Social Responsibilities and Challenges confronting Oil Industry
Authors: Brohi Manzoor Ali , Sahito Bakhshan Khan , Soomro Mohsin Jani , Mashori Ghulam Ali 
Published: February 2016

The study argues about inevitable social responsibilities and challenges faced by the oil companies. Smog in the inner cities, oil spillage, chemical disposal, climate changes, environmental pollution, local recruitment and toxic wastes are mammoth challenges for oil and gas companies to face. Oil industry has to respond to the environmental issues in general and climate changes in particular, because the ultimate goal of the business is to maximize the profit and also contribute to the social welfare of the community.

The research paper contains different motivational theories in order to persuade the oil companies to consider their social obligation towards the nation. Two dimensions of the social responsibilities are hereby submitted. First, development of environment friendly strategies. Second, allocating financial resources for community development to establish schools, medical and other welfare units for the society in order to contribute to sustainable economic development. Oil and gas companies have to devise ways and means for the benefit of the community from indigenous gas and oil projects.

Introduction

Companies consider corporate social responsibility as a voluntary act, not mandates by law, to work for the welfare of the community and share with them benefits extractd from their indigenous resources. Oil companies have to determine the welfare of its stakeholders on the priority basis in order to ensure healthy environment within the premises.

Oil Industry is considered as the backbone of any economy as it extracts revenue from earth and can contribute huge revenue to Gross National Production (GNP). While working in any economy, oil companies either from domestic environment or international are required to fulfill their Corporate Social Responsibilities and prove themselves as good corporate citizens. From time to time, oil companies are blamed for not paying proper attention to the community in which they operate their business and generate revenues.

Earlier, when people had no awareness of the Corporate Social Responsibilities, they didn't raise objections, but with the passage of time, when awareness developed among the masses, objections raised from every corner against lack of concern on the part of oil companies for the welfare of community.

Two dimension of Social responsibility are very mandatory to submit here;

1. Development of Environment Friendly Strategies

Oil companies should acknowledge their obligation towards the health of the community that should not be affected by the oil industry. Toxic and hazardous waste claims lives of so many people who are living in the surrounding. The dispose of toxic waste in the river Indus claimed so many lives in the Hyderabad and also created water problems in the district.

Smog in the inner cities, oil spillage, chemical disposal, environmental pollution etc: are major concerns to face oil industry. Majority of respondents submitted that toxic wastes are not disposed of with the consent of the local community. Due to smog in the cities, many accidents occur specially in the morning time.

At present, global warming is a serious subject of discussion among the community. Increasing global warming causes to melt the glaciers before the time and creates problems like water shortage, flood etc. oil industry is also blamed for creating environmental problems for the society. Oil industry should take precautionary measure to protect environment and safeguard the health of the community. A healthy sign in this connection is that majority of oil production and Service Companies are revamping their environmental strategies in order to lessen the risk of polluting the natural environment.

Many companies are nowadays trying to establish waste management system in order to dispose of the waste safely and with the consent of local people. Increasing waste is alarming for oil companies as it creates severe environmental and health problems for the people. During the exploration and production of oil and gas, and the refining, manufacturing and marketing of products, company use a range of natural and manufactured materials which generate solid and liquid waste which adversely affect the environment and health of the people. Where the waste is unavoidable and cannot be reduced or reused, it must be disposed of properly. Many companies have waste system to assure disposal or recycling of wastes properly without causing losses for community.