Thus, from a financial and legal perspective, the consortium should make funds available to Chad's government. However, from a corporate social responsibility perspective, the consortium should not make the funds available, but should instead back the World Bank. This move would help to protect other international interests and corporate reputations. These factors, in the long-term, could more than compensate the oil companies for lost revenues in Chad. 5) Subsequent to the signing of the pipeline agreement, world oil prices have increased substantially. Given the abject poverty of Chad, should the oil companies offer to increase the royalties paid to Chad's...

In this instance, ethical conduct on the part of the oil companies could set an example for Chad to itself behave in a more socially responsible manner. and, it could motivate the World Bank to participate in even more projects with the oil companies who increasingly have a negative public perception of their global business practices.