Corporate Social

Responsibility Elvira E. Pasagui

Presenter
https://www.petron.com/who-we-are/our-history/
 The Philippine’s Leading Oil Company
• Largest oil refining and marketing company in
the country
• Supplies nearly 40% country’s oil
requirements
• Fuel the lives of Filipinos through world-class
products and quality services
• Dedicated and passionate about their vision
 The Philippine’s Leading Oil Company
Through over 2,400 service stations, Petron
retails: Gasoline; Diesel, and autoLPG to
motorists and Public transport operators
 CSR at Petron Philippines
• Country’s #1 oil company
• Celebrated 86 years
• Continues to uphold its
commitment to ensuring the
sustainability of the communities
it serves

https://www.petron.com/news/85-years-and-beyond-fueling-a-sustainable-tomorrow/
 CSR at Petron Philippines
• continuously aspire to be socially
responsible corporate citizens
• integrate sustainability and
corporate social responsibility (CSR)
programs into every aspect of their
business
Adopted from: PPT by Andres, Cuyno, Nava & Patino
 Petron Foundation Inc. (PFI)
The CSR arm

Petron “Fuel” various initiatives addressing essential

areas:
•Education
•Environment
•Health and human services
•Livelihood and other advocacies

– In partnership with communities, local and national government

units, like-minded organizations, and our employee-volunteers
 Petron Foundation Inc. (PFI)
The CSR arm

Petron’s ultimate goal

to contribute to a brighter future

for Filipinos by fueling H.O.P.E.
(Helping the Filipino Children and
Youth Overcome Poverty through
Education)
PLANET
 Petron Foundation Inc. (PFI)
The CSR arm
 Petron Foundation Inc. (PFI)
The CSR arm
 Petron Foundation Inc. (PFI)
The CSR arm
 PEOPLE
(EXTERNAL STAKEHOLDERS)
 Petron Foundation Inc. (PFI)
The CSR arm
 Petron Foundation Inc. (PFI)
The CSR arm
 Petron Foundation Inc. (PFI)
The CSR arm

Commitment to
HOPE (Helping
Overcome Poverty
Through Education)
through TAP (Tulong
Aral ng Petron)
 Petron Foundation Inc. (PFI)
The CSR arm
Commitment to HOPE (Helping Overcome Poverty Through
Education) through TAP (Tulong Aral ng Petron)
• TRAINED 100 teachers from TAP partner schools
TO enhance their teaching strategies and
classroom management via the Teacher Training
Program (partnered with the Ateneo Center for
Educational Development)
• CONDUCTED Best U Can Be (BUCB) workshop,
where TAP high school scholars are engaged in
life skills and leadership trainings
 Petron Foundation Inc. (PFI)
The CSR arm
• Youth in Entrepreneurship and Leadership
Development (YIELD) Program continued to provide
OJT for incoming Grade 10 students of Muntinlupa
Business High School (MBHS) on back office and food
service operations at Petron stations

• Enriched the livelihood of families in Rosario, Cavite

(Rosario TAP Livelihood Association, 2014) as mothers
of TAP scholars - training in sewing old promotional
materials into sturdy tarpaulin bags. (expanded their
skillset and introduced more business opportunities
while helping save the environment.
 PEOPLE
(INTERNAL STAKEHOLDERS)
 Petron Foundation Inc. (PFI)
The CSR arm

Volunteerism
Volunteers in Action (VIA) program
-Lifeblood of Petron’s CSR and sustainability
programs
-Through VIA, 100% of employees
across the Petron family are actively
engaged in giving hope to others
 Petron Foundation Inc. (PFI)
The CSR arm

Volunteerism
 PUTTING PEOPLE FIRST IN PETRON
Rewarding Performance THRU Rewarding
Excellence through Alternative Pay or REAP
Program
•Align goals of employees to that of Petron
•Pay for performance

Engaging Employees in Setting Business

Directions
Petron understands that for the company to
achieve its vision, mission and goals, it needs the
support of its employees - Ilac, 2013
 PUTTING PEOPLE FIRST IN PETRON

Training and Career Development

•employees are encouraged to take charge of
their own career development
•Competency-Based Training and
Organizational Development Curriculum:
- core and functional competencies
- promote a healthy work climate

- Ilac, 2013
 PUTTING PEOPLE FIRST IN PETRON
Ensuring Employee Care and Work-Life Balance
•Service Awards recognize employee loyalty
•The company also provided housing assistance. The
Savings and Land/Home Ownership Plan (Provident
Plan)
= up to 15% contribution of the employee’s pay;
= 5% contribution of the company of employee’s
base pay
•Group Health Insurance Plan
= covers “both in-patient and out-patient expenses
for employees and qualified dependents, as well as
retirees and spouses up to the age of 75 - Ilac, 2013
 PUTTING PEOPLE FIRST IN PETRON
Ensuring Employee Care and Work-Life Balance
Group Life Insurance Plan
= provides financial assistance for the
bereaving family of a deceased employee
commensurate to four years’ worth of salary
For the Elderly Employees
Employees who are 50years old or have already
rendered twenty-five years of service are eligible to
apply for the company’s Retirement Program

- Ilac, 2013
 BENEFITS/COMPENSATION
Rewarding Excellence through Alternative Pay or REAP
Program
•gave a one-time lump sum cash incentive to all qualified
employees when the annual business goals and
objectives were achieved
•all managers, professional/technical employees, and
rank and file union members bound the employees into
achieving a common goal and helped make them work
together as one community
•providing a total remuneration package that covered not
only their basic pay but also variable pay, training and
other benefits - Ilac, 2013
BENEFITS/COMPENSATION

- Ilac, 2013
PROFIT
 PROFIT
The 180,000 barrel-per-day oil
refinery in Bataan hit an annual
utilization rate of 95%, its highest on
record, as it further increased
production of high-value fuels and
petrochemicals. In 2018,
petrochemical and polypropylene
sales grew by 3% and 28%,
respectively, versus 2017. This
drove the increase in export volume,
which surpassed last year by over
7%.
 2018 FINANCIAL HEIGHTS
Amounts in Million Pesos, except per share and sales volume data
PARAMETERS 2018 2017 2016
Net Sales 343,840 434,624 557,386
Gross Profit 37,715 42,655 34,562
Operating Income 23,797 27,638 18,921
Net Income 10,822 14,087 7,069
EBITDA (earnings before interests,
taxes, depreciation and amortization 32,189 38,343 31,803
Total Assets) 318,893 338,030 358,154
Earnings per share 0.6 0.86 0.28
Cash Dividends paid per common share
0.1 0.1 0.15
Sales Volume (in thousand barrels) 105,702 107,760 108,498
Resilient despite an unpredictable oil market environment
SOURCE: https://www.petron.com/wp-content/uploads/2019/06/Petron-AR-2018.pdf
 Stable cash position
In Million Pesos 2018 2017 2016
Beginning Cash Balance 17,014 17,332 18,881
Operating Inflows 5,047 15,753 29,269
Investing Outflows (11,141) (11,211) (19,165)
Financing Inflows (Outflows) 5,949 (4,715) (12,025)
Effects of Exchange Rate 536 (145) 372
Changes
Ending Cash Balance 17,405 17,014 17,332
 Sustainability Development
• Petron continues to conduct their business the
right way, the Petron way
• With Sustainable development, Petron only use
what is needed throughout its value chain while
providing customers quality products safely and
reliably, caring for the communities and
environment, and providing a safe and secure
workplace for our colleagues and stakeholders.
 Sustainability Development

• Petron also offsets its combined

environmental impact through its
CSR environment programs like
reforestation, integrated coastal
management, pawikan/sea turtle and
marine life conservation, etc.
2018 CSR activities
(Philippines)
 some of its
AWARDS RECEIVED
in CSR
Petron Philippines: Some of its awards
received in CSR

• 2011 by Singapore-based The

Pinnacle Group International
–Gold award for Best
Environmental Excellence

https://business.inquirer.net/17949/petron-bags-gold-award-for-csr-program
Petron Philippines: Some of its awards
received in CSR
• 2012 by Management Association of the Philippines
(MAP) during: 2nd MAP CSR
–Integral CSR Award "Growing. Greening. Giving Back:
Making CSR and sustainability a way of life in Petron"
–Best in Environment and Sustainable
Development Special Award “"Measuring, Managing
and Minimizing our Environment Footprint in Bataan"

https://www.topgear.com.ph/news/petron-s-corporate-social-responsibility-efforts-lauded
Petron Philippines: Some of its awards
received in CSR
• 2012 by CSR Asia during the  3rd Asian
Sustainability Ratings (ASR)
–No.1 among Philippine companies
–7th out of 49 Asian companies in the energy
sector surveyed by the ASR
–  top ten percent of the 750 companies
surveyed in ten Asian countries

https://web.facebook.com/notes/petron-corporation/petron-named-top-rp-company-in-3rd-asian-sustainability-
Petron Philippines: Some of its awards
received in CSR
• 2013 by The Pinnacle Group International
during the  5th Asian Sustainability Ratings (ASR)
–Gold Award for Best Environmental
Excellence for integrating environmental
performance into the company's sustainable
development strategy and delivering proven
business benefits

https://web.facebook.com/notes/petron-corporation/petron-named-top-rp-company-in-3rd-asian-sustainability-
Petron Philippines: Some of its awards
received in CSR

• 2019 by CSR Asia

– Among the top 30 of Asian firms
• 26th in the regional level (Asia) with a score of
70.6%
• 1st in the national level

https://web.facebook.com/notes/petron-corporation/petron-named-top-rp-company-in-3rd-asian-sustainability-