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Water in the Desert?: Oil India's CSR Im...

Chaudhri, Vidhi, K...

Case

Water in the Desert?: Oil India's CSR Impact in Assam

Chaudhri, Vidhi; Kaul, Asha

IIMA-COMM0027 | Published January 12, 2021 | 14 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Incorporated on February 18, 1959, Oil India Ltd. (OIL) was a leading public sector oil and gas company involved in the exploration, development, production and transportation of crude oil and natural gas in India. Since its inception, OIL had committed itself to being a socially responsible organisation in and around operational areas, particularly the north-eastern state of Assam where 90% of company operations were concentrated. Despite many successes, the “People’s Company” continued to be a target for disgruntled local and student communities who frequently created operational hazards for the firm—from sit-ins and blockades to pilfering and disrupting production facilities. No less than 400 organisations, of which 50-60 had been consistently active, were currently in the forefront of demanding something from OIL. Many of these demands were beyond the purview of OIL’s CSR policy and focus areas. Additionally, being a Public Sector Undertaking (PSU), OIL also faced multiple demands from the government. On February 16, 2019, news arrived that there was yet another blockade in Duliajan, Assam. What should OIL do to address and possibly mitigate operational interruptions?

After reading and discussing the case, students should be able to understand the value (and limits) of CSR as a development strategy, identify the unique challenges and opportunities of implementing CSR in a volatile region, analyse (institutional and organisational) considerations that can influence CSR outcomes, evaluate how organisations deal with unintended and conflicting expectations of stakeholders