View Full Version : Petronas is world's least transparent

15-03-2006, 10:53 AM
extracts from http://www.malaysiakini.com/news/48279 (can't read without an a/c, tho)

Petronas is ranked last in the latest survey of the 'World's Most Sustainable and Ethical Companies' conducted among 15 major oil companies by a Spanish-based ethics rating firm.

The annual survey, inaugurated three years ago by Management & Excellence (M&E), evaluates and compares the compliance of each company with over 280 internationally recognised standards in transparency, corporate governance, social responsibility and ethics.

This ranking, released last month, had Shell at the top for the third year running, followed by British Petroleum (BP) and Brazil's Petrobras shooting into third spot.

Petronas, which was included for the first time, obtained the lowest score at 20.15 percent.

"No oil company studied was as transparent as Shell, publishing 13 separate reports on topics ranging from environmental impact to animal testing," said M&E.

According to the survey, Shell improved from 82 percent previously to 89 percent. M&E said the company supports 12 codes of human rights and its board had met a record 29 times in 2004, compared with eight at BP.

"It also offers grievance channels for employees in over 50 countries and is implementing 120 bio-diversity projects worldwide."

Petrobras moved up from 7th placing in 2005 to third, while ExxonMobil, second in the 2005 ranking, dropped to 9th place, owing to gaps in reporting.

ExxonMobil gives little information on its employee performance measurement system and supplier management.

Petrobras scored high in social responsibility by investing heavily in environmental projects and launching its 'zero hunger' project which turns gas stations into schools for training young people.

"Russia's Lukoil managed to raise its total score by 23 percentage points from 35 percent to 58.61 percent, or a jump of 67 percent.

"Last September, Lukoil released its first sustainability report, which more than doubled its transparency score from 29 percent to 62 percent."

Petronas has been criticised by many Malaysians for not opening its accounts for inspection and for using its money to fund government's mega-projects as well as bailing out ailing politically-connected companies.

Calls for greater transparency in state-owned Petronas gather steam after the government made the unpopular decision to hike fuel prices by about 20 percent early this month.

15-03-2006, 11:02 AM
Err...Petronas... (http://en.wikipedia.org/wiki/Petronas) stands for Petroliem National Berhad...a Malaysian state owned oil n gas company...wholly owned by the government of Malaysia...

Ahem...being at the bottom of the least transparent ranking...doesn't surprise Orchi a bit...

It proves again n again...how the word 'transparent' doesn't exist in the administration of the Malaysian government policies... :rolleyes:

15-03-2006, 11:12 AM
Maybe we should set our own index of transparency for oil companies in Malaysia, then Petronas sure will be ranked No.1

15-03-2006, 11:14 AM

It proves again n again...how the word 'transparent' doesn't exist in the administration of the Malaysian government policies... :rolleyes:

My understanding.... of transparent,..

...like tracing paper... blurred... :p

16-03-2006, 12:25 AM
Some spin doctors will be coming around to claim that PETRONAS is No. 1 (http://mydailynuggets.blogspot.com/2006/03/petronas-rated-no-1.html) lah. Just wait and see.

16-03-2006, 02:52 AM
Lemme expand on the spin doctors recommendations as highlighted by tan_r.

Statement coming frm the DPM's office:

Firstly, this report frm this organization, just inaugurated in Spain, is grossly inaccurate and slanting towards libellous, frm the viewpoint of the Malaysian gomen. We hv a lodged a strong protest with the Spanish govt on this organization's report tarnishing one of Malaysia's most reputable conglomerate. That this kind of maverick organizations purporting to champion transparency but is itself issuing libellous reports towards reputable companies, we hv to question its intentions. With our good bilateral relations with the govt of Spain, we do not hope to see an organization of these kind to sour that healthy relationship. Rather, we hope to see some positive actions coming frm the Spanish govt towards these ill-intentioned organizations. The Malaysian ambassador to Spain will be making an appoinment to meet with the Spanish PM about this matter soon.

Secondly, since this organization is based in Spain, we can only assume they are making speculations with regards to Petronas and its responsibility to the people of Malaysia, its role in Asia and to the petroleum industry of the world in general. Foremost, Petronas is the leading oil producer in this region and we are recognised by OPEC as one of the world's leading oil producers. As part of its social responsiblity, Petronas awards millions of dollars yearly in educational sponsorhips and, study and research grants to countless deserving students, locally and abroad, in the study of subjects such as bio-environmental issues, chemical environment related studies, petroleum environmental by-products and related industries, corporate and social ethics in relation with petroleum producers and also best practices in management in petroleum organizations. Many research, studies and thesis reports hv been done with regards to environmental concerns in collaboration with our local universities and respected institutions of learning abroad as part of Petronas' corporate and social responsibilty. All these grants and collaborations were well received and the work has been recognised and many prestigious awards hv been obtained with regards to these works and efforts. So, there is no question of lack of social responsibility on Petronas' part.

Furthermore, as with Shell, ExxonMobil, Petrobras, Repsol and BP, Petronas has been giving its full support and expertise in the Formula 1, with the hope of developing the best petroleum products for the high technology racing machines of F1. With this venture, Petronas would hope to transfer the hi-tech production technology to the mass automobiles on the common road with better quality and performance. This would improve vehicle emmision standards and therefore reducing environmental pollution to the earth by automobiles using Petronas products.

Tourism is another important factor for Malaysia and in fact, it constitutes the second largest earner for the vibrant Malaysian economy. Therefore, in recognizing its economic responsibilty to the nation and the tourism factor of F1, Petronas has sponsored the Malaysian leg of the F1 and spurred the economic growth of the country in this area. Malaysians had been mindful of this fact and praised the efforts of Petronas in its economic responsibility and elevating Malaysia's tourist profile to a worldwide audience.

So, as evidenced, Petronas is ever present in its corporate, social and economic responsibility to its people, nation and the industry. Petronas has received many accolades and awards for its work and responsibilities frm its industry peers, related agencies and accrediting bodies. It is, therefore, grossly inaccurate and irresponsible of M&E to report and rate Petronas unfavorably without making efforts to understand the significance of its immense contribution in key sectors mentioned in the report.


Boleh Malaysia?