S. Depraz, IPIECA, and R. Feil, BP, and R. Gossen, Canadian Occidental, and J. Kearns, BHP, and J. Marvillet, Total, and P. Scupholme, BP, and S. Sonnenberg, Mobil, and N. Szydlowski, Chevron, and B. Tramier, Elf, and G. Ungerleider, Exxon The oil and gas industry has been operating in some of the world's most sensitive environments for more than 100 years. These range from deserts, man groves, wetlands, coral reefs, tropical rain forests and frozen tundra to heavily populated urban environments. Although the industry's environmental record has not been perfect, it has been a pioneer in developing and using new technologies and in implementing management systems to minimize the impact of its operations. The industry's continuous efforts to improve have intensified in recent years, reflecting heightened public awareness and interest regarding the way that industry manages its interface with the environment, local communities and the public at large. Its efforts also reflect a rapidly involving policy framework including international initiatives such as the UN Convention on Biodiversity. Developed by the International Petroleum Industry Environmental Conservation Association (IPIECA) in partnership with the Oil Industry International Exploration and Production Forum E&P Forum), this publication has three key objectives:To demonstrate that minimal impact operations are achievable in a diverse range of environmental and social settings;To actively encourage good practices, high standards and continuous improvement; andTo provide a basis for discussion with groups outside the industry with a view to promoting ongoing improvement of industry environmental performance. The publication uses a series of case studies to describe some of the oil industry's experience of operating responsibly in sensitive environments. It includes 'best practice' examples across the full range of oil industry activities. Some cases relate to operations near conservation sites of global importance; others describe sites that are of special value to local people. The list of case studies available as of April 1997 is given in table 1. A key theme that runs throughout the case studies is the need to balance environmental impacts with economic benefits - benefits not only to the oil company, but also to the countries and communities in which it operates. In achieving this balance, different technologies and management systems may be appropriate for different sets of circumstances. Eight key management features which the oil industry uses to work towards this balance have been identified and are illustrated in the case studies. They are outlined in the following paragraphs.

The international oil and gas exploration and production industry faces a vast array of environmental issues that are global in nature but play an increasingly prominent role in individual project decision making. When placed against a backdrop of socio-political and cultural challenges presented in developing countries, project planners require an enlightened approach to ensure the environmental, economic and social components are appropriately balanced to ensure sustainable business success. Although a relatively new player in the international E & P industry, Canadian Occidental Petroleum Ltd. has developed such an approach to EH&S management for projects in developing countries. Drawing from recent experience with a major project in Yemen, and others in the planning stages in several other developing countries, this paper presents a number of positive strategies and actions which are being applied in the many countries in which the company is active. Lessons learned and opportunities for improvement are presented for consideration by responsible operators working internationally toward the goal of environmentally sustainable energy development. Introduction Industry in general, and the energy sector in particular, face a rising tide of expectations and demands by society to incorporate environmental, health and safety issues into the business decision-making process for projects in even the most remote and undeveloped parts of the world. Although largely unfounded, there is a perception by some sectors of our society that the oil and gas industry has been a 'grab and run' exploiter of resources and has done little if anything to contribute to long-term and sustainable economic development and institutional support systems in host countries in which it operates. Responsible operators desire to be perceived by society as being part of the solution to environmental issues and not the source of the problems. Governments desire widespread public acceptance of their decisions and often opt for prescriptive, non-science-based regulations. Public interest groups seek a voice in decision-making, and industry seeks opportunities to apply meaningful, market-based solutions to environmental concerns. With this back drop, we will elaborate on some significant EH&S issues and factors that must be considered and suggest some strategies that can be applied by responsible international energy sector operators in developing countries, toward the common societal goals of sustainable development and environmental quality enhancement. P. 501

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Nexen Inc. (the "Company"), an independent global energy and chemicals company, has made significant strides in the area of corporate social responsibility ("CSR"). Developments such as globalization, environmental issues, competitive labor markets and advances in technology have accelerated the pace at which these and other corporate social responsibility issues have risen up the corporate agenda. The playing field for multi-national enterprises has been forever altered. In response to these emerging issues and encouraged by Canada's Minister of Foreign Affairs, the Company championed and adopted the International Code of Ethics for Canadian Business (the "Code") in 1997. The Code received endorsement from the Canadian government and support from many companies and business associations. The Code provides principles for community participation, environmental protection, business conduct and employee health and safety. The Company's Integrity Program is the vehicle by which the Code is implemented. The Integrity Program focuses on ensuring that the Code is more than simply words. Its principles have been successfully translated into comprehensive and innovative practices which address industry considerations faced by companies today and which benefit the company and its stakeholders. Corporate social responsibility is an area of emerging global importance. Besides being the right thing to do, fostering a culture of integrity has ensured that the Company adds shareholder value over the long term and makes a difference in its broader sphere of influence. Introduction Corporate social responsibility ("CSR") is defined by the World Business Council on Sustainable Development as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. In addition, it is important to recognize that CSR provides a vehicle by which business can demonstrate its commitment and engagement in addressing many of the concerns identified by those that oppose globalization. The Company considers the key elements of CSR to be: business practices; community investment; safety and environment; employee relations; and supplier and customer relations. Key Issues/Challenges Although only recently emerging in the public spotlight, efforts to address corporate social responsibility concerns are not new. The Universal Declaration for Human Rights was developed over 50 years ago. The far reaching United States Foreign Corrupt Practices Act was enacted a generation ago. While the creation of these and other instruments were important milestones, they have not removed the barriers to investment that exist for many companies. A survey of business people by the World Bank showed that, other than tax regulations or high taxes, corruption is considered to be the number one obstacle to conducting business in developing countries1.