The World Bank's CSR Program: Public Sector Roles to Promote Corporate Social Responsibility in the Angolan Oil Sector.

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1 The World Bank's CSR Program: Public Sector Roles to Promote Corporate Social Responsibility in the Angolan Oil Sector October Washington DC Paul Kapelus African Institute of Corporate Citizenship Johannesburg, South Africa Corporate Social Responsibility Practice The World Bank, Washington DC, USA

2 OUTLINE OF PRESENTATION Angola development challenges Oil sector CSR opportunities Public sector roles in oil sector CSR opportunities Conclusion

3 The Oil Sector Social Footprint Predominantly off shore production, therefore no social footprint (other than employees); Low small geographical social footprint Luanda and Cabinda; Very large socio-economic footprint; Who is the community?

4 Angola s Key Challenges Post war reconstruction Resettling internally displaced people Reintegrating refugees Deactivating landmines

5 Poverty 58 % of the adult population is illiterate 65 % of the population is without access to clean water 75 % of the population is without basic sanitation facilities 65 % of the population is have no access to primary health service 70 % of the population living on < 1 US $ Creating an awareness on HIV/AIDS 5,7 % HIV/AIDS prevalence Preventing an increase due to increased cross border trade

6 Developmental targets: Education Water Sanitation Primary health Physical Infrastructure Employment Guarantee access to primary schooling to all children by 2015 Eradicate adult illiteracy by 2015 Increase access to portable water for 76 % of the urban population and 48 % for rural areas by 2006 Increase provision of sanitation for 79% in urban areas and 32% in rural areas by 2006 Reduce infant mortality rate from 75% by 2015 Disseminate and create awareness on HIV/AIDS in the whole country Reconstruct and rehabilitate basic infrastructure No targets published Rural economy Increase agricultural production to ensure food security

7 The Public Sector and CSR in the Oil Sector Angola content through staffing, sourcing and accountability. Social and Community Development

8 OPTIONS FOR GOVERNMENT CONTRIBUTION Mandating: At different levels government can make policy clear, embedded within a legal framework; Facilitating: Enable or create incentives for companies to engage with the CSR agenda; Partnering: Bringing together the complementary skills and inputs of the public sector, the private sector and civil society to tackle shared objectives; Endorsing: Inclusion of CSR topics in policy documents and direct recognition of of the efforts of individual enterprise.

9 Mandating Development of strong and predictable laws with clear lines of responsibility Ensure predictable and equal enforcement of policy and law pertaining to CSR Simplify administrative procedures and layers of government for CSR implementation

10 Facilitating Consider tax incentives to drive the CSR agenda Encourage a critical media sector to promote the CSR agenda Awareness of opportunities for CSR engagement and value creation Develop best practice guidelines for CSR implementation

11 Partnering Serve as a bridge to achieve collective action on CSR at local, provincial or national level Develop a coordinated approach to meeting national development challenges Build a local CSR focused partner base for MNE s to engage Developing an Angola tri-sector partnership model

12 Endorsing Demonstrating that CSR is a priority for the government Engage regional and international CSR networks and forums Government agencies and parastatals take a leadership role on CSR practices, accountability and transparency. Endorsing proactive measures on managing non financial risk

13 MULTI-STAKEHOLDER DEVELOPMENT OF THE CSR FRAMEWORK GOVERNMENT CIVIL SOCIETY OIL SECTOR COMPANIES DEVELOPMENT AGENCIES AND INSTITUTIONS

14 Policy makers briefing The World Bank Group Current Activities Government support and commitment has been obtained; Private sector, civil society and development agency support obtained; Assessment of oil companies and oil service companies hiring and sourcing needs Survey and analysis of current corporate social responsibility programmes Legal review of Angola statutes pertaining to aspects of CSR; Multi stakeholder workshop to be held in October 2003

15 THANK YOU! Contact Details PAUL KAPELUS AFRICAN INSTITUTE OF CORPORATE CITIZENSHIP