Exploring the Potential of Big Data Analytics in Enhancing CSR in the Oil and Gas Industry

Abstract

The oil and gas industry are increasingly under pressure to prioritize Corporate Social Responsibility (CSR) due to heightened environmental concerns, social scrutiny, and evolving regulatory demands. Big Data Analytics (BDA) presents a transformative opportunity to enhance CSR performance within this sector. This study investigates how BDA can improve CSR outcomes in the oil and gas industry, focusing on three key areas: environmental sustainability, social impact, and governance. By leveraging large datasets to uncover patterns, BDA can aid companies in refining their CSR strategies, forecasting and managing risks, and measuring impact more effectively. The study made use of a panel dataset containing total assets of ten years, as well as measurements based on accounting on investments, financial performance, and activity disclosures. The findings reveal that multinational corporations operating in developing countries pay considerable attention to various critical aspects of their CSR policies. Notably, there was a significant positive correlation between the sustainability of financial performance and investments in CSR practices. However, no significant correlation was found between CSR disclosure and financial performance (p = 0.792373 > 0.05). The report concludes by providing empirical evidence supporting the hypothesis that effective CSR practices lead to long-term financial benefits for multinational oil and gas companies. Such practices are beneficial for poverty reduction programs and are crucial for achieving sustainable development goals in emerging economies where these companies operate.