petronas gas (pgb)

Group Assignment

SHELL AND PETRONAS GAS BERHAD

Name: IRFAN HANDARU I09002963

LAULIANA WIDYA I08002297

PETER I09003243

SHVETS ELENA I09003362

ENSELM LIM I09003104

LIM TUCK MING I07006195

CHEAH WYETAR I08001595

Section: 1K1

Course Code: MKT408

Course Title: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

Program: BMAUH

Lecturer: HAIDER ALI MALIK

Due Date: 4 APRIL 2011

AKNOWLEDGEMENT

We truly and sincerely like to thank the following people. Mr. Haider and Mr. Norman

ismail.

Mr. Haider is our lecturer for MKT408. It has been a great pleasure to attend to his lecture

every week. During his lectures, he introduced us to all interesting facts about CSR

programmes and the potentially beneficial impact of CSR activities on the companies’

business operations. He also motivated us to make us of self – learning; every week

presentations were done by the groups of students. Throughout these lectures and group

presentations, we got a much clearer pincture of how to prepare the group project.

We also would like to thank Mr. Norman Ismail, who is an Executive (Corporate

Communication) Public Affairs & General Service Dept. We were able to conduct interview

(face – to – face) with him. He helped us to understand the involvement of PETRONAS Gas

Berhad in CSR activities.

The team compromising of Irfan Handaru, Lauliana Widya, Peter, Shvets Elena, Enselm Lim,

Lim Tuck Ming and Cheah Wyetar have contributed through extensive research and hard

work have been able to put together this group project.

MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 2

TABLE OF CONTENTS

1.0 INTRODUCTION 4

2.0 SHELL, BEST CSR PRACTICES WORLDWIDE 5

2.1 COMPANY’S PROFILE 5

2.2 SHELL AND CORPORATE SOCIAL RESPONSIBILITY (CSR) 5

2.2.1 CSR IN THE MARKETPLACE 6

2.2.2 CSR IN THE WORKPLACE 7

2.2.3 CSR IN THE ENVIRONMENT 7

2.2.4 CSR IN THE COMMUNITY 10

3.0 PETRONAS GAS BERHAD, MALAYSIA 11

3.1 COMPANY’S PROFILE 11

3.2 PETRONAS GAS AND CORPORATE SOCIAL RESPONSIBILITY (CSR) 12

3.2.1 CSR IN THE MARKETPLACE 12

3.2.2 CSR IN THE WORKPLACE 15

3.2.3 CSR IN THE ENVIRONMENT 18

3.2.4 CSR IN THE COMMUNITY 19

4.0 COMPARISON OF SHELL AND PETRONAS GAS BERHAD 22

5.0 CONCLUSION AND RECOMMENDATION 25

References 27

Appendix 29


1.0 INTRODUCTION

CSR is the process of assessing an organization’s impact on society and evaluating their

responsibilities. CSR begins with an assessment of a business and their customers, suppliers,

environment, communities, and employees (Simply CSR, 2008). CSR is more than care to

environment, or so called “green”, but it is more to consider bigger picture of your internal

business processes to your clients, taking in every step that your business takes during day-to-

day operations (Simply CSR, 2008). Therefore in broaden definition CSR is a long-term

action to business that emphasizing the needs of communities, people and the employers.

CSR offers frameworks for successful activity that is also beneficial with its environment.

CSR is assured to be a basic philosophy for business’ fundamental and integral part of its

operation (Sri Urip, 2010).

In recent years, in Malaysia, the focus of CSR has increased rapidly. In 2006, the Malaysian

government has developed of new frameworks for CSR implementation of CSR initiatives

for the country’s business sector. Petronas Gas Berhad (PGB) is a Malaysian company that

involves in oil and gas resources industry. Petronas has grown to be a big international oil

and gas company with business interests in 35 countries. CSR activities have become an

integral part of its business, where it is stated in ther company’s mission statement. Compared

to SHELL, the company’s involvement in CSR activities is significant, and, it covers all

major CSR dimensions, such as marketplace, workplace, environment and community. And

this has been strongly become company’s business strategy.

With lots of environmental problem issues arise these days, and business enterprises have

become more “environmental-conscious”, this paper is prepared to examine how companies

deal with the environmental problems and using CSR as their strategy to run a better business

and beneficial to its surroundings. Interview has been conducted to PETRONAS’

representative in order to get valid information about PETRONAS recent CSR activities and

how they manage the environmental problems into a better business practice.


2.0 SHELL, BEST CSR PRACTICES WORLDWIDE

2.1 COMPANY’S PROFILE

Royal Dutch Shell plc commonly known as Shell, it is a global oil and gas company

headquartered in The Hague, Netherlands and with its registered office at the Shell Centre in

London, United Kingdom. It is the largest energy company and also the second – largest

company in the world measured by revenues, and is one of the six oil and gas "super majors".

It is vertically integrated and is active in every area of the oil and gas industry, including

exploration and production, refining, distribution and marketing, petrochemicals, power

generation and trading. It also has major renewable energy activities, including in biofuels,

hydrogen, solar and wind power (Shell, 2010).

The company operates in over 90 countries; with a total number of 93,000 employees; with

48% of company’s production is natural gas; it produces around 3.3 million barrels of oil

equivalent per day and has 44,000 service stations worldwide. Shell Oil Company, its

subsidiary in the United States, is one of its largest businesses (Shell, 2010).

2.2 SHELL AND CORPORATE SOCIAL RESPONSIBILITY (CSR)

Today, the concept of Corporate Social Responsibility (CSR) turned out to be a vital strategy

for companies to survive in a ruthless market environment. In a condition where markets’

shift and customers’ preferences become more unpredictable and complex, adopting CSR

strategy could be a powerful tool for survival. It is a concept whereby companies integrate

social and environmental concerns in their business operations. Many companies all over the

world are now starting to see the benefit of practicing CSR in their bottom lines. European

countries are now seriously engaged in this concept on different levels and even in

interpretation of how the concept works.

Therefore, Shell believes that people matter to your Company. So, company’s sense of

economic, social and environmental responsibility is reflected in its commitment to meeting

today’s needs without compromising the ability of future generations to meet their needs.


Furthermore, in nowadays sustainable development does not just involve environmental

preservation and social concern; it must also take into account economic performance. In

order to sustain a healthy bottom – line, we must exhibit strong environmental and social

performance.

2.2.1 CSR IN THE MARKETPLACE

Shell has been prominent in the development and promotion of CSR activities, having made

significant investments in initiatives that address various social issues. Shell reported

expenditures of USD 96 million in 2006 on business integrity programs, while social

investment topped USD 140 million. In the same year, the company shelled out USD 37

million for employees and contractors' health and safety benefits.

The Summit has been designed to facilitate the development of CSR in different

organizations by providing the right tools for various business needs, helping track new

trends and setting up benchmarks in effective CSR program management. With its global

participation, the event will also help position CSR in the market and highlight how CSR

activities can best contribute to the community and environment, particularly on issues

related to global warming and climate change. Other topics of the Summit are CSR's impact

on business, building credibility through effective CSR reporting, implementing CSR

strategy, and the correlation between CSR and financial performance.

"The long – term economic benefits of investing in CSR initiatives are now widely

appreciated and practiced in different sectors. Top executives and corporations have realized

that creating a culture of social and environmental responsibility within the organization can

enhance credibility, strengthen client loyalty and attract new customers or investors. Shell is

proud to be a leading international figure in this aspect in the Middle East and other parts of

the world. It has been Shell’s mission to continue to innovate and fine tune our CSR

programmes being a concerned and proactive member of the society," said Al Qurashi (nd).

Studies showed that about 94 percent of company executives believe that development of

CSR can deliver real business benefits, even as one of three international executives thinks

that social responsibility initiatives increase sales performance. Also, 71 percent of CEOs

said that they are willing to sacrifice short – term profitability for long – term shareholder

value when implementing sustainability programs.


2.2.2 CSR IN THE WORKPLACE

Shell, undoubtedly, has contributed immensely to the economic growth of Nigeria and

contributed to the development of local communities in its areas of operation. As a major

employer of labour, about 12,000 persons (skilled and unskilled) are employed in Shell’s

activities. Perhaps the greatest evidence of Shell’s CSR activities is in its community

development programmes in the local development programmes, Shell contributes to the

development of education. It does so by giving scholarships (primary, post – primary and

university) to local people, building classrooms, providing equipment and sometimes paying

the allowances of post – primary school teachers. For some communities, training in basic

skills – craftsmanship, joinery, mechanics, tailoring, etc – for indigenes is provided or

sponsored by Shell (Shell, nd).

Shell Bulgaria has biannual Shell People Survey to measure employees’ attitude and

satisfaction. There is a policy of open internal re – sourcing that gives opportunity to every

employee to apply for jobs within the Shell Group of Companies for all businesses across the

world, based only on competency requirements (Shell, nd).

There are different programs focused on upgrading individual skills – for example, people

management skills, change management, recognizing and encouraging a culture of

appreciation and enabling individual effectiveness.

Shell Bulgaria offers opportunities for its employees, both from head offices and its retail

network sites for training and development. Shell Bulgaria also implements new and

contemporary ways of working, such as flexible working hours, home based work and virtual

team work.

2.2.3 CSR IN THE ENVIRONMENT

Cleaner Air: It is a known fact that burning fuels cause air pollution. Shell is trying their best

to reduce the emissions of local pollutants from their factory operations and help their

customers to reduce emissions by offering cleaner transport fuels, lubricants and cleaner fuels

and innovative technologies for electricity generation (Shell, nd).


Based on improved technology and tougher regulations, the company has managed to reduce

local pollution in the past 20 years. But further reductions are desperately needed in the

future, especially in congested cities of the developing world (Shell, nd).

It is a must to reduce the emissions of local pollutants – like nitrous oxide (NOx), sulphur

dioxide (SO2) and volatile organic compounds (VOCs) – from company’s factory operations.

Shell has invested heavily to improve their facilities, factories, installed cleaner – burning

equipment and SO2 capture technology, for example:

Air monitoring at Motiva Enterprises, LCC in USA (Shell joint venture with Saudi

Refining Inc that refines distributes, and markets oil products in the eastern and

southern USA).

Emissions update if SAPREF refinery at South Africa (50/50 joint venture between

Shell SA Energy and BP Southern Africa) (Shell, nd).

By this action, Shell finally reduced their total SO2 emissions from operations by over 40%,

reduced VOC emissions by over 70% and cut NOx emissions by over 20% between 2000 and

2009 – despite using more energy to refine cleaner lower sulphur fuels (Shell, nd).

Reducing Water Use: The energy sectors is becoming more concerned about water because

water has become scarcer globally. The latest advanced technologies are helping Shell

companies to reduce the amount of water they need to spend in their daily operations (Shell,

nd).

In some of the countries, fresh water is reserved and being used up or polluted faster than

they can be replenished. From now until 2050, the world’s clean water resources will become

limited due to population growth (Shell, nd).

Oil and gas operations use huge quantities of water, leading to issues in water stressed areas.

Growing crops to make biofuels and mining bitumen from oil sands are water intensive. In

Year 2009 Shell operations used around 198 million m3 of fresh water, down from 224

million m3 in 2008 (Shell, nd).

The company is working on how to reduce the water usage through the implementation of

new technologies. For example, Their Pearl GTL plant, which will convert natural gas to


liquid products, has been designed to take no fresh water from its arid surroundings (Shell,

nd).

At the SAPREF refinery (Shell share 37.5%) in South Africa, they have been using recycled

household water, and similarly at their Clyde refinery in Australia. Moreover, Shell also has

launched a campaign to conserve water. In the Netherlands, the Schoonebeek project will

reuse municipal wastewater to make steam (Shell, nd).

In Oman, Shell is trying out using reed beds to clean water produced with oil. This action

saves the energy needed to pump water back into the ground and the local community can

reuse the water for crops.

Animal Testing: Shell recognises the dilemma of balancing potential animal suffering and the

need for the testing (needed because of the lack of a reliable alternative to ensure that new

products are safe for people and the environment). Shell is working to reduce the number of

animals used to test their products, to make test methods as humane as possible, and to

replace animal tests wherever possible (Shell, nd).

The basic approach in this area is governed by the 3Rs which is Reduce, Refine and Replace:

Reduce: Reduce the number of animals used in product safety testing, without compromising

safety, working with other companies whenever possible and by sharing of results.

Refine: refine test methods to make them as humane as possible. In tests they commission

mainly use laboratory – bred rats, mice and fish and do not involve cats, dogs or monkeys.

Furthermore, they also commission safety testing only at licensed or accredited research

facilities. Laboratories must also comply with the internationally accepted operating

principles of good laboratory practice.

Replace: Replace animal tests with alternative methods wherever possible. Shell never

commission animal testing where there are other reliable establishing the safety of products.

They belong to several organizations that promote the development of new animal – free

testing methods: for instance, the Fund for the Replacement of Animals in Medical

Experiments in the UK and the Centre for Alternatives to Animal Testing in the USA (Shell,

nd).


A team of external experts, assisted by Shell representatives will review and comment on

their animal testing standards, management processes and progress, their aim been to reduce

the amount of animal testing (Shell, nd).

2.2.4 CSR IN THE COMMUNITY

Protecting People from HIV/AIDS: Shell companies not only supply energy, but the company

also address social concerns. The company is genuinely helping communities and at the same

time building its brand awareness amongst them. Therefore, Shell is working to helping

protect people from HIV/AIDS and to slow its spread (Shell, nd).

Shell companies are also taking actions to protect their employees and their customers,

suppliers and contractors from HIV/AIDS, to care for those infected and working with

partners to fight the spread of HIV. Their HIV/AIDS program means that they will not

discriminate against anyone who was affected by HIV/AIDS. Not only that, the program also

includes providing or arranging medical treatment for employees who affected by HIV/AIDS,

as well as participating in education and prevention program for employees and their families

(Shell, nd).

In addition, company look forward to enhance long – term relationships going forward with

relevant local and global organizations or other companies to fight the HIV/AIDS epidemic

together, usually, in the places where their business operations take place (Shell, nd).

Support and Finance in Nigeria: Shell companies in Nigeria support on finance a wide range

of community developments initiatives in the Niger Delta to bring benefits to local

communities where they operate. The most important contribution Shell companies in

Nigeria make to society are through the money they pay to the federal government

(approximately $39 billion in taxes and royalties from 2005 – 2009). These funds can be used

by federal government to promote development in the country, reduce the poverty rate and

support economic growth (Shell, nd).

In year 2009, the operations run by the Shell Petroleum Development Company of Nigeria

(SPDC) contributed a further $57.7 million (Shell share $18 million) to community

development projects focusing on a diversity of activities such as to promote and support


small businesses, developing agriculture, skills training, education, healthcare, micro lending

and capacity building (Shell, nd).

Respecting Human Rights: Shell Companies believe in the support of fundamental human

rights in line with the legitimate role of business. Shell’s General Business Principles include

respecting the rights of their employees and to support fundamental human rights in line with

the legitimate role of business. They work to achieve this by training their staff, as well as co

– operating with governments and other organizations (Shell, nd).

Shell look for direct ways to support human rights that relate to their business activities, by

encouraging and helping governments to improve their human rights. For example, Professor

John Ruggie, the UN special representative on business and human rights, as he seeks to put

into practice a framework whereby governments should protect human rights and business

should respect the human rights.

Furthermore, they respect the rights of those working for them in line with the International

Labour Organization Declaration on Fundamental Principles and Rights at Work, including:

• Freedom of Association – employees can join a union wherever permitted by national law

• Freedom from discrimination in the workplace, through equal opportunities.

• Freedom from forced labour

• The abolition of child labour (Shell, nd).

3.0 PETRONAS GAS BERHAD, MALAYSIA

3.1 COMPANY’S PROFILE

PETRONAS or Petroliam Nasional Berhad, was incorporated on 17 August 1974 under the

Companies Act, 1965. It is entirely owned by the Malaysian government and is vested with

the entire ownership and control of the petroleum resources in Malaysia through the

Petroleum Development Act 1974 (PETRONAS Annual Report, 2008).


http://www.shell.com/home/content/aboutshell/who_we_are/our_values/sgbp/

PETRONAS Gas Berhad or PGB was incorporated in 1983 and is headquartered in Kuala

Lumpur, Malaysia. PETRONAS Gas Berhad is a subsidiary of Petroliam Nasional Berhad.

The company engaged in separating natural gas into its components and storing, transporting

and distributing such components thereof for a fee and the sale of industrial utilities. The

Company's Plant Operations Division (POD) operates six gas processing plants (GPPs) in

Kertih and Paka in Terengganu, with sales gas production capacity of 2,060 million standard

cubic feet per day (mmscfd) and an additional standby units capacity of 750 mmscfd

(PETRONAS Gas Berhad, 2010).

PETRONAS Gas Berhad has also invested in pipeline operations in certain overseas

locations, including Argentina, Australia, Indonesia and the Malaysia-Thailand Joint

Development Area (MTJDA). Since the company has strongly involved with environment

and corporate social responsibility, therefore PGB’s CSR practices in considered as one of

the best in Malaysia.

3.2 PETRONAS GAS AND CORPORATE SOCIAL RESPONSIBILITY (CSR)

3.2.1 CSR IN THE MARKETPLACE

In the interview, a representation of the company, Mr. Norman Ismail has mentioned that the

main focus of the company CSR activities have been human capital development and

education. PETRONAS Gas Berhad or PGB stated in its annual report of 2010 that after

operating business together in over 26 years, the company has dedicated itself to do business

the responsible way in its efforts to create value for its shareholders, customers, suppliers,

industry as well as regulators. Therefore the management and staff have a duty to maintain

the ideology of professionalism, integrity, transparency and fairness in every single business

aspect they involve and not limited itself to be a good corporate citizen in the marketplace

(PETRONAS Gas Berhad Annual Report 2010).

CR in Contributing Knowledge and Resources

The Company had participated in numerous international conferences during the financial

year in order to acknowledge and share the information of the latest technology as well as the

best practices from industry players around the world. The 14th Asia Oil and Gas Conference

with the theme of “Collective Approach in the New Paradigm” which focused on the issue of


ensuring energy security and continuous supply of gas amid continued geopolitical instability

and heightened security concerns in key oil and gas producing regions, was held in Kuala

Lumpur in 7 – 9 June 2009. The 24th World Gas Conference with the theme of “The Global

Energy Challenge: Reviewing the Strategies for Natural Gas” that focused on the strategies

for continued growth and development of natural gas as the fuel of choice, was held in

Buenos Aires, Argentina from 5 – 9 October 2009. These conferences are considered as one

of PGB’s most notable efforts in the company’s CR practices in marketplace (PETRONAS

Gas Berhad Annual Report 2010).

Moreover, PGB is a member of the Malaysian Gas Association or MGA and became its

MD/CEO on its council. PGB continuously support and subsidize MGA to advance

knowledge of gas technology and promoting safety practices. MGA also tries to stimulate the

development of the gas industry in Malaysia and improve the public understanding on the

role of gas energy in the nation. The company has participated in some of MGA activities

such as:

Practical Environmental, Safety and Industrial Guidance for Student Engineers. The event

held in Equatorial Hotel, Melaka at 27 and 28 March 2010 and it purpose to educated

engineering degree students from the Universiti Teknologi Malaysia (UTM) and the

Universiti Teknikal Malaysia Melaka (UTeM) about the Company’s operations of safety and

health and its impact to the environment.

MGA Tea-Talk of ‘Iraqi Petroleum Potential & Opportunities’. The event held in Malaysian

Petroleum Club, Kuala Lumpur City Centre at 25 February 2010, to recognize business

opportunities in Iraq and engaged in networking activities with Iraqi Businessman Union or

IBU.

Technical Visits to Gas Plants and Facilities in Bintulu and the Bakun Hydro Dam Project

Site at 15-16 December 2009 to provide in viewing and gaining knowledge on the overall

operations of the gas plant and facilities of MLNG, Shell and Murphy Oil.

Industry Dinner 2009 at 13 November 2009 in Kuala Lumpur Convention Centre to create

stronger connection within the MGA members towards beneficial and profitable cooperation

in the gas industry.

MGA FORUM ‘Malaysian Natural Gas Industry Outlook - Opportunities & Challenges’ in

The Westin Hotel, Kuala Lumpur at 14 May 2009 to discuss the related issues of the utility of

gas resources, gas pricing, domestic gas supply and demand situation (PETRONAS Gas

Berhad Annual Report 2010).


CR in Commitment to Product and Service

The company is committed in the quality of product and service. It is shows that the

company’s reliability reports for sales gas, ethane, propane and butane for the financial year

are at 99.7%, 99.0%, 99.0% and 99.0% respectively (PGB Annual Report, 2010).

Moreover, PGB’s gas transmission business through the Company’s Peninsular pipeline

network continues to continue significant system reliability and system availability records of

99.97% and 99.84% respectively for the year ensuring secure and continuous flow of gas to

end customers throughout Malaysia. The utilities business has also been presenting

remarkable results. Product delivery reliability for electricity, steam and industrial gases for

the year under review are at 99.5%, 99.3% and 99.9% respectively (PGB Annual Report,

2010)

These results were achieved while PGB continue to develop the highest level of

environmental standards and safety, which will be elaborated more in the company’s CR in

the Workplace and CR in the Environment.

PETRONAS Gas Berhad to Costumer and Shareholders

The company continues to find and carry out efforts to improve it self in order to deliver

world – class services and products under the Company’s vision and mission to its customers.

Under these improvements, the company is looking at using technology to customer

advantage as the company prepares to automate its billing generation and meter reading

functions to improve accuracy. During the financial year, the company has conducted

knowledge sharing sessions with international pipeline transporters namely N.V. Nederlandse

Gasunie and International Gas Union with the objective of evaluating their respective

business models in search of a best practice model most suited for the company as well as to

benefit its customers (PETRONAS Gas Berhad Annual Report 2010).

Moreover, PGB stated in its annual report that the company is committed to delivering strong

earnings to its shareholders and achieving sustainable long term shareholders’ value guided

by the company’s vision and mission. The company’s executives made and maintain the

strategies and business decisions, which guided by exemplary corporate governance


practices, shall be the best interest of the shareholders. The company believes that it is

important for shareholders to view the Company as a safe investment with stable earnings,

therefore to have better understanding of PGB business, the company has arranged a series of

shareholder visits to the company’s Centralized Utility Facilities in Pahang on 17 August

2009 and Gas Processing Plants in Terengganu on 2 November 2009 and 19 November 2009


3.2.2 CSR IN THE WORKPLACE

For the many years, PETRONAS Gas Berhad (PGB) has been greatly paying certain attention

and emphasizing on its human capital. And in fact, as it was mentioned in interview that the

company believes that the real involvement in the improvement in staff’s skills enables the

company and PETRONAS to increase productivity and efficiency (2011). Basically, people

share the common spirit of being ‘Together as One’. The company has been building and

enhancing its workforce only with the correct capabilities, competencies and leadership

skills.

Encouraging the Learning Environment

The Company has been investing in developing the functional and leadership developments

of its workforce by providing various programmes to enhance their working skills. These will

lead to the PGB’s achieving greater success and allowing it to identify opportunities and take

them (PETRONAS Gas Berhad Annual Report 2010).

The PETRONAS Accelerated Capability Development (ACD) has been run by the Company

for the last two years. ACD has the coaching plan that allows the company to assess and to

monitor the staff’s competency gaps. After every company’s training program, it is supported

by regular competency staff’s checks, ensuring that all the important and critical skills are

being utilized, maintained and constantly improved, and shared with the rest of the

workforce. Usually, ACD assessments are run annually together with other assessments,

where are staff are required to attain certain levels of competency before being promoted to

the next level of management (PETRONAS Gas Berhad Annual Report 2010).


PGB also provides a programme called Career Enhancement Opportunity (CEO) which gives

opportunities to new exposures, experiences and challenges for the staff within as well as

outside the company. The CEO approach provides opportunities to the groups of junior

engineers as well as experienced technicians to expand their experiences, share their

knowledge and gain new experiences in a external working environment within PETRONAS

Group of Companies, usually overseas (PETRONAS Gas Berhad Annual Report 2010).

For the PETRONAS Company, the training programmes are very critical and relevant,

because they want to ensure genuine and worthwhile development of capabilities and

leadership values. It was reported, the company conducted 29,038 training days, which in

average was 13 training days per employee. The fundamental basis of the training

programmes is to enhance workforce’s skills, focusing on health and safety, and leadership

trainings. These programmes were conducted using different methods; the traditional

teaching method (classroom learning), on – the – job trainings and now eLearning. Every

employee must attend all the required compulsory training days, and at least one online

eLearning module. PETRONAS eLearning comprises of numerous modules of self –

learning; and it was stated that all 2,184 employees completed 2,803 modules within a year. It

was proved that eLearning is one of the most effective methods that encourage staff to

improve themselves without following the traditional teaching methods (PETRONAS Gas

Berhad Annual Report 2010).

The PETRONAS Staff Development Programme (SDP) gives financial support as an

encouragement and reward to potential and deserving employees to upgrade their education

levels in related fields. Employees not only contribute their best to the Company thereafter,

but also share fresh ideas and knowledge with their colleagues (PETRONAS Gas Berhad

Annual Report 2010).

Planning for the Future Leaders

It was recorded that the staff mobility within last year was 25.5% which characterised the

staff relocation within the Company and throughout the PETRONAS Group. Staff mobility is

crucial for the Company, as it helps to create competitive advantages in enhancing skills in

different areas. It is the Company’s responsibility to ensure and long – term succession for

the sustainability of the business (PETRONAS Gas Berhad Annual Report 2010).


PETRONAS’ the Building Leadership Programme (BLP) is the main platform that helps to

select and educate potential leaders for the Company. Today, there are 87 potential leaders

who have been chosen across the Company; and they are put through intensified development

programmes, coaching etc (PETRONAS Gas Berhad Annual Report 2010).

The main aim of PETRONAS’ Emerging Leadership Programme (ELP) is to help up – and –

coming supervisors with leadership tools and techniques to transform into effective leaders.

PETRONAS not only stress on certain leadership programmes, but they also believe in self

motivation. This has been always impressed upon these potential leaders, leading to many

sessions to educate employees to achieve personal and business goals and objectives


Staff Engagement and Management Commitment

PETRONAS tries to maintain the harmonious working environment at all times and this

depends on constant employees’ communication, interaction and engagement. Many of the

engagement sessions with the employees were conducted in business locations in order to

provide transparency and this was made available to all level of employees, focusing on the

Company’s performance and current business achievements. Last year, PETRONAS

conducted 52 formal engagement sessions, many more informal sessions by providing

opportunities for the employees to share their views, ideas and concerns about the Company.

It is clear that all the communication and engagement activities will not be effective without

the staff’s support (PETRONAS Gas Berhad Annual Report 2010).

A Healthy Workforce is a Productive Workforce

PETRONAS has been encouraging its employees to adopt and to follow a healthy lifestyle.

Last year, the Company ran the ‘Stop Smoking’ and ‘Weight Management’ programmes.

However, employees also take own initiatives to do different types of activities, exercise

sessions (from indoor bowling to treasure hunts and even outdoor aerobics). All this will lead

to the more balanced working environment (PETRONAS Gas Berhad Annual Report 2010).


It is a must for the Company to ensure that all its employees stay healthy, therefore all staff

and their family members are provided with good medical care. When the H1N1 pandemic

case took a place, the Company continuously undertook preventive actions for all the staff, by

advising them on the prevention and management of the spread of H1N1. An Emergency

Response Procedure (ERP) was prepared by the company in order to make sure that the

readiness of the employees in dealing with the pandemic (PETRONAS Gas Berhad Annual

Report 2010).

The ‘Al – Falah’ programmes that has been run for the second year, is to make sure that all

employees have healthy physical, emotional and psychological conditions. There were done a

total of 18 sessions and 357 employees attended it during its second year.

The Health Risk Assessment (HRA) programme covers employees’ health risks which arise

from the Company’s operations. There are five critical risks, which are hazardous chemicals,

physical (noise, vibration, thermal stress, radiation and pressure), ergonomics, biological and

psychosocial (PETRONAS Gas Berhad Annual Report 2010).

Charting the Way Forward

PETRONAS Gas Berhad is continuously emphasizing on the development of its workforce,

as they believe that it will ensure the Company’s future growth, operational success and its

strong relationship with the stakeholders going forward. Long – term success is dependent on

effective human capital development (PETRONAS Gas Berhad Annual Report 2010).

3.2.3 CSR IN THE ENVIRONMENT

Based on the interview, Petronas Gas Berhad (PGB), the company has always been fully

aware of protecting the environment by emphasizing the conservation and preservation of the

environment. In order to continue sustaining its business operations in a sustainable manner,

PGB believe that there always be a balancing act to play between the organization’s

resources, its Health, Safety and Environment (HSE) system and the environment. PGB keep

the pace on the developing the HSE practices with the PGB Health Safety and Environmental

Management System (HSEMS). It is a set of control parameters that is used to proactively

manage all the HSE hazards and consequences, which are associated with the business


activity and to provide assurance to all stakeholders that HSE risks in the business are being

managed to a level that is as low as reasonably practicable (PETRONAS Gas Berhad Annual

Report, 2010). In the process of developing of balancing between business activities and

being responsible to the environment, PGB do not only advance the HSEMS, but also

management of schedule wastes, minimizing black smoke flaring and greenhouse gas (GHG)

emission to guarantee that the Company is operating in safe and clean environment and to

meet the term to the legal and business requirements. In addition to that, from the interview,

we found that in order to reduce the damage to the environment PGB introduce the NGV in

the local market by promoting the greater benefit of the use of natural gas in homes and

factories.

In 2009, PGB and Mitsubishi Corporation had jointly formed the Clean Development

Mechanism (CDM) Workshop that was planned to converse on the process and requirements

for CDM. CDM is an arrangement under the Kyoto Protocol that allows industrialized

countries with GHG reduction commitment to invest in projects that reduce emissions in

developing countries as an alternative to more expensive emission reduction initiatives in

their own countries (PETRONAS Gas Berhad Annual Report, 2010). Based on the interview,

we found out that in order to demonstrate the concern for the environment PGB focus on

technology to produce additives to gasoline/petrol to reduce the fumes. Not only producing

additives to gasoline, the technology is also used to help emphasizing on the importance of

scheduled waste management by using e – POWERS (PGB Waste Request System), a system

that uses electronic notification in managing scheduled wastes request (PETRONAS Gas

Berhad Annual Report, 2010).

3.2.4 CSR IN THE COMMUNITY

Program BAKTI Pendidikan PETRONAS (PBPP): During the interview, Mr. Norman Ismail

has stated that the company acknowledges the need of community CSR practices. He

mentioned that the implementation of the company’s commitment to community involvement

in the CSR activities could be seen from numerous students who have benefited from the

program BAKTI Pendidikan PETRONAS and many of national consumer campaign

engagements. Mr. Norman Ismail said that it is important for the company and PETRONAS

to demonstrate its gratitude toward people by implementing its commitment to CR practices

in the community (PETRONAS, nd).


Program BAKTI Pendidikan PETRONAS (PBPP) is a program which involves interaction

activities with the local authorities, public awareness programs and other social responsibility

programs. PBPP itself is a structured and integrated long – term education programs focusing

on marginally performing school children. Moreover, it is considered that PBPP is an avenue

where the Company participates with the objective of encouraging academic excellence

amongst intermediate students. PETRONAS Gas initiated the program in 2002, with support

and involvement by the Company since 2006 (PETRONAS Gas Growth Annual Report,

2008).

Under the PBPP program, PETRONAS Gas has adopted three schools, which are Sekolah

Kebangsaan Santong in Paka, Terengganu, Sekolah Kebangsaan Kemasik in Kemasik,

Terengganu and Sekolah Kebangsaan Pinang Tunggal in Kepala Batas, Pulau Pinang. There

are around 560 students who have advantaged from these three schools. The fourth and latest

one is Sekolah Kebangsaan Batu Anam in Segamat, Johor that was successfully adopted on 4

July 2010.

Apart from academic activities and achievement, the students were also taken for yearly

educational field trips to PETRONAS’ experiential learning facilities such as PETROSAINS,

Aquaria, PETRONAS Twin Towers, KLCC Park and Sepang International Circuit.

Moreover, as recognition for the students’ overall achievements and to acknowledge their

efforts in achieving outstanding results and demonstrating significant improvements at

school, the Company has organized an annual prize giving ceremony (PETRONAS Gas

Growth Annual Report, 2008).

The remarkable achievement of the students under PBPP can be seen from the 80 students

that were involved in the PBPP, which passed the UPSR or Ujian Penilaian Sekolah Rendah

examination. There are 92% of students who passed the examination of which 16 students

achieved 5As whilst 20 students scored 3As and more. This is a considerable improvement in

comparison with 2008 result, with higher number of students obtaining 5As compared to

previous year. The Company’s efforts in supporting the PBPP was once again known due

identification at national level where PGB was short – listed for the Star Biz-ICR Malaysia

Corporate Social Responsibility Award under the Community Category (PETRONAS Gas


Corporate Social Responsibilities: Since the company has committed itself to continue

various activities in corporate social responsibilities in wide range of related actions. The

company tries to give motivation and moral support to orphans and the underprivileged. Due


to this purpose, the Company has organized various charitable activities, which demonstrated

their concern and empathy towards the less fortunate. The Company took the opportunity

during PGB Sukan 4 Penjuru and Head Office Family Day to visit orphanages in the area and

contributed towards the improvement of the place. During the Ramadhan fasting month, we

invited orphans and also students from the Program Bakti Pendidikan PETRONAS to break

fast and at the same time contributed towards their preparation for the upcoming Aidilfitri

(PETRONAS Gas Growth Annual Report, 2010).

PETRONAS Gas’s senior management and staff, together with their family members

contributed their personal time, energy and money for these CSR activities. The “Ownership,

Unit, Relationship and Satisfaction” (OURS) program is one of the most popular programs in

the Company and it has achieved its objective in providing the ownership mindset to the

employees and their family members. During the program, opportunities are provided for

employee’s family members to observe workplace environment and also experience an

overview of the Company’s operations (PETRONAS Gas Growth Annual Report, 2010).

There is a total of 60 CSR activities were carried out with the communities in the area where

the Company operates. These activities are concerned on the physiological and motivation

activities, which are mainly focused on improving the welfare of single mothers and the

under privileged. It is recorded in PETRONAS Gas annual report that the total amount

contributed by Senior Management and staff is around RM93,516 in year 2010(PETRONAS

Gas Growth Annual Report, 2010).

Other Stakeholders Engagement: In addition, the company has created public awareness

programs to engage with the local communities within the area of its facilities and plants.

Through these activities, the company was able to create awareness of how important the

preventive and safety control measures, which need to be carried out along with the

company’s pipeline route. Project Sungai Angkat at Gas Processing Plant (GPP) and The

Company’s involvement in Sabah-Sarawak Gas Pipeline (SSGP) Project is named as some of

various activities under this program (PETRONAS Gas Growth Annual Report, 2010).

The Company also creating awareness to the public of how to activate the emergency

procedures in order to anticipate for unexpected situation occurs. This public awareness

program is a joint effort between the Company and relevant local authorities such as FRDM,

representatives from the Municipality Council and Land Department (PETRONAS Gas



The Company has recognizes the importance of building and developing good relations with

relevant local authorities and public media to endorse better understanding of its business.

The Company was also able to understand the regulatory requirements of the different

agencies through this good relationship, such as activities to encourage the correlation

including plant visits, sporting activities and regular engagement sessions (PETRONAS Gas


The company’s business partners are another similarly important group of stakeholders.

PETRONAS Gas maintains to intensify its correlation with its suppliers throughout the

annual Contractors Forum. 2010 is the fifth year that the forum has been designed with the

purpose to improve efficiency in supply chain management in order to support the company’s

operations. Open discussion between the Company and its suppliers will be held in the forum

purposely to facilitate effective working relationship (PETRONAS Gas Growth Annual

Report, 2010).

Discussions with suppliers on issues and areas for improvement were also conducted during

the forum. Moreover, the forum was used as a channel to identify which suppliers who have

implemented excellent Health Safety and Environment practice or which one who stand out

in their provision of product delivery and services. This has motivated the suppliers to

provide the best quality of products and services at the same time and to constantly improve

their performance (PETRONAS Gas Growth Annual Report, 2010).

4.0 COMPARISON OF SHELL AND PETRONAS GAS BERHAD

Nowadays, there are many more international companies that strongly focus on their CSR

programmes. The international market’s conditions have been constantly changing, and in

order to maintain and grow their business, many companies must implement strategic tools,

and one of them is companies’ CSR involvement. Companies like Shell and PETRONAS Gas

Berhad are also emphasizing on their CSR involvement in order to maintain their position in

the international market place by covering several major dimensions, including marketplace,

workplace, environment and community.


Shell is one of the most well recognized companies around the world. The company’s

involvement in CSR activities had been and still is very significant. And, it has been covering

all major CSR dimensions, such as marketplace, workplace, environment and community.

Firstly, talking about marketplace, Shell have positioned their CSR programmes as a one of

the major factors that can contribute to the community and environment, as well as

identifying the true impact of CSR on business operations. Shell will gain real benefits by

being involved in CSR programmes in the long – run by creating and enhancing a culture of

social and environmental responsibility within the organization that will lead to the stronger

market credibility, strengthen client loyalty and attract new customers and investors. And

some of the executives believed that CSR initiatives can increase sales.

Secondly, the Company has been contributing to the development of local communities,

basically, in its areas of operations. The main contribution has been in developing of

education, re – sourcing opportunities to apply for jobs within the Shell Group of Companies

worldwide. Also, there are many different programmes have been provided focusing on

upgrading individual skills, employees skills.

Thirdly, the main Shell’s contribution in environmental CSR dimension is covering areas

such as reducing air pollution, reducing water usage and going against of animal testing.

Last but not least, there are several critical CSR programmes have been run by Shell by

covering community. The Company has been trying to protect its staff from HIV/AIDS, to

support financially the local communities where the company operates and emphasizing and

respecting human rights.

On the other hand, PETRONAS Gas Berhad, it is clearly stated in the central company of

PETRONAS’ Mission Statement, which has four main objectives, and one of them is

to “contribute to the well – being of the people (of Malaysia) and the nation”. That is shown

that CSR programs, which covered marketplace, workplace, environment, and community,

have become one of the major concerns of PGB as well. PGB has won three awards at the

2009 Prime Minister CSR Awards, for BEST OVERALL CSR PROGRAMME, BEST

EDUCATION PROGRAMME and BEST CULTURE AND HERITAGE PROGRAM.

First, related to the marketplace, in order to contributing knowledge and resources, PGB has

participated through numerous of conferences, which purposely to sharing the information of


the best practices in the industry around the world. PGB is also a member of the Malaysian

Gas Association or MGA that concern to stimulate the development of the gas industry in

Malaysia. Moreover, the company is committed to delivering strong earnings to its

shareholders and achieving sustainable long-term shareholders’ value by keep performed the

business excellently.

Second, about the workplace, PGB has created The PETRONAS Accelerated Capability

Development (ACD), Career Enhancement Opportunity (CEO), and The PETRONAS Staff

Development Program (SDP) in order to encourage the learning environment. PETRONAS’

the Building Leadership Program (BLP) and PETRONAS’ Emerging Leadership Program

(ELP) are programs under PGB’s plan for the future leader. The ‘Al – Falah’ programs and

The Health Risk Assessment (HRA) are created by PGB to built A Healthy Workforce as

well as Productive Workforce.

Third is related to environment, PGB keep the rate on the developing the Health Safety and

Environmental (HSE) practices with the PGB Health Safety and Environmental Management

System (HSEMS). Moreover, under the management of schedule wastes, minimizing black

smoke flaring and greenhouse gas (GHG) PGB make sure it operating its business in safe and

clean environment.

Fourth, about the community, PGB has strongly engaged with education area through

Program Bakti Pendidikan PETRONAS (PBPP), which provided to opportunity to learn more

about how the Company progressively, proactively and positively contributes to the society.

The company also organized many social events of its senior managements and staffs’ family

as well as charitable activities with orphans and underprivileged. Moreover, PGB also

creating public awareness programs to engage with the local communities within the area of

its facilities and plants.


5.0 CONCLUSION AND RECOMMENDATION

To summarize, we all know that environmental problems issues has become a major

consideration not only for government, society, but also in the business world. Many

companies have been trying to participate “taking care” of the environment by using CSR as

one of their business activities. However, CSR do not only to take care of environment, or so

called “green”, but it is more to consider bigger picture of your internal business activities to

the stakeholders, get involve to every business day-to-day activities. Both companies, Shell

and PETRONAS, put CSR as an integral part of their business activities. Marketplace,

workplace, environment and community are addressed to be the four major concerns of the

CSR activities of both companies.

Royal Dutch Shell plc, as we have read before, put CSR in an important place at their

business strategies. Corporate Social Responsibility (CSR) turned out to be a vital strategy for

companies to survive in a ruthless market environment. In a condition where markets’ shift

and customers’ preferences become more unpredictable and complex, adopting CSR strategy

could be a powerful tool for survival. Shell has been prominent in the development and

promotion of CSR activities, having made significant investments in initiatives that address

various social issues by spending millions of USD for CSR. Shell’s main contribution in

environmental is covering areas such as reducing air pollution, reducing water usage and

going against of animal testing. Shell also have special attention to the community by

providing program to protect their employees from HIV/AIDS, which mainly come from

Africa, and also supporting the local communities financially and emphasizing and respecting

human rights.

Different with Shell, PETRONAS has seen CSR as one of their business practices once they

were incorporated. It is clearly stated in the central company of PETRONAS’ Mission

Statement, which has four main objectives, and one of them is to “contribute to the well –

being of the people (of Malaysia) and the nation”. Since CSR is one of the company’s basis,

PETRONAS have been rapidly developing CSR practices in the 4 dimensions of CSR. With


strong and success CSR performances, PETRONAS get several achievement for BEST

OVERALL CSR PROGRAMME, BEST EDUCATION PROGRAMME and BEST

CULTURE AND HERITAGE PROGRAM.

As CSR has become one of vital strategies for world business corporations, it is a very wise

decision to adopt CSR into our business activities, where majority of Asian companies still

do not apply it to their business. Meanwhile, most of European companies have been palcing

CSR as an integral part of their business. CSR will not only help the environment from

destructed, but also help the company itself to be more productive and give good image to the

society. By adopting one of CSR guidelines, a company will be able to manage and monitor

their CSR activities effectively, and it also helps a company to report their activities to the

public in order to show company’s social integration and environmental concerns in their

business operations.


REFERENCES

Shell (nd) ‘Cleaner Air’, Shell, Official Website, (online) (cited 23 March 2011). Available

from:

http://www.shell.com/home/content/environment_society/environment/air/

Shell (nd) ‘Reducing Water Use’, Shell, Official Website, (online) (cited 23 March 2011).

Available from:

http://www.shell.com/home/content/environment_society/environment/water_use/

Shell (nd) ‘Environment’, Shell, Official Website, (online) (cited 23 March 2011). Avalable

from:

http://www.shell.com/home/content/environment_society/environment/

Shell (nd) ‘HIV and AIDS’, Shell, Official Website, (online) (cited 23 March 2011). Avalable

from:

http://www.shell.com/home/content/environment_society/society/hiv_and_aids/

Shell (nd) ‘Social Performance’, Shell, Official Website, (online) (cited 23 March 2011).

Available from:

http://www.shell.com/home/content/environment_society/society/nigeria/

social_performance/

PETRONAS (2010) ‘CSR Activities’, PETRONAS Gas Berhad Annual Report 2010

PETRONAS (2008) ‘Corporate Social Responsibilities’, PETRONAS Gas Growth Annual

Report 2008’, (online) (cited 31 March 2011). Available from:

http://announcements.bursamalaysia.com/EDMS/subweb.nsf/

7f04516f8098680348256c6f0017a6bf/ef9f7340ecdcb8cd48257479002cba71/$FILE/

PETGAS-AnnualReport2008%20(2.6MB).pdf


http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/ef9f7340ecdcb8cd48257479002cba71/$FILE/PETGAS-AnnualReport2008%20(2.6MB).pdf



http://www.shell.com/home/content/environment_society/society/nigeria/social_performance/

http://www.shell.com/home/content/environment_society/society/nigeria/social_performance/

http://www.shell.com/home/content/environment_society/society/hiv_and_aids/

http://www.shell.com/home/content/environment_society/environment/

http://www.shell.com/home/content/environment_society/environment/water_use/

http://www.shell.com/home/content/environment_society/environment/air/

PETRONAS (nd) ‘Program BAKTI Pendidikan’, PETRONAS, (online) (cited 31 March

2011). Available from:

http://www.facebook.com/pages/Program-Bakti-Pendidikan PETRONAS/144730136013?

v=app_2347471856

NORWAY (2011) ‘Corporate Social Responsibility in Malaysia’ NORWAY, The Official Site

in Malaysia, (online) (cited 31 March 2011). Available from:

http://www.norway.org.my/News_and_events/Business/Bedriftenes-Samfunnsansvar/

CSR (2008) ‘What is Corporate Social Responsibility (CSR) and Sustainable Business?’

Simply CSR, (online) (cited 31 March 2011). Available from:

http://www.simplycsr.co.uk/definition-of-csr.html


http://www.simplycsr.co.uk/definition-of-csr.html

http://www.norway.org.my/News_and_events/Business/Bedriftenes-Samfunnsansvar/

http://www.facebook.com/pages/Program-Bakti-Pendidikan%20PETRONAS/144730136013?v=app_2347471856

http://www.facebook.com/pages/Program-Bakti-Pendidikan%20PETRONAS/144730136013?v=app_2347471856

APPENDIX

TRANSCRIPTION OF THE INTERVIEW

- How would you personally define CSR?

- Corporate Social Responsibility means different things to different organizations and

different people. I believe that CSR relates directly to the actions undertaken by

organizations to “give back” to society and again this can take many forms. I

personally believe CSR are activities or programs undertaken by corporations,

private or public listed, that are not profit generating but ARE BENEFICIAL TO ITS

EMPLOYEES, ITS SHAREHOLDERS, SOCIETY IN GENERAL AND THE NATION.

This is also clearly stated in our parent company PETRONAS’ Mission Statement

which has four main objectives, one of which is to “contribute to the well – being of

the people (of Malaysia) and the nation”. And you can see this in the CSR programs

and initiatives that PETRONAS undertakes over the years.

- What is your company’s business model? And how long has been model been in

place?


Researcher: Third Party

Date of Interview: 22 March 2011

Interviewee’s Biodata: Norman Ismail on behalf Ridzuan Bin Zulkifli

Company: PETRONAS GAS BERHAD

Occupation: Executive (Corporate Communication)

Public Affairs & General Services Dept.

- PETRONAS was formed in 1974 and is wholly owned by the Malaysian government.

Petroleum is our core business. The corporate vision is to be a Leading Oil and Gas

Multinational of choice. PETRONAS Gas basically supplies gas to the power,

industrial and commercial end – users in Malaysia as well as Singapore since 1986.

This is done through the Peninsular Gas Utilization (PGU) network. This PGU

network operates six (6) gas processing plants and over 2,500 km of gas pipelines.

The growth of the gas business led to the development of the offshore gas fields in

Malaysia.

- Does your company’s business model affect the environment? And if so, can you

describe how?

- The supply of natural gas does not affect the environment. In fact the greater use of

gas as against other fuels will lead to improvement in the environment. Natural gas is

one of the cleanest fuels available.

- Does your company fully disclose its CSR activities? And where are these CSR

activities disclosed?

- In the past, the parent company does not disclose externally any of its CSR activities.

The company and our parent, PETRONAS fully disclose their CSR activities today.

PETRONAS is a very responsible corporate citizen and values its role in the

development of Malaysia and the welfare of the people. PETRONAS has won three

awards at the 2009 Prime Minister CSR Awards, for BEST OVERALL CSR

PROGRAMME, BEST EDUCATION PROGRAMME and BEST CULTURE AND

HERITAGE PROGRAM. Now in the PETRONAS as well as PETRONAS Gas Annual

Reports, we have a section highlighting CSR. Aside from the Annual Reports, the

media coverage of the CSR awards also helped with the disclosure to the public of the

CSR activities.

- Do you believe that these CSR activities help your company’s image?


- CSR is not just about helping the company’s image. Yes, obviously when the company

undertakes CSR programmes, these reflect well on the company. PETRONAS as a

group had always run numerous CSR initiatives. The management always believed in

contributing towards welfare and human potential development. PETRONAS had

been and still is committed to the supporting education and community programmes.

Many of these programmes touch the people both in the urban as well as rural areas

and of course, the people benefiting from the programmes have high regard for

PETRONAS.

- What CSR practices may help you to achieve?

- As stated earlier, CSR practices benefit many of the people in Malaysia. Aside from

helping to uplift the living and education standards of the Malaysian people, these

efforts will help build the nation. At the same time, this also will uplift the morale of

the staff, knowing that the company and their contribution in the work place have

such a positive impact on people as well as the country.

- What CSR activities does the company undertake in the marketplace and what

does these activities help your company achieve?

- The main focus of the company CSR activities have been human capital development

and education. This is also the case for PETRONAS. Scholarships, training programs,

provision of mobile libraries etc form the bulk of the CSR efforts by the company and

its parent. These CSR activities have helped raise the education as well as the skill

sets of the people. This in turn will contribute towards nation building.

- What about your company’s CSR practices in the workplace? And what will

they help you to achieve?

- The company’s focus on education, training and human development has been

beneficial to the company and PETRONAS. The improvement in skill sets and

knowledge has helped the staff morale and more importantly made the company


stronger. The improvement in staff skills has enabled the company and PETRONAS to

increase productivity and efficiency.

- Does your company also focus on community CSR activities? And if so, how

have they helped your company?

- The company and PETRONAS recognize the need of community CSR activities. The

number of national consumer campaign engagements and especially the number of

students benefiting from the Program Bakti Pendidikan PETRONAS (Program Bakti)

clearly demonstrates the commitment to community involvement in the CSR activities.

Again I want to stress that all of these raises the understanding of “give back” by the

company and PETRONAS to the people. I personally am a strong believer and

advocate for these CSR efforts.

- Does your company run CSR activities focusing on the environment? If so, can

you elaborate on the most successful activity?

- The company and its parent PETRONAS have always been aware of the need to

preserve the environment. The introduction of NGV to the local market, the promotion

of the greater use of natural gas in homes and factories etc are all geared towards

reducing damage to the environment. The focus on technology to produce additives to

gasoline/petrol to reduce the fumes all demonstrates the concern for the environment.

- Which are the most important CSR dimensions for your company to stress on

and why?

- Like PETRONAS, the company’s major focus must be human capital development.

This has major impact, not just for the growth of the company and its parent, but this

will be a major contributor to the growth in prosperity in Malaysia.


- Do you believe that CSR activities help you to attract investors, specifically

institutional investors?

- Again I want to reiterate that CSR is about giving back, about human development,

about nation building. The focus is not on attracting investors, be they individual or

institutional. However I believe that investors value corporations that show a social

responsibility. In the case of the company and PETRONAS, I am sure we rank no 1 in

this respect.

- In your opinion, has your company’s CSR activities benefited your company?

And in which way?

- Properly planned and executed CSR programmes ALWAYS benefit the company. One

can see that PETRONAS extensive CSR programmes and the various subsidiaries’,

such as our company’s CSR programmes actually contribute to communities in many

forms. These help build stronger relationships and links with the customers. The

programmes also promote educational capabilities which benefit the nation. And

naturally the focus on employees in some of the CSR programmes helps build loyalty,

integrity and efficiency amongst the staff. Therefore our company and all companies

under the PETRONAS brand are highly respected. The value of the listed companies

in the PETRONAS family are highly valued as the two recent listing had shown –

PETRONAS Petrochemicals and PETRONAS Heavy Engineering are well above their

issue prices. Institutional support for the companies demonstrates that PETRONAS

brand and management are highly sought after and the high emphasis on CSR

(especially to employees and stakeholders) clearly played a part. Like many of the

staff in the company, we are very motivated and happy to be involved in the numerous

CSR activities. The company that cares for the staff, the community and the nation

will be the company to work for.

- What do you plan to achieve by being involved in CSR activities in a long run?

- I am constantly learning about all the different dimensions of CSR. The constant push

for improvement of the CSR programmes greatly motivated myself and all the other


staff involved in the CSR activities. The realization of the value and benefits that CSR

brings is a great motivation for myself and the management to do more. By doing

more going forward, I believe that I can help the company and PETRONAS reap even

greater benefits.


petronas gas (pgb)

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