims to know the CSR practices of the first company in Africa, SONATRACH, an oil and gas group, and its subsidiaries. The company carries out its main activity in the hydrocarbon industry, this type of industry generally generates undesirable consequences for the environment and also for the internal and external social climate. Related companies in this field of activity require extensive experience in the field and also a perfect mastery of ethical rules and societal responsibilities, firstly to preserve the environment, ensure a good internal and external social climate, and secondly place to protect against pressure from stakeholders and ensure a good image for the company.

The implementation of a CSR policy in a company must take into consideration three economic, social, and environmental aspects. To identify CSR practices at SONATRACH, we opted for a semi-directive interview with three senior executives who answered economic questions, questions relating to the company's internal and external society, and questions relating to environmental issues.

The results of the economic part of our study are as follows:

- The oil and gas group SONATRACH always achieves its financial objectives and ensures good financial health which has enabled it to pay its internal expenses, and distributes part of its wealth internally in the form of bonuses and other social benefits, another part of its Wealth is destined for the development of the country, and much of it is destined for taxation through a special tax system, the oil tax.

- SONATRACH ensures transparency on its income and expenditure, through press releases that are displayed for the general public. The financial results are available on the company's website and the distribution of wealth is communicated continuously, especially that which aims to help the development of the country and the social support of Algerian society.

Through these results of the economic aspect of social responsibility, we can see that SONATRACH ensures its economic responsibility, it is a company that generates significant income but also which distributes it within the framework of the economic and social development of the country and with great Transparency is part of a responsible economic perspective.

The results of the social component of our study are as follows:

- SONATRACH opts for a responsible recruitment policy, i.e. ensuring territorial anchoring, being transparent, diversifying recruitment channels, ensuring equal
opportunities, promoting national know-how before going international, including people with physical disabilities, and recruiting without discrimination.

- The internal staff of SONATRACH has several social aids for better comfort to the employees including several bonuses are granted. These socially responsible actions ensure positive feedback from employees and promote the social climate.

- SONATRACH a corporate citizen, engages socially with all of its stakeholders. Several social actions are carried out by the company with society, which take the form of support and development aid, several examples were cited in the interview. The company also encourages social dialogue with all stakeholders in compliance with the ethical framework.

- Ethical behavior is required by the company, the code of ethics defines the rules and obligations of behavior between internal staff and also between the company and its partners. The goal is to involve SONATRACH and its stakeholders in a healthy social climate. The code of ethics also contains an anti-corruption policy that penalizes and sanctions all persons having participated in fraudulent activity.

- Involvement of several stakeholders in its decision-making process. Decision-making in a company is the most important act, a good decision always has a positive impact on the company. The national hydrocarbon company, with its extensive experience in management, always involves the relevant stakeholders in its decision-making.

The results of the environmental component of our study are as follows:

- SONATRACH opts for waste management according to international standards. The process begins with a phase of selection and sorting and ends either with a recovery of the waste or an elimination, this process varies according to the nature and the components of the waste.

- Environmental issues are among SONATRACH's priorities, several investments have been launched in this context for a maximum reduction of the carbon footprint.

- The oil and gas group has natural resources that must be preserved for future generations, to transmit this wealth from one generation to another, and also ensure the sustainability of the company.

This information on environmental responsibility explains to us that environmental issues are ranked among SONATRACH's priorities.

Through these results, we can see that SONATRACH's responsible practices are a corporate citizen par excellence, the company opts for a responsible policy that applies
international standards of behavior, ethics, and the environment, which makes this company a model for any other large company especially industrial companies which are often guilty for a negative impact on the environment.

the society. SONATRACH regularly and correctly communicates its responsible actions, which makes it easy to be a source of inspiration for large industrial companies.

Internationally SONATRACH has kept its good image and has managed to have the respect of many governmental and non-governmental organizations, through its reliability and sincerity in terms of CSR, unlike other multinationals which are under enormous pressure and problems.

Our work aims to highlight the socially responsible practices from a national point of view of SONATRACH, which is a multinational operator in the field of oil and gas

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