Petrochemical Firms Urged to Embrace Social Duty

Iran's industry under scrutiny for impact in poor regions

Iran's industry under scrutiny for impact in poor regions
(Wednesday, June 11, 2025) 14:14

TEHRAN (NIPNA) – As Iran’s petrochemical sector continues to drive economic output and export revenues, questions are being raised over the industry's role in addressing poverty and development gaps in the country's underserved regions.

Corporate Social Responsibility (CSR), a standard practice in many developed economies, is still largely unstructured in Iran. Experts and local stakeholders are increasingly calling on petrochemical companies to adopt a proactive approach to sustainable local development, particularly in remote hubs such as Assaluyeh, Mahshahr and Makran.

“CSR is not just a moral imperative—it’s a strategic necessity for the industry’s long-term viability,” said a senior advisor at the Petroleum Ministry, referencing concerns around environmental stress, labor tensions, and widening social disparities.

While some companies have initiated charitable projects—such as building clinics, schools, and supporting youth education—critics argue that such efforts often lack continuity, strategic alignment, or proper community engagement.

According to the United Nations’ Sustainable Development Goals (SDGs), CSR is a key tool for alleviating poverty, promoting public health, and ensuring inclusive education. Yet, in Iran, there is currently no legal framework mandating CSR, and little transparency exists regarding budgets and performance.

Global examples provide models for Iran to consider. Malaysia’s Petronas allocates a fixed share of profits to education in oil-rich areas, while Shell’s transformation in Nigeria includes clean water and women’s health initiatives. In Norway, local hiring quotas and training programs are required by law.

Recommendations for institutionalizing CSR in Iran include:

  • National CSR legislation with mandatory budget allocations;
  • Independent CSR committees within companies involving local stakeholders;
  • Region-specific CSR blueprints based on needs assessments;
  • Annual public performance reports and community dialogue platforms;
  • Investment in local entrepreneurship and vocational training;
  • Impact measurement tools to ensure accountability and efficiency.

With Iran designating the current year as the "Year of Investment in Production," industry analysts say the time is ripe for petrochemical companies to shift from profit-driven to impact-driven models.

“Without social sustainability, industrial growth risks becoming a source of local conflict rather than prosperity,” said the advisor.

 


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