Which Dimension of Corporate Social Responsibility is a Value Driver in the Oil and Gas Industry? Reza H. Chowdhury * University of Northern British Columbia Sungchul Choi University of Northern British Columbia Simon Ennis University of Northern British Columbia Dongseop Chung Kyungsung University Abstract The oil and gas (O&G) industry suffers from a negative perception of poor sustainability. O&G companies are therefore engaged in several socially sustainable activities related to community development and environmental protection. This article determines whether the social, environmental, and economic dimensions of corporate social responsibility (CSR) are equally value-additive to O&G companies. We measure the company-specific level of CSR activities from the information provided in the annual financial reports of O&G companies and determine the effects of CSR dimensions on firm value. We find that CSR enhances firm value of O&G companies. While social activities such as employee well-being and community development are key value-drivers, environ- mental and economic sustainable activities have an insig- nificant impact on the market value of O&G companies. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd Keywords: annual report, corporate social responsibility, firm value, oil and gas industry Résumé L’industrie pétrolière et gazière (O&G) souffre de la perception négative qu’on a de sa faible durabilité. C’est pourquoi les sociétés du secteur pétrolier et gazier s’investissent dans plusieurs activités socialement durables liées au développement communautaire et à la protection environnementale. Dans cet article, nous nous interrogeons sur la valeur ajoutée liée aux dimensions sociales, environnementales et économiques de la responsabilité sociale des entreprises (CSR) de ce secteur. Nous mesurons le niveau d’activité de la CSR de l’entreprise à partir des in- formations disponibles dans les rapports financiers annuels des sociétés pétrolières et gazières et déterminons les effets des dimensions de la CSR sur la valeur de l’entreprise. Les résultats montrent que la CSR augmente la valeur des sociétés pétrolières et gazières. Par ailleurs, tandis que les activités sociales telles que le bien-être des employés et le développement communautaire sont des facteurs clés de valeur, les activités environnementales et économiques durables n’ont qu’une incidence négligeable sur la valeur marchande des sociétés pétrolières et gazières Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd Mots-clés: rapport annuel, responsabilité sociale des entreprises, valeur de l’entreprise, industrie pétrolière et gazière Introduction Some industries inherently raise social and environmen- tal issues. There is a general concern about how companies in controversial industries gain legitimacy through their pol- icies and initiatives related to corporate social responsibility (CSR). The literature has just begun to explore this area by analyzing the significance of CSR on financial performance (FP) in such industries (Lindorff, Jonson, & McGuire, 2012). Cai, Jo, and Pan (2012), for instance, show a positive impact of CSR engagement on the firm value of American companies in eight controversial industries. Rodrigo, Duran, and Arenas (2016), however, suggest that theoretical and *Please address correspondence to: Reza H. Chowdhury, School of Busi- ness, University of Northern British Columbia, 3333 University Way, Prince George, British Columbia, V2N 4Z9, Canada. Email: reza. chowdhury@unbc.ca Canadian Journal of Administrative Sciences Revue canadienne des sciences de l’administration 36: 260–272 (2019) Published online 30 March 2018 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/CJAS.1492 Can J Adm Sci 36(2), 260–272 (2019) Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd. 260