Companies in the oil and gas sector have in the recent past increasingly come to be expected to provide assistance in the addressing of the most pressing problems in the world and these problems have included climate change, fighting poverty and the prevalence of HIV. The societies of both the developing and the developed world are some of the biggest stakeholders in the oil and gas industry because in one way or the other, it affects their lives. These are the people who have come to have more expectations from the companies within this industry to assume responsibilities to the public (Ekatah, 249). It is believed that these expectations will continue to increase in the future as the oil and gas companies continue to expand their activities all over the globe.
Companies from the oil and gas industry have come to adopt the theory of corporate social responsibility which is an approach they use when they are addressing the impact which their company activities have on the societies and environment in which they are involved. These companies have done their best to ensure that the communities which are affected by their activities have been well compensated and that their standards of living are even higher than they were before (Idemudia, 91). In the developed countries, in this case the United States, stakeholder meetings are very common especially in oil producing states such as Texas. These stakeholder meetings can be attended by anyone and they often address how the oil industry is affecting people as well as having dialogue and exchanges in matters concerning all stakeholders (Frynas, 163).
The stakeholder management theory states that there are other people who should be consulted when dealing with the affairs of a company other than its shareholders or owners. These people are those whose everyday lives are affected by the activities of the company or are concerned about these activities. These other people or parties include governmental organizations, trade unions, buyers and suppliers of products, the societies involved as well as the employees of the company involved. In the developed countries, the stakeholders in the oil and gas industry have a great say in its activities and this is mainly because of the freedom of speech which is guaranteed to them by their governments. Moreover, the oil and gas industry has to listen to these groups because of the powerful influence which they have in the political arena.
In the developing countries, however, and in this case Africa, there is a tendency by the oil and gas industry not to involve any stakeholders in their major decision making process. These companies are instead only accountable to their shareholders because the other groups are not sufficiently well developed to have any major influence on the oil and gas sector (Okoye, 364). The only major stakeholder in the oil and gas industry in Africa is the government and it rarely opposes any decision made by this industry, however detrimental to its people and the country’s environment, because of the need for investment so that it can have revenue.
