Oil and gas and mining companies operate in some of the most underdeveloped regions on earth. Many of the countries and communities in which they operate face significant challenges in health, education, economic development, and basic infrastructure. Meanwhile, the extractives sectors present an opportunity for social change on a massive scale: Five of the world’s twenty biggest companies operate in these sectors. While the social imperative is clear, so is the business imperative to improve interactions with host communities: companies lose billions each year to community strife.
In the new FSG research report Extracting with Purpose, we’ve found that there is a clear business imperative to improve societal outcomes. Shared value establishes a framework for identifying opportunities to address societal issues and deliver real business value. But to capture that value, the research finds that companies in these sectors will need to change a number of specific behaviors:
While the sectors’ downstream products and services create tremendous benefits for society, this report focuses on the upstream—the activities related to extraction—area of the business. This is an important area to investigate due to the magnitude of the opportunities for both business and society and the history of adversarial relationships that exists among companies, host communities and countries, and other stakeholders. For extractives companies, addressing this dynamic and becoming governments’ and communities’ partner of choice—for extraction and for societal development—will be the next competitive advantage.
- Read the full-length report, Extracting with Purpose.
- Read the 10-page executive summary.
- El resumen ejecutivo del estudio también está disponible en español.
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This research was supported by: