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Corporate Social Responsibility impacts on petroleum companies' financial performance: A case study of BP

Panteleimon Bintivanos, SID: 0815820, Msc International Business, December 2013

1. Introduction
This study is going to focus on exploring the relationship between Corporate Social Responsibility and financial performance with emphasis on the petroleum industry and British Petroleum in particular. The research will investigate and identify the main drivers of CSR, its guiding principles and it transition from a social program into a business plan by. The role of stakeholders and

6. Theoretical Underpinning
The European Commission (2001) describes CSR as a concept whereby companies intergrade social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Most importantly Carrolls pyramid (1979) indicates that CSR includes the economic, legal and ethical expectations at different time points. Other scholars, Porter (2006) note that CSR witnessed a transition from a social voluntary program into a business plan. In an attempt to measure stakeholders returns Moskowitz (1972) and Abbott (19790) used

other driving forces in the process of investing in CSR

will be evaluated and analysed. Critique on current theoretical and empirical limitations will be applied.
Source: The pyramid of CSR (Carroll 1991)

various methods like changes in share price plus dividends and the amount of earnings per share with the results being vague and raising concerns about their reliability .

2. Research Questions
What are the main drivers of Corporate Social Responsibility?

of BP

7. Discussion
With the irreversible trend that suggests companies to consider

their social responsibilities , they are not only required to perform

financially but act as corporate citizens. Since CSR was introduced ( Sheldon 1924) it has witnessed rapid developments but findings on the correlation between CSR and financial performance are still ambiguous. The BP case study indicates how CSR and its malfunctions can impact financial performance and what strategies did the company engage to overcome the famous Gulf of Mexico
Source: CSRHUB 2012

Is Corporate Social Responsibility genuinely affecting financial performance?

How do stakeholders influence British petroleum SCR strategies?

3. Methods and Analysis

Primary and secondary research of CSR Reports and Data Stakeholder perception of CSR strategies Strengths and limitations of CSR in the petroleum industry Analysis of the correlation between CSR and financial performance of British Petroleum using the stakeholder framework Financial Data illustrating the outcomes of the study Future CSR strategies of BP And Sustainability



Transparency & Environment Disclosure

8. References
Carroll, A. 1991. The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, Vol 34, (4) Waddlock, S & Graves, S (1997). The corporate social performance-financial performance link. Strategic Management Journal, Vol 4 Carroll, A. 1979. A three-dimensional conceptual model of corporate performance. The Academy of Management Review CSRHUB, 2012. BP PLC Report. [Online] Available at: [Accessed 20 November 2013]

Petroleum Industry

CSR Strategies

Financial Performance

Business Ethics