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The World Bank Group The World Bank's CSR Program: Public Sector Roles to Promote Corporate Social Responsibility in the Angolan Oil Sector October 8 – 9 2003 Washington DC Paul Kapelus African Institute of Corporate Citizenship Johannesburg, South Africa Corporate Social Responsibility Practice The World Bank, Washington DC, USA

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The World Bank Group

The World Bank's CSR Program: Public Sector Roles to Promote Corporate

Social Responsibility in the Angolan Oil Sector

October 8 – 9 2003 Washington DC

Paul KapelusAfrican Institute of Corporate Citizenship

Johannesburg, South Africa

Corporate Social Responsibility Practice The World Bank, Washington DC, USA

The World Bank Group

OUTLINE OF PRESENTATION

Angola development challenges

Oil sector CSR opportunities

Public sector roles in oil sector CSR opportunities

Conclusion

The World Bank Group

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?

Angola’s Key ChallengesThe World Bank Group

Post war reconstruction

Resettling internally displaced people

Reintegrating refugees

Deactivating landmines

The World Bank Group

Poverty

58 % of the adult population is illiterate65 % of the population is without access to clean water75 % of the population is without basic sanitation facilities65 % of the population is have no access to primary health service70 % of the population living on < 1 US $

Creating an awareness on HIV/AIDS

5,7 % HIV/AIDS prevalencePreventing an increase due to increased cross border trade

Developmental targets: 2006 - 2015

Increase agricultural production to ensure food security

Rural economy

No targets publishedEmployment

Reconstruct and rehabilitate basic infrastructurePhysical Infrastructure

Reduce infant mortality rate from 75% by 2015Disseminate and create awareness on HIV/AIDS in the whole country

Primary health

Increase provision of sanitation for 79% in urban areas and 32% in rural areas by 2006

Sanitation

Increase access to portable water for 76 % of the urban population and 48 % for rural areas by 2006

Water

Guarantee access to primary schooling to all children by 2015Eradicate adult illiteracy by 2015

Education

The World Bank Group

The Public Sector and CSR in the Oil Sector

Angola content through staffing, sourcing and accountability.

Social and Community Development

The World Bank Group

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.

The World Bank Group

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

The World Bank Group

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

The World Bank Group

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

EndorsingThe World Bank Group

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

The World Bank Group

MULTI-STAKEHOLDER DEVELOPMENT OF THE CSR

FRAMEWORK

DEVELOPMENT AGENCIES AND INSTITUTIONS

CIVIL SOCIETY

OIL SECTOR COMPANIES

GOVERNMENT

The World Bank Group

Current ActivitiesGovernment 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

Policy makers briefing

The World Bank Group

THANK YOU!THANK YOU!

Contact Details

PAUL KAPELUS

AFRICAN INSTITUTE OF CORPORATE CITIZENSHIP

+27 11 643 6604

[email protected]