Oil Company CSR Collaboration in ‘New ’ Petro-States

This paper explores oil company collaboration in handling corporate social responsi-bility (CSR) in Azerbaijan and Kazakhstan. Both states display some features of the ‘paradox of plenty ’ thesis: that is, large mineral resources, overspending due to exag-gerated expectations of petro-riches, a weak system of tax collection, accumulation of loans, lack of development of other sectors of the economy and increasing social inequality. We ask whether oil companies assume any responsibility for improving this situation and propose that oil companies are likely to co-operate to promote economic, social and political development in new petroleum provinces. Such collaboration could reduce the individual company’s economic costs and risk of exposure in sensitive issues. It is found that although oil companies have established co-operative forums in both states to address CSR, government policy or adjacent issues, little has been achieved. While the co-operative CSR forums in Azerbaijan have ceased to exist, those identified in Kazakhstan have dealt with oil companies ’ core business interests rather than wider CSR issues. Various explanations for the lack of co-operative success in handling CSR are discussed. l Azerbaijan l Collaboratio