Evaluate the challenges of local content of corporate social responsibility of Ghana.
This research study has intended to evaluate the challenges of local content of corporate social responsibility of Ghana. The researcher has taken Tullow Oil as the case study analysis of this research. Tullow Oil Plc is a multinational company of oil and gas. This oil and gas exploration company has been founded in Tullow region of Ireland. The headquarter of this company is situated in London, United Kingdom. This company is considered as one of the leading independent companies of oil and gas exploration industry among the whole world. Focus of the business operation of this company is to find as well as monetize the oil within the region of Atlantic and African margin. Main production of this company comes from the major six countries of Africa. Main discovery of Tullow oil is the offshore Jubilee Oil Field of Ghana. Tullow Oil has invented this oil field in 2007. However, this field has started its production in the year of 2010 for Tullow Oil Company. This company has obtained huge success within the oil exploration field of Ghana, Uganda, Kenya and other African countries. However, the researcher has done effective qualitative analysis of secondary and primary data of the research. The researcher has analyzed that, activities of CSR are very useful for maintaining the reputation as well as image within the competitive sector of the market. The activities of CSR have been remained as one of the most important attributes towards the successful operation of an organization. The researcher has chosen interpretivism to deal with the issues of research.
This chapter provides effective information about the background of the research and aims as well as objectives and questions of the research. This research is included within the CSR activities of Ghana with reference to the oil industries of the region of Ghana. However, most of the oil industries of Ghana have lacked from effective activities of corporate social responsibility towards the environment as well as the living standard of the people within the society. This chapter provides the effective information about the background of the research and rationale of the research also.
In order to evaluate the aspect of local content of CSR in the regions of Ghana, the researcher has chosen the company Tullow Oil as case study. Tullow Oil Plc is a multinational company of oil and gas. This oil and gas exploration company has been founded in Tullow region of Ireland. The headquarter of this company is situated in London, United Kingdom. This company is considered as one of the leading independent companies of oil and gas exploration industry among the whole world. Focus of the business operation of this company is to find as well as monetize the oil within the region of Atlantic and African margin. Main production of this company comes from the major six countries of Africa. Main discovery of Tullow oil is the offshore Jubilee Oil Field of Ghana. Tullow Oil has invented this oil field in 2007. However, this field has started its production in the year of 2010 for Tullow Oil Company. This company has obtained huge success within the oil exploration field of Ghana, Uganda, Kenya and other African countries.
However, Tullow Oil and its partners have discovered oil jubilee field in the year of 2007. This company has gained huge success in order to produce oil from this field of Ghana. Current rate of production of Tullow Oil Plc in Ghana is 110,000 barrels per day of operation within the region. However, Tullow Oil has made some effective activities within the sector of corporate social responsibility. Being an oil producer Tullow should provide some activities of corporate social responsibility towards the people and society of the region where this company operates its business operation. Under the theme of ‘Creating shared prosperity ‘Tullow has contributed towards the social and economical sectors of the regions where they operate their business. Tullow has contributed within the aspect of water supply projects, health program, educational program and wildlife conservation of the operating organizations.
However, the concept of corporate social responsibility is very relevant within the sector of oil and gas industries. The oil and gas can cause many issues of environment within the region. Therefore, some activities of corporate social responsibility can be helpful for the people as well as society and environment of the particular region. Tullow Oil has been accused for causing the dump of human waste within some regions of Ghana. This company has affected the environment and health of many people with its business operation within this region. The business operation of Tullow Oil has caused several issues of health and injury of the people within the region. However, these types of incidents have decreased the level of reputation of Tullow Oil. However, this company has faced less criticism while operating its effective business operation within the region of Ghana. However, Tullow Oil has made its commitment towards the activities of corporate social responsibility and sustainable development through its business operation.
However, Adeyanju (2012) stated that, Tullow Oil Plc has made commitment towards responsible business operation. The website of the company explores that, they have focused towards minimizing the risks of environment, society and human being within the operating region. The operation of Tullow Oil has made the commitment towards saving the bio diversity of the operating region. This company has made commitment towards taking effective measures of diseases like malaria and other diseases within the region.
Therefore, Aghedo (2013) stated that, Tullow Oil has made these commitments while operating business within developing as well as under developed regions of Africa. Therefore, this company should maintain the commitment towards the society and environment and people for maintaining the reputation within the operating region.
However, some issues have been raised through the activities of Tullow Oil in Ghana. The operation of this company has raised some issues of environment and community or societal development of Ghana. The problem of gas flaring is considered as an ongoing issue in the Jubilee oil field of Ghana. The flaring is included within some harmful toxic chemicals. These chemicals have remained very harmful for the wellbeing of the people within this region. These wastes are very harmful for the environment also.
However, Amadi and Abdullah (2012) argued that, Tullow has taken several varieties of projects on CSR. These projects have addressed the issues of education, water and River Blindness of that particular region. In this perspective, local Non Governmental Organizations have become so concerned about the fact that, the people of Ghana will be ended up through footing the bill for the project of community development of Tullow Oil Plc. The projects of community developments are not sufficient and effective for the people of this region. Therefore, this research identifies the major challenges of CSR content s of this company for the future development of the operation initiatives of this company within the region of Ghana.
Main rationale of this research study is to evaluate the role of the activities of Corporate Social Responsibility for any business company of the oil and gas industry. Tullow Oil is the leading professional company within the world industry of Oil and gas exploration. Therefore, this research study has intended to evaluate the level of corporate social responsibilities within the business operation of Tullow Oil. This research has discussed about the key challenges of local content of CSR activities within the region of Ghana.
This research intends to identify the role of CSR activities in order to increase the reputation as well as image of the company within the competitive sector of the market. This research investigates the opportunity of CSR activities while making business operation within the region. As Tullow Oil is a leader in the field of oil and gas exploration or production, activities of CSR can be able to render the reputation of this company within the competitive sector of the oil and gas industry of world.
This research aims to evaluate several challenges of local contents of the activities of corporate social responsibility within the oil companies of Ghana. In order to conduct this research, the researcher has taken the Tullow Oil Company for the case study analysis. This research has aimed to identify the importance and necessity of CSR activities for every oil industries of Ghana.
The objectives of this research study are as follows:
This research study has five chapters. First chapter of this research is included with the introductory background of the research. First chapter deals with the background of the research, aims as well as objective of the research. This chapter also discusses the proper structure of the dissertation.
Second chapter of this research study is included within the literature review portion of this research study. Relevant models as well as concepts and theories have been discussed within this chapter of the research study.
Third chapter discusses the particular methodology of the research. Research method discusses the aspect of data collection and analysis as well as sources of the data. This chapter provides philosophy and approach of the research.
Fourth chapter contains the analysis and findings of this particular research. For this research purpose, the researcher has analyzed the case study with reference to the Tullow Oil company f Ghana.
Fifth chapter discusses the conclusion and recommendation of the research. This chapter also discusses the further scope of the research as well as the limitation of the research.
Figure: Structure of the dissertation
(Source: As created by author)
This chapter has dealt with the effective information about the background research, aims and objectives of this research. The necessity as well as rationale of this research has been discussed within this chapter.
This chapter has provided effective concepts and theories regarding corporate social responsibility within the region of Ghana.
In the last few decades, the concept of corporate social responsibility and sustainable development has become highly significant among corporate business houses. Companies located in the developed countries are incorporating corporate social responsibility and sustainable development in their strategic goals and policies. Adopting corporate social responsibility and sustainable development practices provides several benefits to the company and the society at large (Frynas, 2012).
It also benefits the local government by reducing their load of taking care of various issues related to business houses. Engaging in corporate social responsibility and sustainable development practices allows a firm to quickly respond to the economic, social or environmental issues raised by the society. It also enables a firm to create a positive image in the minds of the society, which instills trust for the company among it, investors, consumers, employee and public. However, in order to achieve sustainable results a company needs to attain coordination in action among its stakeholders and non-governmental bodies (Gabriel, 2015).
According to (WayneVisser and Nick Tolhurst), activities of CSR in different countries are different. In Russia, the practice of corporate social responsibility has been taken hold in some large companies. However, many small and medium sized companies have taken the initiative of CSR activities. The activities of CSR have been made very progressive measure within this particular country. The World Guide to CSR has given effective knowledge upon the programs, practices and policies in the area of CSR. In Hungary, some explicit and systemic CSR policies of government are absent within the region. In Denmark, many big companies have taken the initiative to utilize the renewable sources and wind energy (Visser and Tolhurst, 2010). Corporate culture is very effective for completing the aspect of corporate social responsibility within the competitive sector of the market.
There is a variety of definition of CSR given by different scholars in various points in time. CSR should not be confused with philanthropy as CSR goes beyond the normal duties of the company (Gummerson, 2010). According to the WBCSD (World Business Council for Sustainable Development), the corporate social responsibility can be referred to as the continuing obligation by the businesses to act fairly and contribute towards the financial development while improving the quality of life of their personnel and their family as well the general public and society at large. However this definition does not encompasses all the five dimensions that were given by a PhD scholar of Norwegian University of Science and Technology, Alexander Dahlsrud. He identified five core dimension of CSR namely, social, environmental, economic, voluntary action and stakeholder (Ibrahim, 2012). The definition by WBCSD does not cover the two dimensions, namely, environmental and voluntary action in their definition of CSR. However, the definition of CSR given by European Union Green Paper (EUGP) consists of all of the five dimensions. As per EUGP, corporate social responsibility is a concept in which the companies incorporate the environmental and social concerns into all their business operations and communications with its stakeholder voluntarily. Therefore, it can be said, that these five dimensions of CSR is not steady with definitions of the leading organizations. There is another definition of CSR suggested by Philip Kotler. According to Philip Kotler, CSR is a intentional commitment of the businesses to improve the wellbeing of the community though discretionary business practices and by the contributing corporate resource (Ihugba, 2012).
The business is responsible when they undertake CSR activities towards many people. They are responsible towards the employees in terms of providing them with fair wages and good working conditions, training, addressing their grievances. They have responsibility towards the customer in terms of charging fair price and solving their queries, providing them right information about the products and making the product available at their convenience. The companies have the responsibility towards the investors in terms of providing them with timely return, disclosing the profit details (Imomotimi et al. 2014).
They are responsible towards their suppliers in terms of offering them fair charges for the raw materials and informing them about the future needs in advance. The companies have the responsibility towards the society in terms of improving their standard of living through innovative and advanced products and services, providing employment opportunities and being concerned to maintain a clean and green environment. They are responsible towards the government in terms of abiding by the rules and regulations and not misusing any of the legal instruments and contribute towards the growth of GDP of the country. Thus, it can be said that CSR is not limited to the act of philanthropy and it goes beyond it (Ite et al. 2013).
Today CSR has become an integral part among corporate business houses. There are many drivers which has pushed CSR to such a significant spot. Today the investor, consumers, employees, suppliers, non-profit organization and local community demands that the company disclose all their annual reports and corporate affairs as transparently as possible. Nowadays, the consumers are keener on purchasing the product of those companies who are concerned about the environment and behave ethically and socially responsible manner. They do not mind paying a little extra for products of such companies as they feel their purchase decision have an impact on the environment. After many high profile breaches in large companies, now investors are conscious in investing only in ethical companies to ensure that their investment is secure and will give them the desired return in the long term (Ite et al. 2013).
They have understood the loopholes in the government and now identifies that the government does not have the required machinery to stop such breaches that is why they put more emphasis on socially responsible and ethical companies to invest in. Due to the changing dynamics of the society, the employees also prefer to work for a company who adopts the morals and philosophies similar to their own beliefs. A skilled and knowledgeable employee looks beyond the financial benefits, seeks overall satisfaction from his job, and wants to work for a company of which they can be proud. Since the stakeholders are placing so much importance on the ethical and socially responsible behavior of the companies, they are ensuring that they collaborate will ethical suppliers and business partners only to safeguard their image (Mahmood et al. 2013).
After understanding the concept and need for CSR, let us now look into few benefits that arises due to adopting socially responsible actions and behaviors by the companies. The companies enjoy the following benefits:
It enhances the brand image and goodwill of the company that leads to improved financial performance due to increase in sales because of improved customer loyalty. They are also able to attract best talent and retain them that improve the diversity and loyalty among its employees that leads to reduced turnover and increased productivity and quality of work (Michael et al. 2015).
They are also able to attract the investors and get easy access to funds. It helps them to control their operating costs also and they are able to maintain the safety of the products.
Another major beneficiary is general public and local community at large due to the charitable contributions made by the companies. The companies engage in many welfare programs for the less privileged section of the society such as health and safety, educational programs, providing employment and shelter to destitute etc. The community also enjoys clean environment as companies make use of recycled materials and renewable energy to reduce the impact on environment. They make sure to produce safe products with better functionalities and durability. The companies adopt the various practices to protect the environment such as eco labeling, environmental management standards and life cycle assessment and costing. Thus, these are the major benefits and beneficiaries of corporate social responsibility (Minnee et al. 2013).
A worldwide, multi stakeholder attempt has been made to form a universal framework for voluntary reporting of the environmental, social and economic impact of business activities through Global Reporting Initiative. The aim of this initiative is to enhance the reliability and comparability of exposure of sustainable activities globally. Global Compact is one instance of such partnership between large corporate houses, environment and human rights groups and trade unions which was launched by the United Nation in 1999.
From the last five years, the government, nonprofit organizations and companies of the emerging economies have speeded up to process of adopting the CSR agendas by directly engaging in CSR activities. Countries like India, Philippines, China, Brazil and South Africa are few nations who are taking initiatives towards implementing better CSR practices to engage the business houses to face the social challenges of their country. If the companies in the emerging economies engage into CSR, they have netter opportunities of growth, as these are briskly budding economies. Also due to such rapid globalization, investment, increase business activity and economic growth in these economies, there are remarkable social and environmental positive and negative impact, which arise and intensely felt around the globe. Therefore, the emerging country faces different challenges than those of developed nation while implementing CSR activities (Musa et al. 2013).
2.2. Priority issues of CSR in Africa:
As discussed by Visser and Tolhurst (2010), in sub Saharan region, there are many priority issues within the activities of CSR. In Namibia, preference has been given within the aspect of empowering disadvantaged people of the society. However, the priority issues are included within the aspect of poverty reduction, health factor, education and skill development, youth development, development of socio and economic aspect within many regions of the Africa. However, there are also some socio and economic priorities within the national level of Africa. There are some successful implementations of CSR projects in Africa. Effective skill of project management, the commitment and involvement of staffs, involvement of partnership and stakeholders and aligning the resources of firm towards the objective of the company and commitment of executive or management are needed for the effective implementation of CSR in Ghana as well as Africa. CSR projects of Africa are considered as a philanthropic activity.
2.3. Strategies used by Tullow Oil for implementing CSR in local level:
However, Tullow Oil has made the commitment towards the sustainable development of the world by offering effective as well as responsible business operation. Tullow Oil has committed towards the management of the impacts of society and environment within the particular region of the operation. This company considers itself as a responsible operator of business. This company has taken the decision to make the safe as well as secure people and workforce within the region. The people and the operation of this company focus upon the maintenance of asset integrity. It is fully prepared for any major type of emergencies while operating the exploration of oil and gas within the region. However, this company has also made the commitment towards the protection of human rights within the operating communities of the Tullow Oil Company. It also provides two-way communication with the people and the effect of the activities of CSR within the region of the operating service of the organization.
On the other hand, Dhaliwal et al. 2012) argued that, Tullow Oil company has taken effective measures for protecting the livelihood and environment of the people of the region. Tullow has focused upon minimizing as well as mitigating the effect of its business operation on the people and environment of the particular region. This company has tied with several nongovernmental organizations, suppliers and industry partners for completing this environment free operation of this company. This company has focused upon some issues of climate change, waste management, biodiversity and flaring.
Tullow Oil operates within sector of oil and gas exploration. Therefore, this company has taken some essential activities in order to reduce the level of green house gas emission and other environmental impacts. The operation of oil and gas industry has some issues while delivering its operation within the industry. This company has the information regarding the activities and product development process within the industry. This company has taken the effective decision to reduce the level of green house gases for the development of the environment of the particular region as well as the whole world. The aspect of waste management of Tullow Oil is very important in order to consider the impact of government within the industry. Tullow Oil has maintained the local protocol as well as laws and regulation for providing effective operation within the industry.
Tullow Oil also has planned for managing the aspect of bio diversity within some regions. This company has developed biodiversity management plan. It also uses Biodiversity Assessment Tool (IBAT) for accessing the information regarding the environment and biodiversity of the region. This company has also focused upon minimizing the impact of environment by the application of Mitigation Hierarchy. This company has also focused upon the meeting of international standards of environment. Oil spills of Tullow Oil also have focused upon minimizing the impact of people, asset as well as environment and reputation. However, this company has done many things for maintaining the reputation and image within the competitive sector of the industry.
Recently, CSR is been into limelight in Ghana as especially for companies which are operating in the oil and mining industries as they have significant impact on the environment. There have been many human rights activities against these companies as they were causing severe damage to the local environment and dejecting basic human rights. Therefore, many mining companies such as Tullow Oils are engaging in educational, community and other fitness programs to enhance their public image and instill trust among local public. Since there is lack of trust among local public in Ghana towards the international companies, the CSR activities undertaken by these companies is perceived to be associated with PR activities (Nwagbara and Brown,2014).
The African countries are significantly dependent on the mining industry as they are having major contribution towards increasing the wealth of these countries. However, these have huge environmental impacts in the form of destruction if flora, livelihoods, water resources and lands. Ghana is immensely rich in its natural resource reserves and therefore, this has been a major attraction for various mining companies. The government of Ghana liberalized the mining sector of the country which resulted in selling of state owned mines to the transnational companies after 1985. However, keeping the negative impact on environment and health of local public in mind, the government of Ghana was advised by the German embassy of Accra to impose high tax rates for mining in Ghana so that the money can be used for the well being of the local public and reduce the threshold of the damage caused by mining (Ogula, 2012).
Besides the efforts of the international companies, the DC (development cooperation’s) of Ghana also fuels the CSR activities by such companies. Since the government cannot rely completely on these international companies to be proactively engaged in the development of the local population and improvement of their health and education level, the government has taken various steps to ensure that these businesses meet the prescribed standards to reduce its environmental impact and ensure the safety and healthy well being of its employee and local public. Therefore these cooperative organizations popularly known as “development cooperation” was formed with the belief that the partnership between public and private can be helpful in achieving sustainable economic development as both can work together to improve the health and education level of the local public at large (Santos et al. 2014)..
The government of Ghana has formed many legal organizations that ensure the protection of environment and which promotes CSR and sustainable economic development. Three significant economic societies operate in Ghana and support the “Ghana Business Code” which is a set of laws and rules based on the ideology of the “Global Compact of UN”. These economic organizations are GNCCI (The Ghana National Chamber of Commerce and Industry), AGI (the Association of Ghana Industries) and GEA (the Ghana Employer’s Association). There is a ranking system also known as “Club Ghana 100” which is awarded by the GIPC (Ghana Investment Promotion Centre) based on the assessment by third party on the CSR activities, relationships with employees and business ethics apart from the profitability and trade volume of the organization (Slack, 2012).
The local communities is not does not even highly benefited by these oil plants, in fact, there are many social problem such as increased rate of crimes and prostitution as many people come from outside to work in these oil and gas plants. This has also led to increased cost of living due to sharp increase in rate on rents. These plants also causes damage to the land and water sue to leakage in oil pipelines and risk of explosion in gas plants have instilled fear among the local public. The public in Ghana have few legal tools in context of energy projects on which they can rely upon. They are the EIA (Environmental Impact Assessment) which systematically evaluates the impact on environment if the project is undertaken and the SIA (Social Impact Assessment) which seeks to minimize the social impact that a project is likely to have on the local community if approved. However, due to weak implementation, the local public is not able to enjoy the benefit of these tools (Hazarika,2012).
Oil and gas has become highly organized sector form last few decades and this industry plays a crucial role in the society. Oil and petroleum products are a vital energy source for humans and it has increasing its relevance in the day-to-day life of human beings. This industry creates employment opportunities and generates a considerable amount of tax revenues and royalties for the local government. However, oil and gas industry has huge potential to negatively influence the environment at many levels. It is hazardous for soil, water and air in many ways that subsequently affect the health of humans, flora and fauna. Oil industry highly pollutes the environment that has severe consequences (Gautam & Singh, 2010).
The environment gets polluted at every levels of production of oil and gas, from exploring to refining. Around 800 unusual chemicals are generated in the form of gas emissions, wastewaters, aerosols and solid waste during the process of refining, drilling, production and transportation of petroleum products. This effects the environment severely in the form of acid rain, greenhouse effects, deterioration in the quality of water, contamination of ground water etc. This results in the loss of biodiversity as well as destructs the ecosystem. Therefore it has become important to reconcile the development of these industries with environment protection for sustainable development (Amponsah-Tawiah & Dartey-Baah,2011).
The oil undergoes the refining process so that it can be converted into commercial products after it has been recovered and transported to the factories. The process of refining is the major pollutant as it consumes great amount of water and energy and produces huge quantities of waste waters. This process also releases hazardous gases into the environment and generates difficult to dispose and treat solid wastes.
Therefore, it is required by the oil and gas industry to address this issue of pollution and adopt environmental strategies to earn more profits as well as for the sustainable development of the society. Different environmental authorities in every country that needs to be followed by the oil and gas industries establish several environmental policies. However, there are still many businesses that do not comply with these policies (Mzembe et al. 2014).
These policies replicate the “End of Line control” corporate culture and “relative approach” to environmental management. This has been a major challenge that has been faced by the oil and gas industries. In the present business environment across the globe, the society demands the business organizations to undertake activities for the protection of environment and to be concerned towards the health of local community and flora and fauna. Therefore, today the obligation of the businesses to support sustainable development goes beyond the moral and ethical responsibilities (Raufflet et al. 2014).
This has become a crucial factor for the companies for their survival in the long run because if they are not committed to sustainable development then their image may be affected negatively. This can result in loss of consumer base for such companies, as the consumers do not want to be associated with an irresponsible company. These companies can face many other problems if they do not actively engage in reducing the impact on environment during the oil and gas production (Lertzman et al. 2013).
Now, the potential environment impact of oil and gas industry will be discussed in detail to better understand the severity of the hazards. The water is contaminated due to cooling water discharges, discharge of sewage wash waters that contains high volume of inorganic salt, leakage from storage and oil spills from the factory. Other major impact is thermal pollution that is caused when the effluents with very high temperatures are disposed of in the water bodies. The air is polluted when these oil and gas factories emit high amount of harmful chemical in the air during the refining process of oil and gas. The refining process is most polluting process in the oil and gas industries (Fernandez-Feijoo et al. 2012).
They emit chemicals like, nitrogen oxides, sulfur, ammonia, fluorine gas, acid mist which is negatively affect the health of the local people where the plant is located. Sometimes these factories also release harmful solvents, alkaline materials and acids into the atmosphere. The oil and gas plants also causes soil pollution. When huge amount of solid wastes are disposed off without any treatment, which are the result of processing of chemical that consists of particulate substance from dust collector and s e wage treatment sludge, then it, pollutes the soil and also contaminate the water. This kind of pollution is damaging for the local vegetation and animals. Another impact of these factories is noise pollution that is caused because of the loud noise generated by the machineries while processing the oil. After the oil and gas has been processed and converted into a commercial product, they are transported to the stores for sale. It is the responsibility of the management to choose the safest route while transporting these products as in case of accident, the products can have massive effect on the environment as well as on the lives of the local public. Thus, the factories must make sure that these products are transported safely since these are hazardous in nature (Font et al. 2012).
Apart from these, the oil plants must make sure to operate safely and avoid the risk of occurrence of any accident such as oil spill or fire explosion in the plant which can lead to death of many people in and around the factory and also adversely affect the health of the survivors ruing their life. Such accidents damage the natural vegetation, flora and fauna which require very long time to recover and reach its normal situation again. Thus it is essential for this industry to be concerned about the environment and comply with environmental regulations in order to operate smoothly.
This chapter discusses the aspect of research methodology for this research purpose. Research methodology refers to the effective understanding of scientific method of research. It mainly deals with the process of conducting the whole process of research with appropriate technique, philosophy and approach for the particular chosen topic of the research.
This research has been completed by post positivism philosophy as well as deductive approach. This research also has taken the help of case study analysis. Several secondary data has been analyzed for acquiring the expected outcome of the research. The data of secondary sources has been analyzed with the help of qualitative analysis. However, these aspects have been discussed in the following points.
Research philosophy deals with the area of scientific knowledge and accurate dimension of the particular research study. Different philosophies of research provide primary knowledge and several concepts of this particular aspect of research. The philosophies of research derive from the ontological assumption of philosophy. The research philosophy also comes from the epistemology paradigm of philosophy (Bergh and Ketchen, 2009).
However, the research philosophies are included within the classification of positivism, post positivism and realism. Realism helps to identify the objective situation of the particular research process. Positivism deals with the factual data as well as information of the related topic of the research. Post positivism helps to cross check the data of the research. The philosophy of post positivism helps to crosscheck the data with reference to the previously available knowledge and theory. Interpretivism is the mostly used research paradigm for the case study related research topic. For the social science related topic like CSR, interpretivism is the mostly used phenomenon of research philosophy. Interpretive approach mainly relies on different naturalistic methods. Approaches of interpretivism are included within the interview process, observation and existing text analysis (Gummerson, 2010).
However, for this perspective, the existing text or case study can be analyzed with the help of interpretivism. With the help of interpretivism philosophy, qualitative methods have been used by the researcher for completing the analysis of case study. For this research purpose, the researcher for completing the process of research has taken interpretivism approach. Interpretivism helps to deal with the effective knowledge and concepts of this particular aspect of the research. The researcher has conducted the approach of case study therefore, interpretivism is very appropriate for this case.
As discussed by Bernard (2011), inductive and deductive approach are the two effective research approach. Inductive and deductive approaches are two helpful approaches for the aspect of research. Inductive approach deals with the process of hypothesis testing research. This approach deals with the set hypothesis of the research. On the other hand, deductive approach of the research helps to discuss the research topic with the help of available theories and concepts as well as models of the research.
Deductive approach is very helpful as well as effective for this type of research. This approach helps to discuss the aspects of research with the related models and concepts. Deductive approach helps to complete the whole research with the effective concepts and theories of this particular research topic.
A research needs to be completed with particular process and method. The strategy of the research refers to the process of collecting data from the respondents. There are different strategies of research; those are survey process, interview process or case study analysis and content analysis etc.
For this particular research purpose, the researcher has taken the method of case study analysis. The researcher has done effective analysis of case study of this particular research topic. This research topic has been finely analyzed with the help of the strategy of case study analysis.
For any research purpose, data is very much required as well as necessary for the research. The researcher for the development of the research should collect related data. In order to complete, the whole process of research the researcher needs to collect several data from the source. There are different sources for the data.
The sources of data can be of two types; those are primary and secondary sources. Primary data refers to the data that can be collected from first hand experience. Primary data are never published in any material. It only derives from the respondents of the research.
On the other hand, Boiral (2013) argued that, secondary data refers to the data that has been collected from any published materials. Secondary data can be collected from books, journals, websites or blogs of the particular research topic. Secondary data is available from several sources. Secondary data is very important for the researches within the field of social study.
For every research, the researcher can obtain qualitative and quantitative technique of data analysis. Quantitative data analysis refers to the analysis of data using charts, table and mathematical as well as statistical method. On the other hand, qualitative data analysis refers to the descriptive analysis of the collected data. Different types of interviews, case study, documents are the extensive sources of secondary data. These sources of data should be analyzed by qualitative data analysis technique. With the help of qualitative data analysis, the researcher can obtain the perception as well as interpretation effectively. As discussed by (), secondary data analysis can be very effective for the analysis of human understanding.
The inclusion criterion of this research is to gather relevant article from books or journals. The research process can be very effective with the information of recent as well as contemporary sources. The researcher has gathered important information for completing the secondary analysis of this research.
On the other hand, the exclusion criterion of this research is not to use any data before 2011. This exclusion criterion is very important for any type of research. For this particular research purpose, the researcher for making the research more relevant and contemporary should maintain this exclusion criterion (Bryman and Bell, 2011).
For this purpose of research, the researcher has used qualitative analysis of the secondary data. The researcher has mainly done case study analysis of the Tullow Oil Company with reference to other oil companies of Ghana or Africa. The researcher has analyzed the secondary data regarding CSR activities of different oil industries of Africa.
Every research has to face some accessibility issues while collecting data. For the perspective of this research, the researcher has faced some issues while collecting relevant books. The researcher has the journals. The researcher has faced some issues regarding the collection of relevant data about the company. However, the researcher has faced issues while collecting relevant information about the activities of CSR in Ghana for five years.
According to the Data protection act of 2009, the researcher has maintained the privacy of the data that has been collected from different secondary sources. The researcher has completed the process of consent acquiring for the use of those journals or books. The researcher has maintained the ethics of research while conducting this research. He/she has taken the prior consent from the authors of books and journals while using those data in his/her own research. He/she has also taken consent from the author while using the concept or discussion of the particular research within the research.
This research has faced several limitations while accessing the books or journals from physical or online library. The researcher has faced problems regarding budget and time duration for completing the whole research. On the other hand, the researcher has also faced some issues while collecting information from journals and books. The researcher has not found several books and journals from the library. Therefore, this accessibility issue as well as time and budget issue has become the most relevant limitation for this research purpose.
On the other hand, the researcher has also faced issues while reading all the books in the limited period. The researcher has not completed the reading of some books for the limited time.
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Analysis & Interpretation of Data Collection |
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This chapter has dealt with the aspect of research methodology for his research. Research methodology is very effective as well as important for completing any type of research. For this research purpose, the researcher has taken the secondary data for obtaining qualitative analysis of the data. On the other hand, the researcher has taken the relevant information from the secondary sources of the data. This chapter has described the time horizon of the research. The researcher has described the detail background of research methodology for the particular purpose of this secondary research.
This chapter provides the detail information about the results of the secondary source of data. This chapter has also provided detail discussion of the collected data from several secondary sources of this particular research. However, the researcher has found effective information about the activities of the company from the official website of Tullow Oil. Apart from this, the researcher has also collected relevant information about the issues as well as challenges of CSR activities of Tullow Oil Company from different journals and articles of newspaper and website or blogs. The researcher has demonstrated the result with effective discussion of the particular topic of CSR activities of Tullow Oil Company. The researcher has collected the data in accordance with the case study of Tullow Oil and CSR challenges within the region of Ghana.
Apart from the secondary data, the researcher has also collected primary data from the employees of Tullow Oil. The researcher has collected data from the managers of Tullow Oil. The researcher has taken interview from four managers of Tullow Oil Plc.
The activities of corporate social responsibility of Tullow Oil have been found from several published journals and official websites of this company. The strategy of Tullow Oil Plc has focused upon building long-term growth of the value by sustainable operation of its business. This company has aimed to deliver its business strategy for ensuring responsible and safe people and society. However, the approach of sustainability has focused upon the process of minimizing risks within the region of operation of Tullow Oil Plc. This company has also aimed to manage the operation while influencing the shareholders, citizens, governments of the region by creating shared prosperity among the group of shareholders or stakeholders of this company (Brammer et al. 2012).
On the other hand, Kotchen and Moon, (2012) argued that, Tullow Oil has offered effective operation for maintaining the human rights and land accessibility as well as social investment and grievance management system. This company has also focused upon some activities of social community. This company has also invested upon some long term and short term projects within this region. However, Tullow Oil Company has also focused on the importance of wellbeing and health of the employees within the field of oil and gas industry.
On the other hand, Dorfman et al. (2012) argued that, this company has taken effective measures for promoting and protecting wellbeing and health of the employees of this organization through the identification of management of occupational health risks, fitness to the employees of the organization. This company has also provided support towards the physical safety of the employees while exploring oil and gas from this industry. The company has taken effective measures for the safety and wellbeing of the employees within this industry. This company also has encouraged the healthy lifestyle of the employees through nutrition and exercise. The work of oil exploration is very tough and strenuous job. It can be included within the safety issues also. Therefore, this company has taken effective measures for the safety and wellbeing of the employees within the organization. This company has taken the effective measures for increasing the measures of health and wellbeing of the workers of this organization. This company has maintained the human rights as well as labor rights within the organization.
However, from the perspective of the Tullow Oil, it can be stated that, this company has taken effective initiatives for prospering the shared value among the shareholders and stakeholders of the company. The creation of shared prosperity can be considered as one of the most effective strategies of corporate social responsibility of this company within the competitive sector of the particular oil industry. The approach of this company towards the environment, health and safety, people and supply chain or local content and social performance enhance the operation of business within the oil and gas industry of the world. The local content of this company can be able to create real opportunities for the development of local people as well as local environment of the region. The aspect of corporate governance also helps to keep the people and environment very safe by reducing the footprint and waste within the environment.
On the other hand, Moodie et al. (2013) argued that, Tullow has committed towards enhancing the business operation of oil and gas industry. This company has committed towards bringing transparent as well as tangible and sustainable opportunities and benefits to the shareholders of the company. This company has also made commitment towards the local population of the people of the countries where the company operates effective business opportunities within the region.
The researcher has found effective information about the local content development within Ghana from the official document of Tullow Oil. This company has performed effectively in order to maintain the commitment towards creating shared prosperity among the group of stakeholders within the market. This company has taken a leadership position while maintaining its transparency of business operation within the society. This company has taken effective measures for the progress of local jobs, local capacity and job creation within the society.
However, Ghana has contributed towards the local content development as well as activities of corporate social responsibility of this company. In the year 2013, Tullow of Ghana has spent $128 million with local businesses on behalf of the Jubilee partnership. The development project of Tullow Oil has supported the capacity development for several small as well as medium sized enterprises within different regions of Ghana. The vision of this company is to become a leader in the field of global independent exploration of oil and gas. Tullow has achieved success while attaining long-term return towards the group of shareholders as well as shared prosperity to the stakeholders of the Tullow Oil Company.
As discussed by Rahman and Post (2012), Tullow Oil has taken the initiative for creating values within the organizational effectiveness of the company. However, Tullow Oil has also taken the effective initiative to create several local contents within the regions of Ghana. Prospering local content of Ghana can be included within the socio and economic impact of Tullow Oil Plc within the region of Ghana. Local content refers to the local procurement and capacity building within the society. The security of the people and asset can be enhanced by this company for providing reputation among the stakeholders group of the organization.
However, Tullow has set minimum compulsory supplies as well as responsibilities for our business units in managing security. We also conduct periodic risk assessments that help us determine the continuing suitability and effectiveness of security controls implemented at our operations and countries we work in.
Tullow is a member of the Voluntary Principles of Security and Human Rights and respecting the rights and dignity of people affected by our operations is integral to how we do business. Through our contractual agreements, we require our private security providers to uphold the voluntary principles and we provide training on how to adhere to them in the security services they deliver (Slack, 2012).
Some of the case studies have shown that this company has provided major threat towards the environmental issues of the region. Tullow Oil has mentioned that they always provide effective CSR activities towards the people and the society within particular region. However, people of several regions of Ghana have faced immense troubles regarding poor waste management, environment pollution within the region of the country.
However, it can be stated that, many regions of this world have faced several issues of environment while operating effective operation of oil exploration. There are several countries in Africa those have faced immense troubles regarding environmental effectiveness within this region. On the other hand, several human beings of this society have also faced health and safety issues within the region. The activities of oil and gas are equally responsible for the harm of the environment as well as lives of the people of this society. Therefore, the people of this region have faced issues regarding employment and livelihood due to the increased anti social as well as unethical practices of some humans relating to the oil and gas industry of this region.
On the other hand, Yip et al. 2011) stated that, the people of the society have faced issues regarding impact of environment, ecology and society. However, it has been seen from many reports that, unemployment is also a major issue within the region of Ghana. The people of this region have faced immense issues while acquiring effective employment opportunity within this region. On the other hand, many oil and gas organizations have faced challenges of many anti social activities within the region. The incidents of oil spill have been increased within many regions of Africa. The people of this region have faced issues while acquiring knowledge and skills. The unemployment is one of the major issues within this region of Ghana. Therefore, the Tullow Oil has mentioned in its website that this company aims to provide effective CSR activities for increasing the knowledge and skill of the local people within this region of Niger Delta.
It has been seen from several case study that, Indian Oil has taken several measures for developing the activities of business within the competitive sector f the market. Indian Oil is a reputed oil company of India. The largest oil enterprise of India has taken effective measures for maintaining the image as well as reputation among the people of the society. It has taken effective initiatives for the green energy plan of the environment. Indian Oil has taken major initiatives in order to reduce the emission of carbon through the operation of this company. Indian Oil has collaborated with different partnering agencies for providing support towards the family welfare, education, health, protection of environment, empowerment of women within several regions of the society. For the Indian Oil, corporate social responsibility has become very successful from the very beginning of its business operation.
On the other hand, Amponsah-Tawiah and Dartey-Baah (2011) stated that, the objective of this company is to enhance the quality of life of the people of their operating region. They have focused upon making the community more prosperous. This organization has focused towards the value of life of the people of the community.
1) Why you have chosen approaches of CSR for maintaining sustainability?
From the view of managers, the researcher has stated that, business should provide responsible approaches towards the community of the region. Apart from making profit, every business company should provide effective activities towards the people and community of the particular region. Activities of CSR can be of different types. Therefore, Tullow Oil has acquired effective approaches of corporate social responsibility towards the people of the region of Ghana. The activities of CSR can be able to maintain the reputation of the company within the competitive secyor of oil industry also. The oil industry severely faces several issues of environment effectiveness. Therefore, Tullow Oil Plc has made some contributions of CSR for the people and the environment also.
2) Do you think that your activities are enough to protect the environment and society of Ghana?
The managers have stated that, they have taken responsible approach to manage the impact of environment and society. This organisation has focused towards keeping the people and asset secure and safe. This company has maintained the integrity between the asset and major emergencies of the company. This company has taken the responsible approach for ensuring high standard throughout whole chain of supply within the operation of organisation. This organisation has also taken effective approach in order to protect the human rights within the community of the particular region of the society. This company has aimed to provide effective activities of two-way communication towards the related people of the organisation as well as society of Ghana. This company understands the views as well as demand of the stakeholders within the society. The executive of field management team of Tullow Oil communicates with the stakeholders of the company in regular process. The consistent as well as proactive engagement of this organisation fosters very strong relationship between the partnering organisations.
3) Why you have taken the approach to create value within the society?
This company has maintained strong values as well as culture among the group of customers within the region where it operates effective business operation. Tullow Oil Plc has aimed to motivate as well as engage the members of the team through strong organizational culture. This company has also taken some measures to protect the health and wellbeing of the people of the organisation. According to the managers of this company, they also are creating value among the people while ensuring effective training and development opportunities among the employees of the particular organisation. This company has created the career development program of the employees. This company also provides reward for the good performance of any individual employee or other related people of this company. They have focused on making the community prosperous and developed within the region of their operation. This company has aimed to protect the health and wellbeing of the people of the community. The management of this company has always taken initiatives for the prosperity of the community. However, the level of management of this company also has provided equal opportunity towards the individual people of this particular organisation.
4) What do you mean by creating shared prosperity among the stakeholders within the organisation?
For this perspective, the manager of Tullow Oil has stated that, Tullow Oil has committed towards the prosperity of the particular oil industry within the operating zone of the nation. This organisation has taken some activities for acquiring long-term growth within the society. The managers have stated that, they have imposed non-aggressive policy of tax that means Tullow Oil always maintains the payment of fair amount tax to the recognized organisation. Tullow Oil has maintained effective system of supply chain management within several host countries of the world. This company has provided the opportunities of local business to be part of Tullow Oil and its supply chain within the society. Many local business companies can take part within the supply chain of Tullow Oil in order to prosper the business operation within the society. Tullow Oil also supports several local companies for prospering their business opportunity within the competitive sector of the market.
This chapter has provided information regarding the analysis and findings of the collected data. The researcher has collected several secondary data from different journals and books. On the other hand, the researcher has also collected primary from four managers of the Tullow Oil Plc. Here, in this chapter, the researcher has provided the findings and result of the secondary data and primary data. The secondary data has been analyzed by qualitative analysis technique. On the other hand, the researcher has analyzed the primary data through quantitative technique of analysis.
From the whole research study, it can be stated that, activities of CSR are very appropriate for the purpose of the reputation building and image making by the company. However, Tallow Oil Plc has contributed towards the people and the society. However, this region of Ghana has faced several issues regarding unemployment, poor education, harmful environment etc. Therefore, this company has faced some gaps within the field of CSR activities within the society. Therefore, activities of CSR can help the local people of this region through effective operation of the organization. The activity of CSR can also help to maintain the reputation as well as image of the company within the competitive sector of the market. Tullow Oil Company has taken effective measures for protecting the livelihood and environment of the people of the region. In last five years, Tullow has focused upon minimizing as well as mitigating the effect of its business operation on the people and environment of the particular region. This company has tied with several nongovernmental organizations, suppliers and industry partners for completing this environment free operation of this company. This company has focused upon some issues of climate change, waste management, biodiversity and flaring. However, Tullow Oil needs to focus upon the priority issues of the region of Ghana.
Tullow Oil Ghana Limited has taken the decision to spend 80 percent of the whole funds for the development of the communities. Remaining 20 percent will go within different social sectors, like health and potable water within the community. This company has taken the 80/20 form to promote the protection of environment. Tullow Oil had spent 7 million US dollars upon the social activities of the country. However, 6,000 people had also benefited from the activities of health. Tullow Oil has also made promise to provide effective services towards the development of the society.
To identify the strategies for local content of CSR in Ghana:
From the literature review portion, the researcher has linked this objective of the research. The researcher has concluded that Tullow Oil has made several activities for the local suppliers of the Ghana. The researcher has identified effective strategies of different oil industries of this region. However, Tullow Oil has made several contributions towards the local community of the region.
To identify the challenges of CSR of Tullow Oil organizations of Ghana:
There are some challenges as the region is very poor. The people of this region have faced immense issues while operating their livelihood within this region. The company can face some challenges while working within this region.
To investigate Benefits of CSR local contents in Ghana (Tullow oil):
The researcher has analyzed that several activities of corporate social responsibility is very much required for the region of Ghana. The people of this region has lacked from unemployment opportunity. The environment of this region has also become so harmful for the operation of Tullow Oil.
To recommend the CSR program within the Tullow Oil company of Ghana:
The companies of oil and gas industry of this region can gather several effective techniques. Tullow Oil Company should appoint watchdog activity for maintaining the clarity within the work activities of this company. Tullow Oil should provide educational activities in order to reduce the level of corruption within the region.
Tullow Oil should provide effective opportunity of education towards the community of Ghana. There are some issues regarding anti social activities and corruption within the region of Ghana. Several oil companies have become responsible for this corruption as well as unethical activities within the society.
Therefore, Tullow Oil should reduce the emission of green house gases for maintaining the effectiveness of environment of the region of Ghana. Several regions of Ghana have faced immense issues of environment for the oil industry. The major operating oil industry of Ghana is Tullow Oil. Therefore, this company should be focused upon reducing the level of carbon di oxide and other harmful green house gases for the people and the society.
On the other hand, this company should take different activities for mitigating the risks as well as impact of the environment by doing effective activities of their business operation.
This company should take effective measures for mitigating the impact of environment with the activities of this company within this region. Tullow Oil should provide effective measures for the people of the society. This company should develop the capacity of the community where it operates its effective operation of business. However, this activity of Tullow Oil Plc can be able to obtain several raw materials as well as other required services from the local suppliers of Ghana.
This company should provide effective training and development opportunity for the local suppliers of Tullow Oil Plc across different operating region within the world. This company should provide transparent activities within the business operation for the improvement of the people as well as community and the society.
As the economy of Ghana is based on the import based economic practice Therefore, Tullow oil Plc should develop new market sector of economy. This company should involve within the practice of labor-intensive economic sectors within the region of Ghana.
Apart from these activities, Tullow Oil should provide different initiatives for eradicating the level of poverty, health and wellbeing of the people of the particular region of Ghana. This company should take measures for promoting the gender equality, empowerment of women within the region of the society.
However, the researcher can evaluate the effectiveness of corporate social responsibility within the whole countries of Africa. In future, the researcher will be able to evaluate the aspect of CSR in some developing countries of Africa while understanding the issues of environment, society, unemployment and other similar features. This research can look forward to the aspect of CSR for providing sustainable development towards the people and the society of some oil generating developing countries of Africa. The challenges of local content can be better evaluated with the reference of other African oil producing countries. The issues of environment and society have increased a lot within some developing countries of Africa. Therefore, the researcher can do the research upon the effectiveness of CSR with reference to some issues of oil industry of some developing countries of Africa.
This chapter has provided the conclusion of the particular topic of the research. Here, the researcher has also provided the recommendation for the future techniques of the topic. This chapter has provided the effective technique of CSR for developing the situation of the company within the competitive sector of the market of particular industry of oil and gas exploration.
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