STRATEGIC ALLIGNMENT OF CSR IN COMMUNITY RELATIONS FOR SUSTAINABLE OIL & GAS EXPLORATION IN PAKISTAN

Abstract

Pakistan faces acute shortage of energy despite the fact the land beneath is full of natural resources. Exploration and Production of these untapped natural resources is the biggest challenge and equitable attraction for business concerns. Factors like terrorism and feudalism has always been considerable obstacles for local and Multi-National Corporations (MNCs) to unearth these fossil fuels. Provinces of Sindh and Baluchistan are rich in Oil, Gas and other minerals however the security situation and the social structure of these far flung, remote and under developed areas pose a tough ask for MNCs to operate in these areas. Focusing on the problem of feudalism in these areas, Corporate Social Responsibility (CSR) can prove a very effective tool in countering feudalism and achieving sustainable operations in these areas. Though CSR is relatively a new term in practice particularly in our part of the world where industrialization is yet to set its pace, but the strategic goal of sustainable operations in oil and gas sector depends a lot on the effective CSR initiatives. Problems like poor infrastructure, law and order, writ of government, literacy rate and highly deprived / underprivileged local communities further aggravates the importance of effective CSR. These CSR initiatives are accounted for and play a vital role in getting a “Ranking” in different global rating indexes. Shareholders of Multinational Oil and Gas Exploration Companies across developed nations have particular interest in effective utilization of their money through CSR and the socially responsible behavior of their corporations. Existing CSR practices by Oil and Gas Company’s in Pakistan needs strategic alignment in order to achieve sustainable Exploration and Production business in Oil and Gas Sector.