Legal and Ethical Obligations of Oil Companies in Preserving Natural Environment; a Case Study of the Kurdistan Regional Government’s Production Sharing Contracts”
DOI:
https://doi.org/10.21928/juhd.v2n4y2016.pp390-398Abstract
Apart from having many obligations, oil companies have both legal and ethical obligations to protect natural environment in the country in which they operate. Every country has its own legislation to regulate aspects of oil companies’ operations in order not to destroy the natural surroundings of their operation area. Complying with these requirements has mutual interest for both the host country and the company as the latter can improve its reputation by taking steps toward preserving natural environment of the host country. Accordingly, there are many oil companies operating in Kurdistan Region of Iraq that should bear the same responsibilities. However, insufficient environmental legislations and the lack of enforcing the applicable laws have encouraged oil companies not to take necessary measures for both protection and providing remedies for any environmental destruction. The paper argues that the legal obligations to protect environment should be enforced in an appropriate way alongside with corporate social responsibilities toward the host country in terms of preserving natural environment and compensating all kinds of damages that cause natural environment.
References
Legislations & agreements:
[1] The KRG’s Oil and Gas Law No.28 of 2007.
[2] Regulations no. 2 for the year 2001
[3] Preservation of Water Resources, Law no. 27 for the year 2009.
[4] Protection and Improvement of Environment, Law no. 37 for the year 2008.
[5] The Ministry of Environment, Law no. 55 for the year 2002.
[6] The Law of Antiquities and Heritage, Forest and Woodlots Law No. 30 of 2009.
[7] Kyoto Protocol.
[8] The KRG’s model of production sharing contracts.
Journal articles
[9] AbagailMcwilliams& Donald Siegel, ‘Corporate Social Responsibility: A Theory of a Firm Perspective’ Academy of Management Review, 2001, Vol 26, No 1.
[10] Alexander Dahlsrud, “How Corporate Social Responsibility is defined: an Analysis of 37 Definitions”, Corporate Social Responsibility and Environment Management, 2006.
[11] Archie B. Carroll, “Corporate Social Responsibility: Evolution of a Definitional Construct”, Business & Society, 1999, Vol.38, No.3.
[12] Damilola S. Olawuyi, ‘Legal and Sustainable Development Impacts of Major Oil Spills’ The Journal of Sustainable Development, 2012, Vol 9, issue 1.
[13] David M. Ong, “The Impact of Environmental Law on Corporate Governance: International and Comparative Perspectives”, EJIL, 2001, Vol 12, No 4, at 685.
[14] Dirk Matten and Jeremy Moon, “ A Conceptual framework for understanding CSR in Europe”, International Centre for Corporate Social Responsibility, 2004, No.29.
[15] Dirk Matten and Andrew Crane Corporate Citizenship: Toward an Extended Theoretical Conceptualization the Academy of Management Review, 2005, Vol. 30, No. 1.
[16] ElisabetGarriga and DomenecMele, “Corporate Social Responsibility Theories: Mapping the Territory” Journal of Business Ethic, 2012.
[17] James Boyd, ‘Financial Responsibility for Environmental Obligations: An Analysis of Environmental Bonding and Assurance Rules’, Research in Law and Economic, 2002.
[18] Khalid I. Al.Saleem, the PhD thesis titled ‘The Legal Framework for the Sustainable Development of Iraqi Oil and Gas: a Study in Particular Reference to the Kurdistan Region, and with Special Emphasis on the New Delhi Declaration’, January 2015.
[19] Maria Curie ‘Corporate Social Responsibility toward the Environment-The Involvement of Polish Enterprises in the Implementation of the Idea of CSR’ B.OlyszkoKurzyna 2014.
[20] Mauro Barelli, 'The Role of Soft Law in the International Legal System: the case of the United Nation Declaration on The Rights of Indigenous Peoples ' International and Comparative Law Quarterly, 2009, Vol.58, issue 4.
[21] Nader Ghotbi, “ Intrinsic Value of the Natural Environment: an Ethical Roadmap to Protect the Environment” Philosophy Study, 2014, Vol. 4, No. 4.
[22] Peter Singer, “Environmental and Business Ethics”, OCR A level religious studies specification, 15C.
[23] Robert A. Phillips and Joel Reichart, “The Environment as a Stakeholder? a Fairness Based Approach”, Journal of Business Ethic, 2000.
[24] Robert Manning and others, “Values, Ethics and Attitudes toward National Forest Management: An Empirical Study”, Society and Natural Resources, 1999.
[25] Sabina Medarevic, “Environmental Corporate Social Responsibility and the Carbon Economy: A Case for CSR, the Triple Bottom Line and Obliquity” Corporate Governance E journal, 2012.
[26] Shuo Wang, ‘Chinese Strategic Decision Making on CSR’ (Springer 2015).
[27] Toby Svoboda, “Duties regarding Nature: A Kantian Approach to Environmental Ethics” Kant Yearbook, 2012, 4(1).
Books
[28] LiangrongZu, Corporate Social Responsibility, Corporate Restructing and Firm’s Performance (Springer 2009).
[29] Peter Wetterstein, ed., Harm to the Environment: The Right to Compensation and the Assessment of Damages (Clarendon Press, 1997).
[30] YuvrajPatil, ‘Corporate Social Responsibility toward Environmental Management’, (Symbiosis Law School, 2014).
Webs
[31] Domestic Environmental law, available at [https://www.google.iq/?gfe_rd=cr&ei=UQlWVvnDFM6z8weQmoGwDA&gws_rd=ssl#q=protecting+environment+under+domestic+law].
[32] Alasdair Cochrane, “Environmental Ethics” available at[http://www.iep.utm.edu/envi-eth/ ] accessed on 23 Sept 2016.
[33] The ten principles of the UN Global Impact, available at [https://www.unglobalcompact.org/what-is-gc/mission/principles].
[34] Investopedia, [http://www.investopedia.com/terms/c/corporatecitizenship.asp]
[35] WesternZagroz web page, [http://www.westernzagros.com/csr/]
[36] The Volkswagen emissions scandal explained, available at [http://www.theguardian.com/business/ng-interactive/2015/sep/23/volkswagen-emissions-scandal-explained-diesel-cars]
[37] The Berlin International Economics Congress 2012, March 7th-10th, 2012, “The Impact of Corporate Social Responsibility on Business Performance – Can it be Measured, and if so, How?, available at [https://www.google.iq/?gfe_rd=cr&ei=ptxVVtXXBMGo8we4mKbwCA&gws_rd=ssl#q=the+impact+of+corporate+social+responsibility].
Miscellaneous
[38] PiotrMazurkiewicz, Corporate Environmental Responsibility, World Bank, 2004.
[39] World Bank, Environmental Governance in Oil Producing Developing Countries, managed by EleodoroMayorgaAlba,June 2010.
[40] Environmental management in Oil and Gas Exploration and Production, Joint E&P Forum and UNEP Technical Production, 1997.
[1] The KRG’s Oil and Gas Law No.28 of 2007.
[2] Regulations no. 2 for the year 2001
[3] Preservation of Water Resources, Law no. 27 for the year 2009.
[4] Protection and Improvement of Environment, Law no. 37 for the year 2008.
[5] The Ministry of Environment, Law no. 55 for the year 2002.
[6] The Law of Antiquities and Heritage, Forest and Woodlots Law No. 30 of 2009.
[7] Kyoto Protocol.
[8] The KRG’s model of production sharing contracts.
Journal articles
[9] AbagailMcwilliams& Donald Siegel, ‘Corporate Social Responsibility: A Theory of a Firm Perspective’ Academy of Management Review, 2001, Vol 26, No 1.
[10] Alexander Dahlsrud, “How Corporate Social Responsibility is defined: an Analysis of 37 Definitions”, Corporate Social Responsibility and Environment Management, 2006.
[11] Archie B. Carroll, “Corporate Social Responsibility: Evolution of a Definitional Construct”, Business & Society, 1999, Vol.38, No.3.
[12] Damilola S. Olawuyi, ‘Legal and Sustainable Development Impacts of Major Oil Spills’ The Journal of Sustainable Development, 2012, Vol 9, issue 1.
[13] David M. Ong, “The Impact of Environmental Law on Corporate Governance: International and Comparative Perspectives”, EJIL, 2001, Vol 12, No 4, at 685.
[14] Dirk Matten and Jeremy Moon, “ A Conceptual framework for understanding CSR in Europe”, International Centre for Corporate Social Responsibility, 2004, No.29.
[15] Dirk Matten and Andrew Crane Corporate Citizenship: Toward an Extended Theoretical Conceptualization the Academy of Management Review, 2005, Vol. 30, No. 1.
[16] ElisabetGarriga and DomenecMele, “Corporate Social Responsibility Theories: Mapping the Territory” Journal of Business Ethic, 2012.
[17] James Boyd, ‘Financial Responsibility for Environmental Obligations: An Analysis of Environmental Bonding and Assurance Rules’, Research in Law and Economic, 2002.
[18] Khalid I. Al.Saleem, the PhD thesis titled ‘The Legal Framework for the Sustainable Development of Iraqi Oil and Gas: a Study in Particular Reference to the Kurdistan Region, and with Special Emphasis on the New Delhi Declaration’, January 2015.
[19] Maria Curie ‘Corporate Social Responsibility toward the Environment-The Involvement of Polish Enterprises in the Implementation of the Idea of CSR’ B.OlyszkoKurzyna 2014.
[20] Mauro Barelli, 'The Role of Soft Law in the International Legal System: the case of the United Nation Declaration on The Rights of Indigenous Peoples ' International and Comparative Law Quarterly, 2009, Vol.58, issue 4.
[21] Nader Ghotbi, “ Intrinsic Value of the Natural Environment: an Ethical Roadmap to Protect the Environment” Philosophy Study, 2014, Vol. 4, No. 4.
[22] Peter Singer, “Environmental and Business Ethics”, OCR A level religious studies specification, 15C.
[23] Robert A. Phillips and Joel Reichart, “The Environment as a Stakeholder? a Fairness Based Approach”, Journal of Business Ethic, 2000.
[24] Robert Manning and others, “Values, Ethics and Attitudes toward National Forest Management: An Empirical Study”, Society and Natural Resources, 1999.
[25] Sabina Medarevic, “Environmental Corporate Social Responsibility and the Carbon Economy: A Case for CSR, the Triple Bottom Line and Obliquity” Corporate Governance E journal, 2012.
[26] Shuo Wang, ‘Chinese Strategic Decision Making on CSR’ (Springer 2015).
[27] Toby Svoboda, “Duties regarding Nature: A Kantian Approach to Environmental Ethics” Kant Yearbook, 2012, 4(1).
Books
[28] LiangrongZu, Corporate Social Responsibility, Corporate Restructing and Firm’s Performance (Springer 2009).
[29] Peter Wetterstein, ed., Harm to the Environment: The Right to Compensation and the Assessment of Damages (Clarendon Press, 1997).
[30] YuvrajPatil, ‘Corporate Social Responsibility toward Environmental Management’, (Symbiosis Law School, 2014).
Webs
[31] Domestic Environmental law, available at [https://www.google.iq/?gfe_rd=cr&ei=UQlWVvnDFM6z8weQmoGwDA&gws_rd=ssl#q=protecting+environment+under+domestic+law].
[32] Alasdair Cochrane, “Environmental Ethics” available at[http://www.iep.utm.edu/envi-eth/ ] accessed on 23 Sept 2016.
[33] The ten principles of the UN Global Impact, available at [https://www.unglobalcompact.org/what-is-gc/mission/principles].
[34] Investopedia, [http://www.investopedia.com/terms/c/corporatecitizenship.asp]
[35] WesternZagroz web page, [http://www.westernzagros.com/csr/]
[36] The Volkswagen emissions scandal explained, available at [http://www.theguardian.com/business/ng-interactive/2015/sep/23/volkswagen-emissions-scandal-explained-diesel-cars]
[37] The Berlin International Economics Congress 2012, March 7th-10th, 2012, “The Impact of Corporate Social Responsibility on Business Performance – Can it be Measured, and if so, How?, available at [https://www.google.iq/?gfe_rd=cr&ei=ptxVVtXXBMGo8we4mKbwCA&gws_rd=ssl#q=the+impact+of+corporate+social+responsibility].
Miscellaneous
[38] PiotrMazurkiewicz, Corporate Environmental Responsibility, World Bank, 2004.
[39] World Bank, Environmental Governance in Oil Producing Developing Countries, managed by EleodoroMayorgaAlba,June 2010.
[40] Environmental management in Oil and Gas Exploration and Production, Joint E&P Forum and UNEP Technical Production, 1997.
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Published
2016-12-31
How to Cite
Sediq, A. M. (2016). Legal and Ethical Obligations of Oil Companies in Preserving Natural Environment; a Case Study of the Kurdistan Regional Government’s Production Sharing Contracts”. Journal of University of Human Development, 2(4), 390–398. https://doi.org/10.21928/juhd.v2n4y2016.pp390-398
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