Advertisement

Journal of Business Ethics

, Volume 143, Issue 4, pp 753–769 | Cite as

Collectively Designing CSR Through Meta-Organizations: A Case Study of the Oil and Gas Industry

  • Heloïse Berkowitz
  • Marcelo BucheliEmail author
  • Hervé Dumez
Article

Abstract

Few industries have been pressured to develop corporate social responsibility (CSR) standards and policies like oil and gas. This has translated into the creation of non-governmental organizations and branches of the oil and gas firms focused on CSR. However, given the intrinsic complex characteristics of this industry, its global reach, and the fact that its operations affect and involve a wide variety of stakeholders, CSR issues cannot be defined and implemented exclusively at the industry or firm levels, but require the participation of other actors affected directly or indirectly by oil and gas activities. In this paper we argue, first, that oil and gas CSR issues are collectively constructed through meta-organizations (organizations composed by other organizations), and, second, that the complexity and variety of CSR issues require companies to build industry-specific and non-industry-specific collective actions. Based on how oil and gas firms participate in this multi-level co-construction of CSR issues, we created a typology of meta-organizations as infra-sectoral, sectoral, cross-sectoral, and supra-sectoral meta-organizations.

Keywords

Meta-organizations Oil and gas industry Industry-specific CSR Collective action CSR self-regulating mechanisms 

References

  1. Aaron, K. K. (2012). New corporate social responsibility models for oil companies in Nigeria’s delta region: What challenges for sustainability? Progress in Development Studies, 12(4), 259–273.CrossRefGoogle Scholar
  2. Aaronson, S. A. (2011). Limited partnership: Business, government, civil society, and the public in the Extractive Industries Transparency Initiative (EITI). Public Administration and Development, 31(1), 50–63.CrossRefGoogle Scholar
  3. Adelman, M. (1972). The world petroleum market. Baltimore and London: Johns Hopkins University Press.Google Scholar
  4. Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. (2007). Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32(3), 836–863.CrossRefGoogle Scholar
  5. Ahrne, G., & Brunsson, N. (2005). Organizations and meta-organizations. Scandinavian Journal of Management, 21(4), 429–449.CrossRefGoogle Scholar
  6. Arthaud-Day, M. L. (2005). Transnational corporate social responsibility: A tri-dimensional approach to international CSR research. Business Ethics Quarterly, 15(1), 1–22.CrossRefGoogle Scholar
  7. Barley, S. R. (2010). Building an institutional field to corral a government: A case to set an agenda for organization studies. Organization Studies, 31(6), 777–805.CrossRefGoogle Scholar
  8. Baumann-Pauly, D., & Scherer, A. G. (2013). The Organizational Implementation of Corporate Citizenship: An assessment tool and its application at UN Global Compact Participants. Journal of Business Ethics, 117(1), 1–17.CrossRefGoogle Scholar
  9. Bennie, L., Bernhagen, P., & Mitchell, N. J. (2007). The logic of transnational action: The good corporation and the global compact. Political Studies, 55(4), 733–753.CrossRefGoogle Scholar
  10. Bernhagen, P., & Mitchell, N. J. (2010). The private provision of public goods: Corporate commitments and the United Nations Global Compact. International Studies Quarterly, 54(4), 1175–1187.CrossRefGoogle Scholar
  11. Beschorner, T., & Müller, M. (2007). Social standards: Toward an active ethical involvement of businesses in developing countries. Journal of Business Ethics, 73(1), 11–20.CrossRefGoogle Scholar
  12. Bradley, J. F. (1965). The role of trade associations and professional business societies in America. Pennsylvania: Pennsylvania State University Press.Google Scholar
  13. Brunsson, N., Rasche, A., & Seidl, D. (2012). The dynamics of standardization: Three perspectives on standards in organization studies. Organization Studies, 33(5–6), 613–632.CrossRefGoogle Scholar
  14. Buckley, P. J. & Casson, M. (1976). The future of the multinational enterprise. Macmillan, London.Google Scholar
  15. Cai, Y., Jo, H., & Pan, C. (2012). Doing well while doing bad? CSR in controversial industry sectors. Journal of Business Ethics, 108(4), 467–480.CrossRefGoogle Scholar
  16. Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946–967.CrossRefGoogle Scholar
  17. Cash, A. C. (2012). Corporate social responsibility and petroleum development in sub-Saharan Africa: The case of Chad. Resources Policy, 37(2), 144–151.CrossRefGoogle Scholar
  18. Castelló, I., & Lozano, J. M. (2011). Searching for new forms of legitimacy through corporate responsibility rhetoric. Journal of Business Ethics, 100(1), 11–29.CrossRefGoogle Scholar
  19. Cetindamar, D., & Husoy, K. (2007). Corporate social responsibility practices and environmentally responsible behavior: The case of the United Nations Global Compact. Journal of Business Ethics, 76(2), 163–176.CrossRefGoogle Scholar
  20. Chen, S., & Bouvain, P. (2009). Is corporate responsibility converging? A comparison of corporate responsibility reporting in the USA, UK, Australia, and Germany. Journal of Business Ethics, 87(1), 299–317.CrossRefGoogle Scholar
  21. Colgan, J. D. (2014). The emperor has no clothes: The limits of OPEC in the global oil market. International Organization, 68(3), 599–632.CrossRefGoogle Scholar
  22. Colpan, A. M., & Hikino, T. (2010). Foundations of business groups: towards an integrated framework. In A. M. Colpan, T. Hikino, & J. Lincoln (Eds.), The Oxford handbook of business groups (pp. 15–66). Oxford: Oxford University Press.CrossRefGoogle Scholar
  23. De Roeck, K., & Delobbe, N. (2012). Do environmental CSR initiatives serve organizations’ legitimacy in the oil industry? Exploring employees’ reactions through organizational identification theory. Journal of Business Ethics, 110(4), 397–412.CrossRefGoogle Scholar
  24. Dess, G. G. (1987). Consensus on strategy formulation and organizational performance: Competitors in a fragmented industry. Strategic Management Journal, 8(3), 259–277.CrossRefGoogle Scholar
  25. DiMaggio, P. J. (1988). Interest and agency in institutional theory. Institutional patterns and organizations: Culture and environment (pp. 3–21). Cambridge: Ballinger.Google Scholar
  26. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147–160.CrossRefGoogle Scholar
  27. DiMaggio, P. J., & Powell, W. W. (1991). The new institutionalism in organizational analysis. Chicago: University of Chicago Press Chicago.Google Scholar
  28. Du, S., & Vieira, E. T, Jr. (2012). Striving for legitimacy through corporate social responsibility: Insights from oil companies. Journal of Business Ethics, 110(4), 413–427.CrossRefGoogle Scholar
  29. Freeman, B. (2002). The Voluntary Principles on Security and Human Rights. UN Global Compact. Case Studies of Multistakeholder Partnership. Policy Dialogue on Business in Zones of Conflict, 7–14.Google Scholar
  30. Freeman, B. (2003). Managing risk and building trust: the challenge of implementing the Voluntary Principles on Security and Human Rights. Oil, Gas & Energy Law Journal (OGEL) 2. http:\\www.ogel.org.
  31. Frynas, J. G. (2005). The false developmental promise of corporate social responsibility: Evidence from multinational oil companies. International affairs, 81(3), 581–598.CrossRefGoogle Scholar
  32. Frynas, J. G. (2009). Corporate social responsibility in the oil and gas sector. The Journal of World Energy Law & Business, 2(3), 178–195.CrossRefGoogle Scholar
  33. Frynas, J. G. (2010). Corporate social responsibility and societal governance: Lessons from transparency in the oil and gas sector. Journal of Business Ethics, 93(2), 163–179.CrossRefGoogle Scholar
  34. Frynas, J. G. (2012). Corporate social responsibility or government regulation? Evidence on oil spill prevention. Ecology & Society, 17(4), 4.Google Scholar
  35. Giannarakis, G., Litinas, N., & Sariannidis, N. (2011). Evaluation of corporate social responsibility performance standards. African Journal of Business Management, 5(17), 7367–7374.CrossRefGoogle Scholar
  36. Gilbert, D. U., & Behnam, M. (2013). Trust and the United Nations Global Compact a network theory perspective. Business and Society, 52(1), 135–169.CrossRefGoogle Scholar
  37. Gilbert, D. U., & Rasche, A. (2008). Opportunities and problems of standardized ethics initiatives–a stakeholder theory perspective. Journal of Business Ethics, 82(3), 755–773.CrossRefGoogle Scholar
  38. Glaser, B. & Strauss, A. (1967). The discovery of grounded theory. New York: Aldin.Google Scholar
  39. Granovetter, M. (2005). Business groups. In N. Smelser & R. Swedberg (Eds.), The handbook of economic sociology (pp. 429–450). Princeton: Princeton University Press.Google Scholar
  40. Greenwood, R., Hinings, C. R., & Whetten, D. (2014). Rethinking institutions and organizations. Journal of Management Studies, 51(7), 1206–1220.Google Scholar
  41. Guillén, M. F. (2000). Business groups in emerging economies: A resource-based view. Academy of Management Journal, 43(3), 362–380.CrossRefGoogle Scholar
  42. Gulati, R., Puranam, P., & Tushman, M. (2012). Meta-organization design: Rethinking design in interorganizational and community contexts. Strategic Management Journal, 33(6), 571–586.CrossRefGoogle Scholar
  43. Hamann, R., Sinha, P., Kapfudzaruwa, F., & Schild, C. (2009). Business and human rights in South Africa: An analysis of antecedents of human rights due diligence. Journal of Business Ethics, 87(2), 453–473.CrossRefGoogle Scholar
  44. Haufler, V. (2010). Disclosure as governance: the extractive industries transparency initiative and resource management in the developing world. Global Environmental Politics, 10(3), 53–73.CrossRefGoogle Scholar
  45. Hillman, A. J., Keim, G. D., & Schuler, D. (2004). Corporate political activity: A review and research agenda. Journal of Management, 30(6), 837–857.CrossRefGoogle Scholar
  46. Hilson, G., & Maconachie, R. (2008). Good governance and the extractive industries in Sub-Saharan Africa. Mineral Processing and Extractive Metallurgy Review, 30(1), 52–100.CrossRefGoogle Scholar
  47. Husted, B. W., & Allen, D. B. (2006). Corporate social responsibility in the multinational enterprise: Strategic and institutional approaches. Journal of International Business Studies, 37(6), 838–849.CrossRefGoogle Scholar
  48. Idemudia, U. (2009). Oil extraction and poverty reduction in the niger delta: A critical examination of partnership initiatives. Journal of Business Ethics, 90(1), 91–116.CrossRefGoogle Scholar
  49. Jaffe, A., & Soligo, R. (2007). The international oil companies. Houston: James A. Baker III Institute for Public Policy of Rice University.Google Scholar
  50. Janney, J. J., Dess, G., & Forlani, V. (2009). Glass houses? Market reactions to firms joining the UN global compact. Journal of Business Ethics, 90(3), 407–423.CrossRefGoogle Scholar
  51. Kell, G. (2013). 12 Years later reflections on the growth of the UN Global Compact. Business and Society, 52(1), 31–52.CrossRefGoogle Scholar
  52. Khanna, T., & Palepu, K. (2000). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. Journal of Finance, 55(2), 867–891.CrossRefGoogle Scholar
  53. Kilgour, M. A. (2007). The UN Global Compact and substantive equality for Women: revealing a “well hidden”mandate. Third World Quarterly, 28(4), 751–773.CrossRefGoogle Scholar
  54. Knudsen, J. S. (2011). Company delistings from the UN Global Compact: Limited business demand or domestic governance failure? Journal of Business Ethics, 103(3), 331–349.CrossRefGoogle Scholar
  55. Kolleck, N. (2013). How global companies wield their power: The discursive shaping of sustainable development How global companies wield their power. In J. Mikler (Ed.), The Handbook of Global Companies (pp. 134–152). Chichester: Wiley-Blackwell.CrossRefGoogle Scholar
  56. Kolstad, I., & Wiig, A. (2009). Is transparency the key to reducing corruption in resource-rich countries? World Development, 37(3), 521–532.CrossRefGoogle Scholar
  57. Kolstad, I. & Wiig, A. (2010). International initiatives to address the resource curse: High on rhetoric, low on relevance? In G. Overton (Ed.), Foreign policy in an interconnected world. New York: Nova Science Publishers.Google Scholar
  58. Kostova, T., Roth, K., & Dacin, M. T. (2008). Institutional theory in the study of multinational corporations: A critique and new directions. Academy of Management Review, 33(4), 994–1006.CrossRefGoogle Scholar
  59. Le Menestrel, M., Van den Hove, S., & De Bettignies, H. C. (2002). Processes and consequences in business ethical dilemmas: The oil industry and climate changes. Journal of Business Ethics, 41(3), 251–266.CrossRefGoogle Scholar
  60. Lindgreen, A., Maon, F., Reast, J., & Yani-De-Soriano, M. (2012). Guest rditorial: Corporate social responsibility in controversial industry sectors. Journal of Business Ethics, 110(4), 393–395.CrossRefGoogle Scholar
  61. Malnes, R. (1983). OPEC and the problem of collective action. Journal of Peace Research, 20(4), 343–355.CrossRefGoogle Scholar
  62. Mascarenhas, B., & Aaker, D. A. (1989). Mobility barriers and strategic groups. Strategic Management Journal, 10(5), 475–485.CrossRefGoogle Scholar
  63. Mayer, A. E. (2009). Human rights as a dimension of CSR: The blurred lines between legal and non-legal categories. Journal of Business Ethics, 88(4), 561–577.CrossRefGoogle Scholar
  64. Meyer, R. E., & Höllerer, M. A. (2014). Does institutional theory need redirecting? Journal of Management Studies, 51(7), 1221–1233.Google Scholar
  65. Mouan, L. C. (2010). Exploring the potential benefits of asian participation in the extractive industries transparency initiative: The case of china. Business Strategy and the Environment, 19(6), 367–376.CrossRefGoogle Scholar
  66. Mühle, U. (2010). The politics of corporate social responsibility: the rise of a global business norm. Frankfurt: Campus Verlag.Google Scholar
  67. Nason, R. W. (2008). Structuring the global marketplace the impact of the United Nations Global Compact. Journal of Macromarketing, 28(4), 418–425.CrossRefGoogle Scholar
  68. Oliver, C. (1991). Strategic responses to institutional processes. Academy of Management Review, 16(1), 145–179.CrossRefGoogle Scholar
  69. Olson, M. (1965). The logic of collective action: public goods and the theory of groups. Cambridge, MA: Harvard University Press.Google Scholar
  70. Olson, M. (1988). The productivity slowdown, the oil shocks, and the real cycle. The Journal of Economic Perspectives, 2(4), 42–69.Google Scholar
  71. Patrus, R., Neto, A., Coelho, H., & Teodosio, A. (2013). Corporate social responsibility and labor relations: A research agenda about internal stakeholders management in UN’s Global Compact Signatory Corporations. Revista Brasileira de Gestão de Negocios, 15(46), 22–38.Google Scholar
  72. Pegg, S. (2012). Social responsibility and resource extraction: Are Chinese oil companies different? Resources Policy, 37(2), 160–167.CrossRefGoogle Scholar
  73. Perks, K. J., Farache, F., Shukla, P., & Berry, A. (2013). Communicating responsibility-practicing irresponsibility in CSR advertisements. Journal of Business Research, 66(10), 1881–1888.CrossRefGoogle Scholar
  74. Pérez-López, D., Moreno-Romero, A. & Barkemeyer, R. (2015). Exploring the relationship between sustainability reporting and sustainability management practices. Business Strategy and the Environment, 24(8), 720–734.CrossRefGoogle Scholar
  75. Piore, M. J. (2006). Qualitative research: Does it fit in economics? European Management Review, 3(1), 17–23.CrossRefGoogle Scholar
  76. Pitlik, H., Frank, B., & Firchow, M. (2010). The demand for transparency: An empirical note. The Review of International Organizations, 5(2), 177–195.CrossRefGoogle Scholar
  77. Porter, M. E. & Kramer, M. R. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92.Google Scholar
  78. Rasche, A. (2012). Global policies and local practice: Loose and tight couplings in multi-stakeholder initiatives. Business Ethics Quarterly, 22(4), 679–708.CrossRefGoogle Scholar
  79. Rasche, A., Waddock, S., & McIntosh, M. (2013). The United Nations Global Compact retrospect and prospect. Business and Society, 52(1), 6–30.CrossRefGoogle Scholar
  80. Reichert, A. K., Webb, M. S., & Thomas, E. G. (2000). Corporate support for ethical and environmental policies: a financial management perspective. Journal of Business Ethics, 25(1), 53–64.CrossRefGoogle Scholar
  81. Scott, W. R. (2008). Institutions and organizations. London: Sage.Google Scholar
  82. Seppala, N. (2009). Business and the international human rights regime: a comparison of UN initiatives. Journal of Business Ethics, 87(2), 401–417.CrossRefGoogle Scholar
  83. Sethi, S. P., & Schepers, D. H. (2014). United Nations global compact: The promise–performance gap. Journal of Business Ethics, 122(2), 193–208.CrossRefGoogle Scholar
  84. Smith, S. M., Shepherd, D. D., & Dorward, P. T. (2012). Perspectives on community representation within the extractive industries transparency initiative: Experiences from south-east Madagascar. Resources Policy, 37(2), 241–250.CrossRefGoogle Scholar
  85. Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610.Google Scholar
  86. Suddaby, R., Foster, W. M., & Mills, A. J. (2014). Historical institutionalism. In M. Bucheli & D. Wadhwani (Eds.), Organizations in time: History, theory, methods (pp. 100–123). Oxford: Oxford University Press.Google Scholar
  87. Thérien, J.-P., & Pouliot, V. (2006). The Global Compact: Shifting the politics of international development? Global Governance, 12(1), 55–75.Google Scholar
  88. Trist, E. (1983). Referent organizations and the development of inter-organizational domains. Human Relations, 36(3), 269–284.CrossRefGoogle Scholar
  89. Utting, P., & Ives, K. (2006). The politics of corporate responsibility and the oil industry. St Antony’s International Review, 2(1), 11–34.Google Scholar
  90. Van Alstine, J. (2014). Transparency in resource governance: The pitfalls and potential of new oil in Sub-Saharan Africa. Global Environmental Politics, 14(1), 20–39.CrossRefGoogle Scholar
  91. Watts, M. J. (2005). Righteous oil? Human rights, the oil complex, and corporate social responsibility. Annual Review of Environment and Resources, 30, 373–407.CrossRefGoogle Scholar
  92. Whyte, W. F. (1984). Learning from the field: A guide from experience. London: Sage.Google Scholar
  93. Wiig, A. & Ramalho, M. (2005). Corporate social responsibility in the Angolan oil industry. CMI Working paper WP 2005: 8, Chr. Michelsen Institute.Google Scholar
  94. Williams, O. F. (2004). The UN Global Compact: The challenge and the promise. Business Ethics Quaterly, 14(4), 755–774.CrossRefGoogle Scholar
  95. Williamson, O. E. (1971). The vertical integration of production: market failure considerations. The American Economic Review, 61(2), 112–123.Google Scholar
  96. Williamson, O. E. (1973). Markets and hierarchies: some elementary considerations. The American Economic Review, 63(2), 316–325.Google Scholar
  97. Williamson, O. E. (1979). Transaction-cost economics: the governance of contractual relations. Journal of law and economics, 22(2), 233–261.CrossRefGoogle Scholar
  98. Yin, R. K. (1981). The case study crisis: some answers. Administrative Science Quarterly, 26(1), 58–65.CrossRefGoogle Scholar
  99. Yin, R. K. (2003). Case study research: Design and methods. Thousand Oaks: SAGE Publications.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  • Heloïse Berkowitz
    • 1
  • Marcelo Bucheli
    • 2
    Email author
  • Hervé Dumez
    • 3
  1. 1.Ecole PolytechniqueParisFrance
  2. 2.University of Illinois at Urbana-ChampaignChampaignUSA
  3. 3.Ecole Polytechnique CNRSParisFrance

Personalised recommendations