Sunday, July 02, 2006

Petronas' Corporate Social Responsbility (CSR)

Disclaimer: The blogger here is no economist. The information provided here is based on the non-exhaustive compilation of information from local news and from the internet. Comments labelling this post as 'gomen-bashing' and 'we owe no one for a living' will not be tolerated and will be deleted and banned from further postings.

Well, to my understanding, there are at least three interviews on the mainstream media with Petronas' President and CEO, Tan Sri Hassan Merican, after the announcement of its net profit which rose to a record RM 43.59 billion (US$12.1 billion; euro9.6 billion), compared with RM 35.6 billion a year earlier. They are first from Berita Harian, then The Star and today, Utusan Malaysia.

Wah, windfall profit!!!

Wow, three consecutive interviews. At the same time? Or all simultaneously? Template-based interviews? They all sound pretty similar btw. Let's see what they have in common:

Point 1: "We do not keep the profits. The Government is the biggest shareholder. The citizens 'own' Petronas, so we give it back to them through the Government."

Oh, but who's the one choosing the Government? So blame nobody for any mismanagement of the profits, okay! And that explains why I heard someone saying 'Jangan bakar bendera Petronas, bakar bendera Barang Naik' (Don't burn Petronas' flag; burn the Barang Naik's one) during the recent fuel hike protests?

Point 2: "Profits are used for exploration and production business for a sustainable reserve for at least another 20 more years."

To quote from the mouth of the CEO himself as reported by Utusan Malaysia, the paper who said that the oil reserve 'would be depleted by 2010'.

Berdasarkan jumlah pengeluaran semasa, jangka hayat rizab minyak di Malaysia ada selama 20 tahun dan gas asli selama 34 tahun lagi. Teknologi membolehkan kita menerokai peluang mendapatkan sumber baru. Kalau 15 belas tahun lalu, kita jangka rizab yang ada hanyalah 15 tahun sahaja lagi. Teknologi baru membolehkan kita pergi jauh ke dalam perut bumi untuk mendapatkan minyak.

Who's bluffing now?

Oh, overseas exploration is good, so pardon them for being listed in the 'Dirty List' supporting the Junta Military Regime in Burma.

"Oi, stupid, this is nothing compared to the 'Oil-for-food' programme and the Libyan nuclear programme lar"

Point 3: "We are a very socially-responsible corporate"

So what is Corporate Social Responsbility (CSR) as mentioned in the title above? From Wikipedia:

Corporate social responsibility (CSR) is an expression used to describe what some see as a company’s obligation to be sensitive to the needs of all of the stakeholders in its business operations.

A company’s stakeholders are all those who are influenced by, or can influence, a company’s decisions and actions. These can include (but are not limited to): employees, customers, suppliers, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors, and shareholders (or a sole owner).

CSR is closely linked with the principles of "Sustainable Development" in proposing that enterprises should be obliged to make decisions based not only on the financial/economic factors but also on the social and environmental consequences of their activities.

First, let's see how Petronas stands in the 'World’s Most Sustainable and Ethical Oil Companies 2006' listing...

Ooppsiee...last woh...nehmind, we are still 'the cheapest in the region' and 'better than Ghana'!

And here's an analysis on that survey:

On the average, companies scored highest under "ethics" with an average of 73.3%. Ethics in essence means having and promoting a detailed code of conduct and staying out of trouble. Companies with low scores, such as Gazprom and Petronas, largely failed to communicate and implement a code of conduct and ethics, although this is among the least expensive ways of gaining points. Top performers such as Chevron, Statoil and Total, implemented codes explaining how employees should deal with difficult cases of bribery and conflicts of interest. Statoil's general code of ethics is 31 pages long and it publishes codes for its financial management and suppliers, which were last updated as recently as December 2005.

What bribery? What 'conflicts of interest'? Ask Cyclops MP Jasin and The Medicine Man lar!

Okay, to give them credit, here's the list of 'social responsibilites' as came out from the mouth of the CEO himself, as reported in Utusan Malaysia:

1. Building and management of Universiti Teknologi Petronas (UTP)- including scholarships and 'cheap tuition fees'

2. Training institutes including Akademi Laut Malaysia (Alam) in Melaka and Institut Teknologi Petronas in Batu Rakit, Terengganu.

3. High-level 6G welding training programme with Institut Kemahiran Mara (IKM) since 1992 - for those who failed SPM, trained with high skills to make them sellable to the world'

4. Sponsoring more than 600 medical students including scholarships for specialisation.

5. Sending consultants to overseas to plan for internship with overseas companies while they are on summer break.

6. Funding a cancer research programme done by local research scientists in Subang Jaya.

7. Sponsoring Pemadam's anti-drug abuse awareness campaigns.

8. Funding the AIDS Foundation, Malaysian sports and the Basketball Association of Malaysia.

9. Building mosques, the nearest - at KLCC (Kuala Lumpur City Centre). Also in Kertih, Terengganu; Kidurong di Sarawak dan Tangga Batu, Melaka. The latest one is in Tronoh, Perak which will be officiated on this 14th of July.

There is actually a more detailed description in their Annual Report, which you can download the PDF here.

Have you benefited from any of the above? Mind leaving a comment here to enlighten us about it?

Last but not least, this may sound ridiculuous, but is this possible from them?

No comments: