Discussion chapter

Discussion chapter Order Description Discussions chapter: WHAT ARE THE IMPACTS OF THE COMPANY'S OPERATIONS ON LOCAL COMMUNITIES? 1. Environmental and Social impacts (700 words) TO WHAT EXTENT ARE THESE SERVICES ADEQUATE, FROM THE COMMUNITYS PERSPECTIVE? 1. Negative perceptions (400 words) 2. Positive perceptions (400 words) Out come from findings (200 words) Recommendations (150 words) Summary (200 words) CHAPTER FOUR: FINDINGS 5.1 INTRODUCTION This chapter reports the findings from the interviews with community members who lived in the vicinity of the Paloch oil field where Petrodar carried out its extractive activities until 2014. The interviews were conducted by telephone between 23/10/2015 and 16/11/2015 with 10 people who generally believed that the operations of Petrodar have had significant environmental and social impacts. The chapter is structured around the three core research questions: 1. What are the impacts of the company's operations on local communities? 2. To what extent are these services adequate from the community perspective? This chapter is essentially descriptive, in that it simply outlines the findings of the research. These findings will be analysed in Chapter 5. 5.2 WHAT ARE THE IMPACTS OF THE COMPANY'S OPERATIONS ON LOCAL COMMUNITIES? 5.2.1 Environmental and Social impacts Participants generally agreed that Petrodar's operations have had significant environmental and social impacts. A degraded environment will inevitably affect people, as it depletes food resources and creates health problems. In view of this, environmental and social impacts of oil extraction operations will be analysed together in this section. The main environmental impact reported by participants seems to be water pollution by toxic wastes. In the words of Jimmy: Waste are spread over … this has affected fisheries, wild lives and livestock, [People] health are affected as a result of oil related products. The waste spread in the environment such as drilling fluids, oil debris, toxic waste, cyanides, lead, cadmium and arsenic salts affecting the livelihood of the fisheries, wild lives and the livestock. The health of the local people has been adversely affected by oil-related products and wastes. As a result of waste dumped to an open space and not well cared for, residents and people in the area lost lives and their cattle as result of the chemical waste dump to land where the flooding water wash it to the rivers and lakes around.As reported by Danny that: Petrodar polluted the local environment and surface water around Paloch. [Kids] are born with deformities People and the cattle drink water and immediately they become sick and died. In addition to the fisheries industry are also affected because of the chemical waste dumped to the land without protection. The oil spills to the land were not taken concern of and reported by Petrodar because there are no tighten regulations, strong team of government and community representatives who could hold the Petrodar accountable. For example, participant reported that one of the primary indicators is the emergence of new diseases in the community such as lungs infection, reproduction is affected where children are born without legs, and arms. As commented by Jimmy: The new diseases were not experienced among the people before the oil production commences, [children] are not bornnormally. These diseases are different from those that the local communities had experience before the extraction of oil in Paloch. The courses are serious with symptoms that kick in rapidly with earlier death. According to Danny reported that: There are side effects and fear for those who reside inPaloch, their health were affect such as, lungs and blood steam are … due to oil production. Despite the efforts by the companies in establishing the healthcare facilities, there is still a feeling that more need isto be done to thecommunities by demonstrating commitment at a higher level. (Danny) said that: Animals are also affected … due to the contamination of the environment. Dannyfurther commented Petrodar had been dumping toxics in different locations many times. He reported a thin alien surface on top of the water when locals want to collect water which they assumed. He added that, this is harmful since the communities had experience health issues with their cattle from the water they drink. For example, fish from local rivers or ponds has the sign of intoxication of this chemical. Jimmyhad a concern about the health effect of people especially children and their livestock: as Jimmy Commented: Not all programs are beneficial … because local refinery, clean drinking water, schools, electricity and roads are major challenges for both government and Oil Company. Communities complainabout the relationship between Petrodar and local people. As Dhoor stated: Petrodar has a limited consultation with communities who live in the area where oil extraction take place. He said that community has to be consulted for their concerns and opinions because in the time of oil extraction process. This consultation supposed to be ongoing between Petrodar and the local communities. In its website, Petrodar states the following: It’s committed to undertake its social responsibility by developing a healthy, harmonious and safe working environment in the operation areas that will lead to create a good neighbourhood with the local communities and will also allow for smooth operation. The above statement from Petrodar’s website is one of positive effort it claimed as its policy. This highlight Petrodar’s commitment toward safe working environment in operation areas. Participants generally agreed that there have been a number of positive social impacts arising from Petrodar operations, in addition to health problems, as reported by King: [People] experienced changes since the coming of Petrodar. Such as building of schools both primary and secondary schools. The communities around Paloch have access to services provided by Petrodar. King was a respondent who previously study in this primary and secondary schools build in Paloch. He said they get supports from other organisations such as NGOs. Dhoor reported the following benefits arriving from Petrodar: Change in living standard, construction of feeder roads, airport,installation of electricity and communication devices. He pointed to the legacy of road transport and reflected on what it has become since the arrival and its construction by Petrodar. Paloch’s feeder road transport received praise for this transport link to all the villages around Paloch and use during the wet season which has not been upheld. The comments bellow highlighted the significant of hospital and health dispensaries constructed by Petrodar that will address issues and concerns as reported by King: Petrodar providedcommunity development programsservices to the locals. For example, construction ofhospital and health dispensaries in villages around Paloch. A best health centres are required to help the locals in Paloch and neighbouring villages to access health centres with similar programs and facilities. As reported byAbulul: Petrodar drill boreholesand water tanks in Paloch to help communities with clean drinking water during dry and wet season. Drill borehole can equip locals with tools and ways to work cooperatively with Petrodar. It can help local people to become self-sufficient in management of local programs. Abululreported the following benefits: People experience positive changes in their life … such as improved financial gain, health insurance benefit, health pension ratio, gaining of experience and skills and promotion in positions such as field coordinators to line managers. Abulul stated that he acquired experience and skills, after which he was promoted from a field coordinator to line manager. In the absence of Petrodar Company, the individual would not have had the opportunity to develop the career. Abulul made a reflection on the social programs provided by Petrodar to the community:by stating that: Communities benefited from socialprograms. They acquire knowledge in machine operation; this help in getting future jobs. Panom reported that: Localworkers are employed and market expanded in Paloch town … due to population increase. Despite the fears of the negative health impact to the community, there is evidence that health care has indeed improved. As Abulul comment: Yes Petrodar provided medical insurance, safe and protected environment.People are promoted from lower position to upper position according to their skills and qualifications, while they gain experience. This respondent claimed that their access to healthcare improved with the presence of companies such as Petrodar Operating Company. The primary reason was that the companies facilitated medical insurance coverage for their employees and their families. In addition, the employment provided is a source of income upon which the standard of living improves. In addition to the healthcare services and facilities offered upon the start of oil-based operations, the community willbenefit from modern clinics under construction in Paloch. As Sam point out that: Petrodarhad constructed modern clinics which are best clinics in Paloch.-Uppernile state. Having a direct access with an initiative give community personal attachment to the initiative. The support provided by Petrodar create an environment where local people will be willing to corporate with oil extracting company. This is an example of honestyof Petrodar’s management and gives credibility to Petrodar as reported byPanom: Petrodar provided corporate social responsibilities program. Such as medical facilities for those who felt sick with sever malaria and other sickness. Panomstated to have benefited from such facilities. The participant was admitted in one of the clinic facilities and got free of severe malaria. Some locals suffered severe fever and heavy coughing every evening. This suggest that individuals feel they are being affected by the present of Petrodar operation in the area. As reported byGefrey: People who experience sever fever and coughing heavily every evening are treated by a mix of private and public doctors. Gefrey stated that after visiting one of the clinics for a check, the situation was handled adequately through the efforts of a team of both private and public doctors who are sponsored by Petrodarmade relatively easy to manage. The partnership, in this case, was an indication that the CRS by the companies had the support from the government. The private-public partnership, in this case, works for the better health care of the members of the community. The respondent, in this case, confirms the clinic he went to, was the best in the community. Any given initiative can inspire and encourage community member participations as reported by Sam: Community members have access to health care for free that has good standard of health services. The employees and people in the community will enjoy the improved access to health care free of charge. The services would not only be offered free but also at a preferably standard health service. The construction of the airport is likely to bring in more companies because of road accessand improved transport services. Since such companies are likely to support the construction of additional health facilities and support the improvement of the existing ones, health services will increase significantly. In addition, healthcare practitioners from among the locals and foreigners will be attracted to offer services to the community. As reported by Sudd: I participated in drilling water pump as well as loading and unloading of the red bricks for the construction of the Public Health Centre Unit (PHCU.) An example of this practice that would work well at Paloch, is to bring together in a well organise system with safe environment and encouraging activities. This contribute to community development in health sector, improvement of their skills which will have positive impact to the Paloch community. The respondent had been participating in community development programs that are provided by Petrodar Oil Company. As one of the community member working in community programs, his working relationship was with Petrodar Oil Company. He has to work hard in order to make changes to the situation things goes in community. Communities around oil mining fields argued Petrodar to compensate communities who lost their love ones and lands. Sam said that the compensation made to the communities are not enough to compensate for the damage on the land and the social impact on the villages and Paloch town. As commented by Sam Petrodar compensation made to the families was not welcome by the community and those affected. Compensation is not sufficient compare to the lost and damage done to the community and neighbouring villages. This was seen as Petrodar’s failure to resolve this negative response towards community and the oil company’s obligations in handling this situation.. (Social) 5.2 TO WHAT EXTENT ARE THESE SERVICES ADEQUATE, FROM THE COMMUNITYS PERSPECTIVE? 5.2.1 –Negative perceptions According to Panom, stated that; We have Petrodar’s crude oil pipelines passes through our villages and farmlands in Paloch, in two year ago there was oil spill in one of our village’s farmland that made it not to farm on that land again because crops or grass cannot grow there again. Panom’s claim about the spillage of crude oil was confirm during the interview with other community members. There is no protection of the pipelines which leave locals in this villages vulnerable to pipeline disaster that happen any time. Panom stated the following; Petrodar’s oil operations have been destructive to the community, the removal of non-renewable resource such as oil cause damage to native fauna and flora on which our subsistence component economy depends. This extraction of oil has negative impacts on Paloch’s environment and its people. In this respects, the respondents were of the opinion that the companies should increase health facilities in the community. As Abulul reported that: Enough care should be put in place to ensure that the environment is protected, [Petrodar] should increase health facilities in the place … because the population continue to grow so fast around Paloch. Abulul reported the outbreak of diarrhoea in the villages around the oil extraction, citing the visit of one of the doctors in Paloch to investigate the pollution of the environment. He identified the main outbreak of diarrhoea.The outcome was the dirty drinking water from water tanks use for dinking and cooking by the locals. Pingpiny stated the following: Petrodar should give the community a share from the money made from oil operation, give them land in a safe location and provide them with food and basic services. Participants also believe that the company should provide training for community members. As respondent statedPingpiny: Local peopleshould be given access to training … due to unsafe living and working environment. This training will help the community to be familiar with the operations of the oil extraction. Pingpiny was concern about the safety of the community, because there were drums distributed to the communities by Petrodar. This was not safe and clean because they contained leftovers from the toxic chemicals which they used for drinking water. He said that it was because the soil was intoxicated by Petrodar through the mishandling of the chemicals as part of oil drilling process. Sudd stated that: Local communities needPetrodar to increase the CSR programs ... due to high need of job opportunity (job creation) to the native who are not educated to work as casual worker By constructing training institutions through the help of community development department, will help communities cope with situation they are in. for examples, schools, giving out of supporting tools, staff training and providing adult education classes. Panom said that: Petrodar should continue to provide services as a compensatory obligation to the community who are exposed to the dangers of pollution and relocated in Paloch and near villages. He said that when Petrodar constructed pipeline and forced local residences moved, they don’t receive any compensation from Petrodar, which means they did not cover construction of new houses. For instance, one of family lost their child in the construction holes along the road, but they didn’t receive any compensation from Petrodar or got an apology. 5.2.2 – Positive perceptions The improved living standards regarding housing and nutrition are ingredients to the improved quality of health to the people, as Danny reported the following: Petrodar provided communities with necessary basic needs. For example, shelter, food and clothing. Danny stated that CSR programs provided are enough and urged the company to continue providing such services to the local people. Jimmy reported the following benefit: Heparticipated in community programs … such as training in food production to reduce huger. The effort by the community members and the government to improve the access to the clean water may not be adequate. In Paloch, for example, a large number of families could not access to safe drinking water particularly in the dry areas. Petrodar Company has come to the support of the facilities through the digging of boreholes, and construction of tanks to supply water to the families.Abulul stated that: Local people participated in drilling water pumps. Petrodar help in providing incentives for the work done by locals. These incentives had inspired the low income families. This help to the local community is an indication of the connection between the Petrodar and the community to work together with mutual understanding. Local community has high expectation from Oil Company even though they are provided with employment and some basic needs. King reported that: Lifehas changed since Petrodar’s operation in Paloch, It provided jobopportunity andclean waterfor the native. King’s respond supported Petrodar Operating Company contribution toward community development. This is one of the credit can be awarded to Petrodar because any oil company operate within the locality of the community should provide facilities to the community. Jimmy added also that: Petrodar had changed community living standard in Paloch. People are provided with clean water free of charge. One of the projects cited is the water supplies to the community. In this program, the company provides water free of charge reaching out to many families that had no access to clean and adequate water. The aboverespondent seemed happy with ways in which Petrodar handled community programs and services. This service provided to Paloch residents are reflective process of CSR management for the community development. Pingpinybelieved that Oil Company was concern with the wellbeing of the local community. Ashe reported that: People’s life has improved … because [Petrodar] had provided boreholes/water pump to the community that changed their life by drinking clean water rather than stagnant water in the pond. This water activity has provided water to local people through water filtration, water wells and delivered through water tankers to the distant villages. Furthermore, panompointed out that Petrodar has created an environment where every resident of Paloch and citizens are actively engaged in skill training to acquire new skills: as he stated that: Peopleacquired skills. For example, community were trainedin machine operation and water drilling skills. He stated that Petrodar’s training skills is important to the community as a whole in order to attain knowledge in operating machines, water safety and cleaning of the land from any unwanted waste. 5.3 SUMMARY In summary, it is clear that the operations of business organizations in society have a number of effects on the society. The participants’ responses indicate that Petrodar’s operations have generated environmental and social impacts. The study on these implications can assist the society in evaluating whether the presence of the company brings more harm or benefits. The operations of the company have affected Paloch adversely regarding the pollution of the environment. The pollution of the air from the gracious emissions as well as, land and water bodies due to solid and liquid wastes is a serious threat to the livelihood of the society. The company is seen to have little emphasis on the environmental care. It is proposed that the company should adopt technology-based operations to reduce the emission and wastes dumped into the environment. Effective disposal of the wastes is also required. The health of the people is also at stake with the operations of the company. The pollution of the environment is the primary cause of the increased health issues in the society. The results reveal that the company has taken the initiative through the corporate social responsibility to compensate the society. The building of community health facilities and the provision of health insurance cover to the employees and their family members are the CSR undertakings by the company. The society benefits from the access to healthcare services whose standards have improved. However, it is recommended that the company and others operating in Paloch should undertake two steps to have the health concerns and issues addressed. First, it is important to undertake preventive measures through environmental care. Secondly, the company should also take up the responsibility of members of the society whose health is affected by its operations. The company can pay part of the medical bills particularly to the poor. The social effect of the company is also pointed out in the chapter. Like any other business entity, Petrodar has improved the access to employment among the people. The operations in the business activities require human capital to provide labour and skills, which creates employment for the people. The creation of employment is not only a source of income and a path in career development. Secondly, the company supports education to the children in Paloch, which is a step towards raising a generation of self-reliant people. Thirdly, the development of infrastructure particular modern roads and the airport are important social development projects. Trading and movement of people to and from the community is made better than before. The other social benefit is the supply of water to families living in the dry areas where the supply of water has been a problem. In other words, it is evident that with the presence of the company, many of the social issues have been addressed. However, the company should undertake more CRS on environmental care and improving the quality of healthcare to the people affected.