Human Rights and Ethics - CommDev · 2019-05-28 · Human Rights and Ethics in the Oil and Gas Industry 7 and a guide to Operating in Areas of Conflictin 2008. These publications

Human Rights and Ethics

in the oil and gas industry

Contents

Background 3

Industry activities through IPIECA 5

Company activities 9

External initiatives—partnering industry, civil society and government 11

Case studies 14

• BP: embedding Human Rights and the Voluntary Principles 14in the Tangguh Project, Papua

• ExxonMobil: providing opportunity through the Chad-Cameroon 15Development Project

• Nexen: community partnership in Yemen 16

• Occidental: collaboration with International Alert and 17Fundación Para la Paz

• OMV Aktiengesellschaft: on-the-job training programmes in Pakistan 18

• Royal Dutch Shell: security, human rights and implementing 19the Voluntary Principles

• StatoilHydro: human rights training of Sharia judges in Nigeria 20

• Total: abiding with ethical codes and encouraging constructive 21engagement in Myanmar

References and further resources 22

Acknowledgements 23

© IPIECA, August 2008. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmittedin any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior consent of IPIECA.

This publication is printed on paper manufactured from fibre obtained from sustainably grown softwood forests and bleached without the useof chlorine, thereby minimizing the impact on the environment.

Context

Since the Universal Declaration of Human Rights(UDHR) was developed 60 years ago, humanrights have become a prominent topic on theinternational community’s agenda. With the riseof globalization, the focus on promoting humanrights has expanded beyond national govern-ments to non-governmental actors includingtransnational corporations. Corporations engagewith many different stakeholders includingcustomers, shareholders, the media, internationalfinance institutions, governments and non-governmental organizations (NGOs) on theirrole to promote human rights.

Increasingly, concerns over corruption, humanrights and labour issues can deter internationalcorporations, especially in the oil and gasindustry, from making foreign investments.These issues also pose huge economic, socialand political risks that threaten existingoperations.

International response

In response, there has been an increase ininternational initiatives to look at how businessand human rights interact, such as the UnitedNations (UN) Global Compact. Sometimes theinitiatives specifically focus on extractiveindustries, for example the Voluntary Principleson Security and Human Rights (VoluntaryPrinciples) and the Extractive IndustriesTransparency Initiative (EITI). The oil and gasindustry is a major contributor to theseinitiatives. The Voluntary Principles and EITIfoster an open dialogue between variousstakeholders, including governments, industryand NGOs, on emerging international goodpractice on social responsibility issues.

United Nations Special Representative

In 2005, the UN appointed Professor JohnRuggie as the Special Representative on Businessand Human Rights to assess and analyse thegrowing role of business in human rights issues.

Background

Human Rights and Ethics in the Oil and Gas Industry 3

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4 Human Rights and Ethics in the Oil and Gas Industry

The Special Representative’s mandate includes:● clarifying corporate responsibility and

accountability;● noting best practice; and● developing materials and methodologies to

assess human rights impacts for trans-national corporations.

Professor Ruggie released a report in April2008 which was presented to the UnitedNations Human Rights Council in June. Thereport identifies gaps in policy and sets out hisrecommendations for all stakeholders on how tomove forward on business and human rightsissues. Importantly, Professor Ruggie sets out aframework comprising three core principlesregarding human rights: the state duty to protectagainst third-party abuses; the corporateresponsibility to respect; and the need for moreeffective access to remedies. Professor Ruggie’smandate was extended for a further threeyears—to 2011—during which time he and histeam will work on recommendations on howcompanies and other stakeholders canoperationalize this framework.

Oil and gas industry challenges

The oil and gas industry operates in some of themost challenging places in the world and facescomplex human rights-related issues both athome and abroad. Ensuring good human rightspolicy and practice, both internally andexternally, has therefore become a critical issue.While recognizing that individual governmentsbear the primary responsibility to protect andpromote respect for human rights, all of society,including business, has a role in promotinghuman rights. The majority of oil and gascompanies now view corporate socialresponsibility (CSR) issues as important for theirreputation and access to future businessopportunities. This publication describes some ofthe ways in which oil and gas companies areactively involved in promoting human rights andethical business practices at the operations leveland in international policy discussions.

Purpose of this report

This report summarizes IPIECA activities onhuman rights and ethics, and highlights relatedefforts by IPIECA oil and gas membercompanies. These efforts are illustrated byrepresentative case studies and related industry-led partnership projects.

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IPIECA formed a Social Responsibility WorkingGroup (SRWG) in 2002 to address socialresponsibility issues including human rights,capacity building and community outreach. Thisgroup provides a forum for IPIECA members toshare information and enhance understanding ofsocial responsibility issues, challenges andimplications for the oil and gas industry. The forumfacilitates coordination of some joint actions.

Through the SRWG, the oil and gas sector isproactively addressing new and previouslyidentified risks in the area of social responsibility.The group aims at supporting IPIECA to developa consistent and credible industry voice on socialresponsibility issues. In particular, it seeksconsensus on the role and boundaries forbusiness in promoting and protecting humanrights. The group works to improve industrysocial performance and ensure that the sector’scontribution to economic and social developmentis recognized.

The SRWG has three main objectives:1. Enhance member understanding of social

responsibility issues.

2. Contribute to and monitor external initiatives.3. Develop tools and guidance to encourage

continuous improvement of the industry’ssocial performance.

Awareness and understanding

One of IPIECA’s objectives is to facilitatedialogue between member and non-membercompanies and organizations. IPIECA ensuresthat existing and emerging human rights issues

Industry activities through IPIECA


BP

Many IPIECA member companiesoperate in areas of the worldwhere they face security risks—ranging from low-level communityconflict to high risk outrightwarfare. This succinct user-friendlydocument, entitled Operating inAreas of Conflict—an IPIECAguide for the oil and gas industry,gives an overview of the risksassociated with operating in areas

of existing or potential conflict, andhighlights the business case of whyit is an important issue for industry.The practical guide outlines how toconduct risk assessment and riskmanagement techniques, with severaldetailed case studies and a separateresource document.

Essential ‘how to’ analysis of risk assessment and management

The Guide to Social ImpactAssessment outlines how to use SIAsin the oil and gas industry. Byproviding a thorough analysis oflikely social impacts of new businessactivities and proposing how theyshould be managed, SIAs can assistin managing project budgets andschedules, in supporting relationshipswith relevant stakeholders and inbuilding competitive advantage for acompany. The guide provides man-

agers of existing oil and gas operations or new projects with anunderstanding of how to best use SIAs. The guide is written in auser-friendly and accessible format, and it breaks down the mainelements of SIAs follows:

● key factors for success; ● background on the SIA and why it

is beneficial; ● when to carry it out; ● integrating with other impact

assessments; ● stakeholder engagement; ● resourcing; and● cost and time management.

In addition, the guide provides a step-by-step analysis of the SIA process. Adirectory of resources is listed at the endof the publication.

Guide to Social Impact Assessment (SIA)

relating to the industry are identified anddiscussed, leading to implementation ofappropriate input or actions. Open dialogue isencouraged through IPIECA workshops,meetings, participation at external conferences,and involvement in the development of variousinitiatives around human rights issues.


External initiatives

IPIECA monitors and participates in externalinitiatives such as the EITI, the ISO (InternationalOrganization for Standardization) guidancestandard on social responsibility (ISO 26000),the Voluntary Principles, and the work of theUN Special Representative on Business andHuman Rights. IPIECA regularly updates membercompanies on these initiatives. The updates andrelated discussions foster understanding, raiseawareness, encourage involvement and identifypotential implications of these initiatives formembers.

Tools and guidance

IPIECA works closely with member companies todevelop good practice guidelines. Specifically inthe field of human rights and ethics, IPIECApublished a Guide to Social Impact Assessment in2004, the Human Rights Training Toolkit in 2006BP


and a guide to Operating in Areas of Conflict in2008. These publications provide companieswith important baseline knowledge for raisingawareness and informing operations on impactassessment, human rights, and risk assessmentand management. In the area of communitydevelopment, a guidance document—Creating

Successful, Sustainable Social Investment—published in 2008 adds to the IPIECA tools thatcompanies can use to train their employees andincorporate into their operational planning. Thesepublications are available for public use toencourage awareness of key industry issues andfoster good practice.

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eSHRIMP (Environmental, Socialand Health Risk Impact ManagementProcess) is a tool developed byIPIECA’s upstream sister organiza-tion, the International Association ofOil and Gas Producers (OGP).eSHRIMP offers a flexible approachto risk management throughout aproject’s lifecycle, and assists

companies and contractors to: ● identify at an early stage any project risks or

opportunities; ● provide a consistent process to aid internal

assurance;● link environmental and social impact assessment

with project decision-making to optimizetimescales and resource plans;

● enable a structured framework for contractawards to third parties;

● enhance corporate memory by integratingprior experience and learning; and

● establish shareholder confidence through adefined but flexible process.

eSHRIMP is particularly effective for itspragmatic approach and its ability to becustomized to specific projects. This can be usefulin joint venture situations and to help define clearproject HSE requirements for contractors.

eSHRIMP


IPIECA member com-panies identified a needfor general guidance onhow to train managersand staff about humanrights, especially incountries that have poorhuman rights records. Inresponse, IPIECA membercompanies shared human

rights expertise, practices and policies to developan industry-wide template. The result was thepublication of the Human Rights Training Toolkitin 2006. The Toolkit is a training templatedesigned to be customized by companies inaccordance with their existing human rights policyand applicable domestic laws and regulations.

The Toolkit consists of a presentation,workbook, trainer’s manual and a resource guide.Core issues covered include: ● labour rights;● indigenous rights;● security and law enforcement arrangements;● dealing with corruption and transparency; and● stakeholder issues.

The presentation also includes an overview ofcore international human rights treaties andinstruments, a discussion of the role of businessand the petroleum industry, and an overview ofthe ‘stakeholder’ concept.

Before being released, the Toolkit was pilotedwith various stakeholders in London in 2006. Asecond workshop was held in Kuala Lumpur in2006 to introduce the Toolkit. The workshopobjectives were to use the Toolkit to provide ahigh-level introduction to the topic of businessand human rights to IPIECA members in the Asiaregion, and then to examine in more depth the‘Asian’ perspective on human rights and company

experiences in the area. Building on the successof the first workshops, the IPIECA regionalhuman rights workshop series developed.Further workshops have since been held inCalgary in 2007 focusing on indigenous rightsin North America, and in Buenos Aires in 2008looking at the Latin American perspective onhuman rights in the oil and gas industry. Futureworkshops are planned for sub-Saharan Africain 2009, and the Middle East in 2010.

The main strength of the Toolkit is itsversatility. Companies can customize theToolkit template to include their own humanrights policies and region- or operation-specificmaterials. The Toolkit is being used by mostcompanies to complement human rightstraining sessions, and the global audienceranges from security personnel, corporate socialresponsibility (CSR) managers and newly-appointed directors to human resources staffand employees in high-risk countries.

Providing the tools for human rights training

IPIECA exhibiting the Toolkit at the 19th WorldPetroleum Congress in Madrid, 2008

Company activities


The oil and gas industry aims to uphold thefundamental principles of human rights by:● following ethical business practices;● combating corruption and enforcing ethical

trading policies;● treating all people equitably through non-

discriminatory employment practices andprovision of a living wage;

● respecting indigenous people and localcommunities, and involving them in decisionsthat may affect them; and

● working to ensure a fair sharing of economicbenefits.

Individual companies recognize the criticalimportance of putting strong human rightspolicies in place. This is important, not only forinternal employee reference and use but also inrelation to external stakeholders, such asgovernments, security forces, suppliers, localcommunities and local partners. There areseveral ways in which member companies areinvolved in promoting ethical business andprotecting respect for human rights:

● Human rights and ethics training programmes:Many companies implement human rights andethics training programmes for a wideaudience ranging from management to on-the-ground employees, as well as for variouscommunity groups in their areas of operation.

● Stakeholder engagement: Companies’relationships with external stakeholders suchas governments, NGOs, local communitiesand security forces continue to evolve andgrow. Consultations and sharing of informa-tion between stakeholders are important tomaintain good relationships, which in turnfoster successful growth, for communities,countries, and for industry.

Especially important is a company’srelationship with the local communitieswhere projects are carried out—it isessential for the company and community tohave an open dialogue to allow concerns tobe voiced, and to enable social investmentprogrammes and economic projects to havemaximum positive and sustainable impacts.

● SIAs (Social Impact Assessments): Manycompanies are implementing SIAs to ensurethat the socio-economic impacts of a projectare carefully assessed in advance, and thatappropriate actions can be taken: to managethe social impacts; to avoid, minimize andmitigate the negative impacts; and to enhancethe positive ones. SIAs are often paired withEnvironmental Impact Assessments (EIAs)and other specialized assessments on issuessuch as conflict.

● HRIAs (Human Rights Impact Assessments):HRIAs help to make the respect for, andpromotion of, human rights part of the coreactivities of company operations on theground, including the activities of localemployees and external actors, such aspublic and private security forces and themilitary.

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● Indigenous rights: Our industry respects thecustomary rights of indigenous communities.In addition to promoting indigenous rightsawareness, the industry can play a majorrole in building capacity in indigenouscommunities and helping to strengthencommunication between governments andcommunities for improved relationships.

● Support/participation in external initiatives:A number of companies are supporting thedevelopment of initiatives on human rightsand ethics, including the UN GlobalCompact, the Voluntary Principles on Securityand Human Rights, the Business LeadersInitiative on Human Rights (BLIHR) and theExtractive Industries Transparency Initiative.Some companies have signed up to theseinitiatives or adopted parts of them into theirown corporate policies and standards, andhave started to incorporate them intocontracts with suppliers.


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External initiatives—partnering industry, civil society and government


In a February 2007 report to the UN SecretaryGeneral, Professor John Ruggie, the SpecialRepresentative on Business and Human Rights,notably concluded that ‘no single silver bulletcan resolve the business and human rightschallenge’ and that ‘a broad array of measures isrequired, by all relevant actors’ based on thenotion of shared responsibility. Professor Ruggiealso concluded that governments must meet theirresponsibility to address human rights andtransparency. In addition, the report confirmsthe emergence of voluntary initiatives involvinggovernments, business and civil society, andpoints to the key role that these mechanisms willplay in charting the future course of human rightsefforts and filling gaps in the international legalframework. Initiatives such as the VoluntaryPrinciples attest to the growing attention paid byoil and gas companies to human rights.Recognizing that transparency has significancenot only in attracting inward investment andpromoting economic development, but also inthe human rights sphere, the EITI also plays animportant role in promoting good human rightspractices through fostering a transparent andaccountable dialogue between stakeholders.Overviews of these two high profile multi-stakeholder initiatives, the Voluntary Principlesand EITI, are set out here.

The Voluntary Principles on Security andHuman Rights

In early 2000, the US and UK governments, anumber of mining and oil and gas companies,several international human rights NGOs and alabour union1 initiated a year-long effort toaddress security and human rights concerns withrespect to extractive industries’ operations.During the year, stakeholders identified commoninterests and worked together to reachconsensus on a set of principles that wouldsupport human rights in the context of providingsecurity. This culminated in the creation of theVoluntary Principles.

The Voluntary Principles cover three key areas:1. conducting risk assessments in the context of

security and human rights issues;2. engaging with public security forces

(military and police); and3. engaging with private security forces.

The initiative illustrates the opportunities andchallenges of a multi-stakeholder approach. Thethree pillars (governments, companies andNGOs) represent diverse stakeholders withvarying objectives and approaches. Ultimately,the success of the Voluntary Principles willdepend on the strengths and legitimacy thateach partner brings to the process.

1 The International Federation of Chemical, Energy, Mine andGeneral Workers’ Union (ICEM)BH

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All three sets of stakeholders bring theirperspectives to the process. Companies sharetheir on-the-ground experience as well as theirefforts to implement programmes at anoperational level. Home governments are ableto provide diplomatic channels to engage hostgovernments. NGOs bring expertise in humanrights issues and local civil society in manyregions where companies operate.

The Voluntary Principles have gained supportfrom the private, public and civil society sectorssince their launch. In addition to officialparticipants, other companies and countrieshave adopted and implemented the VoluntaryPrinciples. Moreover, multilateral institutions, suchas the International Finance Corporation and theOrganisation for Economic Co-operation andDevelopment, are now referencing the VoluntaryPrinciples in their guidelines and standards.IPIECA is an observer to the process and manyof IPIECA’s member companies implement thePrinciples both as signatories and independently.

Each company member approaches imple-mentation of the Voluntary Principles differentlybased on its operating environment. Companieshave achieved significant milestones since theinitiative started, including: ● developing anonymous reporting of human

rights abuses; ● increasing awareness of human rights and

security issues among employees; and ● conducting related training for public and

private security personnel and companyemployees.

All participating companies report on theirimplementation of the Voluntary Principles intheir corporate responsibility reports as well asto the Voluntary Principles plenary participants.

An important milestone for the VoluntaryPrinciples was achieved in Washington D.C. inMay 2007. Participants in the process reachedagreement on Participation Criteria aimed atpromoting accountability and transparency inthe process. Work on governance and reportingcriteria is continuing. Additionally, an IPIECAtask force is involved with the InternationalBusiness Leaders Forum (IBLF), Business forSocial Responsibility (BSR) and other organiza-tions in an initiative to develop a VoluntaryPrinciples implementation guidance tool forcompanies to utilize in building their trainingand policy in this area.

While continued effort will be essential topromote further adoption of the VoluntaryPrinciples throughout the industry, the VoluntaryPrinciples demonstrate that a multi-stakeholderpartnership can begin to address human rightsissues that would be difficult for any single actorto resolve alone.

The Extractive Industries TransparencyInitiative

In 2002 the UK government, in consultationswith numerous oil and gas companies, tradeassociations and the US government, launchedthe Extractive Industries Transparency Initiative(EITI), which was motivated by the desire forimproved fiscal accountability and goodgovernance in resource-rich countries.

The principles of the EITI affirm that: ● natural resources management is the domain

of sovereign governments;

● the achievement of greater transparencymust respect laws and contracts; and

● a broadly consistent and workable approachto the reporting of payments and revenues isneeded.

In 2005, criteria, guidelines and a sourcebookfor implementing countries and participatingcompanies were agreed upon and anInternational Advisory Group (IAG) was set upto discuss the initiative’s future. In October2006, the IAG recommended how to monitorand validate the EITI process.

So far, the EITI has proven successful because ofthe ability of the stakeholders to reach consensuson core issues, due principally to four factors:

1. The EITI is voluntary. 2. Its focus is narrow—money paid to and

received by host governments must bereported by companies and states alike.

3. It is driven by resource-rich countries ratherthan by OECD governments, companies orNGOs.

4. It is flexible—EITI guidelines encompassincentives to meet differing countries’motivations.

Today, the most prominent internationalcompanies in extractive industries follow the EITIprinciples, and new countries continue tocommit to the process. However, the future of theEITI is highly dependent on all parties continuingto work together and uphold the principles ofvoluntary revenue transparency.

Some critical issues still remain to be resolved.These include: the capacity of some countries toimplement the initiative in a full and timelymanner; future funding of the EITI Secretariat;

participation of state-owned companies;defining the levels of monitoring and validationneeded to ensure the initiative’s continuedcredibility; its geographic spread; and the useof the large revenue increases being experiencedin many oil- and gas-rich states for the benefit oftheir citizens.

Less than six years after the launch of theinitiative, knowing what governments receive,verified by what companies pay, is a critical firststep to holding decision makers accountable forthe use of those revenues. Although much remainsto be done, the EITI has demonstrated that it ispart of a drive for better governance that willensure that revenues from hydrocarbon andmineral projects contribute more robustly topoverty reduction and sustainable development.


Since acquiring a significant interest in theTangguh LNG project in Papua in 2000, BP hasactively consulted with communities in the projectarea, other project stakeholders (including NGOsand members of Papuan civil society) andinternational experts. Its intention has been toanticipate, manage and mitigate potentialnegative socio-economic and environmentalimpacts of the project, and maximize projectbenefits to the surrounding communities.

In early 2001 BP asked two eminent humanrights experts to assess human rights conditionsin the Tangguh project area and the potentialeffects of the project’s presence. The resultingpublicly available Human Rights ImpactAssessment (HRIA)2 report presented a ‘holisticapproach to addressing human rights issues andreflected an unprecedented degree oftransparency and accountability’3. BP was oneof the first companies to open a project to anindependent public HRIA report.

BP responded openly to the recommendations andfindings in the HRIA. It agreed with the report’srecommendations to ‘socialize’ the VoluntaryPrinciples on Security and Human Rights, and todevelop supporting policies and procedures.

The Voluntary Principles were translated intoIndonesian, shared with various official andprivate stakeholders, and included in contractsrelating to the Tangguh project. The project alsoimplemented the HRIA recommendation to supporttraining in human rights for the security authorities.

BP also shared information about the Tangguhproject with national and internationalaudiences, for example through regionalworkshops on the project’s Diversified GrowthStrategy; BP workshops in New York andLondon; interactions with business, academiaand the media; and ‘study tours’.

BP believes that business can be a force forgood in Papua. It has implemented variousprogrammes to deliver improvements in health,education and local governance, and haspromoted human rights both throughout itsoperations and more generally in the region. In2004, it concluded an agreement with thePapuan Police that incorporates the VoluntaryPrinciples on Security and Human Rights.

BP stated, ‘While we are aware of ourlimitations as a commercial entity, we aredetermined to make a positive contribution inour area of operations, and we are committedto Indonesia and Papua for the long term.’


BP: embedding human rights and the Voluntary Principlesin the Tangguh Project, Papua

2 The HRIA report and BP’s response are available on this website:www.bp.com/sectiongenericarticle.do?categoryId=9004774&contentId=70091503 Excerpt from letter to Special Representative Professor John Ruggiefrom the Interfaith Center on Corporate Responsibility (ICCR) dated10 October 2006.

A human rights training session for new securityguards—part of the Integrated Community BasedSecurity (ICBS ) programme at the BP Tangguh facility.

BP

Case studies


villages and towns in the oilfield area and alongthe pipeline route. Consultations have rangedfrom topics such as routing of the pipeline, tospecifications for the comprehensive EnvironmentalManagement Plan developed especially for thisproject. This has been the most extensive publicconsultation effort for an oil development projectin the history of Africa.

The project has positively affected Chadiansociety in many ways. Studies have shown animproved quality of life in oilfield area villages.The project has contributed millions of dollars toan array of community, health and environmentalinitiatives in Chad and Cameroon, and broughtthousands of new jobs to the two host countries.In fact, local employees make up nearly 85 percent of the project work force, two-thirds of whichhold skilled, semi-skilled or supervisory positions.Finally, the project has boosted local economiesthrough more than $1.5 billion of purchases ofgoods and services from local suppliers.

International human development organizationsrank Chad as one of the ten poorest countries onEarth. Despite the inherent challenges associatedwith such a statistic, a consortium of three oilcompanies led by ExxonMobil successfullyimplemented and now operates a project thatprovides hope to Chadians, in the form of jobsfor its citizens and revenues for its governmentand residents. The Chad-Cameroon projectproduces oil in landlocked southern Chad andtransports it via a 663-mile pipeline to a marineterminal off the coast of Cameroon, where it isshipped to world markets.

In addition to contributing to the worldpetroleum supply, the project is a uniqueexample of how ExxonMobil is increasingstakeholder engagement and addressing issuesof revenue management.

The World Bank, recognizing that developmentof its oil resource could provide a brighter futurefor Chad, agreed to participate in the project.This connection made it possible for the Bank towork with Chad to create a unique revenuemanagement programme. The most recentversion of this agreement calls for 70 per cent ofall country revenues to be devoted toprogrammes aimed at poverty relief.

The project publishes a transparency reporttwice a year, and makes it available on theproject’s website: www.essochad.com. TheWorld Bank also established two externalmonitoring groups that regularly evaluate theproject, consult with NGOs and citizens, andpublish their findings on the Bank’s website.

To date, the project has conducted more than21,000 public consultations and meetingsinvolving 300,000 attendees from the 375

ExxonMobil: providing opportunity through theChad-Cameroon Development Project

This team of socioeconomic experts consults withmembers of a nomadic group of cattle herders insouthern Chad. The Chad-Cameroon Project hasinvolved a very extensive outreach effort, includingtens of thousands of public consultation sessions.

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Within Nexen’s Yemen operations they haveinstituted two programmes that have a positiveimpact on human rights and which buildsustainability for the nation.

Nexen’s training and ‘Yemenization’ programmeis designed to increase the percentage ofYemenis in the company’s workforce byrecruiting and engaging them in formal trainingand development.

With high unemployment and a minimum oftechnical opportunities in the area, recruitmentis managed through an operating committeeensuring the fair and equitable allocation ofpositions to qualified individuals. Nexen’shuman resources and social responsibility teamswork closely with the Governorate and the OilMinistry’s Yemenization manager to advertise,test candidates and fill positions as they becomeavailable. The Yemenization programme is apartnership with which the government,community, stakeholders and the companyachieve mutual goals.

Central to the programme is an intensive, three-year English language programme and atechnical skills programme that qualify workersfor full-time employment in a chosen field. Since

the start of the Nexen Masila project in the early1990s, the number of Yemeni nationalsemployed at Nexen has increased significantly.These employees are also more skilled and,increasingly, hold more responsible positionswithin the company. Nexen Masila is striving toreach 90 per cent Yemenization by the end of2008.

To ensure the continued success of theprogramme, Nexen and its partners conductregular stewardship meetings and work from abusiness plan that is updated and approvedannually. As long as Nexen is a partner in theMasila project, they are dedicated toincreasingly employing local workers.

Taking this further, Nexen developed ascholarship programme in Yemen in 1998. Thisprogramme enhances Yemen’s national capacityby providing scholarships to Yemeni students,giving them the ability to pursue post-secondarystudies in disciplines that will positively impacteconomic development in Yemen. Eachscholarship underwrites a four-year post-secondary degree programme at the Universityof Calgary or SAIT Polytechnic. The scholarshipselection process is based on academic meritand objective criteria, which ensures thatintegrity is maintained and only the mostdeserving students receive scholarships. As of2008, 100 students have been awardedscholarships to pursue four-year bachelordegrees. To date, the programme has a 97 percent success rate and around 30 per cent of thescholarship recipients are women.

The Yemenization and scholarship programmesexemplify the strong partnership between theGovernment of Yemen, its people and Nexen.

Case studies …


The programme provides extensive hands-onpractice, both in the workshops and the field.

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Nexen: community partnership in Yemen


After the three-month pilot a full risk assessmentwas conducted, providing valuable analysisand recommendations to address the social,security and economic impacts of the project.FIP and Alert provided guidance in conductingthe field analyses, as well as training for the LaCira project teams.

Use of the CSBP and coaching from NGOsprovided clear guidance for current and futurestakeholder consultation on issues including:identifying specific actions for furtherimplementation of the Voluntary Principles in theregion; providing valuable feedback on keyaspects of the La Cira project, includingmanaging land issues with neighbours; andpromoting safe utility use among the localpopulation who had installed unsafeconnections to the oil field pipes.

The most important long-term effect of the NGOcollaboration has been the introduction of riskanalysis and stakeholder engagement as acontinuous practice.

Occidental (Oxy) in Colombia recently agreedwith ECOPETROL (Colombia’s national oilcompany) to jointly operate an enhanced oilrecovery project at the La Cira oil field in theMiddle Magdalena Valley—a region that hasbeen impacted by violence and diminishingeconomic opportunities for the local population.

Key aspects of the La Cira projects includesharing and exchanging information withneighbours. Much of the project’s future successdepends on proactively addressing security,human rights and social issues.

In 2006, Oxy and ECOPETROL partnered withtwo NGOs—International Alert and FundacíonIdeas para la Paz (FIP)—to conduct aninnovative Social Risk Assessment of the projectand the region, to identify issues that neededremediation, and to find opportunities that couldbe developed.

International Alert, a conflict resolution andpeace-building NGO, worked with OXY toapply their proprietary tool, Conflict SensitiveBusiness Practices (CSPB), to the La Cira Project.The CSPB allows companies to apply two-wayrisk and impact analysis with a specific, but notexclusive, focus on issues of security and humanrights. Alert worked with its local Colombianpartner, FIP, on the pilot application of a humanrights and social risk programme in La Cira totest the CSBP approach.

Oxy and ECOPETROL’s staff, from managers tofield workers, participated in this collaborativeeffort through workshops, training, interviewsand extensive review of project documents andsocioeconomic information on the region.

Occidental Petroleum Corporation: collaboration withInternational Alert and Fundación Para La Paz

With regard to community investment, OMV ismaking a sincere effort to involve local people indevelopment projects, focusing on capacitybuilding rather than traditional donor-beneficiaryrelationships. OMV’s community developmentapproach, whereby local people are alwaysinvolved in planning, implementing and managingprojects, ensures that OMV humanitarian aidtruly meets their needs by following a communitybased bottom-up approach. The focus of thecompany’s Community Development Programme(CDP) in Pakistan is on income generation,health care, water supply and education.

OMV Pakistan presently has 360 employees inPakistan, of whom more then 90 per cent arePakistani nationals. During the construction of agas treatment plant at the Sawan field, OMVrequired the lead contractors to recruit most of theskilled labour from the host country, resulting inthe employment of approximately 3,000 localworkers. To complement local hiring policies,large-scale on-the-job training programmes weremounted to ensure that the workers had thenecessary skills to do their jobs safely and complywith official regulations.

OMV takes a highly responsible approach, notjust to employees but also to the environment andlocal people. Over a period of ten years, OMVhas carried out 14 environmental impactassessments (EIAs). Social impact assessments(SIAs) are an integral part of all EIAs; andtherefore, OMV Pakistan looks closely at localsocio-economic conditions. Baseline surveys wereconducted to obtain an objective picture of theneeds of local people in two areas identified forfuture operations—Miano and Sawan. Thisenabled OMV to establish well-designed andsustainable CDPs for the communities in the areasaffected by their operations.

Through needs assessment and baseline surveys,OMV has been able to tap into local resourcesand enhance their capacity. By improving thecommunity’s quality of life through this directinterface, OMV aims to leave a lasting footprintin a sustainable manner. OMV’s implementationobjectives focus on:● local social sector development based on

community priorities, needs and requirements;● community motivation, mobilization,

organization and training for maximum andeffective participation in developmentprojects;

● local human and material resourcedevelopment;

● transferring project responsibility to localcommunity organizations for security,sustainability and empowerment; and

● creation of sustainable projects by thecommunities through income generation.

Key lessons learned from the Pakistan projectare that communities have to be involved inevery stage of the project and that each step hasto be done at their own pace. Communitiesdecide about their own priorities.

Case studies …


OMV Aktiengesellschaft: on-the-job trainingprogrammes in Pakistan

Pakistani woman weaving a ralli quilt as part of theincome generation project.

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larger-scale training programmes to front-line staff,including security staff and community liaisonworkers. In 2006 and 2007, the programme’schampions and external experts trained more than1,100 staff on human rights and conflict resolutionusing the Voluntary Principles.

In 2007, SPDC introduced a human rights andconflict resolution training programme for securityofficials, including district, project and rig securitysupervisors and senior Supernumerary Policepersonnel seconded by the Nigeria Police Force.To ensure quality content and delivery, the CleenFoundation, a leading Nigerian NGO, wasengaged as the training consultant. Theobjectives of this training programme included:enhancing the participants’ knowledge ofnational and international human rights laws;creating awareness of Shell’s commitment to theVoluntary Principles; improving participants’ability to handle conflict; and promotingpractical application of security and humanrights in their daily work. A total of 115 securityofficials completed the programme over threerounds of training.

In 2007, Shell began working more closely withInternational Alert, an NGO specializing inpeace building and conflict resolution. The aim isto reduce the chance that Shell’s businesspolicies and practices inadvertently createconflict or make it worse. International Alert’sexperts are now working with Shell staff on theground in some sensitive locations, anddeveloping conflict avoidance training for wideruse in Shell.

Support for fundamental human rights is part ofRoyal Dutch Shell’s General Business Principlesand an integral part of how the group operates.Shell believes that while the primary responsibilityfor respecting human rights lies with governments,business also has a role to play.

Security is an issue for a number of Shelloperations in politically sensitive regions. Assuch, Shell has been a leading supporter of theVoluntary Principles on security and humanrights. Shell’s security standards require all Shellcontrolled operations to manage security inaccordance with the Voluntary Principles. Toensure they are compliant, all operations arerequired to complete risk assessments that coveritems in the Voluntary Principles, includingbackground checks on security staff to make surethey have no past record of human rights abuse,and checks that they have been trained in usingthe Principles.

Shell now requires all of its approximately 300security staff worldwide to follow a standardtraining programme, which checks that theyhave the necessary skills. Shell has alsostrengthened the requirements that must beincluded in its contracts with private securitycompanies, referencing the Voluntary Principlesand being clearer about the need for contractorsto investigate accusations of human rightsviolations promptly and take disciplinary action.

In Nigeria, the Shell Petroleum DevelopmentCompany (SPDC) trains staff in the VoluntaryPrinciples using training programmes developedin conjunction with international and local humanrights organizations. In 2005, SPDC providedtraining in human rights law for its 100 mostsenior managers. It also trained 25 human rights‘champions’ in the company for them to deliver

Royal Dutch Shell: security, human rights andimplementing the Voluntary Principles

StatoilHydro (then Statoil) has been active in oilexploration in Nigeria since 1992 and hassupported corporate social responsibility (CSR)projects in the county since 1996 including theaward-winning Akassa community developmentprogramme. StatoilHydro’s CSR projects entailpartnerships with NGO’s or UN organizations asthe company values the experience of localgroups.

After years of political turmoil and a legacy ofhuman rights violations, Nigeria had turned itsattention to addressing these issues. In 2001,StatoilHydro decided to support organizationsworking on human rights issues in the country.

The company spent significant time and effortscreening potential partners whose projectproposals had to be implementable within oneyear. The company stated its intention to establisha long-term partnership after the first year if bothparties saw value in the results. From theproposals submitted, StatoilHydro selected threeorganizations, one of which was Legal Defenceand Assistance Project (LEDAP), whose project isexplained below.

LEDAP is a Nigerian NGO with headquarters inLagos and branch offices in five states. LEDAP’smembers are lawyers or others with professionallegal training. The organization disseminateslegal knowledge and insight about human rightsand good governance within Nigeria.

The proposal was to teach and train Sharia courtjudges from several northern states thatimplement Sharia, or Islamic law, on integratinghuman rights principles in the administration ofSharia law in northern Nigeria. Sharia judges atlocal levels often have limited formal legaltraining.

LEDAP developed and delivered trainingseminars for the Sharia judges on the following:● human rights principles and implementation

of Sharia in Nigeria: issues and challenges;● the Qur’an shari and the rights of women;● religion, laws, culture and gender: an

Islamic perspective;● access to justice in the administration of

Sharia law in Nigeria;● human rights and constitutional implications

in the application of a Sharia penal system;● protecting human rights and respect for

justice;● examination of practice and procedure of

Sharia courts in Zamfara State; and● Islam, human rights and child rights.

During the training workshops both English andthe native language, Hausa, were used.

The first year of the project was very successful,and so StatoilHydro and LEDAP decided tocontinue the project. In 2006, a further 122judges were trained, bringing the number ofSharia court judges trained to 692. The projecthas now provided training for almost half of allSharia court judges in Nigeria.

After five years, both StatoilHydro and LEDAPreported that their experiences have beenpositive. Moreover, administrators in somestates have established links to LEDAP thatwould help advance advocacy for positivereforms and attitude changes in the laws andpractice of Sharia and, from time to time, use itsstaff as legal consultants and advisers.

Case studies …


StatoilHydro: human rights training ofSharia judges in Nigeria


Today, more than ten years after commencement,50,000 people benefit from the programme thatencompasses medical and health care,educational initiatives, support for businessinitiatives, and the construction of infrastructure.Mortality, especially infant, from malaria,respiratory and digestive illnesses has declined.Attendance at schools has doubled since 1995.Technical support, training initiatives andinvestment aid allowed the wide-scale develop-ment of both pastoral and arable farming.

From late 2002 to early 2008, five independentaudits of the socio-economic programme,conducted by an independent economic and socialconsulting agency, Collaborative for DevelopmentAction (CDA), concluded that the main benefit ofTotal’s initiative is its very presence, which hasguaranteed peace in the area for all ethnic groupsand has also eradicated forced labour. The firstreport quotes villagers as saying, ‘Total hasallowed us to sleep without fear’.

Total’s project has brought peace and a degree ofprosperity to 50,000 Myanmar nationals. Thecompany also conducts several humanitarianprogrammes (orphanages, AIDS clinics, operationson blind people, etc.) in other parts of the countrywith the same objective. Total feels that one causeof the country’s problems is its isolation and thatanything that contributes to Myanmar’s outwardopening and to maintaining critical dialoguesbetween the regime and the internationalcommunity benefits the people of Myanmar.

In the early 1990s Total signed contracts tooperate a major project in Myanmar. Humanrights abuses are a serious issue in the region,and from the beginning Total has beencommitted to finding the best way to encourageadvances in human rights in Myanmar.

Total operates under a strict Code of Conductthat explicitly refers to the Universal Declarationof Human Rights (1948), the principles of theInternational Labour Organization, and theOECD Guidelines for Multinationals. Total E&PMyanmar drafted a specific addendum for itsoperations in Myanmar, stating its commitment toprotecting the environment, supporting the socio-economic development of local communities andensuring that human rights are respected, inparticular by forbidding forced labour.

Managing security is a key issue in a countrywith active guerrilla movements. Security is theresponsibility of the host government in allcountries where Total operates. Nevertheless thecompany was especially vigilant and refused toturn a blind eye to abuses; unacceptablepractices were reported and corrective actionswere implemented.

In doing so, as early as 1994, Total asked localsto appoint Village Communication Committeesto encourage real-time dialogue about what washappening on the ground. This enabled Total toensure human rights were respected throughoutthe area and respond immediately in the eventof incidents.

Total and its partners also looked at how theproject would be—and was—perceived by thelocal people. Due to the longevity of the projectit was vital that the local residents benefitgenuinely from it.

Total: abiding with ethical codes and encouragingconstructive engagement in Myanmar

Company information

Each individual company publishes its CSRand human rights activities on its website,often in sustainability reports. Visit eachcompany website for an update on projects,past experiences and future plans.

Further resources

Global Compact: www.unglobalcompact.org

Voluntary Principles on Security & HumanRights: www.voluntaryprinciples.org

UN Special Representative for Business &Human Rights: www.business-humanrights.org(information under ‘Getting Started—UNSpecial Representative’)

EITI: www.eitransparency.org

IPIECA publications:

Creating Successful, Sustainable SocialInvestment: guidance document for the oil andgas industry (2008)

Operating in Areas of Conflict: an IPIECAguide for the oil and gas industry (2008)

Human Rights Training Toolkit for the Oil andGas Industry (2006)

Partnerships in the Oil and Gas Industry(2006)

Oil and Gas Industry Guidance on VoluntarySustainability Reporting (2005)

A Guide to Social Impact Assessment for theOil and Gas Industry (2004)

Key Questions in Managing Social Issues inOil and Gas Projects (2002)

All available online at:www.ipieca.org/activities/social/social_publications.php

References and further resources



AcknowledgementsThank you to the members of the Human Rights Task Force, who have undertaken the workon this mini-report on behalf of the IPIECA Social Responsibility Working Group. This listreflects past and current task force members during the development of the publication.

Human Rights Task Force Members

Margaret Mogford (BG Group) Jeff Flood (Nexen) ChairElizabeth Wild (BP) Jim Shaw (Nexen)Nigel Carpenter (BP) Iqbal Abdullah (Petronas)Maria Pica (Chevron) Marisol Garcia-Bango (Repsol)Tam Nguyen (Chevron) Victoria Walsh (Shell)Lee Zarnikau (ConocoPhillips) Albert Wong (Shell)Francesca Ciardiello (Eni) Willy Egset (StatoilHydro)Marco Stampa (Eni) Marie Capitaine (Total)Kevin Murphy (ExxonMobil) Dominique Chauvin (Total)Jenny Owens (IPIECA) Laure Armandon (Total)Adel Chaouch (Marathon)

Special thanks also to other SRWG and Reporting Task Force members who contributed:Walt Retzsch (API), John Kelly (ExxonMobil), Charlie Curlee (Marathon), Luis Fernando deAngulo (Occidental), Luis Cesar Stano (Petrobras) and Simone Alaya (OMV).

For more information see www.ipieca.org/activities/social/social_about.php

5th Floor, 209–215 Blackfriars Road, London SE1 8NLTel: +44 (0)20 7633 2388 Fax: +44 (0)20 7633 2389E-mail: [email protected] Internet: www.ipieca.org

IPIECAIPIECA is the single global association representing both the upstream and downstream oil and gas industryon key environmental and social issues, including: oil spill response; global climate change; fuels andproducts; health; biodiversity; social responsibility; and sustainability reporting.

Founded in 1974 following the establishment of the United Nations Environment Programme (UNEP), IPIECAprovides a principal channel of communication with the United Nations. IPIECA Members are drawn fromprivate and state-owned companies as well as national, regional and international associations. Membershipcovers Africa, Latin America, Asia, Europe, the Middle East and North America.

Through a Strategic Issues Assessment Forum, IPIECA also helps its members identify emerging global issuesand evaluates their potential impact on the oil industry. IPIECA’s programme takes full account of internationaldevelopments in these issues, serving as a forum for discussion and cooperation, involving industry andinternational organizations.

American Petroleum Institute (API)

Australian Institute of Petroleum (AIP)

Canadian Association of Petroleum Producers(CAPP)

Canadian Petroleum Products Institute (CPPI)

The Oil Companies’ European Association forEnvironment, Health and Safety in Refining andDistribution (CONCAWE)

European Petroleum Industry Association(EUROPIA)

International Association of Oil & Gas Producers(OGP)

Petroleum Association of Japan (PAJ)

Regional Association of Oil and Natural GasCompanies in Latin America and the Caribbean(ARPEL)

South African Petroleum Industry Association(SAPIA)

World Petroleum Council (WPC)

Association membersCompany members

BG Group

BP

Chevron

CNOOC

ConocoPhillips

Eni

ExxonMobil

Hess

Hunt Oil

KPC

Mærsk

Marathon

Nexen

NOC Libya

Occidental

OMV

Petrobras

Petronas

Petrotrin

PTT EP

Qatargas

Repsol YPF

Saudi Aramco

Shell

SNH

StatoilHydro

TNK-BP

Total

Woodside Energy

Documents

Human Rights and Ethics - CommDev · 2019-05-28 · Human Rights and Ethics in the Oil and Gas Industry 7 and a guide to Operating in Areas of Conflictin 2008. These publications