Factors that Enhance the Effectiveness of Reputation Risk Management
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The reputation of oil and gas companies is at stake as they are increasingly facing with a diverse range of social and environmental accountability issues that result in great risks to be addressed. Due to this, a negative perception of the oil sector's integrity especially in the global market. These risks stem from the external environment in which the industry operates in. 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...
The reputation of oil and gas companies is at stake as they are increasingly facing with a diverse range of social and environmental accountability issues that result in great risks to be addressed. Due to this, a negative perception of the oil sector's integrity especially in the global market. These risks stem from the external environment in which the industry operates in. 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.
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