In 1996, NorPetrol arrived in Venezuela, where it began upstream petroleum operations. The firm engaged in corporate social responsibility initiatives to support its operations, selecting its systems after taking advice from local stakeholders. At the time of arrival in Paria Gulf area, Francisca Rios, the head of the organizations Social Investment and Community Relations Coordinating Unit, met with politicians, community leaders, public officials, and grassroots organizations' representatives to find out about their expectations and problems, also to communicate the company's investment plans and projects having a probable effect on their communities. A stakeholder identified by the firm was Asopescar, an organization of conventional fishermen. Strains between fishermen and oil companies were commonplace. The former blamed an important decrease in production along with the degradation of a mangrove swamp on NorPetrol during the fishing season.
NorPetrol Venezuela's Social Investment Case Study Solution
Francisca Rios did not desire to build a connection with the fishermen depending on contributions and aid. Intending to empower traditional fishermen, she chose to direct a portion of her social investment budget to turn Asopescar fishermen into entrepreneurs. In 2006, Francisca Rios considered that excellent improvement had been made by Asopescar as a productive, self-sustaining company. On the other hand, several issues had arisen in the organization, forcing her to reconsider upcoming investments of NorPetrol. Dilemmas contained rising outstanding debts of Asopecar members using their particular organization, member dropout, in money handling administrative madness and informality, and high operating costs. The case raises the challenges confronting an oil company to attain a social permit to manage, along with its efforts to ensure sustainable community development processes in its areas of influence. The case collection of IESA
PUBLICATION DATE: August 06, 2014 PRODUCT #: IE0007-PDF-ENG
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