INTRODUCTION TO MANAGEMENT
GCB 2033
SEPTEMBER SEMESTER 2013
ASSIGNMENT 1
CORPORATE SOCIAL RESPONSIBILITY
No Name ID Program /Year Email Photo
1SHUSHILAN PILLAI S/O RAMACHANDRAN
16812Chemical
Engineering(3rd Year 1st Semester)
2 MOHAMAD ALIF BIN MOHD ROKI 13118
Electrical Engineering
(4th Year 2nd Semester)[email protected]
GCB2033 Introduction to ManagementSeptember Semester 2013
Assignment 1CORPORATE SOCIAL RESPONSIBILITY (CSR)
(2 – 3 students per group) 15%
Instructions
1. Discuss the importance of CSR for organizations and society. (Your points must be supported with proper citations and references)
2. Choose ONE (1) of the following industries: Oil and gas Manufacturing Food Hotel
3. Select THREE (3) organizations (based in Malaysia) in the industry that has good CSR reputation.
a. Provide examples of the CSR activities of the organizations. (Examples must be supported with images/news/articles from valid references/sources.)
b. Evaluate and compare the CSR activities of organizations in terms of areas, contributions and relevancy. Based on your evaluation, which organization is the best corporate citizen in the industry?
c. Suggest other CSR activities that you feel the organizations need to be involved in the future. Justify your views.
4. Provide 5 (FIVE) examples of the CSR activities done by UTP. Do you think UTP is a socially responsible organization?
5. Recommend THREE (3) CSR activities that you feel UTP should pursue in the future.
TABLE OF CONTENT
NO TITLE PAGE NUMBER
1 INTRODUCTION
2 IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY
3 MALAYSIAN BASED ORGANIZATION WITH GOOD CSR REPUTATION
4 CSR ACTIVITIES BY UNIVERSITY TECHNOLOGY PETRONAS
5 FUTURE CSR IN UNIVERSITY TECHNOLOGY PETRONAS
6 CONCLUSION
7 APPENDICES
INTRODUCTION
Corporate Social Responsibility (CSR) is where a business practices self-regulation which is a
process where an organization manages their business ethically to not only contribute to the
economic development but to also give a positive impact towards the society. (Baker, 2004).
Two types of corporate social responsibility exists which are providing both resources and funds
for a social cause such as giving charity and dedicating time of the employees to charities. The
other corporate social responsibility is to provide services to the society with their best interest
in mind. Though there is no exact date in which CSR started as there has always been
companies concerned with ethical practices but it only started to become popular in the early
1970s. The phrase Corporate Social Responsibility immerged in 1953 by an author Howard R.
Bowen in his book ‘Social Responsibility of Businessmen’ (Corporate Watch ). Though the
phrase immerged in 1953, the concept grew in the 1970’s and the first company to publish a
social report was Ben and Jerry’s (1989) and Shell (1998). CSR though not defined in the early
ages of men were still practiced. King Hammurabi of Ancient Mesopotamia (1700BC) created a
code for workers where if they were to cause death to another during their duties, their
punishment would also mean death. (Asongu, 1997). Somehow, CSR can be seen all over the
world was back even before it was defined and even now in parts where people and
technologies are decades apart such as some parts of Africa where tribes actually have their
own code of conducts. The World Summit on Sustainable Development (WSSD) in 2002 marked
the crowning of CSR where over 280 new partnerships between government and industries
were announced
IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY
CSR also has much other importance apart from giving a business firm long-sustainability.
Practicing CSR bring a positive impact towards the company, the society as well as the
environment.
I. Innovation
Due to the pressure of doing the right thing for the environment, when a business practices
CSR, it is obliged to produce products or improve their products to give a less impact towards
the environment. This will promote innovation in the business itself. Some examples of
innovation are hair product companies have managed to make hair conditioner which
minimizes the usage of water. Hence, the existence of the CSR which encourages sustainability
has brought about the companies research and development department to come up with such
a product. (Epstein-Reeves, 2012)
II. Improving Public Image
With the existence of CSR, no good deed will go unnoticed. Whenever a company does CSR, it
expects something in return. As such it will gain publicity in various forms all over the world
through various media. Hence, the company image will improve and this will in turn increase
the company’s performance (Dafni, 2013)
III. Government Relations
Some business firms have taken an advantage of conducting CSR to get closer to the
government and politicians. By doing so, the companies will be able to perform their business
smoothly without intrusion by the government as well as having a healthy relationship with the
government. By having good terms with the government, the company will definitely prosper.
(Truist, 2013)
IV. Cost Saving
Practicing sustainability towards the environment in CSR not only benefits the company but as
well as benefiting the company. In order to reduce wastage, many companies has turned their
heads towards the aspects of doing thing economically. Companies has tried many ways to
reduce cost either by reducing energy cost , less packing materials or even reduce the usage of
papers used in the office by introducing new technologies. Some companies such as cellular
network companies have changed their approach in billing their customers by using e-billing
where no physical bills are present and thus reducing the usage of papers.
V. Building a Positive Workplace Environment
Performing CSR gives both the employee and management motivation and a greater
commitment towards the company. The employee who works for a company which performs
good CSR will be obliged and proud to be working for a company which has a good cause. If the
company only is driven on profit, it will eventually loose employee commitment as they do not
have anything to drive them forward to perform better
VI. Customer Engagement
When a company performs CSR, it lets the word out. The company always ensures that its
efforts are not in vain and it will always try to promote its customers and stakeholders to
participate. This enables the company to have a better engagement with its customers and thus
securing its customers.
MALAYSIAN BASED ORGANIZATION WITH GOOD CSR REPUTATION
(OIL AND GAS INDUSTRY)
A. PETRONAS
Community:-
PETRONAS has tried to balance both their business and the wellbeing of the society. In terms of
the health of the community, PETRONAS ensures that they always priorities the health of the
society in the area where they work. Apart from that, PETRONAS has also contributed a large
amount of funds towards Malaysia's Cancer Research Initiatives Foundation (CARIF) in order to
establish molecular biology laboratory and tissue culture facilities. PETRONAS has also
contributed their funds regularly since 1993 towards the Malaysian AIDS Foundation (MAF).
(PETRONAS)
Apart from practicing sustainable development by practicing environmental management in
every of their operations , PETRONAS has also developed the Putrajaya Wetlands which is the
largest man-made freshwater wetlands .The wetlands were built to not only provide habitat to
various organism but also to act as a water treatment facility. PETRONAS has also had a joint-
venture with Greater Nile Petroleum Operating Company (GNPOC) to establish a
Bioremediation Project which is where microbes are used to treat waste water and chemical
wastes. (PE 2011 SUSTAINABILITY REPORT, 2011)
Education:-
PETRONAS also plays its parts in the nation’s upbringing by providing education to the younger
generation as they will determine the future of the country. PETRONAS through its Education
Sponsorship Programme provides academic sponsorships to deserving students. This is not only
for their home country but also in contries where they operate (Refer appendix) (Sudan
Tribune, 2011)
Apart from just providing sponsorships, PETRONAS also holds an annual event called the
PETROSAINS which is aimed to nurture and to provide a better understanding and interest
amongst young Malaysians to venture into science and technology.
B. SHELL
Community:-
SHELL has always stressed on Corporate Social Responsibilities since the very beginning of its
uprising. SHELL practices being ‘good neighbors’ where they operate by buying and hiring
locally. SHELL also ensures that they always operate cleanly and safely. (Shell Malaysia) .SHELL
is also an extremely supporter of human rights both at the place where they operate and
internationally (Shay)(refer to the appendix).In terms of health , SHELL supports HIV/AIDS by
both providing funds to find solution , raise awareness and support efforts to slow down the
spreading of the disease. They also do not discriminate when hiring by allowing people who are
infected to be their employees. (Shell Malaysia).
Environment:-
Being a producer of oil and gas which is one of the major reasons of global warming, SHELL has
focused on four areas to help reduce the negative impacts towards the environment. SHELL
aims to produce more natural gasses as its effects are less devastating as compare to
petroleum. It has also focused its research and development team to work on producing low-
carbon biofuels and working on improving carbon capture technologies. Besides that, SHELL has
also tried to lower their energy consumption in their operations by improving energy efficiency.
Sustainability:-
For SHELL, sustainability means ‘helping to meet the world’s growing energy needs in
economically, socially and environmentally responsible ways.’ (SHELL Malaysia ).As such SHELL
ensure themselves as well as all companies, contracts and joint-ventures under SHELL abide to
their standards and requirements
C.
CSR ACTIVITIES BY UNIVERSITY TECHNOLOGY PETRONAS
CSR program at Hat Yai
The examples of the CSR activities done by UTP is a CSR program at Hat Yai, Thailand on the 10th
December 2011 with calibration between UTP Alumni Association, UTP Career Advisory &
Alumni Unit, UTP Alumni Thailand Chapter (TAA) and UTP Thailand Student Association (TSA).
They had been visited a SOS Children Village at 30KM approximately from the border. They are
focusing on orphan, abandoned and needy children. Tn Hj. Mohamed Noor Rosli Baharom as
Deputy Vice Chancellor Student Affairs & Alumni was participated in the program to build up
the atmosphere together with the orphans there. The next day, the representatives from TAA
had visit them and express their gratitude to PETRONAS, UTP and Malaysia for all the
knowledge sharing, support and all the resources for come to Thailand.
Establishment of UTP Alumni Indonesia Chapter
In 2nd July 2011, Tn Hj. Mohamed Noor Rosli Baharom as Deputy Vice Chancellor Student Affairs
& Alumni was successfully established the sixth UTP Alumni International Chapter in Indonesia
at PETRONAS Carigali Indonesia Office. In the presence of Mr Mohd Hilmi Hasan, President of
UTP Alumni ssociation and Miss Hexi Bimba Andale, UTP Alumni of Indonesia Chapter President
also participates to establish that program. This program is to provide valuable contributions to
UTP graduates and society through an alumni association with sharing UTP achievement and
future plans. In conjunction with its establishment, the UTP Alumni Indonesia Chapter also
conducted a Corporate Social Responsibility (CSR) program by visiting to Rumah Zakat in
Thamrin. They had brought a joy to the less fortunate children. On the next day, UTP Alumni
Indonesia Chapter had launched the “Dompet Zakat” program to support the needy.
Mission to Padang, Indonesia
In 16th Jan until 19th Jan 2010, UTP Alumni in collaboration with Rakan Masjid UTP, MPPUTP and
Resident Collage Support Unit (RCSU) UTP had organized a program named “Mission to
Padang”. The objective of the mission is to help the society in Padang after the earthquake
disaster. There are some amounts of money and material had been contributed for the mission
to society.
UTP Alumni Donation for UTP Iftar in Ramadhan 1430H
During month of Ramadhan where Muslim people have to fasting, UTP Alumni do not miss this
change to devote to university itself. UTP alumni had contributed a one-day donation to UTP
Majlis Iftar in Ramadhan 1430H which was held at Masjid An-Nur UTP and was attended by 400
UTP students.
UTP Alumni – Sponsored A Tree for Carbon Offset Project (COP)
In 6th June 2010, UTP Alumni had participated in the University’s noble project to save Mother
Earth. This project held in Bandar Seri Iskandar, Perak by conjunction of World Engineering,
Science and Technology Congress (ESTCON2010). UTP had created a project named “Save the
Earth” as main Carbon Offset Project (COP). The purpose of this project is to plant a tree to
compensate for an emission made elsewhere.
FUTURE CSR BY UNIVERSITY TECHNOLOGY PETRONAS
Seminars for High School Student
With greatness of knowledge of UTP student, UTP should do a seminar camp to educate high
school student and give some inspiration to them to become a bright leader in future. Some of
high school doesn’t have a proper discussion and exposure of university environment. From this
camp, some of high school student will have intention to enter UTP. This will increase the
productivity of University.
“Orang kurang Upaya” (OKU) helper program
As known, UTP is a university that produces graduates who have the knowledge of science and
technology. Before graduating, UTP should have done an “Orang Kurang Upaya” (OKU) helper
program, which student will create technology to help this disable people. For example, one
student designs a automatic movement wheelchair for blind people. Then this designing will
help disable people in the future.
Adopted Village Program
This objective of program is to make a small village as a UTP adopted village. There are several
program of that village have. For example, this village is hard to get an electricity source. So,
based on the UTP Alumni and graduated student have to contribute to the community. In that
case, they have to build a solar energy generator to produce and supply electricity to the
villagers.
CONCLUSION
CSR aims to help a mission of an organization as well as a guide for the company stands for and
will uphold to the outsider. The organizations that have not yet do a CSR can be still considered
as a leader in organization but not for much longer. CSR is already influencing how employees,
customers, outsiders, and other stakeholders are decided whom their need to follow. The good
news is that a path to high performance CSR has not covered and it’s possible to follow the
leaders.
APPENDIX
PETRONAS EDUCATION FOR SOCIETY AT THE PLACE OF OPERATION
SHELL FIGHTING FOR HUMAN RIGHTS
