Spend More To Save More? CSR Programs Can Save Operators Millions
It is likely one of the last things on the minds of petroleum companies these days as they work to stay afloat amid falling oil prices.
However, investing socially in the communities where they operate practically guarantees profits in the long run and is a relatively low-cost measure to take during an economic downturn, said Jim Sisco, president and founder of ENODO Global, a consulting firm specializing in risk analysis and population-centric engagement.
Social investments can include improving education, infrastructure, health care, and job training for locals.
“As companies attempt to identify ways to save money, such as reducing operating costs and eliminating staff, they will have to identify new solutions or creative ways to save,” Sisco said.
One of those ways, known as corporate social responsibility (CSR), is to help meet the basic needs of communities—primarily in emerging countries—which, in turn, can substantially lower security costs.
“Companies that are able to design and develop good community engagement programs are more profitable because they face less negative impacts from strikes, attacks, and sabotage, which could impact them by millions of dollars,” Sisco said. “That’s the bottom line.”