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INTRODUCTION
The implementation of the sustainability reporting has commenced back in the
80’s. The establishment of such practice is to focus on the gauge, disclose, and the
responsibility towards the internal and external stakeholders for organizational
performance in order to accomplish the statement of sustainable development. In order
for an organization to be competitive in this ever-changing business environment, one has
to go beyond rather than just maximizing of profit and assets for the stakeholder.
Consumers nowadays are more conscious on what the corporate has in return for the
public rather than just focusing on the quality and prices it products. Hence, the report
has expanded its coverage and comprises not only the economical and environmental but
also included the social impacts. For instance, it reports on corporate responsibility, the
triple bottom line, and etc.
reflects their decision on making a purchase for a product. Therefore the CSR is a
significant element which every company should take into accounts. In this report,
PETRONAS would be the corporation chosen for doing the evaluation towards its
sustainability report. PETRONAS- having known as Petroliam National Berhad which
was merged on 17 August 1974 and currently owned by the government of Malaysia,
PETRONAS operates in more than 30 countries worldwide (PETRONAS group
sustainability report 2007).
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Take the example of The Body Shop. Its founder, Anita Roddick preserves practicing
CSR as the company’s main mission since its establishment in the early 1970’s. Since
that, The Body Shop had gained a huge popularity through its success in sustainable
reporting. Today, The Body Shop owns more than 2100 stores in 55 countries worldwide,
enclosed with over 1200 products and also being the second largest cosmetic store in the
world (The Body Shop 2006). As what have been mentioned previously, sustainable
reporting will bring goodwill and profit to the company, as a result the company can also
improve their market position. Profit and investment from the public will strengthen the
financial position of the company, while goodwill will be a form of competitive
advantage compared to its competitors in the market. In the long run, it will be huge
benefit for the company to survive and compete in the market.
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• Malaysian Society for Occupational Safety and Health (MSOSH) Award 2005
attitude after all it belongs to Malaysia that possess culture which lack of accountability
and performance unlike any other western companies. Despite all the facts that
PETRONAS’s weakness in processing a transparent report, it shall not be judged and
compared with other oil companies such as Shell or BP. Unlike Shell, PETRONAS is a
government-owned body and they have the right to keep their operational and financial
result confidential by law. PETRONAS is still devoted on accomplishing its objective
which is to effectively managing the nation’s oil resources.
Shell, being the top oil companies for the third time is nevertheless a brilliant role
model for the other companies to look up to. Shell has made an improvement increasing
from 82% to 89% and all along maintaining the human rights codes ever since 2004. It is
claimed that Shell has out beat all the other oil companies in transparency by publishing
13 different reports concerning impact on environment and animal testing (Shell again
most sustainable/ethical oil company in 2006; Petrobras supplants Exxon in the top-5
2008). Veer has also declared that Shell was previously the first supporter of the
Extractive Industries Transparency Initiatives (EITI), which the establishment of such
firm is to guide the company avoiding misuse of its revenue that could result in any
unwanted incidents, which in turn shape Shell to become such a successful company in
global right now (Veer 2005).
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CONCLUSION
to make the report balance. Last but not least, the company ought to approach any highly
regarded reporting companies to create a better sustainability report in the future.
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References:
http://www.chevron.com/annualreport/2007/documents/pdf/Chevron2007Annual
Report_full.pdf
(accessed April 27, 2008)
Focusing on the triple bottom line. 2005. Business Africa 14 (6): 6–7. Business Source
Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN
(accessed April 16, 2008)
Shell again most sustainable/ethical oil company in 2006; Petrobras supplants Exxon in
the top-5. 2008. http://www.prnewswire.co.uk/cgi/news/release?id=164449
(accessed April 27, 2008)