Global

Sustainability

Governance and Ethics

Our aim is to drive awareness on our zero tolerance on corruption, in any form. Organisational effectiveness is central to long-term business competitiveness. Our Shared Values of Loyalty, Integrity, Professionalism and Cohesiveness is the cornerstone to how we do business.

These, alongside the Code of Conduct and Business Ethics (CoBE​), the PETRONAS Corporate Sustainability Framework as well as relevant commitments, are central in delivering optimum shareholder value.

  • Corporate Governance
  • Business Ethics
  • CoBE
  • Organisational Anti-Corruption Plan (OACP)
  • Human Rights Commitment
  • PETRONAS Contractors Code of Conduct on Human Rights

Corporate Governance

Corporate governance is vital to our value creation and business excellence. Our continuous commitment to foster a culture of integrity, ethical behaviour and professionalism underpins our ability to remain a resilient organisation. This promotes higher levels of accountability and transparency.

Our policies are aligned to applicable laws and regulations of countries where we operate, in view of stakeholder’s expectations on good corporate citizenship.



The PETRONAS Board of Directors, supported by the relevant Sub-Committees, provide effective foresight on the business’ strategic direction as stipulated in the Board Charter, aligned with all applicable laws.

The Executive Leadership Team (ELT) assists the President and Group CEO in managing the organisation’s strategic business development plans and growth strategies, including cross-business issues of the PETRONAS Group.

The Board and ELT collectively ensure that PETRONAS delivers upon its obligations in a responsible manner, ensuring all aspects of business decision making adhere to strict ethical standards.

Business Ethics

The PETRONAS Code of Conduct and Business Ethics (CoBE) underpins our commitment to upholding the highest standards of ethics and integrity in the conduct of the Group’s business and operations and this applies to all employees, directors and third parties who represent or act for the Group. The CoBE also contains specific provisions on anti-competitive practices.

The CoBE is supported by the PETRONAS Anti-Bribery and Corruption Policy & Guidelines (ABC Manual) which is applicable to all employees as well as third parties. PETRONAS enforces zero tolerance for all forms of bribery and corruption. Our No Gift Policy and PETRONAS Integrity Compliance Framework collectively aim to further fortify the culture of ethics and integrity across the Group.

 

The Whistleblowing Policy encourages disclosure on any form of improper misconduct, where matters raised are deliberated by the Whistleblowing Committee. Updates are provided on a regular basis to the Audit Management Committee and Board Audit Committee. To lodge a report, please email whistle@petronas.com.my

For further information on Corporate Governance in PETRONAS, please refer to our Annual Reports.

Read more:
PETRONAS Competition Law Guidelines
PETRONAS Anti-Bribery And Corruption Manual

CoBE

The CoBE contains detailed policy statements on the standards of behavior and ethical conduct expected of each individual to whom the CoBE applies.

 

CoBE – Country Supplement
In view of the CoBE’s international application, some provisions of the CoBE will be modified to adapt the CoBE to the requirements of the local jurisdictions which PETRONAS is operating. The country supplement is to cater to the respective local jurisdiction, applicable legislation and social mores.

CoBE Guide
The CoBE Guide is a user friendly guide which will serve to illustrate the application of the CoBE in practice.

Organisational Anti-Corruption Plan (OACP)

PETRONAS Organisational Anti-Corruption Plan (OACP) 2022-2023 is a comprehensive strategy to identify specific corruption risks and establish measurable goals to prevent corruption. It is a structured plan to keep track of the progress and effectiveness of the initiatives.

 



The OACP reinforces PETRONAS’ Integrity Compliance Framework, Management System, Guideline and Procedures as well as Mindset & Behavior that shape the company through PETRONAS Shared Values and PETRONAS Cultural Beliefs.

It also solidifies our commitment to achieve and become a high integrity organisation with zero tolerance to corruption. The establishment of OACP is a requirement by Malaysia’s National Anti-Corruption Plan (NACP) 2019-2023.

Read more:
PETRONAS Organisational Anti-Corruption Plan (OACP)

Human Rights Commitment

PETRONAS is committed to respecting internationally recognised human rights in areas of its operations, complying with its Code of Conduct and Business Ethics, and all relevant legal requirements.

The external operating landscape has changed drastically over the past decade. The oil and gas industry is increasingly operating in complex environments where social concerns are a central problem. A proactive foresight on Human Rights-related risks is crucial to sustain the company's long term growth. We have expanded our focus to ensure local communities’ well-being is a key consideration when carrying out day-to-day operations.

Human Rights is defined as basic standards of treatment for everyone regardless of nationality, religion and language amongst others. There are 30 human rights as listed in the Universal Declaration of Human Rights. Some of the issues that are understood as human rights include non-discrimination, freedom of association, education, right to or access to clean air and water.

The objective of the PETRONAS Human Rights Commitment is to ensure PETRONAS’ activities are governed by human rights principles, laws, best industry practices and standards to manage impacts in our areas of operation.



The Commitment is applicable to all employees of PETRONAS Group of Companies, contractors, subcontractors and any third parties within PETRONAS premises or performing work and/or business for or on behalf of PETRONAS, in line with PETRONAS Contractors Code Of Conduct On Human Rights.

Human Rights is embedded across the five key areas of the PETRONAS Social Performance Framework that could potentially affect operational activities, namely, Environment, Health, Safety, Security and Socio-economic & Cultural.

The Commitment addresses:

  • Labour and working conditions
  • Third-party security
  • Supply chain
  • Community well-being

In order to support the implementation of the Commitment, Group HSE – Custodian for the Human Rights Commitment – have conducted a number of human rights training programmes for its employees and developed guidelines for its implementation.

Aligning to industry practices/standards on human rights is essential. PETRONAS is an active member of the International Petroleum Industry Environmental Conservation Association (IPIECA), the global oil and gas industry association for environmental and social issues, and contributes to collaborative learning projects on human rights.

PETRONAS Contractors Code of Conduct on Human Rights

In compliance with PETRONAS Human Rights Commitment, we seek to work with Contractors who share our values of integrity, committed to fighting bribery and corruption and contribute to sustainable development. PETRONAS requires our Contractors to:

  • Respect internationally-recognised human rights, complying with PETRONAS’ Code of Conduct and Business Ethics (CoBE) and all relevant legal requirements.
  • Take reasonable steps to ensure policies and guidelines are in place to demonstrate its respect for human rights including those applicable to its employees and contract personnel providing services to PETRONAS. These policies and guidelines shall include labour rights, workplace health and safety, security, and conditions of employment. The contents of these policies and guidelines shall be made known to employees and contract personnel in languages they understand.
  • Provide human rights awareness training to its employees and contract personnel and ensure all employees and contract personnel providing services to PETRONAS attend the training.
  • Establish a grievance mechanism for their employees, contract personnel and any party involved in providing services to PETRONAS. This grievance mechanism shall be made known to them and in languages they understand.
  • Provide timely feedback to PETRONAS regarding the contractor’s human rights performance within the duration of the contract, as gathered through personnel engagements, questionnaires and other appropriate means as required.




In compliance with PETRONAS Human Rights Commitment, we seek to work with Contractors who share our values of integrity, committed to fighting bribery and corruption and contribute to sustainable development. PETRONAS requires our Contractors to:

  1. Freedom of Labour, by not engaging or employing people, under any circumstances, against their own free will or engaging in bonded labour/debt slavery.
  2. Prevention of Child Labour, by not employing children below the legal minimum working age requirement of any country. Employees and contract personnel must be at least eighteen (18) years of age (unless otherwise determined by the local laws of the host country).
  3. Wages and Benefits, by complying with all applicable laws related to employee compensation, including minimum wage, overtime hours and legally mandated benefits.
  4. Working Hours, by complying with local laws of the host country or agreements regarding working hours, overtime hours, and work during holidays.
  5. Establish Grievance Mechanisms, which provide a means of grievance reporting and appropriate follow-up measures while ensuring that the identity of the complainant is protected.
  6. Non-Discrimination, by respecting diversity in the workplace and not engaging in any form of unlawful discrimination based on gender, race, ethnicity, skin colour, religion, nationality, sexual orientation, age, marital status, pregnancy, political affiliation, or disability in hiring and employment practices.
  7. Freedom of Association, by respecting the legal rights of employees to become members of a labour union or otherwise.
  8. Humane Treatment, by respecting employee’s rights and ensuring no harsh and inhumane treatment, including any form of mental or physical coercion, or verbal abuse of employees.
  9. Foreign or Migrant Workers, where if foreign or migrant employees are engaged, they are to be employed in full compliance with the labour and immigration laws of the host country. Prior to hiring, the basic terms of employment must be provided to employees in their native language or language in which they understand. Passports and other forms of personal identification must remain in the employee’s possession at all times and are never to be withheld by Contractor or any third party in full compliance with the labour and immigration laws of the host country.

PETRONAS will assess the Contractor’s compliance from time to time by (but not limited to) the Contractors’ Performance Indicator. Failure by a Contractor to comply with the provisions and standards set out in these Principles may result in the termination of the non-complying party’s relationship with PETRONAS and other adverse consequences.

These Principles shall apply to all PETRONAS contractors, subcontractors, consultants, suppliers, agents, representatives and others performing work or services for or on behalf of PETRONAS group of companies. It is the Contractor’s obligation to ensure that any party who is performing work and/or business for or on their behalf adhere to these Principles as well.


Know more about PETRONAS

 

  • Licensing & Procurement In Malaysia

    Information on licensing and registration for Malaysian-based vendors.

    Read More

  • Career Opportunities

    Let's go further together, with the right tools and mindsets. Because when empowered, anything is possible.

    Read More

  • Connect With Us

    Sign up for email updates and be the first to know of the latest developments from PETRONAS.

    Subscribe Now