1.

0 INTRODUCTION

The term Corporate Social Responsibility (CSR) is also known as Sustainability,

Corporate Citizenship, Corporate Responsibility, Environment, Social and Governance,
and Triple Bottom Line. It is the idea that a corporation should give back to the
community and think about how its actions may affect the environment and society. This
applies to every company regardless of whether it is a small or large company. CSR may
be defined as a company's consideration of the neighbourhoods in which it operates.
While some companies have always been "thoughtful" in this sense, the idea that this
should be a gauge of commercial performance is relatively recent. In fact, until relatively
recently, the only way to evaluate a company's success was in terms of its profitability,
and the majority of business models viewed maximising profits as the primary if not the
sole goal of the company. Philanthropy began to flourish in the latter half of the
nineteenth century. Industrialist Andrew Carnegie, who amassed much of his riches in the
steel business, was renowned for contributing a sizable percentage of his income to
organisations supporting science and education. Although socially conscious businesses
have been around for more than a century, the phrase "corporate social responsibility"
was first used by American economist Howard Bowen in his book Social Responsibilities
of the Businessman in 1953. Bowen is frequently regarded as the founder of CSR as a
result.

2.0 PETRONAS BACKGROUND

Petronas Nasional Berhad, or PETRONAS, is a Malaysian corporation established on

August 17, 1974. It is wholly owned by the government and is responsible for developing
and adding value to Malaysia's oil and gas resources. PETRONAS has grown from just
being the regulator of Malaysia's upstream sector into fully integrated oil and gas
production and has become one of the largest corporations in the world. In 2005, the
Petronas Group consisted of 103 subsidiaries and businesses. The Group is involved in a
wide spectrum of petroleum activities, including upstream exploration and production of
oil and gas, downstream refining, marketing and distribution of petroleum products, gas
processing and liquefaction, gas transmission pipeline network operations, marketing of
liquefied natural gas, petrochemical manufacturing, and auto engineering.

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3.0 PETRONAS’S RANK IN CSR  

The idea that companies have a duty to contribute to society is not a new one. In truth,
the company's interest for society may be traced back several centuries (Agudelo, 2019).
Corporate Social Responsibility (CSR) is a term used to describe the realities of corporate
social responsibility in the twenty-first century. Regardless of one's opinions, CSR is a
fact. The "movement for corporate social responsibility has won the battle of ideas," as
one well-known critic put it. A senior-level job dedicated to CSR and/or sustainability
concerns is currently present in the organisational structures of the majority of Fortune
500 businesses. Furthermore, CSR which is recognised by businesses more and more, is
crucial to the formulation of their strategy. A successful CSR programme may benefit
businesses, employees, and customers. So the question is, what are the importances of
CSR? The growth of human resources is one of the reasons why firms should establish
corporate social responsibility initiatives. Internally, the goal of CSR implementation in
the organisation is to safeguard both employee and corporate welfare. On the other hand,
it is for the community's benefit from an outside perspective, particularly in the context of
community development. The capitalist economic system strengthens the economy by
causing the affluent to gain richer and the poor to get poorer. Companies are obligated to
support community development through CSR in order to stabilise and balance the
current economy. 
Next, in the social context, CSR can use campaigns to foster peace when conflicts
emerge in a community. CSR significantly contributes to the development of an ethical
system or working order in addition to the political side of ensuring an ordered
administrative system. CSR also emphasises the environment and contributes to the
preservation of the natural world. In terms of the importance that applies to the company
itself, CSR can help the company to attract and retain employees. The CSR strategy of
various businesses is one of the main reasons applicants do so. A CSR plan demonstrates
a company’s compassion and good treatment of all individuals, including employees.
Additionally, a company that is dedicated to bettering the world is likely to draw in more
talent. This demonstrates how seriously business people consider social responsibility.
CSR initiatives also support the development of a more effective and enjoyable work
setting for employees. Moreover, it also encourages workers to put out good work and
volunteer.CSR strategies, from the public’s point of view, can help the corporation to

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establish a strong reputation with customers, which in turn will help them win their trust
and loyalty. In the modern competitive business environment of today, it can be difficult
for a corporation to stand out in the eyes of clients. However, companies who take social
responsibility seriously may attract customers and provide a platform for marketing and
grabbing the interest of their target market. Simply said, social responsibility may make
people perceive your business as a force for good in the community. The endeavours you
and your group undertake can promote vital causes and maintain your company in the
public eye.
For instance, take a look at the social responsibility that has been carried out by one of
the famous corporations in Malaysia which is Petronas Sdn Bhd. During the peak of
Covid-19 pandemic in our country, the Petronas Foundation gave 95 hand sanitizers and
4,900 litres of liquid disinfection to 19 schools in the Kemaman, Kuala Nerus, and
Dungun districts. According to Che Ahmad Tarmizi A Rahman, the general manager of
Petronas East Coast, the corporate social responsibility (CSR) programme is intended to
help efforts to reduce the danger of the coronavirus (Covid-19) spreading among school
pupils in the state. Likewise, this programme is in keeping with the guidelines provided
by the UN under the Sustainable Development Goals (SDG). The United Nations (UN)
highlights components of wellbeing and a healthy life for everyone as one of the
sustainable development objectives through the third SDG agenda. A company's ability to
survive is greatly aided by its customers' loyalty. Your customers have a significant role
in how well your business runs; without them, it would not be possible. Consumers
demand loyalty from brands and companies by expecting them to care about more than
just their bottom line.More than 50% of customers, according to Heyward (2020), are
prepared to pay more for a good or service if the company puts sustainability first. It
seems that the customers will choose and support businesses that aren't merely interested
in making a profit.
As we are taking Petronas as the example of a corporation who accomplishes CSR,
this is the brief explanation about it. The Petronas Foundation is the corporate social
responsibility branch of the Malaysian oil and gas conglomerate, Petronas, which was
established on 1 March 2019. The aim of establishing the Petronas Foundation is to have
a wider and deeper impact on corporate social responsibility activities across society in
Malaysia. The Petronas Foundation ensures that promising programs are implemented
across the country, to have a sustainable impact and mutual success for all involved. It

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 will also direct its attention to currently underserved areas to make a measurable impact
and accelerate results with its participation.

a) There are three focuses and objectives of this organisation which is:
i. Education- More possibilities for underprivileged youngsters to pursue
STEM degrees and reach their full potential.
ii. Community Wellbeing & Development- Improving living conditions
for youngsters and members of underprivileged communities by
establishing routes to a healthier lifestyle.
iii. Environment- Improve the environment through initiatives that
promote biodiversity, conservation, and carbon neutrality.

In terms of ranking in ESG (Environmental, Social and Governance), Petronas Gas Bhd is at
57% compared with other 31,526 companies. Meanwhile, Petronas Dagangan Bhd is at 83%
ranking which is considered as a higher ranking than 31,526 companies. 

Picture 1: Petronas Gas Bhd 2022 ESG Ranking (%)

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4.0 PETRONAS CSR ACTIVITIES

4.1 Corporate Social Responsibility

PETRONAS has increased the positive impact from their presence while
contributing to the local economy to build better communities. Their business
thrives in diverse societies, each with its trajectory of interests and expectations
for growth. While embracing local norms, we work towards forming mutually
beneficial partnerships to share the value we generate and provide social
investments that are consistent with the needs of local communities as part of our
corporate social responsibility. Their approach to create socio-economic progress
centres around empowering local communities with the right knowledge, skills
and capabilities. Their communities share an aspiration for lasting and self-
sustaining socio-economic development. We are guided by the PETRONAS
Corporate Social Responsibility (CSR) Framework to realise our mission
statement of contributing towards societal well-being. In 2018, PETRONAS
channelled slightly more than RM325 million in corporate social responsibility
programmes. 
Yayasan PETRONAS, launched in March 2019, is the corporate foundation of
PETRONAS which streamlines their efforts towards creating a sustainable impact
for the well-being of the community. The foundation continues to enhance the
efforts of community programmes that have been ongoing since 1974. Yayasan
PETRONAS is the Corporate Social Responsibility arm of PETRONAS. Their
mission is to contribute to the well-being of society. They deliver sustainable
impact, improving the quality of life and socio-economic outcomes for
communities across the nation. Yayasan PETRONAS will ensure that
programmes which have promising outcomes are rolled out nationwide, to deliver
sustainable impact and there is shared success for all involved. It will also direct
its attention to areas which are currently underserved to deliver measurable impact
and accelerate results with its participation.

4.2 PETRONAS Corporate Social Responsibility

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 (CSR) programmes are designed to specifically support PCG’s Sustainability
Strategy under the Social Responsibility Strategic Trust. PETRONAS adopt the
three pillars of Yayasan PETRONAS CSR Strategic Including Education,
Community Well-being & Development, and Environment. Understanding the
importance of partnerships, they collaborate with various stakeholders to offer
impactful community solutions. The community work aims to create value for all
parties involved, including NGOs, collaborators and society at large. PETRONAS
community work reinforces PCG’s position as an industry leader on social issues.
Community involvement also helps with employee satisfaction,providing them
with purpose and fulfilment. Additionally, CSR programmes provide critical
insight into the efficient execution of key sustainability projects, such as the New
Plastics Economy (NPE) and climate change adaptation.

4.3 CSR PROGRAM BY YAYASAN PETRONAS

4.3.1 Program MRSM Budi PETRONAS

PETRONAS funds the annual education allowance of selected

students from underprivileged families in 6 MRSMs in Sabah and
Sarawak, for school uniforms, textbooks, sports apparel, learning aids
and other items. To date, RM2 million has been invested and 481
students have benefited from this programme, which is a collaborative
effort with MARA.

4.3.2 Mara Junior Science College (MRSM) in Sabah and Sarawak

PETRONAS provided financial assistance for the construction of

two MARA Junior Science Colleges in Ranau, Sabah, and Bintulu,
Sarawak. The intention is to spur students’ further interest in STEM
while developing talent and cultivating an interest from students in this
area.

4.3.3 Asrama Harian Luar Bandar

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 Students from rural areas often have to travel for hours to reach
school. To help remove education barriers, alleviate socio-economic
pressures and tackle student dropouts, PETRONAS is building two
Rural Daily Hostels in Pulau Balambangan, Sabah, and Paloh,
Sarawak, which provide a transit location en-route to school and back
during the day and week.

4.3.4 Transforming English in Terengganu (TRENGLISH) – Part of

‘Sentuhan ILMU’

Initiated by the State Government of Terengganu, this programme

enhances English communication skills amongst local students. Since
2015, PETRONAS has contributed over RM1.3 million towards
supporting 40 secondary schools and 10 primary schools throughout
the state. The initiatives include the Mega TRENGLISH camp,
circulation of magazines, newspaper insertions and TRENGLISH
activities in schools.

4.3.5 Community Well-being & Development

PETRONAS believe that social progress is inclusive and everyone

can enjoy a better quality of life. In order to improve the quality of life
for more Malaysians and support their economic progress, Yayasan
PETRONAS delivers several programmes to address a variety of
immediate and long term community issues.

4.3.6 ‘Sentuhan Harapan’ Programs

Earning a living can be especially difficult if you are not

professionally trained and opportunities are few. PETRONAS has
worked with single mothers, rural entrepreneurs and others from under
privileged communities across Malaysia. PETRONAS is also looking
into the rising rate of unemployability amongst Malaysian youth. We
believe, given the opportunity, the youths can sharpen their minds and

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 expand their creativity to turn ideas into ventures. The company
believes that social progress should be inclusive and everyone can
enjoy a better quality of life. The Sentuhan Harapan programmes have
been designed to help us achieve this aim. Desired Impact that
PETRONAS want to archive including  Sustainable economic growth
which is upgrade the standard of living for underprivileged
communities & youth by creating pathways for sustainable livelihood
and better health.

4.3.7 Better Health: Cancer Research

PETRONAS has been collaborating with Cancer Research

Malaysia since 2010 to raise awareness about the disease and support
research for early detection of cancer cells. PETRONAS is a founding
donor of Cancer Research Malaysia (CRM) and funds the
establishment and upkeep of laboratory facilities for Malaysian cancer
research. CRM strives to conduct impactful research and lead the fight
in controlling cancer through early detection and scientific knowledge.
PETRONAS has been the main infrastructure sponsor since CRM’s
inception in 2001, donating RM11.5 million for laboratory equipment,
computers and overheads for cancer research. This investment
maintains CRM’s laboratory and forms the foundation of the lifesaving
research conducted in the country.In 2018, PETRONAS disbursed
RM1 million to CRM to cover its operating expenses and research
work.

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4.1.
4.2.
4.3.
4.3.1.

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4.3.2.
4.3.3.
4.3.4.
4.3.5.
4.3.6.
4.3.7.
4.3.8. Better Health: Food Basket.

With the Sabah Health Department, PETRONAS has been

providing nutritional supplies to children in rural interior areas to
prevent malnutrition and stunting. The food aid programme, which
started in 1989, has benefited 600 children from several communities
in Sabah. PETRONAS has contributed RM7.5 million over five years.

4.3.9. Better Water Supply and Sanitation: Water for Life.

Partnering with MyKasih, PETRONAS has stepped in to provide

food and various essential supplies to affected families of floods and
other natural disasters. The items, including bottled water and tissue
paper, help get them back to their daily lives and reduce the risk of
transmittable diseases. Moreover, collaboration with Malaysian Nature
Society (MNS), PETRONAS prioritises water conservation for future
generations. There are a number of villages and communities living
without piped water. This programme addresses the issue by creating
facilities that supply clean water to the community.

4.3.10. Imbak Canyon Conservation Area and Imbak Canyon Studies Centre

PETRONAS is the first largest local funder for Yayasan Sabah

Group in the preservation of a gazetted conservation area in Sabah,
investing RM83 million in the 27 hectare Imbak Canyon Studies
Centre (ICSC) – a world-class rainforest biodiversity research facility
located in the 27,000 hectare Imbak Canyon Conservation Area
(ICCA). The Imbak Canyon is one of the last frontiers of contiguous

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 lowland forest with scenic views and an abundance of medicinal
plants, with communities living near the reserve. The area has the
potential for bio-prospecting initiatives. PETRONAS supports the
Imbak Canyon Studies Centre (ICSC) – a research hub for biodiversity
conservation – and the Imbak Canyon Conservation Area (ICCA).
ICSC covers an area of 27 hectares and has a range of facilities
including accommodation for staff, researchers and visitors, a café,
laboratory, library, mini-theatre, conference rooms, nature gallery and
an environmental education complex. ICSC aims to become a hub for
learning in biodiversity conservation and sustainable use of natural
resources. It will also set up a genebank conservation project as well as
spur scientific discoveries from nature for pharmaceutical and
biotechnological applications. 
PETRONAS’ contribution of RM6 million went towards
environmental education, public awareness, community outreach,
research, ethno-forestry study and documentation, capacity building,
formulation of the ICCA Strategic Management Plan and initial works
for ICSC. PETRONAS contributed RM77 million for the construction
of ICSC and related facilities, including the construction of the Ulu
Kinabatangan Information Centre and the Ulu Kinabatangan Jetty,
located in Kampung Imbak; as well as the establishment of the
Yayasan PETRONAS is working on this programme in partnership
with Yayasan Sabah, PETRONAS Research Sdn. Bhd. (PRSB),
PETRONAS Group HSSE and PETRONAS Group Corporate
Strategy. Our combined collaborative efforts in this cross-divisional
initiative are aimed at conserving and protecting biodiversity, while
promoting and fostering innovation to address climate change.

4.4 PETRONAS CSR impact their ranking

According to The national oil company, the rank has been attributed to the
result of PETRONAS Brand Strength Index (BSI) which increased from 87 last
year to 87.7 in 2022, judged on a brand’s performance, focusing on intangible
measures relative to its competitors. Brand Finance’s assessment of stakeholder

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 equity incorporates original market research data from over 100,000 respondents in
more than 35 countries and across nearly 30 sectors. In the 2022 Brand Finance
Global 500 report on the world’s most valuable brands released early this year,
Petronas’ consistent brand performance had contributed to a brand value of
US$13.6 billion (US$1=RM4.40) in 2022, a 13 per cent increase from 2021. The
report said in addition to calculating brand value, Brand Finance also determines
the relative strength of brands through a balanced scorecard of metrics evaluating
marketing investment, stakeholder equity, and business performance. According to
Brand Finance, Petronas is well placed to further strengthen its brand as the
company aims to provide a diversified range of energy options in line with its
aspiration to achieve net-zero carbon emissions by 2050.

5.0 CSR ACTIVITIES ENHANCING PETRONAS' IMAGE AND REPUTATION 

Companies' social duty goes beyond simply doing good, while it should be the
starting point. An effective CSR strategy will increase consumer awareness of the
company's  brand and assist it in gaining customers' trust and loyalty through its brand
initiatives. Additionally, customers are attracted when they appear to be supporting
charity or environmental causes, it enhances the company's reputation. The interests and
commercial activities of all organisations operating in society must be integrated if they
are to benefit both organisations and society. Many companies incorporate social
responsibility into their daily operations. These initiatives have a good effect on their
communities, the environment, and societal issues. It might be advantageous for the
company and its stakeholders.
A company's reputation as a socially responsible organisation might help it create
brand equity. A company's solid reputation is a key strategic asset that can help it stand
out from competitors. A company's reputation influences the hiring of more skilled
personnel, which leads to more lucrative client engagements. The reputation of your
business will get better as a result of improving your corporate social responsibility. The
financial benefits of enhancing your company's reputation are substantial and far-
reaching, and they include things like lower staff turnover, more workplace efficiency, a
larger audience, and increased customer trust. CSR also improves your reputation by
acting as a buffer for favourable opinions and internet data.

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 These are a few instances of CSR projects that PETRONAS has undertaken.
PETRONAS works hard to win the trust of its clients and to uphold a positive working
environment with its staff. It is undeniable that CSR may significantly assist a firm in
demonstrating their worth. This item can assist the business in improving its ranking.
PETRONAS has participated in numerous CSR initiatives with both government and
non-government organisations. PETRONAS CSR efforts have demonstrated that it is
capable of upholding the brand's positive reputation. PETRONAS gained the trust of its
customers despite not receiving much media attention. It results from the CSR work that
they undertook.

6.0 CSR ADVERTISEMENT BY PETRONAS

Corporate social responsibility (CSR) has received considerable attention and has 
emerged as a global trend that raises questions about the role of business. One of the
reasons (CSR) has become a serious topic in the role of business is that it contains
important elements, one of them is advertisement. According to Aashih Pahwa (2022)
advertisement is a paid promotional tool backed by an identified sponsor to call public
attention to an offering or a brand.  Companies that practise CSR must advertise their
company more widely and publicly in order to maintain their identity, image, and
reputation. This is related to our current era in which they are very concerned with their
company's reputation to ensure their longevity in the business world. When companies
advertise about their CSR activities, it means that they consider the impact of
advertisement on their operations, sales, human resources, and marketing across all of
their segments and activities. PETRONAS is one of the biggest companies that took this
issue seriously because their position is a contentious issue for Malaysians. PETRONAS
gains economic value from the advertisements by associating the brand with values and
identities that are important to Malaysians. This strategic brand-building effort is strongly
intertwined to the company's role as a GLC in the Malaysian socio-cultural and political
economy system. 
PETRONAS, well-known for its television marketing for festivals. The event's
promotion is one of the most notable events at each major festival. In fact, it is often one
of the commercials that people look forward to the most at a big festival. This is mostly
due to the fact that Petronas commercials frequently moved viewers' emotions while also
occasionally igniting controversy. This campaign was designed to instil and promote

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good and harmonious values among Malaysians due to our multiracial and multicultural
environments, which we do not need to mention. so that the principles of the Malaysian
way of life and culture are always brought to mind. It follows that Malaysians celebrate
each holiday, including Diwali, Christmas, Chinese New Year, and Hari Raya Aidilfitri,
with great fanfare and in close proximity to one another at open houses, events, and other
gatherings. This type of advertisement can enhance the credibility of the company by
creating a good environment in the community. For instance, In 2021, PETRONAS
launched a Hari Raya advertisement with a fully animated Webfilm, “Syukur Raya”. This
advertisement uses the fun and cheeky “seloka” to embrace the themes of the
advertisement which is compassion and kindness. The characteristic warmth and
friendliness of Malaysians, which are deeply ingrained in the national culture, presented
as the inspiration for this campaign.
In addition, through its Sentuhan Kasih PETRONAS programme, PETRONAS
honours the Muslim population in Malaysia by launching off a national Iftar Ceremony to
mark the beginning of Ramadan. In this event, they are giving donations that were
collected by Badan Kebajikan Islam PETRONAS (BAKIP) through a group-wide
donation drive among PETRONAS' staff and will be given to those who deserve it while
breaking-fast with local communities in seven states across the country which are Johor,
Kuala Lumpur, Kedah, Sabah, Sarawak, Terengganu and last but not least Melaka. “The
ceremony known as Majlis Iftar Perdana PETRONAS Bersama Masyarakat”. In each of
the seven states, it was held at a few mosques and a PETRONAS facility. Masjid Kg
Punggai in Johor hosted the first ceremony on May 20, and on May 26, ceremonies were
performed at Masjid Zaid bin Haritsah in Kuala Lumpur, Masjid Ar-Rahmah in Kedah,
Masjid Imam Abdullah in Sabah, and Masjid Assyakirin in Sarawak. The following
ceremonies will take place on May 31, 2018, at Masjid Tengku Mizan in Kertih,
Terengganu, and on June 5, 2018, at the Malaysian Refining Company Sdn Bhd
(MRCSB) in Melaka. This programme celebrates approximately 1,000 recipients from the
asnaf group that will get a cash donation from RM100 to RM200. This shows how
seriously PETRONAS takes its commitment to boosting a spirit of togetherness and
sharing.
Other than that, PETRONAS also advertises their company by continuing to enhance 
employment opportunities through SL1M-GEES. At the 'Program Temu Duga Skim
Latihan 1Malaysia Peringkat Zon Tengah 2018' launch, PETRONAS strengthened its
commitment to human capital development for the country as it recognised its seventh

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 year of participating in the Skim Latihan 1 Malaysia (SL1M) - Graduate Enhancement
Employability Scheme (GEES). The ceremony took place in Malaysia Agro Exposition
Park Serdang (MAEPS), Selangor, under the auspices of Prime Minister Datuk Seri Najib
Tun Razak. As part of the company's CSR initiatives, PETRONAS claimed that this
year's event aims to raise public knowledge of the programme while also increasing the
number of applicants for this year's intake. 
In the context of community well-being and development, PETRONAS also
advertise 
their CSR activities through media releases. Through its COVID-19 Donation Drive,
PETRONITA, which stands for The Association of Wives and Women Employees of
PETRONAS, has donated RM255,000 worth of urgently needed medical equipment and
supplies to hospitals and healthcare providers fighting the coronavirus epidemic. Funds
were raised during the Donation Drive, which took place between March 20 and April 5,
2020, from PETRONAS employees, their families, and members of the general public.
The community will be made aware through this type of advertising that this company is
focused on establishing a good level of community well-being as well as on the
economic, social, and other sectors.
Furthermore, PETRONAS itself promotes its advertisement through their YouTube
Channel and Facebook when they launched Webfilm that called as “Land of Light
Bulbs”. As part of its ongoing branding efforts throughout the nation, this webfilm was
created to pay homage to India's inventive spirit. At PETRONAS' annual partner and
customer reception, which was held both here and in New Delhi, this webfilm made its
debut. Together with Rajay Singh, Rajesh Mapuskar directed this webfilm. Three 20-
minute episodes make up the webfilm series, which takes viewers on an emotional ride
through difficulties and friendship. Since PETRONAS was a pioneer in the production of
feature-length web films in Malaysia, when they developed this kind of programme, it
reflected our brand and our desire to expand with India as our partner of choice.
Last but not least, PETRONAS also uses newspaper as the medium to advertise about
their company’s programme. PETRONAS advertise about the launching of CSR unit
Yayasan PETRONAS which has Sentuhan Harapan foundation  that has been designed to
give the opportunity to youths so they can sharpen their minds and expand their creativity
to turn ideas into ventures. PETRONAS believe that social progress should be inclusive
and everyone can enjoy a better quality of life. There are signature programmes for
Sentuhan Harapan such as “Youth”, “B40 Communities (Urban & Rural)”, “Secondary

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 School Students (14-16 years olds). For instance, this unit has recently announced
“Program MEKAR” (Memampankan Ekonomi Asas Rakyat) through their foundation.
This programme aims to assist 3 400 B40 or low income families in targeted districts
across Johor, Kedah, Kelantan, Pahang, Sabah, Sarawak, Selangor and Terengganu. In
keeping with the Sustainable Development Goals (SDGs) of the United Nations and
PETRONAS' Sustainability Agenda, they strive to encourage inclusive and sustainable
economic growth, employment, and decent work for Malaysians through Program
MEKAR.

7.0 THE INFLUENCE OF CSR ACTIVITIES ON YOUR PURCHASING

DECISIONS.

As aforementioned in the former sections, we now have a general understanding of

the various CSR initiatives that Petronas carried out in recent years. While the main
reason companies implement CSR activities is usually to foster a firm’s reputation and
increase trust, there is however another underlying reason for them to do so – profit. It’s
an indisputable fact that companies such as Coca-Cola, Johnson & Johnson, Adidas
Group and even Disney invest in CSR activities to rope in more consumers by using CSR
to distinguish themselves from their industry peers. But there still lies the doubt that
hesitates most active companies in the field: Could CSR really help influence our
customers’ decisions in consuming our products and services?
The answer from William Clay Ford, Jr., the Executive Chairman and Chairman of
the Board of Ford Motor Company was affirmative. To quote the humble Chairman in his
2010 letter; he stresses that creating a strong business and building a better world are not
conflicting goals – they are both essential ingredients for long-term success (William,
2010). This is once again reaffirmed by Eun-Mi Lee and Sung-Joon Yoon (2018) who
writes in their paper that consumers today would no longer consider only price and
quality when they have to choose a product. The reason for this statement being made is
due to the resulting research that firms with a strong CSR reputation or image would be
more likely to garner supportive behaviour from consumers, including their trust toward
the firm and their willingness to recommend and purchase the firm’s products. Of course,
Petronas, being one of the leading oil and gas companies in Malaysia also abides by this
rule of thumb; which does work wonders in attracting consumers to buy petrol from them.

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 Coming to the crux of the conversation is another question in wait – How exactly did
Petronas’ CSR activities manage to entice consumers then? Again, it all narrows down to
a good reputation. To simplify, when purpose-driven consumers attribute a favourable
image to a firm engaging in positive CSR activities; like giving back to the public, they
will have favourable intentions toward the firm (Lee & Yoon, 2018). For example,
Petronas is well known for being active in contributing to the Education, Community
Well-being & Development, and Environment sectors of CSR (Petronas PCG, 2022).
Their support for over 18,670 individuals including 6000 families through Covid-19 relief
programmes in 2022 undeniably made people grow attached to the company because they
feel Petronas has been making an effort to connect and help those in need. The company’s
sales have been rising in numbers, marking a whopping increase of 51% from RM109.6
billion to RM 172.1 billion, and while we cannot fully attribute CSR activities as the
reason for this increase in revenue, it has undoubtedly played a part in their success
(Petronas, 2022).
Another way that Petronas’s CSR activities have influenced our choice in choosing
their services over other companies is that it increases our trust in them when they are
being transparent and responsible. Perfect information about a company is crucial in this
age as consumers now are more aware of the people behind the logo. They want to know
whether the company they are supporting did uphold ethical business activities and/or
CSR; for example, if Petronas has protected the rights of the people, rights of
stakeholders, rights of employees, relations in the community, corruption, product
stewardship, environmental protection, transparency, doctrines and codes of practice
(Radda, 2015). Not only that, Petronas has proven itself capable of identifying the most
urgent needs of the communities in which they operate and then responding to them
through its CSR activities, like how it tried to reach out to the community during the
Covid-19 Pandemic. This would reaffirm consumers’ belief that Petronas is a company
that actively listens to the voice of the people, therefore increasing trust in them as they
feel more inclined to spend money on Petronas.
Lastly, it has to be made clear that CSR is not a last-minute project, but a marathon.
The main reason Petronas’s CSR initiatives are highly effective in influencing
consumers’ intent and loyalty is that the company has been persisting with these activities
long-term. After all, it requires time to build a good reputation – which is why Petronas
has been on the right track from the very start and hence it rightfully reaps the fruits of its
labour, increased profit and great trust from the public.

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 8.0 CONCLUSION

As what has been stated above, Petronas did practise corporate social responsibility
(CSR) in their projects, events and activities. The reason behind implementation of CSR
in their activities is it benefits the company in terms of the company’s reputation.
Reputation is very important to Petronas as it is a massive company which is Yayasan
Petronas. It has many branches from its main activities from education aspects,
community well-being and development, environment aspects. It all benefits and
contributes to the well-being of society. As in education, they conducted Sentuhan Ilmu
programmes for particular school subjects such as Science, Technology, Engineering and
Mathematics (STEM). Through TRENGLISH Camp, they benefit Terengganu’s students
to learn better in English. Next, in community well-being and development, they organise
Sentuhan Harapan programmes for sustainable economic growth by helping the untrained
or young entrepreneurs to do business professionally. Better Health of Cancer Research
and Food Basket, Better Water Supply and Sanitation of Disaster Relief and Water For
Life for Malaysians’ harmonious livings. Last but not least, in environmental aspects,
PETRONAS did organise the Sentuhan Alam programme. They conduct activities like
Forest Conservation, Mangrove Conservation, and Marine Conservation for nature
preservation. From all the activities being conducted by PETRONAS shows that they care
about their customers well-being, their image and reputation.  All in all, we can conclude
that CSR is a strategy or tactic for businesses to keep on running in a way that benefits the
social community and is environmentally friendly. In addition, it can contribute to the
society in various ways and provides enhancement for the business reputation and image.

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