Petronas Chemical Group Berhad Case Study

Ethics and Corporate Social Responsibility(CSR) is one of the issues that society concerns about and expect organisation to perform. Society are more concern on Corporate Social Responsibility nowadays, and according to “Iron law of Responsibility”, those who do not use the power in ways that society considers responsible will tend to lose it at last. However, there are some issues will arise when the company performing CSR. Throughout our research, there are some significant issues that encountered by Petronas Chemicals Group Berhad.

Petronas Chemical Group Berhad as a major chemical industry player in Malaysia has work hard for conserving the environment in order to be a responsible corporate citizen. They have been continuously promoting

This program aim to promote fish breeding areas, growth of coral reef and create awareness about the importance of conserving the environment. The target group of this program is their employees that who have been trained by the authority to learn diving and snorkelling skill. Diving and Snorkelling are dangerous activities, people die snorkelling every week even the experienced diver. If you are luckily survive in the diving accident but you might not available for work anymore because lack of oxygen will harm your brain and you may need to lie on the bed for your entire life. It will bring a serious consequence for the corporate if the participant plays an important role in management. It might affect the operation of management. Diving course is not a short term program and it might incurred a large amount of expenses for the corporate as hiring coaches, acquisition of necessarily equipment, pay insurance for the participants and so on. When the selected staff attending the training during working hour, the management need to hire more people or shut down the department temporarily once the participants injured in the training, they might absent for work and claim compensation from the corporate. It will affect the production and the proportion of human resources in the

In order to ensure a safe working place and reduce the accident rate happened during working hour among employees, Petronas Chemicals Group Berhad has put some efforts to achieve the sustainable occupational safety and healthy performance such as plan turnaround Health and Safety Environment(HSE) program. To launch this program, the facilities has to shut down for major maintenance purpose. However, this action has interrupted the normal operation of work in the facility. Instead, the facilities can run as usual and produce more petro without having any interruption. Besides, this program also causes a significant increase in manpower in order to meet the requirement to conduct, as well as the non-routine nature of works. According to the annual report that published by the company, the number of employee has a significant increase in number because the company is lack of employee which having skill on it. This show the company has to incurred another expenses to hire the skilled employee to conduct the program. Petronas Chemicals Group Berhad also implemented “ZeTo Rules” that refer to critical rules that employees have to follow. This board of rules are having in every facility and cause another expenses to the company. To Petronas Chemicals Group Berhad, every worker is not allowed to work more than maximum safe working hour which may reduce the rate of production. As a company that