ZEa Investigación 5 May, 2022
In the energy sector it is important to understand and study the political movements
It is common for companies in the energy sector to seek to separate themselves from local political events in the territories in which they operate.
The energy sector knows that politics can affect their interests significantly; pausing or suspending social outreach activities during electoral periods seems to be a general trend. Companies allow an important gap to open with the communities in order to avoid being linked to certain candidates or parties, which can be used to position political agendas. More than once, the same population-company relationship, or the shift of investment usually becomes a campaign proposition.
Preventing citizens and communities from associating them with a party or political platform is strategic and healthy. However, the importance of understanding and studying political movements from the immediate community’s surroundings is key to care for the business’s interests and, eventually, to positively influence the community’s development.
In the energy sector it is important to create an internal strategy
Investors must have a close and accurate lecture of the social needs that take a leading role in the different electoral alternatives. A small issue or a poorly managed dissatisfaction can escalate to a campaign speech. In other words, distance between population and industrial activity can make it easier for local leaders to benefit from electoral events in order to resize the population’s dissatisfaction or requests.
For internal strategy purposes, a deep political mapping of the local environment is fundamental as part of an early risk management. Social and economic development of the environment is clearly, the government’s responsibility. Nevertheless, ignoring the social problems in which they are immersed is to keep an open front.
Regardless of the social investment activities that the company decides to implement (accordingly to its possibilities, internal strategy and regulatory compliance), it is needed to have a social scenery of who they are, how are these communities impacted by the industry’s energy development activities.
Create alliances, as an effective way to avoid social conflicts
On the other hand, companies must be prepared to deal with all the parties and types of officials. Especially when the community relations teams work in cooperation with local authorities to lead investment and social responsibility efforts. These authorities have the potential to become the best allies or the biggest obstacles for the business linking strategy, to transform into a general benefit to the population.
When companies have an area in charge of Corporate Social Responsibility and specific actions, they frequently assume that their social activities are enough and correctly aimed, but they ignore to have the vision of a third party that validates if these are the right actions, depending on the company’s purpose. Perception that the society, or the receiving community, has of the industry’s activity and its impact on the environment, is often far from the developer’s own perception. This discrepancy can be a factor that silently unleashes social conflicts.
Companies in the energy sector as an essential factor in strengthening communities
We have seen that communities, neighbor associations and people affected by industrial activity, achieve a greater say and response day to day. This community organization usually bids for better environmental conditions, but ultimately, there is the request of being seen as a part of the development and not as a “burden” for the companies. In order to have healthy businesses and projects, it is necessary to pay adequate and prompt attention to disagreements or social problems faced by communities.
For more than one reason, it is no longer possible to continue with the paradigm that demarcates the investors’ economic benefits from the social welfare. Even if businesses want to keep their distance from the local political environment, they should not ignore what is happening, because it could most likely turn into an opportunity of adding into the strengthening of communities or becoming a dissatisfaction seed in the industry’s activities in general, or energetic activities in particular.
By Ana E. Suárez Zamudio | I also write for: Oil & Gas Magazine
