Corporate Social Responsibility Practices by Oil and Gas Companies in Uganda:

Abstract

The Albertine Rift area is ecologically rich and recognized globally as a biodiversity hotspot with a variety of birds, mammals, amphibians and reptiles accommodated in protected areas such as forest reserves, wildlife reserves and national parks.1 The soils in the Albertine Rift are highly permeable and fragile with low resilience when exposed to agents of soil degradation including cushioning against oil spills. The advent of petroleum activities has been described by UNESCO as incompatible with the Albertine Rift, also home to a quarter of the World ‘s mountain gorillas.2 It is evident that petroleum related concerns are generally increasing over the years, with business leading and closely followed by societal interest that largely focuses on welfare. It is worth noting that although the focus on environmental concerns is currently low in importance, they remain key determinants of sustainable development of the oil and gas sector world over.

Along with the oil comes a high sense of expectation among the citizens of Uganda, especially in the communities where oil exploration is undertaken. In total so far there are five international oil companies have been issued with exploration licenses, three of which also have production licenses. The five companies are; Total E & P Uganda, Tullow Uganda Operations Pty Limited, China National Offshore Oil Corporation (CNOOC), Amrour Energy and Oranto. Three of the five companies with production licenses are; Total E & P Uganda, Tullow Uganda Operations Pty Limited and China National Offshore Oil Corporation (CNOOC). In order not to experience the detrimental incidents that come along with exploration and production of oil and gas, the Government of Uganda along with the International Oil Companies have a role to play. In view of this, this study is a Factor Analysis of Corporate Social Responsibility (CSR) Practices by Oil and Gas Companies in Uganda. The analysis includes an assessment of the Corporate Social Responsibility policies and practices in Uganda by the different oil and gas companies. Relevant literature relating to Corporate Social Responsibility to the analysis of the study findings. Practices across countries like Ghana, Nigeria and Norway for comparison purposes were also undertaken, analysis of which was achieved through the use of content analysis and secondary data within the interpretivist research paradigm. The results indicate that, although Uganda has established petroleum related institutions, policies, laws and regulations as well as obtained membership with EITI, there is need for sector specific Corporate Social Responsibility policies and guidelines as a critical aspect of corporate governance and sustainable development.