Group Assignment

SHELL AND PETRONAS GAS BERHAD

Name:

IRFAN HANDARU LAULIANA WIDYA PETER SHVETS ELENA ENSELM LIM LIM TUCK MING CHEAH WYETAR

I09002963 I08002297 I09003243 I09003362 I09003104 I07006195 I08001595

Section: Course Code: Course Title: Program: Lecturer: Due Date:

1K1 MKT408 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY BMAUH HAIDER ALI MALIK 4 APRIL 2011

AKNOWLE

EMENT

We t ly and sincerely like t thank the following people. Mr. Haider and Mr. Norman ismail. Mr. Haider is our lecturer for M T408. It has been a great pleasure to attend to his lecture every week. During his lectures, he introduced us to all int eresting facts about CSR programmes and the potentially beneficial impact of CSR activities on the companies business operations. He also motivated us to ma ke 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 int erview (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 ext ensive research and hard work have been able to put together this group project.

:C R

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R SPONSIBILITY AND SUSTAINABILITY

TABLE OF CONTENT 1.0 INTRODUCTION ................................ ................................ ................................ .........4 2.0 SHELL, BEST CSR PRACTICES WORLDWIDE ................................ ........................ 5 2.1 COMPANYS PROFILE ................................ ................................ ............................ 5 2.2 SHELL AND CORPORATE SOCIAL RESPONSIBILITY (CSR) .............................. 5 2.2.1 CSR IN THE MAR ETPLACE ................................ ................................ ..........6 2.2.2 CSR IN THE WOR PLACE ................................ ................................ ...............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 COMPANYS PROFILE ................................ ................................ ............................. 11 3.2 PETRONAS GAS AND CORPORATE SOCIAL RESPONSIBILITY (CSR) .............. 12 3.2.1 CSR IN THE MAR ETPLACE ................................ ................................ ............ 12 3.2.2 CSR IN THE WOR PLACE ................................ ................................ ............. 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

M T408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

1.0 INT ODUCTION

CSR is the process of assessing an organizations 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 t o 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 da y-today 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 countrys 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 int ernational 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 companys mission statement. Compared to SHELL, the companys 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 companys 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.

M T408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

2.0 SHELL, BEST CSR PRACTICES WORLDWIDE

2.1 COMPANYS 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, Unit ed 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 companys 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 R esponsibility (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 integrat e 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, companys sense of economic, social and environmental responsibility is reflected in its commit ment to meeting todays 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 M T408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 5

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 invest ments in initiatives that address various social issues. Shell reported expenditures of USD 96 million in 2006 on business integrity programs, while social invest ment 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 climat e 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 inves ting 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 Shells mission to continue to innovat e 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.

MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

2.2.2 CSR IN THE WORKPLACE Shell, undoubt edly, 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 Shells activities. Perhaps the greatest evidence of Shells 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 uni versity) 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 t o reduce emissions by offering cleaner transport fuels, lubricants and cleaner fuels and innovative t echnologies for electricity generation (Shell, nd).

MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

Based on improved t echnology and tougher regulations,the company has managed to reduce local pollution in the past 20 years. But further reductions aredesperately needed in the future, especially in congest ed 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 companys factory operations. Shell has invested heavily to improve their facilities, factories, installed cleaner burning equipment and SO2 capture technology, for example:
y

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 despit e 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 wat er 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 worlds clean water resources will become limit ed 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 ma ke biofuels and mining bitumen from oil sands are water intensive. In Year 2009 Shell operations used around 198 million m3 of fres h 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 newtechnologies. For example, Their Pearl GTL plant, which will convert natural gas to

MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

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 wat er, 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 wastewat er 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 t o replace animal tests wherever possible (Shell, nd). The basic approach in this area is governed by the 3Rs which is Reduce, Refine and R eplace: Reduce:Reduce the number of animals used in product safety t esting, without compromising safety, working with other companies whenever possible and by sharing of results. Refine: refine test methods to ma ke 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 R eplacement of Animals in Medical Experiments in the UK and the Centre for Alt ernatives to Animal Testing in the USA (Shell, nd).

MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

A team of ext ernal 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 companyis genuinely helpi ng communities and at the same time buildingits brand awareness amongst them. Therefore, Shell is working to help ing protectpeople from HIV/AIDS and to slowits 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 treat ment 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 relations hips 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 ma ke 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 promot e 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 promot e and support MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 10

small businesses, developing agriculture, skills training, education, healthcare, micro lending and capacity building (Shell, nd). Respecting Human R ights:ShellCompanies believe in the support of fundamental human rights in line with the legitimate role of business. Shells General Business Principles include respecting the rights of their employees and to suppor t 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 fordirect 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 Int ernational 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 COMPANYS PROFILE PETRONAS or Petroliam NasionalBerhad, was incorporated on 17 August 1974 under the Companies Act, 1965. It is entirely owned by the Malaysian government and is vest ed with the entire ownership and control of the petroleum resources in Malaysia through the Petroleum Development Act 1974 (PETRONAS Annual Report, 2008).

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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 invest ed 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 PGBs 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 limit ed 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 conference s during the financial year in order to acknowledge and share the information of the lat est 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

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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 PGBs most notable efforts in the companys 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:
y 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 Companys operations of safety and health and its impact to the environment.
y 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.
y 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.
y Industry Dinner 2009 at 13 November 2009 in Kuala Lumpur Convention Centre to creat e

stronger connection within the MGA members towards beneficial and profitable cooperation in the gas industry.
y 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

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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 companys 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, PGBs gas transmission business through the Companys 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 t o 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 companys 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 Companys vision and mission to its customers. Under these improvements, the company is looking at using t echnology 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 t erm shareholders value guided MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 14

by the companys vision and mission. The companys 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 invest ment with stable earnings, therefore to have better understanding of PGB business, the company has arranged a series of shareholder visits to the companys C entralized Utility Facilities in Pahang on 17 August 2009 and Gas Processing Plants in Terengganu on 2 November 2009 and 19 November 2009 (PETRONAS Gas Berhad Annual Report 2010).

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 staffs 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 PGBs achieving great er 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 staffs competency gaps. After every companys training program, it is supported by regular competency staffs 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,

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where are staff are required to attain certain levels of compet ency before being promot ed 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 t echnicians 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 workforces 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. Ever y employee must attend all the required compulsory training days, and at least one online eLearning module. PETRONAS eLearning comprises of numerous modulesof 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 thereaft er, but also share fresh ideas and knowledge withtheir 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 MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 16

different areas. It is the Companys responsibility to ensure and long term succession for the sustainability of the business(PETRONAS Gas Berhad Annual R eport 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 (PETRONAS Gas Berhad Annual Report 2010).

Staff Engagement and Management Commitment PETRONAS tries to maintain the harmonious working environment at all times and this depends on constant employees communication, int eraction 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 Companys 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 staffs 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

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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 thespread 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 Companys 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 R eport 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 Companys 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 prot ecting 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 organizations resources, its Health, Safety and Environment (HSE) system and the environment. PGB keep

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the pace on the developing the HSE practices with the PGB Health Safety and Environmental Management System (HSEMS). It is a set of control paramet ers 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 t erm to the legal and business requirements. In addition to that, from the int erview, we found that in order to reduce the damage to the environment PGB introduce the NGV in the local market bypromoting 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 requirement s for CDM. CDM is an arrangement under the Kyoto Protocol that allows industrialized countries with GHG reduction commit ment 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 t echnology is also used to help emphasizing on the importance of scheduled wast emanagement by using e POWERS (PGB Wast e 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 companys commit ment 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 MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 19

engagements. Mr. Norman Ismail said that it is important for the company and PETRONAS to demonstrate its gratitude toward people by implementing its commit ment 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 adopt ed three schools, which are SekolahKebangsaanSantong in Paka, Terengganu, Sekola hKebangsaanKemasik in Kemasik, Terengganu and SekolahKebangsaan 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 SekolahKebangsaanBatuAnam 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 UjianPenilaianSekolahRendah 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 t o previous year. The Companys 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 R esponsibility Award under the Community Category (PETRONAS Gas Growth Annual Report, 2008).

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Corporate Social Responsibilities:Since the company has committed itself to continue various activities in corporat e 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 BaktiPendidikan PETRONAS to break fast and at the same time contributed towards their preparation for the upcoming Aidilfitri (PETRONAS Gas Growth Annual Report, 2010). PETRONAS Gass senior management and staff, together with their family members contributed their personal time, energy and money for these CSR activities. The Ownership, Unit, Relations hip 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 employees family members to observe workplace environment and also experience an overview of the Companys 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 companys pipeline rout e. Project Sungai Angkat at Gas Processing Plant (GPP) and The Companys 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 MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 21

program is a joint effort between the Company and relevant local authorities such as FRDM, representatives from the Municipality Council and Land Depart ment (PETRONAS Gas Growth Annual Report, 2010). The Company has recognizes the importance of building and developing good relations with relevant local authorities and public media to endorse bett er understanding of its business. The Company was also able to understand the regulatory requirements of the different agencies through this good relations hip, such as activities to encourage the correlation including plant visits, sporting activities and regular engagement sessions (PETRONAS Gas Growth Annual Report, 2010). The companys 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 companys 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 implement ed 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

Nowada ys, there are many more international companies that strongly focus on their CSR programmes. The international markets conditions havebeen 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. MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 22

Shell is one of the most well recognized companies around the world. The companys 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 Companyhas 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 Shells 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 MKT408: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY 23

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 creat ed 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 PGBs 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.

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5.0 CONCLUSION AND RECOMMENDATION

To summarize, we all know that environment al 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 t o 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 invest ments in initiatives that address various social issues by spending millions of USD for CSR. Shells 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 companys 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 EDUC ATION PROGRAMME and BEST CULTURE AND HERITAGE PROGRAM.

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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 th e 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 companys social integration and environmental concerns in their business operations.

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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 Wat er Use, Shell, Official Website, (online) (cit ed 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). Ava ilable from: http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f00 17a6bf/ef9f7340ecdcb8cd48257479002cba71/$FILE/PETGAS AnnualReport2008%20(2.6MB).pdf PETRONAS (nd) Program BAKTI Pendidikan, PETRONAS, (online) (cited 31 March 2011). Available from:

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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.ht ml

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APPENDIX TRANSCRIPTION OF THE INTERVIEW

Researcher: Date of Interview: Interviewees Biodata: Company: Occupation:

Third Party 22 March 2011 Norman Ismail on behalf Ridzuan Bin Zulkifli PETRONAS GAS BERHAD Executive (Corporate Communication) Public Affairs & General Services Dept.

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 companys business model? And how long has been model been in place?

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.

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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 companys 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 companys image? CSR is not just about helping the companys 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

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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 companys CSR practices in the workplace? And what will they help you to achieve?

The companys 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.

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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 companys 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?

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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 companys 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 companys 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 acti vities 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

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

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