Submission to Local Network

Our establishment stems from the demands and needs of people. With our tremendous growth and global presence and influence today, we are aware that our activities can very much potentially directly and/or indirectly affect the lives and livelihood of the people living on this beautiful planet today, making every single individual a stakeholder of our esteemed establishment.

Since November 2004, we have been an official member of the United Nations global compact organisation, conscientiously exercising our due diligence to ensuring sustainable development, and listing our efforts onto a dedicated annual report. Since 2008, the report also extends to listing our incrementally increasing efforts in the areas of social responsibility. The said report references stringent guidelines and index system from several world-class governing bodies. (Sinopec, 2013).

We, however, understand that we have a checkered history of operations that is exacerbated with the innocuous reputation the energy industry is bathed in. And being a state-owned company in China does not help. But, please bear with us.

With reference to the astonishing rate we are growing, and have grown, as a business, it becomes clear that it is imperative that we continue to solicit with the right and appropriate governing bodies for cooperation to ensure that we evoke coveted genuine and ample trust from the stakeholders we serve. And at Sinopec, we envisage to have our image refurbished to which others will be enamoured with, and emulate to become, by gearing towards the following with greater dedication than before as a start:

1)Principle 1: "Businesses should support and respect the protection of internationally proclaimed human rights." (United Nations Global Compact, 2013)

2)Principle 7: “Businesses should support a precautionary approach to environmental challenges.” (United Nations Global Compact, 2013) With much deliberation, we believe adherence to the following will help us to continue to ascend to greater heights:

1)Dedicating funds for altruistic activities.

2)Formation of dedicated panel of experts for creation, and maintenance of preventive measures taken to protect the environment.

Recommendation 1

In the aforementioned, we have already committed ourselves to an extended transparency of our corporate social responsibility (CSR) performance through collaborations with world-class governing bodies, and adopting their guidelines for triple bottom line reporting that discriminates sole focus on our financial results. Instead, it will take into the account of our performance in the social and environmental aspects, qualitatively and quantitatively.

We know that implementing this type of report will raise the legitimacy of our CSR claims. But what is point of triple bottom line reporting when there are only mediocre commitments to report? We wish to endow this organisation with other’s envy and emulation with even more robust commitments that we can broadcast into our reports.

Thus, we have constructed the following recommendation for the local network:

-“Dedicating funds for altruistic activities. Two of our notable projects are “Hope Schools” and “Spring Blossom”. The former aims to put impoverished dropouts back into schools; and the latter’s aims to do the same for our female counterparts that are even more disadvantaged due to gender inequalities. (Sinopec, 2013).

We strive to continue in this direction with more efforts to ensure more funds and donations to be set up to keep the impoverished of the next generation educated. To date, since 2004, we have devoted a collective lean estimate of at least USD $11,840,000 to help under-privileged children in 68 countries. (Sinopec, 2013).

The benefits of our continued efforts promote:

1)Society: A well-rounded and educated next generation, imbued with problem-solving heuristics and upright integrity and morals, which will potentially shape a better world. 2)Investors: The “Generation Y” is an increasing population of investors coming of age, and is inclined to choose to dedicate and invest in companies that are a positive force for the society. Our dedication and direction for a better and greener world will attract substantial tangible and intangible investments from such an up and coming generation of people, boosting our stock prices. (Culture Coach, 2012).

3)Employees: With a greater sense of well-being for being part of a great cause, on top of being able to see that their painstaking efforts are being brought into fruition encourages higher retention rate of employees.

Recommendation 2

Prevention is always better than the excruciating recovery from a debilitating condition. Deriving lessons learnt from one’s own failing experiences can enable one to pick up the pieces and emerge even more powerful than ever. However, some experiences are better learnt vicariously from history.

We have in retrospect a myriad of lessons to learn from. And the two iconic ones of our time are: ExxonMobil’s Exxon Valdez oil spill in1989; and BP’s Deepwater Horizon oil spill in 2010. And in both cases, the damage done is so massive and long term that nobody can safely provide an accurate estimate of the true extent of damage inflicted unto our beautiful Earth. (Infoplease, 2013). Although life and growth must still go on with energy continuing to be the foremost imperative driver, we can design realistic preventive measures to help allay fears, and prevent reoccurrences effectively.

Thus, we have devised the following recommendation, as an extension of our practice:

-“Formation of dedicated panel of experts for creation, and maintenance of preventive measures taken to protect the environment”.

Like the other oil majors ahead of our time, we at Sinopec have form a dedicated vetting team that rigorously works to ensure all of our facilities and equipment that we employ are in desirable world-class working conditions. In doing so, we can be sure that risks in such a volatile work environment are brought to its minimum. (Sinopec, 2013).

The benefits of our continued efforts ensure:

1)Environment: Limited and controlled tampering to the local fauna and flora, while lowering risk of repercussions and reprisals from environmental legislation.

2)Local community: Sensitive cultural needs of locals are met; and integrating them into the establishment’s employment scheme. 3)Shareholders: Compromises made will bring about desired change in the establishment’s public image, alleviating concerns from special interest groups; a cushioning protection from repercussions that would hurt profits.

Challenges

Dissent will be inevitable. After all, compromises made without immediate tangible results to boost earnings will probably not sit well with direct stakeholders for a while. Not to mention the development of an effective implementation process will consume additional resources, and a process that can be used across the board will require collaboration between the varying business, accountants and social bodies, which different enterprises would usually opt out due to confidentiality issues.

After the development of the implementation process, even more resources must be invested into monitoring its performance, which smaller establishments cannot afford to divert enough finances to.

Success

As an establishment that is looking to go a long way, the aforementioned are a sound long term pitch for a wise long term investment that has brought us to become the “world’s fourth biggest company in 2012 by revenue” (Forbes, 2013). And we are still growing.

References

Culture Coach. 2012. “Managing Gen Y: Generation Y Rewards Corporate Social Responsibility.” Accessed August 28, 2013. http://www.culturecoach.biz/genyblog/generation-y-rewards-corporate-social-re sponsibility/.

Infoplease. 2013. “Oil Spills and Disasters.” Accessed August 28, 2013. http://www.infoplease.com/ipa/A0001451.html.

Sinopec. 2013. “Company reports and publications: Sinopec Reports.” Accessed August 28, 2013. http://www.sinopecgroup.com/english/companyprofile/Pages/Companyreportsandpublications.aspx.

Sinopec. 2013. “Social Responsibility: HSE Management Sytem.” Accessed August 28, 2013. http://www.sinopecgroup.com/english/socialresponsibility/low-carbon/resourcesefficiency/Pages/default2012.aspx

Sinopec. 2013. “Social Responsibility: Funding Educational Programs.” Accessed August 28, 2013. http://www.sinopecgroup.com/english/companyprofile/Pages/Companyreportsandpublications.aspx.

United Nations Global Compact. 2013. “Global Compact Principle One: Businesses should support and respect the protection of internationally proclaimed human rights” Accessed August 28, 2013. http://unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle1.html.

United Nations Global Compact. 2013. “Global Compact Principle 7: Businesses should support a precautionary approach to environmental challenges.” Accessed August 28, 2013. http://unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle7.html.