The Transnational Corporate Social Responsibility in Oil and Gas Industry: From Soft Law to Mandatory Rule

Corporate Social Responsibility (CSR) means transnational corporations (TNCs) are responsible for not only the interests of their shareholders, but also the interests and welfare of the local community of the area in which they operate. Therefore, TNCs have to furnish the local community beneficial and social services voluntarily and free of charge to help the local community achieve sustainable development. A question may arise whether it is legally feasible to oblige these corporations to abide by social responsibility in oil and gas industry and its resources specially petroleum laws, regulations and contracts as well as international investment treaties. This article shows that basically CSR in oil and gas industry is voluntarily enforced by TNCs who perform it for non-binding and moral reasons. Nonetheless, in oil and gas industry and its sources especially petroleum laws and contracts, it is feasible to require TNCs to undertake CSR and various dimensions therewith.