An assessment of corporate social responsibility practices in oil and gas companies in Tanzania

This study assessed CSR practices in oil and gas companies which operate in Tanzania. The underline idea was to understand why the companies conduct CSR activities while the costs of these activities are not recoverable and its acceptability in tax liability computation is limited. Study also assessed the types of CSR activities, company’s process toward CSR and perceived usefulness of these activities to the community and the company. Stakeholders and stewardship theory were employed. The study was executed using qualitative approach in which interviews and documentary reviews were the main data collection techniques employed. Study found that oil and gas conduct different CSR activities in the community where they operate with greater focus on education, health, and transport infrastructure and career development. Moreover, in term of CSR process, the findings show that oil and gas companies start from the community request to the companies which operate in their community. The major driver for CSR activities in oil and gas companies in Tanzania is legitimacy. Other drivers which were noted in this study include avoiding regulations, solving social problem better, heightening company reputation, and creating better future environment for the company. Also, CSR activities were found to be useful to the company in different ways including seeking legitimacy in the community but also useful to the community in term of employment opportunities, good education, good health services, good infrastructures. In addition, this study found that CSR is a circle in which the activities benefit the communities but at the end will contribute toward company performance. Moreover, the applicability of Carrol’s CSR pyramid was tested in this study and found that it’s not applicable in oil and gas environment in Tanzania. Also, the study recommend that the company should channel their CSR activities through local district council to avoid duplication of projects. Further research can test the applicability of Carroll CSR pyramid and the CSR circle in oil and gas companies which operate in Tanzania.