Social Responsibility (SR) is at heart, a business process. If the process is done well it enables senior management to determine how SR creates value and affects all levels of an organization. This paper addresses the development of a transparent decision process that utilizes existing risk evaluation practices to manage SR issues and the prevention of major disputes or adverse events.
The exploration and production (E&P) sector has long recognized the importance of managing the impact of projects and facilities to improve corporate performance, protect operations, and capture future opportunities. However, there is an inadequate understanding of how SR creates value and, as a result, an organization’s commitment to SR can be challenged.
This paper focuses on the real life example of complex E&P operations in Indonesia. Operations included production in Gresik and planned offshore exploration activities in West Papua and South Sesulu. An assurance review (including stakeholder workshops) was undertaken to verify the current SR hazards and risk profile associated with these activities. A critical step was the development and delivery of a transparent decision process with the management team.
The utilization of a Business Process Map (including Bowtie analysis) assisted in confirming that appropriate systems, procedures and key personnel were in place to execute the SR plan over the business lifecycle. An important outcome was that value chain functions understood their role and took ownership in achieving the intended critical SR objectives, meeting performance expectations and implementation of an effective risk management strategy.
The paper highlights how this Indonesian business unit improved transparency at all levels of the organization and personnel’s understanding of the triggers of adverse events and the decisions to reduce the likelihood of these adverse events occurring.