Chapter 3
Literature Review: Social Investment
in the O&G Sector
The current chapter provides an in-depth overview of the pertinent literature on social
investment by the O&G sector, across different countries. Throughout the chapter, I
draw mainly on peer-reviewed journal articles published from 2000 onwards, most
of which report on social investment programmes in the O&G sector and their
outcomes/impacts on the host communities.
The chapter is divided in three sections. The first, ‘Why do O&G social investments fail?’, explores the various contexts in which O&G social investments are
likely to fail to benefit the host communities. The second section, ‘Why do O&G
social investments succeed?’, explores the factors that make O&G social investments successful in addressing communities’ actual needs and aspirations. The third
section, ‘Gaps in the existing literature on O&G social investment’, looks at research
gaps identified in O&G social investment literature and how my research sought to
address them.
3.1 Why Do O&G Social Investments Fail?
O&G activities of prospection and production impact on local environments and host
communities (Goodland, 2006). As mentioned in Chapter 2, the social impacts are
often difficult to mitigate and compensate (Ackah-Baidoo, 2012; Broni-Bediako &
Addei, 2010; Finer, Jenkins, Pimm, Keane, & Ross, 2008; Obeng-Odoom, 2014).
Increasingly, O&G companies use social investment as a form of reparation, to
minimise reputation damage and to reduce operational costs due to community unrest
(Idemudia & Ite, 2006).
Paradoxically, numerous O&G companies implement social investment that
harms the host society (Frynas, 2000, 2005; Spence, 2011). This section explores
five different conditions under which O&G social investment may harm society: (1)
where companies replicate the same social investment concept and design in different
© 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_3
29
Literature Review: Social Investment
in the O&G Sector
The current chapter provides an in-depth overview of the pertinent literature on social
investment by the O&G sector, across different countries. Throughout the chapter, I
draw mainly on peer-reviewed journal articles published from 2000 onwards, most
of which report on social investment programmes in the O&G sector and their
outcomes/impacts on the host communities.
The chapter is divided in three sections. The first, ‘Why do O&G social investments fail?’, explores the various contexts in which O&G social investments are
likely to fail to benefit the host communities. The second section, ‘Why do O&G
social investments succeed?’, explores the factors that make O&G social investments successful in addressing communities’ actual needs and aspirations. The third
section, ‘Gaps in the existing literature on O&G social investment’, looks at research
gaps identified in O&G social investment literature and how my research sought to
address them.
3.1 Why Do O&G Social Investments Fail?
O&G activities of prospection and production impact on local environments and host
communities (Goodland, 2006). As mentioned in Chapter 2, the social impacts are
often difficult to mitigate and compensate (Ackah-Baidoo, 2012; Broni-Bediako &
Addei, 2010; Finer, Jenkins, Pimm, Keane, & Ross, 2008; Obeng-Odoom, 2014).
Increasingly, O&G companies use social investment as a form of reparation, to
minimise reputation damage and to reduce operational costs due to community unrest
(Idemudia & Ite, 2006).
Paradoxically, numerous O&G companies implement social investment that
harms the host society (Frynas, 2000, 2005; Spence, 2011). This section explores
five different conditions under which O&G social investment may harm society: (1)
where companies replicate the same social investment concept and design in different
© 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_3
29