British Petroleum and Corporate Social Responsibility Case Study: British Petroleum in Georgia

Abstract

The rising importance of Corporate Social Responsibility (CSR) means that corporations
must consider stakeholder interests as well as the social, political, and environmental impacts
of their actions. However the pursuit of profit by multinational corporations has led to a
series of questionable CSR activities and the effect of such practices are particularly evident
in developing countries. Multinational corporations often articulate their devotion to CSR principles,
but the gap between rhetoric and reality, especially in some parts of the world reveals
that many corporations have not fully integrated CSR into their business models. Using BP’s
activities in Georgia as an example, this article examines whether the multinational company
meets its CSR requirements and detail how in 2004 BP bullied the Georgian Government into
violating its own laws, potentially endangering the local environment and compromising the
vital relationship between BP and Georgia.