Interrogating the environmental accountability of foreign oil and gas companies in Basra, Iraq: a stakeholder theory perspective

Abstract

Purpose

This paper aims to interrogate the accountabilities of the foreign companies which have directly invested in the Iraqi oil and gas industry.

Design/methodology/approach

Using both qualitative and quantitative methodologies, the authors first map the stakeholder accountabilities (qualitative) of foreign oil and gas companies and second, the authors seek to demonstrate quantitatively – through structural break tests and publicly available sustainability reports – whether these companies have accounted for their environmental and social impacts both to Iraqi people and to the global community.

Findings

The authors find that the Western democratic values embedded in stakeholder theory, in terms of sustainability, do not hold the same meaning in cultural contexts where conceptions and application of Western democratic values are deeply problematic. This paper identifies a crucial problem in the global oil supply chain and problematises the application of traditional theoretical approaches in the context of the Iraqi oil and gas industry.

Practical implications

Implications of this study include the refocus of attention onto the local and global environmental impacts of the Iraqi oil and gas industry by foreign direct investments. Such a refocus highlights the reasons and ways that decision makers should accommodate these less salient stakeholders.

Originality/value

The primary contribution is the critique of the lack of environmental accountability of foreign direct investment companies in the Iraqi oil and gas industry. The authors also make theoretical and methodological contributions via the problematisation of the cultural bias inherent in traditional stakeholder theories, and by introducing a quantitative method to evaluate the accountabilities of companies.

Citation

Morrison, L.J., Alshamari, A. and Finau, G. (2024), "Interrogating the environmental accountability of foreign oil and gas companies in Basra, Iraq: a stakeholder theory perspective", Meditari Accountancy Research, Vol. 32 No. 1, pp. 207-233. https://doi.org/10.1108/MEDAR-08-2021-1425