Introduction
Being a leader in the oil and gas industry isn’t easy nowadays. You’re not only expected to claim yourself a successful CEO when your company and stakeholders accumulate wealth, but just as how news headlines put high-profile companies in the spotlight on their position in global events. They’re scrutinized about their practices and culture on leadership, labor practices, or even sustainability.
But nonprofit leaders know what it’s like to operate in this world. They have long had to work within competing opinions and amorphous leadership contexts. They’ve learned to lead through ears and influence for a bigger purpose. And it’s an approach to leadership that something today’s business leaders could really use as they struggle with an increasingly uncertain and volatile public space.
What is a Purpose-Driven Leadership
From an organizational behavior perspective, a purpose-centered leadership approach is a precursor to improved employee cohesion, engagement, satisfaction, and motivation. Employees are more likely to put in more effort, be resilient in the face of adversity, and have fewer intentions to leave their jobs when they believe that their roles are purpose-driven (Bunderson and Thakor 2022; Crane 2022; Knippenberg 2020). The fundamental human need for meaningful work is the reason for this connection between purpose and employee success.
Yes, there are a variety of leaders. Some are forward-thinking, task-oriented, and visionary. Effective leaders, however, are now viewed as having a purpose. The desire of today’s workforce to work for a company with a mission is equally important. According to a study by Lawson and Weberg (2023), purpose-driven leadership is a crucial pillar of modern organisations, especially given the socioeconomic climate of the present.
Here are 5 things that leaders from the Oil and Gas industry can learn from nonprofits about purpose-driven leadership.
5 Things Oil & Gas Leaders from Nonprofits
The Power of “Why”
Some organizations and mediocre leaders always sell out their WHAT, then HOW and never even get to the WHY. But Sinek says, people don’t buy what you do, they buy why you do it. You need to define your vision first.
Nonprofits succeed by starting with their mission Donors and volunteers connect to their vision and their purpose of existence.
When I talk with younger investors today, the same principle applies. They’re not content with ROI projections alone. They want to know what their capital is doing for the world. Is it funding responsible energy development? Is it creating jobs in underserved regions? Is it advancing cleaner technologies?
The oil and gas industries have powerful “whys”. We supply the energy that keeps the modern world running. But, we rarely tell that story in human terms. Nonprofit organizations remind us that people always connect with your mission.
Stewardship Beyond Profits
Stewardship is how nonprofits reach out and stay connected to patrons. Donors give because they trust that they’ll treat every dollar like it matters.
Our industry is like that. We’re not only stewards of capital but also the natural resources and community. Too often, though, energy companies measure success narrowly like production volumes. But now, investors and communities alike are watching us more closely.
Just as the nonprofit Stewardship relies on communication, so your stewarding team should communicate. They want oil and gas leaders to be transparent, accountable, and prove that our operations respect both people and the planet.
I’ve seen investors walk away from deals that looked great on paper because they doubted a company’s integrity. And I’ve seen companies win long-term loyalty because they prioritize safety and environmental commitments.
Community as Stakeholders
A stakeholder is a person or entity with an interest in your work and the potential to influence or be influenced by your organisation. Stakeholders are the people who suffer the effects of your decisions and activities, including beneficiaries, partner organisations, and the community. They also have an impact on your capacity to carry out your mission. Stakeholders can be classified as either internal (those who volunteer or work for your company) or external (such the media and governmental organisations). People who are impacted directly or indirectly are referred to as primary or secondary stakeholders in project management.
Nonprofits are oriented toward social ends and serve the common good by emphasizing community need over profit (Barman 2016.) They build relationships at the grassroots level and listen before they act. That’s how they gain trust and scale their impact.
In the same way, we often fall into the trap of viewing communities as hurdles like maybe a regulatory pushback, land disputes, or environmental protests. But what if we reframed the relationship? What if, instead of asking “how do we get our permit approved?” we asked, “how do we ensure our presence leaves this community better than we found it?”
With that, there would be fewer disputes, more goodwill, and a license to operate that money alone can’t buy.
Purpose doesn’t undermine profit.
The nonprofit world proves that you can mobilize resources and sustain operations or even grow while keeping their purpose at the forefront. The same is true for energy companies that dare to look beyond the short-term horizon. So again, purpose doesn’t undermine profit.
Conclusion
Nonprofits have shown us that purpose-driven leadership is not only possible but powerful. As oil and gas leaders, we’d be wise to take note. Because in an era where scrutiny is high, markets are volatile, and younger generations are demanding more, our why might just be the most valuable resource we have.
