Chapter 1
Introduction
The oil and gas (O&G) sector is the leading sector in developing social investments
worldwide (Frynas, 2009a, 2009b). Broadly speaking, social investment refers to
the services or resources that O&G companies (mainly multinationals) provide to
their host communities. O&G companies collectively spend amounts that surpass
US$500 million per year on social programmes (Frynas, 2005, 2009b). O&G social
investment programmes range from building schools to making charitable donations
to developing fish-farming initiatives (Frynas, 2009a; Garcia & Vredenburg, 2003;
Newell & Muro, 2006). The benefits of O&G social investment for host communities are often contentious. Social investment by the O&G sector is perceived and
approached in different and conflicting ways. For example, a social investment may
be perceived as fostering development and challenging poverty in host societies; and
as bribery and deceit that actually jeopardises the development of local communities
(Fleming, Roberts, & Garsten, 2013; Hilson, 2012; Ite, 2004; Lorenzo-Molo, 2009;
Van Tulder, 2008; WBG, 2004).
1.1 What Led Me to This Research?
Before deciding to undertake this research programme, I worked for three years
implementing social investment for an O&G multinational in the Brazilian Amazon.
1
During this time, I found my thinking constantly challenged. I faced numerous
dilemmas when working with social investment in the O&G sector. The communities I sought to work with were located near O&G operational sites and were very
1 The views that I herein present are about my own experiences and impressions of working with
social investment in the O&G sector; they do not represent the company’s position regarding social
investment. Because I signed a confidentiality contract with the company, I do not name the company
I worked for, or anyone I worked with, in social investment.
© Springer Nature Singapore Pte Ltd. 2021
R. Costa Camões Rabello, Understandings of Social Investment in the Oil and Gas Sector,
Approaches to Global Sustainability, Markets, and Governance,
https://doi.org/10.1007/978-981-33-6556-8_1
1
Introduction
The oil and gas (O&G) sector is the leading sector in developing social investments
worldwide (Frynas, 2009a, 2009b). Broadly speaking, social investment refers to
the services or resources that O&G companies (mainly multinationals) provide to
their host communities. O&G companies collectively spend amounts that surpass
US$500 million per year on social programmes (Frynas, 2005, 2009b). O&G social
investment programmes range from building schools to making charitable donations
to developing fish-farming initiatives (Frynas, 2009a; Garcia & Vredenburg, 2003;
Newell & Muro, 2006). The benefits of O&G social investment for host communities are often contentious. Social investment by the O&G sector is perceived and
approached in different and conflicting ways. For example, a social investment may
be perceived as fostering development and challenging poverty in host societies; and
as bribery and deceit that actually jeopardises the development of local communities
(Fleming, Roberts, & Garsten, 2013; Hilson, 2012; Ite, 2004; Lorenzo-Molo, 2009;
Van Tulder, 2008; WBG, 2004).
1.1 What Led Me to This Research?
Before deciding to undertake this research programme, I worked for three years
implementing social investment for an O&G multinational in the Brazilian Amazon.
1
During this time, I found my thinking constantly challenged. I faced numerous
dilemmas when working with social investment in the O&G sector. The communities I sought to work with were located near O&G operational sites and were very
1 The views that I herein present are about my own experiences and impressions of working with
social investment in the O&G sector; they do not represent the company’s position regarding social
investment. Because I signed a confidentiality contract with the company, I do not name the company
I worked for, or anyone I worked with, in social investment.
© Springer Nature Singapore Pte Ltd. 2021
R. Costa Camões Rabello, Understandings of Social Investment in the Oil and Gas Sector,
Approaches to Global Sustainability, Markets, and Governance,
https://doi.org/10.1007/978-981-33-6556-8_1
1