Local Perceptions of Corporate Social Responsibility for Arctic Petroleum in the Barents Region

• Author: Ilan Kelman, Julia S.P. Loe, Elana Wilson Rowe, Emma Wilson, Nina Poussenkova, Elena Nikitina, Daniel Buikema Fjærtoft
• Pages: 44-70

Local Perceptions of Corporate Social

Responsibility for Arctic Petroleum in

the Barents Region

Ilan Kelman*,

Institute for Risk & Disaster Reduction and Institute for Global Health, University College

London, London, UK

Norwegian Institute of International Affairs, Oslo, Norway

Julia S.P. Loe,

Fridtjof Nansen Institute, Oslo, Norway

Elana Wilson Rowe,

Norwegian Institute of International Affairs, Oslo, Norway

Emma Wilson,

ECW Energy Ltd, London, UK

Nina Poussenkova,

IMEMO RAS, Moscow, Russia

Elena Nikitina,

IMEMO RAS, Moscow, Russia

Daniel Buikema Fjærtoft

Sigra Group, Oslo, Norway

Abstract

Corporate social responsibility (CSR) is promoted and critiqued by many players involved in or

opposed to petroleum exploration and extraction, although a common understanding of CSR’s

theoretical and practical meanings rarely exists. This paper uses Arctic petroleum in the Barents

region (Norway and Russia) to investigate local perceptions of CSR. We conducted open-ended,

semi-structured interviews in four locations: Hammerfest, Murmansk, Komi Republic, and Nenets

Autonomous Okrug (NAO). Interviewees included the local population, regional and local

authorities, non-governmental organisations (NGOs), and petroleum company representatives. The

field research suggests that those who gain directly from the petroleum industry and do not directly

experience negative impacts were more inclined to be positive about the industr y, although overall,

general support for petroleum activity was high. In some cases, positive economic benefits resulted

in greater tolerance of environmental risk. Sometimes, the industr y and government were criticised

by locals for failing to support a more equitable distribution of broader economic benefits. Rather

than splitting along for-profit/NGO or indigenous/non-indigenous lines, our analysis suggests that

*Correspondence to: Ilan Kelman, University College London, IRDR, Wilkins Building*South

Wing, UCL, Gower Street, London, WC1E 6BT, UK; Norwegian Institute of International

Affairs, C. J. Hambros plass 2, NO-0164 Oslo, Norway. Email: ilan_kelman@hotmail.com

Arctic Review on Law and Politics

Vol. 7, No. 2, 2016, pp. 152178

#2016 I. Kelman et al. This is an Open Access article distributed under the terms of the Creative Commons

Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), allowing

third parties to copy and redistribute the material in any medium or format and to remix, transform, and build upon

the material for any purpose, even commercially, provided the original work is properly cited and states its license.

Citation: I. Kelman et al. ‘‘Local Perceptions of Corporate Social Responsibility for Arctic Petroleum in the Barents Reg ion.’’

Arctic Review on Law and Politics, Vol. 7, No. 2, 2016, pp. 152178. http://dx.doi.org/10.17585/arctic.v7.418 152

those who are closer to the petroleum industr y or its benefits, termed ‘insiders’, tend to be more

positive than ‘outsiders’. This study is perhaps the first of its kind in its focus on local perceptions of

CSR for Arctic petroleum across the Barents region. The findings of this study not only match with

that of the previous literature on Arctic petroleum but also provide further practical and theoretical

insights by indicating subtleties and nuances within the localities examined.

Keywords: gas;Hammerfest;Komi Republic;Murmansk;Nenets Autonomous Okr ug

(NAO);Norway;oil;Russia

Responsible Editor: Tore Henriksen, University of Tromsø, Norway.

Received: March 2016; Accepted: October 2016; Published: November 2016

1. Introduction

Corporate social responsibility (CSR) is frequently of interest to those involved in

or opposed to petroleum exploration and extraction, although a variety of CSR

understandings and approaches exist.

1

Corporations, local community sectors, non-

governmental organisations (NGOs), and academics often have widely different

perceptions and views on what the ‘CSR’ term means and entails, leading to a range

of outcomes, from academic debates about semantics to on-site protests over

diverging or disappointed expectations.

The petroleum industry is often seen as being a leader in industrial CSR policy and

practice; however, it is also frequently criticised for a lack of openness, in particular,

regarding mistakes; for overt ‘greenwashing’; and for failing to account for wider

consequences of petroleum development and use such as climate change and resource

depletion.

2

Studies have also highlighted challenges faced by the petroleum industry

in implementing CSR principles and practices across its workforce and throughout

its supply chains.

3

As in many policy fields, moving from policy statements to

implementation and practice is where much CSR-related complexity lies.

One area of importance for petroleum-related CSR is the Arctic.

4

Both Russia

and Norway have recently been increasing their Arctic petroleum activity,

5

primarily

offshore and focusing on the Barents region, which straddles the two countries’

border, the maritime boundary of which was delimited in 2010 after decades of

disagreement.

6

Expectations of declining oil reserves and increasing prices have

put the long-term potential of Arctic petroleum in focus, notwithstanding safety

and environmental concerns, technological challenges, and high production costs.

Despite the recent oil price drop and shale gas expansion in the USA, Arctic oil and

gas remain important. In Russia, Arctic onshore petroleum fields continue to be

significant contributors to overall production. In Norway, the government’s and

industry’s desire to exploit new areas keeps the sector looking northwards, towards

the North Sea and the Norwegian Sea.

7

Changing forecasts over the past decade regarding Arctic petroleum development

further highlight the challenges local communities face when they base their long-

term socio-economic development plans purely on future petroleum possibilities.

8

Arctic petroleum in the Barents region

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