C/B/144. Corporate Social Responsibility (CSR) in the Oil Industry: BP Vs. Esso

This paper reviews and compares CSR policies of two major oil industry players: BP and Esso. According to Ledgerwood et al. (1992) for many decades large oil companies did not consider CSR issues as essential ones. "Their traditions are embedded in the "Macho Management" of the nineteenth-century robber barons, even while they struggle against one another for leadership of the world petroleum markets" (Ledgerwood et al., 1992). The current paper will observe the way the current CSR policies of two major oil companies reflect these concerns. It will start with the definition of corporate social responsibility since the review of current theoretical knowledge identified the absence of universal definition as well as certain confusion around the term. Then, the current CSR policies of BP and Esso will be reviewed and compared. The revision will encompass such aspects as actual activities, employee involvement, public awareness and overall approach to CSR issues. The comparison will be based on two models: cost-benefit and eco-psychological. These models provide sufficient framework for comparison in terms of short and long-term strategic advantages and in terms of potential of the future relationship building with key stakeholders. The further analysis covers such important issues as the cost of breach of CSR contract, the practice of adoption of CSR issue in Greta Britain and US. The last but not the least section deals with the effect of CRS policies on sales increase of BP and Esso.