INTRODUCTION TO MANAGEMENT GCB 2033

SEPTEMBER SEMESTER 2013 ASSIGNMENT 1

CORPORATE SOCIAL RESPONSIBILITY

No

Name

ID

Program /Year

Email

Photo

SHUSHILAN PILLAI S/O RAMACHANDRAN

16812

Chemical Engineering (3rd Year 1st Semester)

shushilanpillai@gmail.com

Electrical Engineering 2
MOHAMAD ALIF BIN MOHD ROKI

alifroki@gmail.com

13118

(4th Year 2nd Semester)

GCB2033 Introduction to Management September Semester 2013 Assignment 1 CORPORATE 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

INTRODUCTION

IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY

MALAYSIAN BASED ORGANIZATION WITH GOOD CSR REPUTATION

CSR ACTIVITIES BY UNIVERSITY TECHNOLOGY PETRONAS

FUTURE CSR IN UNIVERSITY TECHNOLOGY PETRONAS

CONCLUSION

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 1970s and the first company to publish a social report was Ben and Jerrys (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 companys 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 jointventure 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 nations 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 lowcarbon 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 worlds 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 10 th 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 ea rthquake 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 Universitys 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 doesnt have a proper discussion and exposure of university envir onment. 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 its possible to follow the leaders.

APPENDIX

PETRONAS EDUCATION FOR SOCIETY AT THE PLACE OF OPERATION

SHELL FIGHTING FOR HUMAN RIGHTS