SOCAR Company’s Corporate Social Responsibility

SOCAR Company’s Corporate Social Responsibility

Business organizations implement powerful models and structures to produce superior services or products and market them successfully to their customers. Many people admire companies whose procedures, practices, and initiatives add value to them. Leaders and managers should also consider or pursue evidence-based strategies that have the potential to drive performance and fulfill the changing needs of all stakeholders.

One of these approaches is known as corporate social responsibility (CSR). Businesses that ignore the importance of such attributes will eventually become obsolete, uncompetitive, or unsuccessful. This term paper gives a detailed analysis of the State Oil Company of the Azerbaijan Republic (SOCAR) and the effectiveness of its CSR strategies. The discussion goes further to provide appropriate strategies that have the potential to transform this company’s CSR model.

External Environmental Impact

SOCAR operates in a sector that is associated with unpredictable or negative impacts on the natural environment. Most of the oil and gas exploration initiatives this company undertakes tend to have negative impacts. As the leaders in this sector focus on the best developmental objectives, the negative effect on the surrounding environment has been on the rise .However, this organization pursues the concept of sustainability to minimize its impacts. As this industry continues to develop, stakeholders will continue to take the question of environmental impact more seriously.

Similarly, SOCAR continues to record or face various sustainability concerns that have the potential to affect its future performance. Firstly, natural gas and oil are not sustainable in nature. These are fossil fuels that can be depleted after a specified period. This means that SOCAR has to develop a superior strategy to address this challenge. Secondly, SOCAR has embraced superior technologies in an attempt to reduce its negative impacts on natural environments. Unfortunately, such innovations are yet to deliver positive results in terms of sustainability. Thirdly, the company’s sustainability programs have not been sustainable .

This is true since they have resulted in the depletion of fossil fuel and increased pollution. Most of the company’s operations have also failed to support or empower local residents, communities, and stakeholders. This is a clear indication that such projects have not supported the integrity of the natural environment. Addressing these issues can make SOCAR’s operations and projects more sustainable and eventually maximize profits.

CSR Strategy Analysis

Company CSR

SOCAR takes the issue of social responsibility seriously to promote sustainability of the natural environment. This company does not have a specific department that focuses mainly on the issue of CSR (“SOCAR Group,” n.d.). However, each segment has a unique framework aimed at promoting most of the activities or goals outlined above (see Figure 1). All offices and units are required to create teams that can meet the company’s goals. They are also encouraged to implement evidence-based initiatives that that will support the company’s CSR model.

Managers of different segments or departments embrace evidence-based strategies to create desirable social values. They also consider actions plans, technologies, and innovations that can promote sustainability. Within the past decade, the company has gone a step further to adopt new state-of-the-art applications and innovations that fulfill outlined global standards (“Environment & safety,” n.d.).

Additionally, the company has focused on initiatives that can improve communities’ health comes and the welfare of all employees. Different divisions and operations in the above identified countries have managed to focus on various CSR activities. These measures have resulted in the development of long-term CSR initiatives.

CSR Activities: 3Ps (People, Planet, and Profit)

From the 1960s, many activists began to propose superior models and sustainability practices that could safeguard the natural environment. Governments across the globe also began to implement regulations to guide, monitor, and dictate the initiatives companies undertook. These ideas catalyzed the concept of CSR that has today become a critical aspect of every corporation. SOCAR embraces the triple bottom line (TBL) model to pursue its suitability objectives.