CIAO DATE: 04/2012
January 2012
Companies create value for their shareholders, but they should also share this value transparently in the countries in which they work, to promote economic development. There are three ways to promote fair sharing through greater transparency. First, sound, publicly disclosed anti-corruption programmes are essential to prevent individuals from misappropriating revenues. Second, value can be shared with business partners, provided these relationships are fully disclosed and the operating subsidiaries are made known to the public. Lastly, precise information about how much revenue goes to state budgets and how much is retained by companies must be fully disclosed to the public. The Promoting Revenue Transparency project aims to make revenues from oil and gas extraction transparent and, as a result, more beneficial to the societies of resource-rich countries. In order to achieve this goal, we have analysed 44 leading global oil and gas producers, including both international oil companies (IOCs) and national oil companies (NOCs),1 in terms of their reporting on anti-corruption programmes, organisational disclosure and country-level disclosure. Our findings are intended to serve as a basis for improvement in corporate reporting by the sector, towards enhancing the transparency and accountability of these revenues.
Resource link: Promoting Revenue Transparency: 2011 Report on Oil and Gas Companies [PDF] - 5.3M