Change Management and Problems for Corporate Social Responsibility (CSR) Continuation Programs in an Oil and Gas Company

Authors

  • Holly Deviarti Accounting Department, School of Accounting, Bina Nusantara University, Malaysia
  • Ahmed Razman Abdul Latiff Putra Business School, Malaysia
  • Ong Tze San Accounting & Finance Department, University Putra Malaysia, Malaysia
  • Ruhanita Maelah Faculty of Economics & Management, University Kebangsaan, Malaysia

DOI:

https://doi.org/10.24203/ajbm.v10i5.7056

Keywords:

Oil Crisis, Change Management, Oil and Gas Company, CSR, Case Study

Abstract

This case study examines the business of an oil and gas company, EMP, in a time of crisis: the management had to downsize operations to survive in an unpredictable situation. The management was implementing new internal policies that would have an impact on its corporate social responsibility (CSR) programs. However, the rules and beliefs of the institutional environment have the potential to influence the management change process at EMP. Aside from external rules and beliefs, the persistence of the social service ethos within the company, inherited from the past, explains the lack of management changes. An explanatory case study approach was adopted, mostly consisting of semi-structured interviews and document analysis. The research strategy borrows the institutional logic approach based on situational reasons for variation in organizational practices, which determine how multiple logics are addressed. In essence, EMP must resolve the tension between production demands and CSR efforts. As a result, management reform occurs in a research setting where social programs and production goals coexist.

Keywords:     Oil crisis, Oil and Gas Company, CSR, Case Study, Change Management.

JEL Classification: L2, M41, R11 

References

Alsharari, N. M. (2019). Management accounting and organizational change: alternative perspectives. International Journal of Organizational Analysis, 27(4), 1124–1147. https://doi.org/10.1108/IJOA-03-2018-1394.

Aradea Yuliana, A., & Himawan, H. (2010). The Implementation Of Change Management To Improve Business Process in Achieving The Competitive Advantage Of Organization. National Informatics Workshop, 2010 (Seminar Nasional Informatika 2010 (semnasIF 2010)), 27–36.

Blackstone, A. (2012). Principles of Sociological Inquiry: Qualitative and Quantitative Methods. International Kindle Paperwhite. ISBN 978-1453328897

Carruthers, B. G. (1995). Accounting, Ambiguity and the New Institutionalism. Accounting, Organizations and Society, 20(4), 313–328.

Cheney G, & McMillan J. J. (1990). Organizational rhetoric and the practice of criticism, Journal of Applied Communication Research, 18(2), 93–114.

Coombs, W. T. (2015). Ongoing Crisis Communication: Planning, Managing, and Responding, 4th ed. Thousand Oaks, CA: Sage Publications.

Covaleski, M. A., Dirsmith, M. W., & Samuel, S. (1996). Managerial Accounting Research: The Contributions of Organizational and Sociological Theories. Journal of Management Accounting Research, 8, 1–35.

Cunningham, N. (2020, May 12). Has Demand for Oil Already Peaked? https://oilprice.com/

Deles, P., Mendoza, R. U., & Vergara, G. (2010). Social Budgeting Initiatives and Innovations: Insights using a Public Finance Lens. Economic Analysis (May).

DiMaggio, P. J., & Powell, W. (1991). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organisational Fields. American Sociological Review, 48(2), 147–160.

Emmanuel, C., Merchant, K. A., & Otley, D. T. (1990). Accounting for management control, 2nd ed.. London: Chapman & Hall.

GE. 2015, December 23. GE Oil & Gas Signs Groundbreaking Contractual Service Agreement With PT Donggi-Senoro LNG. https://www.ge.com/news/press-releases/ge-oil-gas-signs-groundbreaking-contractual-service-agreement-pt-donggi-senoro-lng

Giannarakis, G., & Theotokas, I. (2011). The Effect of Financial Crisis in Corporate Social Responsibility Performance. International Journal of Marketing Studies, 3, 2-10. 10.5539/ijms. v3n1p2.

Hasan, U. (2014). Obligations of Corporate Social Responsibility (CSR) From a Legal Perspective. Majalah Hukum Forum AKademika, 25(1), Maret 2014. ISSN: 0854 – 789 X

Islamiyah, Y., & Sukoharsono, E. G. (2017). Public Sector’s managerial and financial accountability (A study of new institutional theory perspective). The International Journal of Accounting and Business Society, 25(1), 1–18.a

Jacob, C. K. (2012). The Impact of Financial Crisis on Corporate Social Responsibility and Its Implications for Reputation Risk Management. Journal of Management and Sustainability, 2(2). https://doi.org/10.5539/jms.v2n2p259.

Jalagat, R. (2016). The Impact of Change and Change Management in Achieving Corporate Goals and Objectives: Organizational Perspective. International Journal of Science and Research (IJSR), 5(November), 1233–1239. https://doi.org/10.21275/ART20163105.

Jones, V. (2017, February 17). More Than 440,000 Global Oil, Gas Jobs Lost During Downturn.https://www.rigzone.com/news/oil_gas/a/148548/more_than_440000_global_oil_gas_jobs_lost_during_downturn/

Karaibrahimoglu, Y. Z. (2010). Corporate social responsibility in times of financial crisis. African Journal of Business Management, 4(4), 382–389. http://www.academicjournals.org/AJBM ISSN 1993-8233.

Kasim, N. A. A. (2004). Corporatisation, Loose Coupling and Stability - Accounting Change in a Malaysian Public Utility. Manchester, UK: Manchester School of Accounting and Finance.

Klára, P. (2011). The Impact of Recession on the Implementation of Corporate Social Responsibility in Companies. Journal of Competitiveness, 2, 83–98.

Meyer, J. W., & Rowan, B. (1977). Institutionalized Organizations: Formal Structures as Myth and Ceremony. American Journal of Sociology, 83, 340–363.

Oliver, C. (1991), Strategic Responses to Institutional Processes. Academy of Management Review, 16(1), 145–179.

Patz, R., & Goetz, K. (2015). Managing Budget Conflicts in International Organisations: A Comparison of EU, ILO and WHO. ECPR General Conference, Montreal.

Pfeffer, J. (1982). Managing with Power: Politics and Influences in Organizations. Boston, MA: Harvard Business School Press.

Rahayu, S. (2015). Budgeting of School Operational Assistance Fund (BOS) in New Institutionalization Sociology Perspectives. Doctoral Program in Accounting. Brawijaya University Malang, Indonesia.

Rahmiyanti, F., Pratiwi, R. A., Yuningrum H., & Muyassarah (2020). The effects of accounting knowledge, entrepreneurial traits, and subjective norms on the use of accounting information in investment decision-making (case study on MSME actors in Gunungkidul Regency). Journal of Islamic Accounting and Finance Research, 2(2), 295–310. ISSN 2715-0429 (print); 2714-8122 (online); DOI: https://dx.doi.org/10.21580/jiafr.2020.2.2.6020

Rudito, B., & Budimanta, A. (2003). Community Development Management Methods and Techniques. Jakarta, ICSD (Indonesian Center for Sustainable Development)

Scott, W. R. (1992). Introduction. In J. W. Meyer & W. R. Scott (Eds.), Organizational Environments: Ritual and Rationality (pp. 13–17). Newbury Park, CA: Sage.

Scott, W. R. (2001). Institutions and Organizations (2nd Ed.). Thousand Oaks, California: Sage.

Simoes, A., M., D., & Rodrigues, J. A. (2011). The Case Study in Management Accounting and Control Research. ISCTE – Instituto Universitário de Lisboa.

Škare, M., & Golja, T. (2013). How important are CSR companies for nations’ growth? Journal of Business Economics and Management, 14(4), 776–790. https://doi.org/10.3846/16111699.2013.820664

Sofyani, H., & Akbar, R. (2013). Relationship between Institutional Internal Factors and Implementation of the Performance Accountability System for Government Agencies (Sakip) in Regional Governments. Jurnal Akuntansi dan Keuangan Indonesia. 10.21002/jaki.2013.10. ISSN 18298494

Subrata, G., & Thamrin, M. (2015). The Effect of Changes in Organizational Structure On The Increasing of Turn Over Intention. AKADEMIKA, 16(1).

Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610.

Thomé, F. (2009) Corporate Responsibility in the Age of Irresponsibility: A symbiotic relationship between CSR and the financial crisis? International Institute for Sustainable Development. Online available: http://www.iisd.org/pdf/2009/csr_financial_crisis.pdf (October 3, 2010), accessed August 28th 2012.

Downloads

Published

2022-11-12

How to Cite

Deviarti, H., Latiff, A. R. A. ., San, O. T. ., & Maelah, R. . (2022). Change Management and Problems for Corporate Social Responsibility (CSR) Continuation Programs in an Oil and Gas Company . Asian Journal of Business and Management, 10(5). https://doi.org/10.24203/ajbm.v10i5.7056