The Contribution of Foreign Oil Companies to Human Capital Development in Azerbaijan: The Case of BP's CSR Program

Abstract

This article provides an assessment of the contribution of BP to Human Capital Development (HCD) in Azerbaijan, focusing on the oil boom years (2007-2014). Its corporate social responsibility (CSR) agenda has included activities targeting HCD through both the employment of nationals stipulated in local content requirements and 'social responsibility investment projects.' Additionally, BP has invested in a number of projects that train students and professionals involved in the oil sector. I argue here that the contribution by BP to HCD has not gone beyond the traditional CSR investment pattern of major oil companies. Company activities have focused mainly on project-affected regions or in and around the Baku area, and most of the education investments of this firm have targeted professionals in extractive industries. This raises the concern that the post-oil legacy of the company in terms of HCD will be very limited. This is partially the result of the weakness of a state-led policy framework on HCD, which could be effectively complemented by the activities of BP.