The Role of Corporate Social Responsibility Activities - Outline Example

 Analyze the role of CSR activities in the extractive industry for mitigating social and environmental risk The title for the proposal in relation to the dissertation on the extractive industries has been given as follows. “Analyze the role of CSR activities in the extractive industry for mitigating social and environmental risk.” The proposed title addresses the various issues over rights, resources and conflict in relation to the multinational investments in the extractive industries. Problematic/Questions The topic that has been selected for this dissertation is the role of corporate social responsibilities in the extraction industries. The extraction industries consists of companies that are engaged in the business process of extracting materials, minerals and metals from the surface of the earth for further processing and commercial use. It has been observed under the review of literature that the extraction companies are mostly listed in the Canada and there has been an increase in the investments of these companies in both the domestic as well as the overseas markets. In recent years, the multination investment in the extraction industries like oil and gas, mining, etc. have increased at an average rate in the US and UK. On the other hand, the multinational investments in the countries of Asia and Africa as well as the developing economies have increased multiple folds. While this represe4nts a win-win situation for the multinational investors in the extraction sector and the economies that are rich in the mineral and resources as their primary industrial sector, there is a gap in the literature which suggests that the multinational companies investing in the extraction industries have often faced complex situation and challenges in running their business in the extraction sector (Abdel-Fatau, 2002, p.16). The review of literature suggests the Canadian financial market are the largest sources of equity capital for the mining and exploration industry and the expenditure of the Canadian based extraction industry accounts for almost 43% of the total expenditures by the companies in the extraction industry all over the globe. However, with the increasing performance of the extractive industries, the multinational investments have started flow into the developing countries. Although the extraction industries have been playing a major role in stimulating the growth of the host countries, there are several social and environmental challenges faced in their course of operations. It has been found that the extraction industries have performed the role of CSR on an increasing trend while operating in the overseas markets. In order to justify the expenditures incurred by these companies, the following problems have been designed in this research study. What are the reasons that laid to the wide spread adoption of CSR initiatives by the extraction industries? What is the role of CSR in the operations of multinational companies in extractive industries? Justify the expenditures of the CSR activities undertaken by the investors in the extractive industries in context to the gains realized. Explain the impacts of CSR on the socio-economic performance of the host country as well as the business performance of the multinational investors. By addressing these research problems, the role of CSR undertaken by the extractive industries could be justified in relation to the needs of meeting the social and environmental problems in the host countries (Michael, 2004, p.345). The areas of interest like the rights to the access of the primary resources, raw materials for the extractive industries and the resolution of conflicts through the performance of CSR activities could be understood by answering the research problems. Key Texts The two related topic that have been summarized in the context of this dissertation deals with the aspect of resource curse for the multinational investors in the extractive industries across the globe; and the significance of development promise on CSR activities by the multinational companies operating in the extractive industries. These two topic are very much related to the title and the research problems of the dissertation as this presents a view to the readers on the reasons behind choosing to invest in the extractive sector of the new and developing economies that have a rich resource of the minerals like the oil and gas, coal, petroleum and others. The availability of the mineral resources in the countries like Nigeria has led the multinational companies to focus on investment in the extraction sector of the country (Watts, 2004, p.18). The Niger Delta has offered the source for hugely available oil and power, energy resources to the multinational investors in the extraction and exploration industry. In order to take opportunity of the available resources, the multinational companies operating in the extraction industries of Canada, Middle East, US, and UK have expressed their interest and rights to access the resources at the cost of expenditures to be incurred for international investments. The countries like Nigeria, Angola, Canada, etc have also encouraged multinational investments in the extraction industries as these are believed to be ways of providing economic stimulus to the host countries. Although the utilization of the oil and gas, minerals and other resources have been used as business motives to maximize the profits, the companies have had to face complex situation and challenges from the society and environment in the host countries in the course of their operations. Due to the resource rich condition, the government often distribute majority of the resources to the international investors in order to attain high share of returns from the investments. These economic and commercial motives tend to overlook the welfare objectives of the government towards its people. This leads to revolution of the society and the demands of the people for regaining their inherent rights of using the domestic resources. Thus the availability of abundant resources gives rise to a situation of conflict between the government and the people, the multinational investors being also a part of this conflict. The business in the extraction industry being high dependent on the resources which includes not only the primary resources of oil and gas, coal, petroleum and other forms of energy but also the availability of man power resources in the form of local labour, capital flow from the sources of finance could be jeopardized in situation of conflict over the right to use the resources. This article fits appropriately into the topics and the research questions of the dissertation. This could be understood from the fact that the multinational investors have shown an increasing tendency to undertake activities of CSR in the course of their operations in the extraction industry which involves considerable interface with the societies and the communities. The second article deals with exactly the same issue on the significance of the CSR activities by the multinational investors in the business of extraction industry (Frynas, 2005, p.598). The companies have been found to pay increasing focus on the conduct of the CSR activities during their business of extraction, exploration of oil and gas, coal mining, petroleum processing operations, etc. As the local communities feel of being deprived from their rights to use the resources of the land due to the policies of the government in allocating more resources to the investors for the growth of business and the economy in turn, this has created a situation of conflict among the business and the people of the communities in terms of collaboration and maintain a conducive environment for sustainable business operations. In order to foster the environment of spontaneous collaboration between the manpower resources, labour, supply of capital from the local markets, co-operation from the government and the people of the host, the multinational companies in this sector have taken up the initiative of undertaking corporate social responsibilities as important ways of giving back the benefits to the communities in which they existed. Thus the key texts reviewed before undertaking the process of dissertation would be helpful for the process of researching the questions to be answered in the dissertation. The study of the key texts match well with the research question and would help to produce important findings on the role of CSR in the operations of the extractive industries. Annotated Bibliography The books and the academic sources including the articles on the research topic have been given under the heading of “References”. The outline for the dissertation would be based on the ideas and the information collected from the study of the books and journal articles that are relevant to the topic of the dissertation (Ferguson, 2005, p.377). The books and the articles on the topic that have been selected are a good combination of resources on the aspect of the objectives of the multinational companies to invest in the extractive industries of international markets, the desired objectives for investments in the extractive industries, the situations of complexity and challenges faced by the investors in the field of extraction and exploration, the conflict over the rights between the people, government and the investors over the uses of oil and gas resources, energy resources, coals, etc and the role of CSR in establishing a sustainable environment for growth of the business and the society (Collier, 2008, p.7). Other Sources The other sources that would be referred are the organizational websites in the field of CSR activities in the Extractive Industries all over the world. In order to analyze and obtain specific findings on the topic, the case of Canadian extractive industries which form the largest proportion in the world could be studied. The important findings from the organizational websites have provided reliable information on the economic objective of the undertaking multinational investments in the extractive industries (The Canadian Centre for the study of Resource Conflict, 2014, p.8). The various business risks due to social and environmental uncertainties faced in the host countries have been explored from the study of the resources. This has been able to justify the role of CSR activities of the companies in order to meet the social and environmental challenges in the business of extraction and exploration in the overseas markets (European Centre for Development Policy Management. 2012, p.1) Outline The tentative outline for the structure of this dissertation has been explained as follows. After an initial study on the growth of the multinational investments in the extractive industries all over the world has been reviewed, the common features and the areas of concern for the extraction business in the host country have been determined. The rationale behind the wide spread adoption of the CSR activities by the multinational companies in the extraction sector have been introspected. In order to validate the role of CSR in the operation of the companies in the extraction industry, the research questions would be framed appropriately. The research question would reflect the objectives of the research in evaluating the role and the effects of the CSR activities in establishing a sustainable environment for the extraction business in the host countries. The extent to which the conflicts over the rights to the use of the abundant resource by the people and the companies have been resolved as a result of the CSR activities by the companies in the extraction industry would found by answering the research question. This would be followed by the review of literature with the study of operations and initiatives on CSR by companies of specific countries like Canada in their course of investment in overseas markets like Nigeria, Angola, etc. which are rich in mineral resources and attract institutional investors for activities of extraction. The literature review would be followed by the adoption of an appropriate research methodology which would be mainly accomplished through the help of secondary sources that includes books, journals, organizational websites, etc. The analysis of the data and information on the role of CSR in the extractive industries would provide important findings that could be used to validate the literature on the issues of rights, resources and conflicts in case of multinational investments in extraction industries. Reflection In the course of forming an outline, the following problems and possibilities have been explored that could be taken into consideration while undertaking the activities of the dissertation. The dissertation would mainly be based on the secondary approach of information gathering on the selection of the overseas economies that have abundant supply of minerals and resources for extraction and the complexities faced by the multinational investors in the course of their operations in these economies. Since, the information on the conflict between the societies and the business have been obtained from the review of cases, articles, books, organizational websites, the ground reality of the problems faced by the communities could not be understood. The experiences of the people of the society could not be accessed. As this is a global issue, the problems faced by one society may be different as the policies of the government would vary from one country to another. Thus the concerns of the society and the environment due to the operations of the extraction industry would be dealt in this dissertation in a generalised manner. Although the companies in the extraction industry have been reported to be taking up CSR activities in order to meet the social and environmental challenges and with the view of returning the benefits to the society, there has been indication of false CSR commitments by the companies in the extraction industry. The dissertation lacks specific data on the false commitments of CSR by the business while operating in the overseas market. This increases the possibilities of the expanding the research work to include collection of primary data through the process of survey questionnaires being asked to the community members, senior management employees, policy makers on the areas of problems in the course of carrying out extraction business in the communities. The research could also include the impacts on the economy in cases where the multinational investors have resorted to false commitments of CSR during their business of extraction of minerals and resources from the communities. The legal validity of the rights claimed by the people of the community and the role of the government in balancing between the welfare and the economic motives could also be explored through the research activity. Next Steps The list of activities that need to be conducted on priority in order to start the dissertation is given as follows: Collection of rich and exhaustive sources of study including both academic and actual cases in order to conduct the review of literature. Designing a proper methodology with due consideration of the advantages and disadvantages of the sources used. Undertake analysis of specific cases of countries that are heavily engaged in the multinational investments in the extraction business in overseas markets. Framing a timeline for the completion of the research work. These steps would be completed on priority that would be necessary for starting the research process and writing the dissertation. The research activities would be performed as per the timelines allocated for each activity of research. The writing of the dissertation should be started and continued as per the developed plan. The planned way of writing the dissertation would help to generate useful findings and completion of the dissertation in the designed time frame. References Abdel-Fatau, M. 2002. Privatization of Security, Arms Proliferation and the Process of State Collapse in Africa. Development and Change. 33(5): pp. 14-19. Collier, P. 2008.  ‘The Profits of Boom. Will Africa Manage them differently this Time?’ Optima,  54(1), pp.2-7. European Centre for Development Policy Management. 2012. CSR in the Extractive Sector: the Canadian Stamp. [Online]. Available at: http://www.ecdpm.org/Web_ECDPM/Web/Content/Navigation.nsf/index2?readform&http://www.ecdpm.org/Web_ECDPM/Web/Content/Content.nsf/35f342bc402eac9fc1256c240050cabb/360331d619f67b3dc1257a30007c89a2?OpenDocument. [Accessed on 18 March, 2014]. Ferguson. J. 2005.  ‘Seeing Like and Oil Company: Space, Security and Capital in Neo-Liberal Africa’.  American Anthropologist, 107(3): pp.377-382. Frynas, J. G. 2005. ‘The False Developmental Promise of Corporate Social Responsibility: Evidence from Multinational Oil Companies’. International Affairs, 81(3): pp.581-598. The Canadian Center for the study of Resource Conflict. 2014. Corporate Social Responsibility & the Canadian International Extractive Sector: A Survey. [Pdf]. Available at: http://www.resourceconflict.org/ccsrc_report_0906.pdf. [Accessed on 18 March, 2014]. Watts, M.  2004. ‘Resource Curse? Governmentality, Oil and Power in the Niger Delta, Nigeria’. Geopolitics,  9(1): pp. 17-29. Michael, R. 2004. What do we know about natural resources and civil war. Journal of Peace Research. 41(3): pp.337-356. Read More