An Examination of the Importance of Corporate Social Responsibility in the Mitigation Of the Impact Of Oil & Gas Operations In Uganda: A Case Study Of Nigeria.

Abstract

This research examines the importance of Corporate Social Responsibility in mitigating the social and environmental impacts of oil & gas operations in Uganda, taking lessons from Nigeria as one of the resource reach countries. The study showed who the indigenous people are with their rights and how oil and gas operations impact them. In order to get to know level of mitigating on the level of environmental impacts, sustainability reports of Chinese National Offshore Oil Company (CNOOC) and TOTAL ENERGIES as one of the International Oil Companies (IOCs) operating in Uganda were analyzed. Also, analysis of CSR of Nigeria and other resource reach countries was carried out as well to enable us to find out the vital role of protecting Uganda’s society and environment through Corporate Social Responsibility (CSR). It was found that the operations of IOC’s in Uganda have gotten inadequate measures in put in place to mitigate their impacts. The research further showed that CSR mitigates the impacts but only to an extent since it has got limitations. Failure to manage the present condition, conflict, poverty and environmentally degraded landscape will result hence seeing another Niger delta. The government of Uganda has been found to have effective policies however the challenged has merged to be implementation hence creating a corrupt filled environment. Nevertheless, the government has been guided to enact strict and effective laws covering national content, revenue management and environment which should be implemented and adhered too. So as to enable equitable distribution of the oil money to all citizens and avoid conflict. In addition, it was recommended that the government having joined the Extractive Industries Transparency Initiative (EITI), it should be transparent and adhere to the initiative values to encourage transparency and compliance so as reduce corruption in Uganda. Companies were advised to engage all stakeholders and ensure technology transfer going forward, in order for citizens (Indigenes) to build businesses in preparation for the production phase and develop capacity to meet the upcoming needs. If all this is adhered to, then this should facilitate Uganda having a sustainably developed and protected environment.