Management of Corporate Social Responsibility Management of Corporate Social Responsibility Corporate social responsibility philosophy To fulfill corporate social responsibility is the basic promise and principle of our operations and sustainable development. CNPC strives to operate in an environmentally friendly, safer and more efficient way to continuously supply energy to society and create a better life for all. Mechanism of advancing management CNPC has established the Committee of Social Responsibility Management, consisting of the Social Responsibility Promotion Office, Editorial Office of the CSR Report and the External Expert Panel. The Committee is responsible for formulating the mission and principles of corporate social responsibility to provide unified guidance. The Promotion Office follows the unified deployment of the Committee, and organizes and coordinates relevant departments and work units to fulfill social responsibility. The Editorial Office and the Panel are responsible for report drafting and consultation respectively. A working mechanism has been established, in which the Committee leads, departments in charge organize the work, business sectors take respective responsibilities and affiliates are fully engaged. In 2011, to enhance awareness of corporate social responsibility in affiliated companies, CNPC organized a training program for the fourth consecutive year, collected best practices and edited and issued CNPC Social Responsibility Best Practices. By the outreach of “Knowing CNPC Better”, we invited stakeholders to visit our company and understand it better. We also consult with external experts regularly for their comments in an effort to improve and enhance social responsibility management. Inviting stakeholders to CNPC 2006 2007 Established the CSR reporting mechanism Issued our first CSR Report 2008 Held CSR Forum 2009 Issued CNPC (Kazakhstan) Sustainability Report 2010 Issued CNPC in Sudan 2011 Issued CNPC in Indonesia Promoted the sharing of CSR best practices at CNPC [email protected] opens to the public 6 Released our CSR KPIs Launched our website on Environment and Society Introduced the stakeholder engagement mechanism Established the Committee of Social Responsibility Management and External Expert Panel Compiled Corporate Social Responsibility: Best Practices from CNPC 2011 Corporate Social Responsibility Report Communication with Stakeholders We place a high premium on the expectations and concerns of our stakeholders, such as government, shareholders, employees, clients, consumers, partners, relevant agencies and communities. We actively promote and improve the mechanism of stakeholder participation. Through expert panels, organizing on-site surveys, and launching a social responsibility Web page and corporate social responsibility mailbox, we conduct multi-faceted communications with governments, communities, employees and partners in host countries, to deeply explore the concerns and expectations of stakeholders, increase transparency and proactively fulfill our responsibilities to related stakeholders. Stakeholders Means of Communication Major Actions in 2011 Government (1) Contribute to the formulation of national energy policies and regulations (2) Contribute to the formulation of industry planning, industry standards and national standards (3) Sign strategic cooperation framework agreement (4) Influence public policy (5) Increase information disclosure (1)Maintain sound operations and increase asset value (2)Support the National 12th Five Year Plan on Environmental Protection (3)Discuss energy cooperation with host countries (4)Safeguard energy supply and optimize energy mix (5)Push forward the building of key labs and major technological innovations (6)Fully launch the construction of five natural gas metering stations as a part of the nation’s oil and gas flow metering station plan Employees (1)Set up labor unions at different levels (2)Hold staff congresses (3)Provide communication channels for employees (4)Increase information disclosure (1)Strengthen staff training to improve their professional skills (2)Organize occupational health examinations (3)Improve enterprise pension system (4)Reinforce anti-terrorism and security efforts in overseas projects (5)Implement the Employee Assistance Program (6)Build career development mechanism Customers and consumers (1)Safeguard consumers’ interests (2)Supervise product quality (3)Ask the opinions of customers and consumers (4)Increase information disclosure (1)Improve quality management system and upgrade product quality (2)Establish a unified service station management system and launch overall inspections (3)Increase supply of clean products, such as natural gas and high-grade gasoline and diesel oil (4)Implement oil and gas recovery projects to minimize pollution (5)Launch the “Serve the People and Strive for Excellence” campaign (6)Open 95504 hotline Business partners (1)Host conferences for multinational business negotiations and technical exchange (2)Leverage the role of e-trading platform (3)Share management experience and technical information (4)Contract negotiations (5)Routine business contacts (6)Strengthen contractor HSE management (7)Increase information disclosure (1)Compete equally and operate in a rule compliant manner (2)Enhance communication and coordination with contractors, strengthen contractor HSE management to secure a safe and healthy working environment, and improve safety and security measures and the emergency rescue system (3)Support the development of local small and medium-sized enterprises and encourage local procurement Relevant organizations (1)Exchanges with the public on their various concerns (1)Share corporate experience (2)Hold and participate in the 23rd Annual Conference of Natural Gas Technology (2)Participate in relevant activities Committee of the International Standardization Organization (ISO/TC 193) (3)Facilitate international exchange and cooperation (3)Participate in Summer Standardization Conference on API Exploration and (4)Increase information disclosure Production 2011 (4)Participate in the 20th World Petroleum Congress Community (1)Explain and publicize safety and environmental protection knowledge (2)Dialogue with local governments (3)Pay community visits and promote exchanges (4)Increase information disclosure (1)Carry out disaster relief, poverty alleviation and donations to education, and support the reconstruction of disaster-stricken areas (2)Support and drive the development of local economies through major projects (3)Provide natural gas and other clean energies for underdeveloped regions 7
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