Multinational Corporation : Petronas

Multinational Corporation : Petronas Student’s Name Course Title Instructor State Date Type Of Organization PETRONAS which stands for Petroliam Nasional Berhad was established in 1974 and is a Malaysian fully integrated gas and oil multinational which is ranked among the biggest corporations on FORTUNE Global 500. Due to the growing demand for energy, the company becomes motivated, and their purpose strengthened to come up with new solutions as well as push boundaries towards achieving a sustainable energy future. Therefore, the company applies innovative strategies to technology which assist them in maximizing and unlocking the sources of energy emanating from the most challenging environment. The company’s value chain comes ranges from exploration to all the logistics needed for technological infrastructure, marketing and operation in more than 50 countries.[Ahmad, Wan Fatimah Bt Wan, Aliza Bt Sarlan, and Nur Zatul Iffah Binti Zolkana. "University Technology PETRONAS health, safety & environment system." In 2008 International Symposium on Information Technology, vol. 4, pp. 1-5. IEEE, 2008.] Through their rapidly growing and expanding network and trajectory, PETRONAS has continually and successfully executed some social environment as well as community programmes which are guided by their Corporate Sustainability guideline. Thus, making them carry out business in a more holistic and socially manner for the advantage f the present as well as the future generations The company’s functions are governed by the terms stipulated in the Act which was passed in 1974 called Petroleum Development.. Based on the 1971 plan, the main goal of PETRONAS is to secure national sovereignty over gas and oil reserves. Besides, to plan for the oil and gas demand both in the present and the future. Also, to participate in marketing and distributing petrochemical products and petroleum at reasonable prices. Additionally, they aimed at encouraging the provision of equipment, plant as well as services by the Malaysian companies. Basically, they aimed at spreading the tremendous benefits of the petroleum industry in a country.[Ibid] Brief Background Few statements define PETRONAS as an organization and significantly guide their corporate activities as well as police and also outline their future course. The stated purpose is an endless energy and solution partner enriching lives for a sustainable future. Whereas their shared values are encompassed in their culture as the backbone of their business conduct. At the same time reflecting our sense of responsibility and duty in upholding their commitment towards participation to the well-being of nations and people wherever they operate. Their shared values include integrity, loyalty, professionalism, and cohesiveness.[Bienz, C., T. Larsson, T. Sato, and B. Ullbrand. "In Front of the Grid–CFD at Sauber Petronas F1 Leading the Aerodynamic Development." In 1st European Automotive CFD Conference, Bingen, Germany. 2003.] In 1988 Malaysia experienced the world’s largest reserves of oil and natural gas. The total amount of the export they received from the two commodities amounted to 15% of the country’s foreign exchange income in the same year. Therefore, the exclusive control and ownership of the two resources were left with PETRONAS which is the only Malaysian company that appears in Fortune 500. The company is significantly involved in all aspects of natural gas and oil through subsidiaries ranging from upstream which is extracting and exploring gas and oil to downstream which involves the process of refining and distributing the products. However, PETRONAS was not the only company to extract gas and oil in Malaysia. Oil was first discovered in the 19th century, and the was first drilled in Sarawak which was a British Colony. The company has been involved in several projects such as the Pengerang Integrated Complex and Integrated Aroma Ingredients Complex.[Ibid] [Ibid] Changes in the organization, operations, strategy/tactics, mission/goal Of the organization over time? The growth of this multinational company can be divided into various phases. In the formative years around the 1970s, the company played a key role in managing the nation’s oil and gas resources and this was done through the Production of sharing Contract (PSC) in production and exploration, PETRONAS later moved into developmental phase in 1980x where it started playing the role of project operator/manager confined in the context of integrated gas and oil company. In the 1990s, it began venturing into more overseas operations in what represented the globalization stage of the company. Towards 2000, the company has already started to become a global player, and after forty-two years since it was started, 30% and more of its income emanate from all of its overs ease operations.[Bunnell, Tim. "Views from above and below: the Petronas Twin Towers and/in contesting visions of development in contemporary Malaysia." Singapore Journal of Tropical Geography 20, no. 1 (1999): 1-23.] The vision of the company has always been a leading oil and gas multinational of choice. The shared values mentioned before have not changed and are central to the code of ethics and conduct for the company’s employees. Loyalty means despite the nationality of the employee which is inclusive of overseas operations; they are expected to protect the interest of PETRONAS. Cohesiveness as part of their values is the ability to work in a team and always have an attitude of win-win in every situation. The company expects all of its employees to remain professional at all times and this should be reflected in the manner through which they conduct themselves. They ought to be consistent and respectful. Finally, the company emphasizes so much on integrity. For example, in their policy, there is the practice of no-gift policy; this is to mean that the PETRONAS employees should not accept any form of gifts form business partner/clients.[Ibid] Since its formation, the company has had a motto of Performance and Delivery which significantly bolsters the aspirations of the company in creating a high perfuming culture as well as a productive workforce in the company. Besides, the company has a culture that emphasizes its employees being people-oriented. This is derived from the core tenets that govern the Malaysian society to keep groups in harmony and kinship, obedient and respectful.[Gale, Bruce. "Petronas: Malaysia's national oil corporation." Asian Survey 21, no. 11 (1981): 1129-1144.] The significant impacts of the organization on the issue(s) of most significant interest to it? The introduction of CSR in a company is usually connected to a crisis. At PETRONAS, they have a corporate social investment, and all of its efforts are aligned with the company’s corporate social responsibility initiatives which are focussed at promoting public health and safety particularly for people who live in the areas where the company has its operations. The company has remained committed to ensuring that their business keeps growing steadily for a long time in a clean, safe and environmentally responsible way. This commitment has therefore shaped the company’s business conduct in a manner that has created value and not for the present but the future generations. The company has channeled its resources towards the three main areas and have made a significant impact in those areas which include community wellbeing, education, environment as well as development.[Ibid] To achieve tremendous results, the company has broadened their CSI approach through partnering with NGOs to start some current programs for the communities that are close to their pipelines and plants. A lot of care has been taken to ensure that all the CSI programs are effective when addressing the various needs of the communities; also, the company has worked hard to create opportunities to promote the social advancement of the less privileged groups of people. For example, the PGB livelihood program is mainly aimed at facilitating the livelihood of the communities where the company operates. The program was started through creating a partnership with an NGO Yayasan Salam to carry out the programmes on soft skill development.[Ghazali, Zulkipli B., and Ahmad Shahrul Nizam B. Isha. "The role of leadership and leaders' behavioral characteristics on employees' safety behavior in plant turnaround maintenance of PETRONAS petrochemical companies in Malaysia." Global Business and Management Research 6, no. 3 (2014): 256.] The people who were selected for the program were Johor, Kampung Bukit Raya, and Kampung Paya. Their responsibility was to take care of single mothers and wives who were neglected between the age of 20 and 60. The whole program was run by Jawatankuasa Kemajuan dan Keselamatan Kampung (JKKK) in partnership with Yayasan Salam. The women were given and equipped with several skills as well as valuable knowledge needed for entrepreneurship for instance accounting and marketing. Besides, they were offered lessons on time management and effective leadership. PGB has also assisted in refurbishing and renovating a community center found in Kampung Bukit Raya which was changed into a training center to host all the weekly activities. Besides, the center was equipped with all the basic kitchen equipment such as a freezer, mixer, cooking utensils, and oven. The company believes that going back to society is not quite an obligation but a privilege. They are aware of their duty to care for the people who are within their reach. Therefore, they keep touching base with the less fortunate especially at orphanages and the needs, old people’s homes and similar facilities through contributions both in cash and in kind.[Ibid] Their four areas of focus as earlier mentioned are education, environment, community wellbeing as well as development. They, therefore, strive to make access to education and build capacity. Under the environment, there is biodiversity and climate change and in the community is ensuring there are community health and safety as well as community uplift.[Hasbullah, Halabi, and Suziah Sulaiman. "Industrial internship programme at Universiti Teknologi Petronas–a collaboration strategy that enhanced students’ soft skills in the ever-changing technology." In International conference on engineering education, pp. 18-21. 2002.] Does your organization face competition and From Who? PETRONAS has been facing competition from Engen in Botswana. Botswana launched their state-owned Oil Company, and they added to an industry which is already saturated by foreign players. The market is already saturated with oil companies, and as a resul...