Impact of International Custom on the Social Responsibility of Oil Companies

Document Type : ISI

Authors

1 Assistant Professor, Department of Private Law, Faculty of Law, University of Science and Culture, Tehran, Iran.

2 MA. in Oil and Gas Law,Department of Oil and Gas Law, Faculty of Law, University of Science and Culture, Tehran, Iran.

Abstract

 Introduction
International custom has long been recognized as a primary source of law, complementing treaties and general principles in both domestic and international legal systems. In the context of the oil industry, multinational corporations are increasingly expected to integrate corporate social responsibility (CSR) into their operations. CSR has become central to corporate strategies, reflecting ethical considerations, public expectations, and the need to enhance corporate reputations globally. The influence of international custom on CSR is multifaceted. While treaties and contracts provide formal legal obligations, customary practices shape the norms and expectations that guide corporate behavior. In the oil sector, these customs emerge from repeated practices among companies, host governments, and other stakeholders, creating an informal yet influential framework. The study focuses on how these customs affect CSR, examining whether they contribute to the development of recognized international norms. Although CSR is widely promoted, its enforceability remains limited due to the absence of a binding moral or legal component within customary law. Nevertheless, companies adopt CSR practices to meet social expectations, foster goodwill, and maintain competitive advantage. This study investigates these dynamics, aiming to clarify the role of international custom in establishing normative expectations and supporting responsible corporate conduct in the global oil industry.
Method
Documents and literature were selected based on their relevance to CSR in the oil industry. The sample includes analyses of oil contracts containing CSR clauses, bilateral investment treaties referencing social responsibilities, and legal commentary on the evolution of international customary law. Selection criteria focused on sources that illustrate the application of custom in guiding corporate behavior. Priority was given to materials that provide insight into recurring practices, expectations, and the integration of social responsibility within contractual and legal frameworks. This approach ensures that the study captures a comprehensive view of CSR practices influenced by international custom.
Conclusions
The study concludes that international custom serves as a significant, though non-binding, influence on CSR practices in the oil industry. Companies increasingly adopt CSR measures in response to normative expectations, stakeholder demands, and the desire to enhance corporate reputation. However, the absence of a fully developed moral or enforceable component in customary law limits its capacity to establish binding obligations. While practices are observable, the belief in their obligatory nature remains underdeveloped, reducing the enforceability of CSR norms. Integrating CSR into contracts, treaties, and formal legal instruments could strengthen accountability and ensure consistent corporate behavior. Overall, international custom functions as a guiding framework for socially responsible conduct rather than a mandatory legal tool. The study underscores the potential of customary practices to influence corporate behavior and highlights the need for continued development of mechanisms that formalize CSR obligations within the global oil sector.
 
 

Keywords

Main Subjects

References

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Journal Of Researches Energy Law Studies
Volume 10, Issue 2
March 2025
Pages 195-226

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