Why should oil companies play a role in conflict resolution?
The business logic for oil company engagement in conflict prevention is twofold. Conflict in producing countries puts investments at risk, so it is worthwhile for businesses to undertake actions that mitigate this risk. Also, companies are under pressure from NGOs, socially responsible investment houses, and sometimes from consumers, employees, and shareholders, to demonstrate their social responsibility. What factors limit the extent that business can reduce conflict? Several factors limit the extent that oil companies can reduce conflict. Awareness –Businesses and managers leading operations in any given country, have different levels of awareness of the risks that their operations might exacerbate conflict. A greater level of awareness exists in those companies that have been “hit,” that is, where operations had to be stopped because employees or facilities couldn’t be protected, as Chevron experienced in Sudan in the 1980s. Image –Companies risk losing concessions if they are per
