Ministry of Petroleum

Sustainability

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  • Sustainability

Corporate Social Responsibility (CSR) is a business model empowering a company to be socially responsible particularly for its possible impacts on the society and the environment. In Iran, social responsibility lies with the government. The petroleum industry, acting on behalf of government, fulfils its social responsibility in areas neighboring oil operations. The issue of social responsibility had slipped into oblivion for a long time and everyone felt indifferent towards it. But in recent years, the petroleum industry, as a corporate, has significantly reconsidered its views. The establishment of social counseling in 2013 indicates the Ministry of Petroleum’s efforts in fulfilment of its social responsibility, followed by standardization of oil companies’ CSR measures, helping reduce risks and social crisis in areas and facilitating the advancement of petroleum industry projects, moving towards industrial development, drawing up a framework and mechanism for regular and effective reporting on CSR, the petroleum industry winning global recognition and fame, compliance with global obligations, alignment with international forums and companies, and benefiting from privileges are among objectives of the Ministry of Petroleum.

The top priority for the Ministry of Petroleum is to fulfil social responsibilities by taking into consideration national concerns and priorities. Production comes next. Significant measures have so far been undertaken in this regard, some of which are as follows: following up on the formation of CSR policymaking council, strategic council and secretariat, proposing and following up on designation of social advisors for the four main subsidiaries of the Ministry, legal proposals and making efforts to incorporate legal clauses related to social responsibility in the Articles of Association of National Iranian Oil Company (NIOC) and oil contracts, drawing up a code of social responsibility for the petroleum industry, drafting social and cultural appendices to petroleum industry projects, drawing up guidance for CSR establishment in companies and drafting stability report and supporting establishment of CSR committees in the petroleum industry companies. Encouraging companies operating in the petroleum industry to apply CSR standards and stabilizing responsible measures in the petroleum industry, providing opportunities for the exchange of research and executive experience between companies in CSR, assessing measures and upgrading skills of oil companies in fulfilling their social responsibility and finally presenting high-quality stability reports and helping establish cooperation and partnership between stakeholders and corporates are among the most important tasks assigned to the petroleum industry in CSR.

In view of the impacts of social environment on the efficacy of petroleum industry activities and with a view to presenting a clear image of the petroleum industry to the public opinion, providing the necessary space for enhancing social confidence, improving relations with local communities and facilitating working conditions for the petroleum industry in these communities, optimizing spending regarding the responsibility of organizations and oil companies and exercising supervision in this regard, the Minister of Petroleum instructed CSR policy and code for the petroleum industry in September 2019, covering all major and minor oil companies. To that effect, the Ministry of Petroleum, while pursuing development, production and exports, has focused on the issue of social responsibility and achieved great success. Besides responsibilities in the oil, gas, refining, distribution and petrochemical sectors, the Ministry of Petroleum has stepped into other sectors where both government and people need assistance and has taken important steps. In fact, despite sanctions hindering oil sales, the Ministry of Petroleum has proven to be among the most successful entities in social responsibility. The Ministry of Petroleum has also provided relief aid to people during natural disasters like flooding and earthquake. It has made significant investment in repairing rural roads to make them accessible, building and renovating schools, supplying water to villages, holding training courses for university candidates, creating jobs, hiring qualified local manpower, improving livelihood, removing obstacles to production, health and development of sport centers, cooperation with the Imam Khomeini Relief Committee and State Welfare Organization, contribution to subway construction, not to mention the measures undertaken during the Covid-19 outbreak. These measures have undoubtedly been effective in the development of various areas and eradication of poverty.