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whistle-blowing. Although the Act does not provide protection to employees working
outside the territory of the United Kingdom, the Act applies regardless of the geographical
location of the relevant breaches.
6.7. The role of social dialogue in CSR
215. A prerequisite for the achievement of sustainable development in the oil industry is broad
public participation in decision-making. New forms of participation have emerged in
recent years, which recognize the need of individuals, groups and workers’ organizations
to participate in decisions, particularly those that potentially affect the communities in
which they live and work, and to have access to information relevant to the activities of oil
companies. By whatever name – public participation, citizen involvement, indigenous
peoples’ rights, local community consultation, or other variants – the concept that the
governed should engage in their own governance is gaining ground and, more importantly,
rapidly expanding in practice. Social dialogue can define and redefine major economic
development projects, particularly in the energy sector.
6.7.1. Protecting indigenous people
216. Oil companies have long worked to improve the living conditions of indigenous people in
areas where they operate. A project funded by the OPEC Fund for International
Development in rural Nicaragua targeted the indigenous people living in the resource-rich
Autonomous North Atlantic Region. The project, implemented between 2003 and 2007,
had two components, namely agricultural production and organizational development. The
project’s aim was to help the indigenous people become self-sufficient in basic foodstuff
production. A strong emphasis on getting all the local people involved in decision-making,
planning and problem-solving, especially women, who were formerly discouraged from
taking an active part in community affairs, contributed markedly to the project’s success. 28
217. The rights to exploit minerals frequently involve the rights of indigenous people and there
have been many conflicts between central governments and regional authorities over
exploration rights in the oil and gas producing countries. Global framework agreements
take into account the rights of the indigenous people. For example, an agreement between
LUKOIL and ICEM states that the company respects and supports the traditions of
national tolerance and appreciation, and respects the need to protect national and cultural
traditions, art and crafts in the regions of the LUKOIL Group’s business activity. It also
states that LUKOIL respects the religious beliefs and habits of the workers and the local
population. 29 Public participation is thus injecting the human dimension into resource
planning, financing, licensing and operating activities in the oil and gas industry. Until
recently, the development of major exploration projects was typically controlled by the
project developer, financier, landowner and the central government. But recent public
participation laws are introducing additional players, such as environmental and human
rights organizations, local communities, indigenous peoples and their advocates and
citizens’ advisory boards. An oil company that does not pay heed to them will encounter
difficulties. Public participation is moving from being merely a voluntary public relations
tool to becoming a growing body of legal requirements. The ILO’s Indigenous and Tribal
28 “Strengthening the Mayangnas: A sustainable future for an indigenous minority”, in OPEC
Bulletin (OPEC, Feb. 2008), Vol. 39, No. 2, pp. 34–37.
29 Text of the Global Framework Agreement between LUKOIL and ICEM, paras 2.2.1 and 2.2.2.
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