Analyzing CSR Initiatives of Kuwait Oil Company: B207B Assignment

This essay provides a comprehensive analysis of the Corporate Social Responsibility (CSR) initiatives undertaken by the Kuwait Oil Company (KOC). The essay examines KOC's adherence to the triple bottom line framework, exploring its economic, social, and environmental responsibilities. The economic aspects include KOC's contribution to development projects and enhanced profitability, illustrated by revenue and net income data. Social responsibilities are examined through sponsorships, donations, blood donation campaigns, and health checkup activities. Environmental responsibilities are evaluated by analyzing KOC's efforts in inaugurating the 'Spirit of the Desert Reserve' and its reduction in gas flaring. The analysis highlights how these initiatives contribute to KOC's overall commitment to ethical business practices and sustainability, supported by references and appendices with financial and CSR rating figures.

Running head: CORPORATE SOCIAL RESPONSIBILITIES
CORPORATE SOCIAL RESPONSIBILITIES
Name of the student
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Table of Contents
1. Introduction..................................................................................................................................2
2. Economic responsibilities of Kuwait Oil Company....................................................................2
2.1 Leaving space for development projects...............................................................................2
2.2 Enhanced rate of profitability................................................................................................2
3. Social responsibilities of Kuwait Oil Company..........................................................................3
3.1 Sponsorships and donations...................................................................................................3
3.2 Blood donation campaigns and health checkup activities.....................................................4
4. Environmental responsibilities of Kuwait Oil Company.............................................................4
4.1 Inaugurated ‘The Spirit of the Desert Reserve’.....................................................................4
4.2 Reduction in gas flaring.........................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
Appendix..........................................................................................................................................8

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1. Introduction
The corporate social responsibility initiatives that are planned by organizations are
dependent on the needs of the same in conducting business ethically. The different changes that
are undertaken by the organizations help the same in maintaining the efficiency of the operations
as per the needs of the business (Saeidi et al. 2015). In this connection, the Kuwait Oil Company
has undertaken different steps in order to support the social, environmental and economic
sustainability. Therefore, the major purpose of undertaking the research is to evaluate the
different CSR initiatives undertaken by the concerned organization and the manner in which it
helped the organization in ensuring the sustenance of the same.
2. Economic responsibilities of Kuwait Oil Company
2.1 Leaving space for development projects
The concerned organization has taken steps for empowering the development projects,
which has helped the business in maximizing the scope of operations. It has been reported that
the concerned organization released around 4,200 square kilometers in five phases since 1999 for
the development projects. The development projects have helped the organization in enhancing
the scope of economic sustainability, which is counted as one of the primary needs of the
business.
2.2 Enhanced rate of profitability
The economic sustainability of an organization is specifically based on the assessment of
the revenues earned by the same and the net profit of the venture (Font et al. 2012). The revenue
earned by the concerned organization grew gradually in the years. The revenue stream of the

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organization in the fiscal year 2017 was 98,866,749 and that earned on the year 2018 was
143,248,308 (Finance.yahoo.com 2019). It has helped in identifying the ascending trend of
revenue earnings of the venture. On the other hand, the net income of the business on the year
2017 was 4,908,740 and on 2018 were 5,537,028 (Finance.yahoo.com 2019). The growth of the
net income helped the organization in continuing the operations in an uninterrupted basis.
Revenue and net income of an organization helps the same in maintaining the efficiency of the
operations as per the needs of the business.
3. Social responsibilities of Kuwait Oil Company
3.1 Sponsorships and donations
Kuwait Oil Company has sponsored numerous events, which has helped the business in
maintaining their standards as per the social responsibility concerns. The organization sponsored
events like the International Exhibition for Innovations in the Middle East, the fourth Kuwait
Transparency Forum, Kuwait Oil and Gas Exhibition, Kuwait Pipetech Conference and the SPE
International Conference (Kockw.com 2012). The sponsorship activities has not only helped the
organization in undertaking the business on ethical grounds, but also helped the same in
enhancing the promotional activities. The concerned organization also undertook different
donation campaigns in order to support the disaster-stricken countries like Pakistan, Somalia and
Japan. The donation campaigns and sponsorship activities of the business helped the same in
establishing healthy relation with the different nations, which helped the business in acquiring its
sustainability.

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3.2 Blood donation campaigns and health checkup activities
The concerned organization undertook different blood donation campaigns in order to
support the health and sustainability needs of the different communities. Deng, Kang and Low
(2013) stated in a research that the Kuwait’s Ministry of Health has honored Kuwait Oil
Company as one of the prominent local institutions which donated blood in the years 2012 and
2013. The blood donation campaigns, in association with the Ahmadi Hospital, have helped the
organization in adhering to the needs of the different communities in Kuwait. On the other hand,
the organization also undertook several health checkup activities for the workers in order to
ensure the health and safety concerns, adhering to the ISO 14001-2004 (Kockw.com 2012).
4. Environmental responsibilities of Kuwait Oil Company
4.1 Inaugurated ‘The Spirit of the Desert Reserve’
The concerned organization inaugurated ‘The Spirit of the Desert’, which is located in
Burgan Oil Field (SK) in the year 2006 (Kockw.com 2012). It has helped the organization in
maintaining the efficiency of the operations as per the environmental conservative needs of the
community. The organization created the reserve with the aim of reviving the natural diversity in
the region while providing a safe ground for the local or migrant birds and wild plants. The
efforts of the organization in reviving the wildlife in the area are focused on eradicating the ill-
effect of desertification through soil stabilization and vegetation growth. Servaes and Tamayo
(2013) stated that the initiatives that are undertaken by the organizations in order to safeguard the
natural bio-diversity is dependent on the environmental protection responsibilities of the same.
The revival of the wildlife in the specified region has helped the concerned organization in
attracting the attention of the communities to the healthy practices undertaken by the same.

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4.2 Reduction in gas flaring
The concerned organization faced several issues relating to Gas emission and thereby the
business has undertaken different steps for reducing the same. The company designed
frameworks, which helped in reducing the rate of gas flaring to 1.32% by the end of fiscal year
2012 (Kockw.com 2012). Kitzmueller and Shimshack (2012) noted in a research that the gas
flaring rate faced by the organization in the year 2006 was 17% which has reduced to 1% in the
current years. The concerned organization signed an agreement with the World Bank seeking to
reduce the rate of gas flaring It has helped the business in sticking on to the environmental
sustainability plans for ensuring the ethical functioning of the business processes.
Conclusion
Therefore, from the above analysis it might be stated that the different CSR activities that
are planned by Kuwait Oil Company has helped the same in adhering to the ethical foundation of
conducting business. The delineation of the social, economic and environmental responsibilities
of the business venture and the activities undertaken by the same has helped in assessing the
CSR rating.

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References
Deng, X., Kang, J.K. and Low, B.S., 2013. Corporate social responsibility and stakeholder value
maximization: Evidence from mergers. Journal of financial Economics, 110(1), pp.87-109.
Finance.yahoo.com., 2018. Environment, Social and Governance (ESG) Ratings. [online]
finance.yahoo.com. Available at: https://finance.yahoo.com/quote/KCHOL.IS/sustainability?
p=KCHOL.IS [Accessed 3 Mar. 2019].
Finance.yahoo.com., 2019. Income statement. [online] finance.yahoo.com. Available at:
https://finance.yahoo.com/quote/KCHOL.IS/financials?p=KCHOL.IS [Accessed 3 Mar. 2019].
Font, X., Walmsley, A., Cogotti, S., McCombes, L. and Häusler, N., 2012. Corporate social
responsibility: The disclosure–performance gap. Tourism Management, 33(6), pp.1544-1553.
Kitzmueller, M. and Shimshack, J., 2012. Economic perspectives on corporate social
responsibility. Journal of Economic Literature, 50(1), pp.51-84.
Kockw.com., 2012. Corporate Social Responsibility. [online] Kockw.com. Available at:
https://www.kockw.com/sites/EN/Other%20Publications/Corporate%20Social
%20Responsibility.pdf [Accessed 3 Mar. 2019].
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of competitive
advantage, reputation, and customer satisfaction. Journal of business research, 68(2), pp.341-
350.

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Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value:
The role of customer awareness. Management science, 59(5), pp.1045-1061.

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Appendix
Appendice 1
Figure 1: Financial position of the business between the fiscal year 2015 and 2018
(Source: Finance.yahoo.com 2019)

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Appendice 2
Figure 2: Revenue and Earnings of Kuwait Oil Company between 2015 and 2018
(Source: Finance.yahoo.com 2019)

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Appendice 3
Figure 3: Income statement of KOC between 2015 and 2018
(Source: Finance.yahoo.com 2019)

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Appendice 4
Figure 4: CSR rating of KOC
(Source: Finance.yahoo.com 2018)