Corporate Social Responsibility



20 marks



10% of 3A coursework

Date Assigned :

6 May 2011

Time Allowed :

1 week






Ramya a/p Balachandren , Andrew Sachdev a/l Manjit Singh, Poh Jack Sen, YueHon Mun

both the Total Recordable Case Frequency (TRCF) and the Lost Time Injury Frequency (LTIF) (which are measures of recording the t otal number of harmful incidents throughout the year) improved as compared to 2009 by 30 per cent and 11 per cent respectively. In 2010 alone. PETRONAS implemented a set of guidelines for employees to comply with. but also gain support from o rganizations such as MAF for future projects. Although PETRONAS has gained world -wide recognition. 3000 students partook in the programme and achieved great benefi ts out of the programme. Additionally. These activities have enabled PETRONAS to achieve not only increase in labour efficiency due to improved health level of employees. Sudan. Furthermore. PETRONAS gives out UTP scholarships to students from Egypt. 6 marks Corporate Social Responsibilty (CSR)Petroliam NasionalBerhad. which is a set of rules implemented in order to reduce fatal accidents among the employees. they carried out the Personal Health Management Programme. PETRONAS launched the PETRONAS Mobile Library project in 2004 in Sudan. according to the Annual Report of PETRONAS for the year 2010. The Annual Report 2010 showed that in 2010. which are the Foreign University Sponsorship. PETRONAS also has a global outreach as every year. Apart from that. PETRONAS carries out Sponsorship Programmes. Another CSR activity is the Bakti Programme that was launched in 2002. PETRONAS has also contributed to the Malaysian AIDS Foundation (MAF) in by sponsoring the ³MalamAmal AIDS´. The aforementioned activities have enabled PETRONAS to achieve good diplomatic ties with other nations. every year. when working on projects. whereby health campaigns were conducted for employees in order to check their health. also known as PETRONAS is a government -owned company that is a fully integrated oil and gas company. which is called the Zero Tolerance (ZeTo) Rules .1. the sponsored scholars . PETRONAS offered a total of 158 million worth of academic scholarship s to deserving students. where they visit schools by buses equipped with books. In 2010. allowing them to carry out future projects smoothly in order to gain large profits. Furthermore. In terms of education. they have still managed to incorporate CSR achievements into most of their projects. Under health. the UniversitiTeknologiPetronas (UTP) Sponsorship and the Malaysian University Spo nsorship. Based on the Annual Report 2010. 44 schools consisting of over 55000 students benefitted from this particular project. and also countless other awareness-building campaigns and fund -raising projects. the Re d Ribbon Gala. Vietnam and Turkmenistan. Write an account of the CSR achievements or shortcomings of the company you have researched. where they adopt schools and provide tuition classes for students in need of tutoring.

they have managed to gain consumer satisfaction. a process of clearing up harmful chemical substances through the use of natural microbes that live in t he soil. the National Consumer Campaign that was carried out in 2010 had 14 . and Culture and Heritage. PETRONAS makes it a point to manage oil spills through the International Maritime Organisation Tier 1 Oil Spill Response training modules and Oil Spill Response Capability Assessment. PETRONAS will not only manage to respect the environment. PETRONAS received the PM¶s CSR Award for three categories . PETRONAS has achieved giving back to society through such projects and by doing so. They also make efforts through the bioremedia tion of produced water. Apart from all the other achievements stated above. By conducting such activities. Education. it is obvious that such recognition is undoubtedly well -deserved. PETRONAS also pays close attention towards caring for the environment by projects like the Putrajaya Wetlands. PETRONAS launched the µKnow Our Children¶ campaign. which is an awareness campaign to equip parents with knowledge to prev ent substance abuse among children. responsibilities and financial awareness. After extensive research. it is evident that PETRONAS has definitely been doing their part in giving back to society and various other aspects by living up to their Corporate Social Responsibility. For example.Best Overall CSR Programme. .will contribute toward s the generation of profits in PETRONAS as they will become future employees of PETRONAS. Besides that. Additionally. but also achieve a more ethical business conduct by acknowledging the problems caused by their business such as the oil spills and making efforts to overcome it.584 participants and was conducted to increase awareness of rights. which is a man -made freshwater wetland that treats pol luted water and provides the biodiversity needed for wildlife habitats to flourish. Based on all the achievements aforementioned. Community Projects have also been a part of PETRONAS activities. in 2010. Besides that. they also save the hassle of interruptio ns of their business activities from environmental organizations like Greenpeace with a more ethical business. in 2010.

Firstly. This is because consumers will be keener on support ing businesses that give back to the community. the statement can also be highly objec ted as there are various ways in which CSR activities can contribute to the profits of the businesses. employee morale practiced by businesses while carrying out CSR activities causes employees to be motivated to increase productivity as they are aware that their welfare is being taken care of. For example. can reduce production costs as efforts are taken to reduce energy consumption and to reduce wastage. the statement can also be opposed because CSR activities. . Thus. Higher levels of productivity will in turn result in higher profits caused by increases sales. µIt has been argued that the obligation of a business to make profit is incompatible with corporate social responsibility. the costs of making efforts to carry out CSR activities are often high. ¶ Do you agree? 4 marks Many businesses often overlook the need of Corporate Social Responsibility (CSR) due to the hassle of adopting new ways and the unforeseen losses that can be incurred. Furthermore. However. The statement can be agre ed upon because firstly. increased support leads to increased sales. PETRONAS will have to forego the cheaper alternative of just allocating the resources used for those projects to other profitable projects. Apart from that. training programmes conducted by businesses as part of their CSR will also incur high costs. the fact that CSR activities are highly important cannot be denied simply because various aspects of the world itself are improved due to the recognition of CSR. However. As such.2. costs are saved and the net profit gained by the business will tend to increase as well. This will indeed ca use their possible profits to decrease. which will in turn reduce the net profit of the business. which increases profits. the efforts taken by PETRONAS to give out scholarships and to carry out other projects such as the Putrajaya Wetlands may bring about unnecessary extra costs. This can be related to the concept of opportunity cost. Additionally. In order carry out the CSR. CSR activities also increase consumer loyalty. especially those to help save the environment. As such. it can be said that there are both pros and cons to the implem entation of CSR activities in terms of money -making.

viewed 11 May 2011. http://www. PETRONAS. Environment.petronas. http://www. PETRONAS. Schools PETRONAS. viewed 11 May 2011. Community.aspx 2. http://www.petronas. viewed 11 May viewed11 May 3. Annual Report 2010. viewed 11 May 2011. .my/community.aspx http://www. PETRONAS.petronas. 5.REFERENCES

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