INTRODUCTION
Until
the middle of the 1990s, human rights was a marginal issue for the oil
industry. Like most business, oil companies were concerned with making profits
within the constraints set by national governments. Most of them had taken on
board a commitment to protecting the environment against accidents and illegal
discharges of pollutants and were preoccupied with implementing this
”green” agenda into their operations. Then, in the last half of the
1990s they were overtaken by a new wave of public concern with yet another
political agenda: the protection of human rights. Within a few years, civil
liberties, political freedom, economic and social rights and democratic
governance became matters of high priority in the public relations and
strategic planning of major oil companies.
This
book is about (i) how this change took place, (ii) how the oil industry has
responded to the new challenge and (iii) which problems arise from the human
rights agenda in its relations with specific countries.
A
number of diverse factors contributed to the turnabout in the late 1990s: The
human rights agenda, as witnessed in numerous UN for a, kept expanding, as
shown by Eide and van Genugten in their contributions to this volume. The trust
in big business, as in other dominating institutions in society, was crumbling
while their importance as economic agents were rising in the wake of the
globalisation process. International law was slowly developing from a purely
state-centric position towards encompassing in one form or another non-state
actors like transnational companies (Eide, van Genugten and Schierbeck). Time
was ripe for change, when unexpected events in Nigeria suddenly unleashed the
uproar against Shell in 1995. The intensity and scope of the protest took both
the company itself and the rest of the industry by surprise (Chandler). Not
having recovered from the Brent Spar shock earlier the same year, Shell was
badly prepared for another wave of large-scale public criticism. The other
companies watched in silence, and anxiety, as the trendsetter in the industry
began its deep soul-searching.
Shell’s
subsequent conversion to the cause of human rights is the major event in the
story of the relationship between the oil industry and international society in
the 1990s. It is therefore analysed from different angles by several of our
contributors (Chandler, van Genugten and Tangen, Rudsar and Bergesen). They all
point out the profound nature of the change of heart, and policy, that took
place after 1995, but also the open-ended character of the outcome; how Shell
will manage to live up to the expectations created by its high-ringing rhetoric
remains to be seen.
But
Shell is not the only company that has felt the heat of public concern over
human rights. A large part of the industry has been exposed to criticism from
nongovernmental organisations (NGOs) and the press for conniving at abuses and
violations in oil producing countries. In response, many of them have developed
either human rights policies or at least put up a minimum of rhetorical defence
against the critics. Few, if any, would now dare to say openly that human
rights is none of our business (even if that may still be a prevalent view in
some of the board rooms), but many have preferred to remain silent. As pointed
out by Nordskag and Ruud, the majority of transnational oil companies with
international exploration and production activities have so far
not
formulated or published guidelines for dealing with other social responsibility
in general or human rights in particular. However, the companies that have
taken the lead in this field are the largest and by far the most important
actors and trendsetters in the industry, including all the traditional majors.
Among
companies claiming that human rights are taken into account in their policies,
considerable differences can be detected measured by the vagueness or precision
of the reference to human rights and by the transparency with which monitoring
takes place. The establishment and publication by a company of a code of
conduct is an indication that monitoring can - but not necessarily does - take
place. The next question is whether human rights are explicitly included in the
code of conduct, and with what content. The concept of human rights is often
used in vague and non-committal ways. Only when there is an explicit
endorsement of the Universal Declaration of Human Rights and/ or the main
international human rights conventions is it possible to determine whether the
company takes into account the internationally recognised human rights. At
present, only two major companies fulfil the criteria of having an explicit
international code of conduct referring to the Universal Declaration, namely BP
Amoco and Shell (Chandler, Table 4) A third company, the Norwegian Statoil,
also explicitly refers to the Universal Declaration in its operative policies
(Nordskag and Ruud). When explicit references to internationally recognised
human rights are incorporated in the policies or codes of conduct of the
company, compliance can become a legal necessity (van Genugten).
Accepting
responsibility for human rights is one thing, doing something about it is
another. Implementing corporate commitments turns out to be complicated and
cumbersome. Several of our contributors underline the need to a systematic
approach that includes entire companies (Chandler, Schierbeck). Others point to
the responsibilities that will follow as international law develops and
intergovernmental organisations (IGOs) become more actively involved. (Eide and
van Genugten).
As
for the impact in specific countries, we have no intention of covering the
universe of oil producing countries, but three of our contributors focus on the
experience of the energy and oil industries in selected areas. Ganesan covers
several cases,
inter
alia
from Nigeria and Turkmenistan, pointing out the tendency for large energy
companies to end up supporting corrupt government practices and thereby
implicitly condoning human rights abuses. With reference to the experience from
South Africa, he underlines the difficulties inherent in the concept of
’constructive engagement’, which can easily be used as an excuse
for maintaining a profitable operation in a country marked by violations of
human rights.
Kaldor
and Said reach similar conclusions in their study of Azerbaijan and Le Billon
in his paper on Angola. In both cases, the international oil industry is
heavily involved in countries where the government is authoritarian and beset
by corruption. The companies involved supply most of the revenue the government
needs to stay in power (or the prospect of future income in the case of
Azerbaijan). Hence, they can be held responsible for the general political and
economic development in the countries, even if their direct influence is
limited. Our general conclusion is that the companies have no choice but
accepting a responsibility that goes beyond running a proper business and
making donations to charity. The companies that have made a public commitment
to human rights have reached a point of no return. There is no turning back to
the early 1990s.
Stavanger/Oslo,
May 2000
Helge
Ole Bergesen
Asbjørn
Eide
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