Article

 

REPUTATION RISKS: WHAT ENHANCES THE EFFECTIVENESS OF REPUTATION RISK MANAGEMENT IN OIL & GAS COMPANIES? (p.33-55)

by

Evangelia Fragouli, University of Dundee

Ekruka Joseph, University of Dundee

Keywords : Reputation risk management (RRM), risks, corporate governance, oil & gas

JEL classification : M0

Abstract

The study will attempt to answer which factors enhance the effectiveness of reputation risk management (RRM) in the oil and gas industry, will define which risks are eminent from the oil and gas external environment based on PESTEL’s framework analysis, as well as, will describe the competitive forces in the oil industry that determine a company’s profitability. The methodology used is based on an empirical study through the development of a questionnaire distributed to employees who work in oil & gas companies. The conclusion is that stakeholder management, transparency and corporate social responsibility (CSR) initiatives are major factors enhancing the effectiveness of RRM. The survey also indicates that RRM is regarded as highly important while the main issues RRM has to deal with is unethical business practices and breach in regulations.