ATTOCK REFINERY LIMITED
Aug 08 - 14, 2005
Attock Refinery Limited (ARL) is the pioneer in crude oil refining in Pakistan with its operations dating back to 1922. Backed by a rich experience of more than 80 years of successful operations, ARL's plants have been gradually upgraded with state-of-the-art hardware to remain competitive and meet new challenges and requirements.
ARL promotes sustainable development as a part of its vision and core values to create the foundation for a more productive, competitive and knowledge-based environment. ARL's activities in this domain are distinguished from others on account of the innovative nature of its corporate social responsibility (CSR) initiatives in the areas of environment, income generation, women development and HRD.
ARL is an associated company of Attock Oil Group of Companies (AOC), the only fully integrated group in the country covering all segments of oil and gas sector from exploration, production and refining to marketing of a wide range of petroleum products.
Corporate Social Responsibility Program Areas
While acquiring the latest state of the art facilities ARL has never been oblivious to the human factor and has been in the forefront to discharge its CSR. ARL since its establishment in 1922 has cast a significant impact on the Morgah and Kotha Kalan communities. ARL is making all efforts to involve local community in development projects, focusing on capacity building rather than traditional donor-beneficiary relationships. Provision of water, carpeted roads, playing grounds, culverts, and parks etc. has not only resulted in poverty alleviation and improving lifestyle of the locals but has also helped ARL in expanding its operations through the support of the local population.
ARL has a Vision and Values Statement that sets forth the company's values. The three top most core values linked with CSR, are: Integrity & Ethics, Quality and Social Responsibility. These are supported by concrete guiding principles that allow employees to understand what they mean and how the values relate to their day-to-day work. The Vision and Values Statement is also supported by policies such as those dealing with stakeholder engagement, ethics and environment.
TOP THREE CORE VALUES AT ARL
Integrity & Ethics
Integrity, honesty, high ethical, legal and safety standards are cornerstones of our business practices
We pursue quality as a way of life. It is an attitude that affects everything we do for relentless pursuit of excellence
We believe in respect for the community and preserving the environment for our future generations and keeping national interests paramount in all our actions.
CSR activities at ARL are founded on a belief in the importance of stakeholder relations to business success and that sustainable development encompasses not only environmental and economic objectives, but also community relations and social inclusiveness. The company engages with a broad range of stakeholders to ensure that the company is able to address any strains on communities and the environment that come with industrial development in these areas.
ARL uses the term CSR to describe its sustainability work. It has always been a part of the way the company conducts business. It is only recently that the company has begun to frame its activities in terms of CSR, in response to its emerging prominence as a management concept. However, it has taken years of strong leadership to ensure the cultural change within the organization needed to fully integrate CSR into the core business practices throughout the company.
At ARL, it was recognized early that the biggest difference it can make is associated with the environmental performance of the products it sells, and developed a number of innovative programs to help consumers reduce their environmental impacts by making better choices and using and disposing of products wisely. In 1999, ARL's acquisition of ISO-9002 certification for its Quality Control Laboratory was the first for a refinery in Pakistan, the first step towards Total Quality Management (TQM) and further testament to ARL's progressive endeavors. In 2001, ARL also acquired ISO-9001:2000 certification for the entire organization and thus became the first refinery to do so in Pakistan. Keeping in line with its commitment to environment and quality ARL also achieved the ISO-14001 certification in September 2002.
In 1993, at the time of promulgation of the National Environmental Quality Standards (NEQS), ARL carried out a comprehensive survey of its effluent treatment facilities with the help of an international consultant with the objective to upgrade it. ARL has spent over Rs. 20 million on environmental projects to meet NEQS by installing Slant Rib Coalescing (SRC) unit for oil recovery and Dissolved Air Flotation (DAF) unit for controlling water quality leaving the refinery. As far as gaseous emissions are concerned, not only do ARL's stacks meet NEQS standards, but ARL's upgradation project was also provided with state-of-the-art technology to ensure compliance with NEQS, in order that ARL's commitment to quality and protecting the environment continues as an on-going feature of its operations.
The National Cleaner Production Center (NCPC) is a center of excellence initiated by the fuel sector, established by ARL in collaboration with UNIDO, to target Cleaner Production techniques in the industry, which means waste minimization at source, which is a preventive strategy rather than the traditional reactive end-of-pipe strategy. The project has been included in the National Environmental Action Plan Support Program (NEAP-SP) of the Government of Pakistan, and, in addition to the Fuels sector extends to other sectors like Textile, Leather and Cement, etc. In 2003 two cleaner production projects, Zero Effluent and Solid Waste Management were started at ARL with the concepts of the 3R's: Reduce, Reclaim and Reuse.
Apart from actively encouraging use of solar energy to promote renewable energy sources, as a part of environmental conservation, ARL has set up Morgah Biodiversity Park in Rawalpindi District near Morgah / Kotha Kalan villages. It is the first of its kind in the world, established jointly by Attock Refinery Limited, UNESCAP and the Economic Affairs Division, Government of Pakistan.
ARL's contribution in community development is evidenced by the creation of Attock Sahara Foundation (ASF), an NGO which is playing a pivotal role in the development of women, elimination of poverty and unemployment. Attock Hospital (Pvt) Ltd (AHL) provides comprehensive healthcare to employees and to the relatively financially compromised community in surrounding areas. Career counseling and various training programs for young people is an innovative and effective CSR program in the area of human resource and community development.
KEY DRIVERS AND BENEFITS
Besides being the right thing to do, ARL believes that its investments in CSR benefit the company's bottom line. Spending the time and resources on environmental performance improvements, fostering relationships based on trust and respect with key stakeholders and working with local communities to ensure they share in the benefits of the business and are simply part of good business practice. Some of the benefits can be backed up with numbers, while others are less easily measured and therefore less easily linked to the bottom line. CSR initiatives have helped enhance ARL's reputation, which builds credibility and trust with stakeholders at all levels, and these are valuable assets. Reputation is closely linked to many of the benefits described below.
1. Social License to Operate and Grow - ARL's reputation as a good corporate citizen determines its social license to operate and expand. Failing to obtain community support for new developments can increase costs by holding up approvals in lengthy public hearings.
2. Relationships with Regulators. - ARL's efforts have continued to foster good relations with regulators including Government of Pakistan & local unions, who see that the company is working with its stakeholders to address their concerns.
3. Ensuring Labour Supply. - The company's CSR activities help it deal with potential labour shortages in a market that is becoming increasingly competitive.
a. Attracting Workforce to the Area. - A reputation as a safe and good place to work makes it easier to attract people to a remote region of the country.
b. Enhancing the Local Human Resources Pool - The company's work with communities is building local capacities that will help meet the future company's human resources requirements.
4. Improved Employee Morale & Productivity - The Company's good employment practices and safety record demonstrate that the company cares about its employees and raises morale. ARL believes that this translates into improved productivity.
5. Reduced Costs - Being in the business where profits are directly related to movement of prices in International Market, means ARL has no direct control of the price of its product. It can only increase profitability through decreasing costs. CSR has helped the company improve its bottom line in measurable ways. Whether it's reducing plant emissions or minimizing land disturbances, you're minimizing losses and that's a way to maximize profits
6. Changing Stakeholder Expectations -Companies today are under increasing pressure to account for their activities to the wider community and to share in the opportunities they create. The public has become more sophisticated and demanding in its expectations of company performance.
While the benefits of CSR are many, ARL recognizes that success can also create challenges. Society has become more skilled at assessing corporations on their performance and behaviour. ARL has realized that as its reputation for being a good corporate citizen has increased manifold so do is the expectations of its stakeholders. They expect this trend to continue further, therefore, expectations must be managed.