Case study: Devon Energy
An international team from the UK, US and Brazil worked with Devon Energy to develop a best practice social investment project in Brazil, using International Guidelines that ERM developed in 2005.
Devon Energy wanted to develop a best practice social investment project in Brazil, using the International Guidelines that ERM developed in 2005.
An international team from the UK, US and Brazil worked with Devon Energy to develop a Strategic Social Investment Guideline; a strategic program designed to provide social benefits to local communities or groups of stakeholders while adding business value to a company. Strategic Social Investment is not Corporate Philanthropy, which can actually have a negative effect on the long-term relationship between stakeholders and the local business for reasons such as perceptions of paternalism and creation of a culture of dependency.
Strategic social investment programs are designed specifically to:
- Ensure the long-term and self-sustaining development of local communities where the Company operates, without creating a dependency culture on the Company as a local provider, thereby fulfilling a company’s core values to leave a positive legacy behind at the point of extraction;
- Increase the value of the investment to the Company through enhanced reputation, stronger relationships with the local community, increased ability to employ and retain the best employees, and ensuring community belief in a company’s value to them;
- Reduce social risk to business operations – reputation, financial, operational, for example to ensure that business operations are not interrupted by vandalism or NGO demonstration, that there isn’t a delay to obtaining approvals and permits, etc.
Benefits and Value
The Project will help provide sustainable benefits to local communities while adding business value to the company.