CSR of Petron Essay

Petron Corporation (Petron) is a Philippines-based company. The Company is the refiner and marketer of petroleum products in the Philippines. As of December 31, 2010, Petron had seven subsidiaries: New Ventures Realty Corporation engaged in acquiring and developing land; Petrogen Insurance Corporation engaged in serving the insurance requirements of Petron and its allied business partners, such as contractors, suppliers and dealers; Overseas Insurance Corporation engaged in expediting the reinsurance of Petron’s insurable interests as covered by Petrogen Insurance Corporation; Petron Foundation, Inc. engaged in functioning and operating as a charitable and research foundation; Petron Freeport Corporation engaged in selling fuels, including gasoline, kerosene, diesel, lubricants and greases, as well as operate retail outlets, restaurants, and convenience stores; Petron Marketing Corporation is engaged in the fuel business, and Petron Singapore Trading Pte. Ltd. established in 2010. Petron Corporation’s over 75 years of existence in the Philippines is a further testament to its commitment to providing quality products and services. Petron’s colorful history dates back to September 7, 1933 whent he Socony Vacuum Oil Company of New York and the Standard Oil Company of New Jersey formed the Standard Vacuum Oil Company (Stanvac). The end of the venture in the early ’60s split the marketing and refining interests of the company between Esso and Mobil.In 1973, Esso sold its business to the government which became the Philippine National Oil Company orPNOC. Subsequently, Mobil also sold its share of the refinery to PNOC.The oil refining and marketing units in PNOC were eventually merged to form Petrophil, which was later renamed as Petron. As part of the government’s privatization program, PNOC sought a strategic partner that would give Petron a reliable supply of oil, plus access to state-of-the-art refining technology. The result was a partnership with the world’s largest oil producer, Saudi Aramco. On February 3, 1994, PNOC and Aramco Overseas Company BV signed a share purchase agreement thatgave both a 40% stake in Petron. The remaining 20% of Petron shares were sold to the public .In May 2008, the Ashmore Group acquired Aramco’s 40% stake in Petron. Following a mandatory tender offer, an additional 10.57% was acquired by the London-based fund. The PNOC likewise sold its share to another Ashmore subsidiary. Such divestment resulted in the Ashmore Group holding approximately 90.57 percent of the outstanding shares of the company. Mission-Vision and Values To be the leading provider of total customer solutions in the energy sector and itsderivative businesses. We will achieve thisby: Being an integral part of our customers’lives, delivering consistent customerexperience through innovative productsandservices; Developing strategic partnership inpursuit of growth and opportunity; Leveraging our refining assets to achievecompetitive advantage; Fostering an entrepreneurial culture thatencourages teamwork, innovation andexcellence; Caring for community and theenvironment; Conducting ourselves withprofessionalism, integrity and fairness; Promoting the best interest of all ourstakeholders. Leaders Behind The Success RAMON S. ANG- Filipino, 56 years old, is the Chairman/Chief Executive Officer and Executive Director of Petron since January 8, 2009. He is also the Chairman of the Board Executive Committee and Compensation Committee. He is currently the Vice Chairman of San Miguel Corporation (SMC) and President & Chief Operating Officer of SMC, Chairman of Liberty Telecom Holdings Inc. and Vice Chairman and Director of Manila Electric Company. He also holds executive and directorship positions in various SMC subsidiaries. ERIC O. RECTO- Filipino, 46 years old, is the President/Executive Director of the company since October 7, 2008.He became a director of Petron on July 31, 2008. He is a member of the Board Executive Committee and the Nomination and Compensation Committees. He is currently the Chief Executive Officer of Eastern Telecommunications Philippines, Inc. (ETPI) and Vice Chairman& President of ISM Communications Corporation, ETPIs parent company. He is also Vice Chairman of Philweb Corporation and Alphaland Corporation. He was previously Undersecretary of the Department of Finance, in charge of both the International Finance Group and the Privatization Office. BERNARDINO R. ABES-Filipino, 79 years old, has been a non-executive Director of the company since July 2001. He is currently the Chairman of the Government Service Insurance System, following a three-year term as Chairman of the Social Security Commission. EDUARDO M. COJUANGCO, JR.- Filipino, 74, is a non- executive Director of Petron since January 8, 2009.He is also the Chairman and Chief Executive Officer of San Miguel Corporation. He is also the Chairman and Chief Executive Officer of Ginebra San Miguel Inc.; Chairman of ECJ & Sons Agricultural EnterprisesInc., Eduardo Cojuangco Jr. Foundation Inc., and San Miguel Purefoods Company Inc.. RON W. HADDOCK- American, 69 years old, is a non-executive Director since December 2, 2008. He is amember of the Audit Committee and an alternate member of the Executive Committee. He sits as theChairman of the Board of Ashmore Energy International which he has occupied since September 2006.