The Impact of Corporate Social Responsibility in Norwegian Oil and Gas

This research paper investigates Corporate Social Responsibility (CSR) within the oil and gas industry in Norway, focusing on the case of Stat-Oil Oil Corporation (now Equinor). The study explores the growing importance of CSR, its integration into business strategies, and its impact on stakeholder engagement and sustainable practices. The paper includes a comprehensive literature review, covering the CSR pyramid, triple bottom line, stakeholder theory, benefits and challenges of CSR, transparency, and the role of boards of directors. The research employs a mixed-methods approach, collecting data from employees to analyze CSR activities and their influence on boardroom strategies. The findings are presented and discussed in relation to the research questions and hypotheses, with a final conclusion that links the objectives with the analysis and findings.

Running head: CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility in Oil and Gas Industry in Norway
Name of the Student
Name of the University
Author Note

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Abstract
The primary aim of this research paper was to understand the concept of Corporate Social
Responsibility in the oil and gas company present in Norway. It has been seen that CSR has been
gaining importance in the daily activities of business by spreading awareness among the local
communities. The companies are becoming active in the society and are taking up
responsibilities to maintain sustainable practices within their business sector.
The empirical and the theoretical aspects have been discussed in the paper where CSR has been
explained in an extensive manner. The literature review provides an overview of the concept
along with the benefits and challenges that are present in accepting CSR by the companies. It
will also explain to the readers the importance of this topic in the modern world and the role it
plays in safeguarding the position of the company in the competitive markets.
Stat-Oil Oil Corporation is one of the major oil and gas companies in Norway and it is important
for the company in accepting the CSR activities so that the business can be sustainable in nature.
The analysis presented in the research has been done based on the responses that were collected
from the employees of the company and their insights regarding the various activities that are
carried out within the organization. The thesis ends with a conclusion where the objectives taken
up in the research has been analyzed with the help of the literature review and the data analysis
that was conducted on the responses that were collected.

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Acknowledgement
I would also like to take this opportunity to thank my professor without whose, constant support
and guidance, the research would not have been possible.
Firstly, I would like to thank God the Almighty in giving me the strength and courage without
which I could not have completed the entire study. Secondly, I would like to thank my family
and relatives who gave me constant support mentally and physically so that I can complete the
study on time. Lastly, I would like to give thanks to my peers and the friends who have helped
me in providing the appropriate information throughout the project and helped me in doing the
in-depth analysis of the research. Without their proper guidance, it is impossible for me to
complete the project.
Thanks and Regards,
Yours Sincerely,

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Table of Contents
Chapter 1: Introduction....................................................................................................................7
1.1: Background of the Study......................................................................................................7
1.2: Background of the company.................................................................................................8
1.3: Aim and Objectives..............................................................................................................9
1.4: Research Question..............................................................................................................10
1.5: Research Hypothesis...........................................................................................................10
1.6: Contribution to literature....................................................................................................10
1.7: Structure of Dissertation.....................................................................................................11
Chapter 2: Literature Review.........................................................................................................12
2.1: Overview of CSR................................................................................................................12
2.2: CSR pyramid......................................................................................................................12
2.2.1: Economic responsibility..............................................................................................13
2.2.2: Legal responsibility.....................................................................................................13
2.2.3: Ethical responsibility...................................................................................................13
2.2.4: Philanthropic responsibility.........................................................................................14
2.3: Triple bottom line...............................................................................................................14
2.3.1: Economic sustainability...............................................................................................14
2.3.2: Social sustainability.....................................................................................................15
2.3.3: Environmental sustainability.......................................................................................16

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2.4: Stakeholder theory..............................................................................................................16
2.5: Benefits of CSR..................................................................................................................18
2.6: Challenges of CSR..............................................................................................................19
2.7: Transparency and sustainability reporting..........................................................................20
2.8: Importance of Boards.........................................................................................................21
2.9: Effectiveness of Boards......................................................................................................22
2.10: Renewed interest in Boards..............................................................................................23
2.11: Models of Boards of Directors.........................................................................................23
2.11.1: Anglo-US Model...........................................................................................................23
2.11.2: Continental European Model.........................................................................................25
2.11.3: Japanese Model..............................................................................................................25
2.12 The effect of policies from a boardroom perspective........................................................26
Chapter 3: Research Methodology................................................................................................27
3.0: Introduction........................................................................................................................27
3.1: Research Philosophy...........................................................................................................28
3.1.1: Justification for the research philosophy.....................................................................29
3.2: Research approach..............................................................................................................29
3.2.1: Justification for research approach..............................................................................29
3.3: Research purpose................................................................................................................30
3.3.1: Justification of the research purpose...........................................................................30

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3.4: Research strategy................................................................................................................31
3.4.1: Justification of research strategy.................................................................................31
3.5: Data collection....................................................................................................................31
3.6: Sample selection.................................................................................................................31
3.7: Data analysis.......................................................................................................................32
3.8: Ethical consideration..........................................................................................................32
Chapter 4: Analysis and Findings..................................................................................................33
Chapter 5: Conclusion and Reflection...........................................................................................58
5.1: Conclusion..........................................................................................................................58
5.2: Linking with the objectives................................................................................................58
5.3: Reflection statement...........................................................................................................59
Reference List................................................................................................................................61
Appendices....................................................................................................................................71
Appendix 1: Survey of employees.............................................................................................71

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List of figures
Fig 1: CSR Pyramid.......................................................................................................................13
Fig. 2: Stakeholders of Oil Corporation........................................................................................17
Fig 3: Time Board of Directors spend on each topic during meetings..........................................22
Fig 4: Anglo-US model.................................................................................................................24
Fig 5: Research Onion...................................................................................................................28

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Chapter 1: Introduction
According to Alazzani and Wan-Hussin (2013), in the recent times, most of the demand
for global energy is being met by using up the fossil fuel and it has been estimated that by the
end of 2030 almost 50 percent of the companies will be relying on the consumption of fossil
fuels as well. This means that the access to the non-renewable energy will also be declining to a
great extent. Corporate Social Responsibility (CSR) plays an integral role in the international
companies for most of the industries. Most of the European businesses have been increasing its
activities with respect to CSR and it is being incorporated within the strategies of their
businesses as well.
1.1: Background of the Study
The Corporate Social Responsibility helps the organization in taking better decisions so
that energy can be saved by managing the work in a better manner. It will help in increasing the
improvements at a lower cost, which will directly result in saving of energy. The use of better
strategies has helped the organizations in increasing its level of efficiency within the work place
so that higher rate of production can be maintained with the help of the production line that is
already present within the organization (Rauffet, Cruz and Bres 2014). However, there are many
challenges that may result in decreasing the energy saving capacity for the companies. Most of
the companies do not aim to invest more in the systems that will help in minimizing the use of
the energies due to the economic and organizational barriers. The literature regarding the CSR
activities has not influenced the organizations in improving their strategies regarding the use of
CSR within their organizations. This process of research will help in analyzing the stakeholder

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engagement with respect to the CSR activities that are taken up within the organization (Yusuf et
al. 2013).
1.2: Background of the company
Stat-Oil Oil Corporation is a Norwegian multinational oil and gas company that is
headquartered in Stavanger, Norway. Stat-Oil Oil Corporation is a fully integrated petroleum
company has its global presence in more than 30 countries. Forbes magazine in 2013 has ranked
Stat-Oil Oil Corporation as the eleventh largest Oil and Gas Company by considering the profit
margin and revenue of the company but regardless of the industry sector. Over 20,500 employees
work for Stat-Oil Oil Corporation globally. In 2007, the collaboration of Statoil and oil and gas
division of Norsk Hydro formed Stat-Oil Oil Corporation. According to the records of 2013, the
Norway Government holds 67% of the total shares thereby, being the largest shareholder of the
company. The remaining stock of the company belongs to the public body. The Norwegian
Ministry of Petroleum and Energy manages majority of the ownership of the company. Though
the headquarter of Stat-Oil Oil Corporation is in Stavanger, most of the international operations
of the company is executed from Fornebu (Statoil.com, 2018).
The Board of Directors of Stat-Oil Oil Corporation announced of changing the name of
the company to Equinor on 15th March 2018. The decision was made after taking the approval
from all the shareholders of the company at the Annual General Meeting in May 15. The name
Equinor suggests equi meaning equal and Nor suggesting it as a company with Norwegian
origin. The Stat-Oil Oil Corporation was formed with the collaboration of three major petroleum
companies Statoil, Norsk Hydro and Saga Petroleum. The company has global business
relationship with countries such as Brazil, Africa, North America and Europe. Stat-Oil Oil

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Corporation delivers wind power to 650,000 British households being the leading operators in
Norway (Statoil.com, 2018).
Stat-Oil Oil Corporation has gained competitive advantage based on the value-based
performance and culture the company has followed over the years. The company has maintained
a strong commitment with transparency, continuously improving the operations and cooperation.
Over the years since the establishment of the company, Stat-Oil Oil Corporation has delivered
wind power, oil and gas to more than 170 million lives daily thereby, allowing them to travel,
work and cook. In addition to, the company has also delivered service in the manufacturing
sector such as plastics, cosmetics, medicines and asphalt. Before the products are manufactured,
the refining process is conducted in Stat-Oil Oil Corporation thereby, preparing the raw materials
required by the industry (Statoil.com, 2018).
Stat-Oil Oil Corporation is the second largest supplier of natural gas in the European
market as well as the major crude oil seller. In addition to, the company also supplies renewable
energy to the UK through their offshore wind farm Sheringham Shoal. Stat-Oil Oil Corporation
has a team of ambitious and innovative people that encourages and facilitates new ideas. This has
lead to 4.4 billion boe volumes of discoveries in the past four years along with 18 discoveries
worldwide. The Johan Sverdrup discovery was the major discovery in the Norwegian hstory in
2011. The company has also been able to reduce 80%-90% of the climate gases in comparison tp
the standard offshore development (Statoil.com, 2018).
1.3: Aim and Objectives
The main aim of the research would be as follows:

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 To understand the role CSR plays in affecting the boardroom strategies of Stat-Oil Oil
Corporation so that the business practices can be developed in a proper manner
 To understand the benefits of using CSR while formulating the business strategies within
the boardroom of the company
1.4: Research Question
The research will be based on the following questions:
1. What role does CSR play in affecting the boardroom strategies of the company?
2. What benefit does CSR provide to the company for formulating its business strategies in
the boardroom of the company?
1.5: Research Hypothesis
The hypothesis for the research will be as follows:
H0- Corporate Social Responsibility (CSR) does not help in formulating the strategies of the
company in a proper manner
H1- Corporate Social Responsibility (CSR) helps in formulating the strategies of the company in
a proper manner
1.6: Contribution to literature
The literature will be studied in a manner that will help in identifying the role that CSR
plays in helping the company to formulate the business strategies in a proper manner. It will also
highlight the role that stakeholders take up so that it can help their company to be sustainable in
the market as well as maintain the image of the brand.

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1.7: Structure of Dissertation
The first chapter incorporates the introduction and the background based on which the
study will progress. It also consists of the research aim and questions along with the hypothesis
that has been taken up for the study.
The second chapter will deal with the secondary data that will be analyzed in a proper
manner so that it can help in providing sufficient information regarding the topic that has been
taken up in the process of the research. It will consist of the literature that has been published by
various authors as well.
The third chapter will consist of the research methods that will be used by the researcher
so that the process can be carried out in a smooth manner. The researcher will be providing
justification for all the methodological tools that will be used up for this present study.
The fourth chapter will consist of the analysis and findings that will be shown by the
researcher with the help of charts and graphs so that the analysis can be deciphered in a proper
manner. The last chapter will consist of the concluding remarks and the objectives that have been
taken up will be linked with the study to make the research process successful.